CIRCOR International, Inc (CIR) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2 million, or $ 0.12 a share in the quarter, against a net profit of $7.16 million, or $0.43 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.93 million, or $0.48 a share compared with $10.51 million or $0.63 a share, a year ago.
Revenue during the quarter dropped 3.66 percent to $158.24 million from $164.24 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 31.03 percent. Operating margin for the quarter stood at negative 2.17 percent as compared to a positive 7.48 percent for the previous year period.
Operating loss for the quarter was $3.44 million, compared with an operating income of $12.28 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10.98 million compared to $16.75 million in the prior year period. At the same time, adjusted operating margin contracted 326 basis points in the quarter to 6.94 percent from 10.20 percent in the last year period.
“CIRCOR concluded 2016 with solid fourth-quarter performance delivering revenue of $158 million and adjusted earnings per share of $0.48,” said Scott Buckhout, president and chief executive officer. “We were pleased with the quarter, especially the impact of our simplification program and the improvement in our North America short-cycle order trend. In addition, the integration of Critical Flow Solutions is progressing as planned.”
Operating cash flow improves significantly
CIRCOR International, Inc has generated cash of $59.40 million from operating activities during the year, up 118.85 percent or $32.26 million, when compared with the last year.
The company has spent $210.48 million cash to meet investing activities during the year as against cash outgo of $87.73 million in the last year. It has incurred net capital expenditure of $12.99 million on net basis during the year, up 23.71 percent or $2.49 million from year ago.
Cash flow from financing activities was $158.76 million for the year, up 6,953.04 percent or $156.51 million, when compared with the last year.
Cash and cash equivalents stood at $58.28 million as on Dec. 31, 2016, up 6.85 percent or $3.74 million from $54.54 million on Dec. 31, 2015.
Working capital increases
CIRCOR International, Inc has recorded an increase in the working capital over the last year. It stood at $252.74 million as at Dec. 31, 2016, up 8.81 percent or $20.46 million from $232.28 million on Dec. 31, 2015. Current ratio was at 3.15 as on Dec. 31, 2016, up from 2.63 on Dec. 31, 2015.
Debt increases substantially
CIRCOR International, Inc has witnessed an increase in total debt over the last one year. It stood at $251.20 million as on Dec. 31, 2016, up 177.57 percent or $160.70 million from $90.50 million on Dec. 31, 2015. Circor International has witnessed an increase in long-term debt over the last one year. It stood at $251.20 million as on Dec. 31, 2016, up 177.57 percent or $160.70 million from $90.50 million on Dec. 31, 2015. Total debt was 30.61 percent of total assets as on Dec. 31, 2016, compared with 13.51 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, up from 0.23 as on Dec. 31, 2015.
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