BWX Technologies, Inc. (BWXT) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $33.99 million, or $ 0.34 a share in the quarter, against a net loss of $0.52 million, or $1.22 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $46.50 million, or $0.46 a share compared with $40.50 million or $0.38 a share, a year ago.
Revenue during the quarter grew 10.97 percent to $403.86 million from $363.94 million in the previous year period. Gross margin for the quarter expanded 1069 basis points over the previous year period to 28.32 percent. Total expenses were 88.65 percent of quarterly revenues, down from 97.36 percent for the same period last year. This has led to an improvement of 871 basis points in operating margin to 11.35 percent.
Operating income for the quarter was $45.82 million, compared with $9.61 million in the previous year period.
However, the adjusted operating income for the quarter stood at $71.80 million compared to $62.10 million in the prior year period. At the same time, adjusted operating margin improved 72 basis points in the quarter to 17.78 percent from 17.06 percent in the last year period.
BWX Technologies expects revenue to be in the range of $1,600 million to $1,700 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.85 to $1.95 on adjusted basis.
Operating cash flow drops significantly
BWX Technologies, Inc. has generated cash of $239.85 million from operating activities during the year, down 28.44 percent or $95.31 million, when compared with the last year.
The company has spent $179.69 million cash to meet investing activities during the year as against cash outgo of $71.89 million in the last year. It has incurred net capital expenditure of $52.59 million on net basis during the year, down 22.97 percent or $15.68 million from year ago.
The company has spent $88.90 million cash to carry out financing activities during the year as against cash outgo of $414.42 million in the last year period.
Cash and cash equivalents stood at $125.64 million as on Dec. 31, 2016, down 18.80 percent or $29.09 million from $154.73 million on Dec. 31, 2015.
Working capital declines
BWX Technologies, Inc. has witnessed a decline in the working capital over the last year. It stood at $253.70 million as at Dec. 31, 2016, down 13.57 percent or $39.82 million from $293.51 million on Dec. 31, 2015. Current ratio was at 1.58 as on Dec. 31, 2016, down from 1.83 on Dec. 31, 2015.
Days sales outstanding went down to 18 days for the quarter compared with 22 days for the same period last year.
At the same time, days payable outstanding went up to 16 days for the quarter from 11 for the same period last year.
Debt increases substantially
BWX Technologies, Inc. has witnessed an increase in total debt over the last one year. It stood at $525.09 million as on Dec. 31, 2016, up 79.05 percent or $231.84 million from $293.26 million on Dec. 31, 2015. Total debt was 33.24 percent of total assets as on Dec. 31, 2016, compared with 21.22 percent on Dec. 31, 2015. Debt to equity ratio was at 3.49 as on Dec. 31, 2016, up from 1.05 as on Dec. 31, 2015. Interest coverage ratio improved to 14.94 for the quarter from 2.84 for the same period last year.
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