Briggs & Stratton Corporation (BGG) saw its loss narrow to $14.15 million, or $0.34 a share for the quarter ended Oct. 02, 2016. In the previous year period, the company reported a loss of $18.17 million, or $0.42 a share. On the other hand, adjusted net loss for the quarter narrowed to $14.15 million, or $0.34 a share from a loss of $15.20 million or $0.35 a share, a year ago.

Revenue during the quarter went down marginally by 0.92 percent to $286.80 million from $289.46 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 18.31 percent. Operating margin for the quarter stood at negative 5.69 percent as compared to a negative 8.06 percent for the previous year period.

Operating loss for the quarter was $16.31 million, compared with an operating loss of $23.34 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $16.31 million compared to operating loss of $18.84 million in prior year period.

"Our first quarter results were better than we expected, largely driven by engine shipments that occurred earlier than expected," said Todd J. Teske, chairman, president and chief executive officer. "Favorable weather in the U.S. and Europe has led to solid late season activity following a delayed start to this past season. We believe the impact of the late season activity has reduced lawn and garden channel inventories to near normal levels, similar to last year."
 

For financial year 2017, Briggs & Stratton Corp expects revenue to be in the range of $1,860 million to $1,900 million. The company projects adjusted net income to be in the range of $57 million to $64 million. The company projects diluted earnings per share to be in the range of $1.31 to $1.46 on adjusted basis.

The company has spent $12.37 million cash to meet investing activities during the quarter as against cash outgo of $14.09 million in the last year period. It has incurred capital expenditure of $15.71 million on net basis during the quarter, up 31.89 percent or $3.80 million from year ago period.

Cash flow from financing activities was $41.82 million for the quarter, up 24.24 percent or $8.16 million, when compared with the last year period.

Cash and cash equivalents stood at $42.96 million as on Oct. 02, 2016, down 20.44 percent or $11.03 million from $54 million on Sep. 27, 2015.
 

Working capital declines
Briggs & Stratton Corporation has witnessed a decline in the working capital over the last year. It stood at $393.29 million as at Oct. 02, 2016, down 7.20 percent or $30.54 million from $423.83 million on Sep. 27, 2015. Current ratio was at 2.07 as on Oct. 02, 2016, down from 2.16 on Sep. 27, 2015.

Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 153 days for the last year period. Days sales outstanding were almost stable at 60 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 91 days for the quarter compared with 162 days for the previous year period. At the same time, days payable outstanding went up to 72 days for the quarter from 70 for the same period last year.