Ceco Environmental Corp (CECE) has reported a 98.77 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.04 million in the quarter, compared with $3.10 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.80 million, or $0.20 a share compared with $6.10 million or $0.18 a share, a year ago. Revenue during the quarter dropped 10.20 percent to $92.65 million from $103.18 million in the previous year period. Gross margin for the quarter expanded 385 basis points over the previous year period to 34.46 percent. Total expenses were 98.54 percent of quarterly revenues, up from 94.37 percent for the same period last year. That has resulted in a contraction of 417 basis points in operating margin to 1.46 percent.
Operating income for the quarter was $1.35 million, compared with $5.81 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10 million compared to $10.90 million in the prior year period. At the same time, adjusted operating margin improved 23 basis points in the quarter to 10.79 percent from 10.56 percent in the last year period.
CECO’s Interim chief executive officer Dennis Sadlowski commented, "After three months as Interim CEO, I remain very excited to be leading CECO during this transformative next stage of its development. The last five years have proven that CECO is very strong operationally, and is adept at generating solid margins and cash flow. Now, as we maintain our core operating strength, we will also need to build our organic growth engine through a re-orientation to an outside-in focus on customers and markets, along with a strategic refresh that is already well underway. Our management team is energized with these new initiatives as well as our core focus on serving global customer markets that are attractive in the long-term ��" natural gas power, midstream natural gas pipelines, petroleum and petrochemical refineries, and diversified industrial markets."
Working capital declines
Ceco Environmental Corp has witnessed a decline in the working capital over the last year. It stood at $68.81 million as at Mar. 31, 2017, down 6.27 percent or $4.60 million from $73.41 million on Mar. 31, 2016. Current ratio was at 1.52 as on Mar. 31, 2017, up from 1.51 on Mar. 31, 2016. Days sales outstanding went up to 85 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 16 days for the quarter compared with 40 days for the previous year period.
Debt comes down significantly
Ceco Environmental Corp has recorded a decline in total debt over the last one year. It stood at $124.72 million as on Mar. 31, 2017, down 26.91 percent or $45.91 million from $170.63 million on Mar. 31, 2016. Total debt was 25.86 percent of total assets as on Mar. 31, 2017, compared with 29.32 percent on Mar. 31, 2016. Debt to equity ratio was at 0.66 as on Mar. 31, 2017, down from 0.69 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.79 for the quarter from 2.76 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
