Columbus McKinnon Corporation (CMCO) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $4.74 million, or $ 0.22 a share in the quarter, against a net profit of $5.89 million, or $0.29 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $8.92 million, or $0.40 a share compared with $7.87 million or $0.39 a share, a year ago.
Revenue during the quarter grew 18.44 percent to $183.69 million from $155.09 million in the previous year period. Gross margin for the quarter contracted 380 basis points over the previous year period to 27.40 percent. Operating margin for the quarter stood at negative 1.72 percent as compared to a positive 7.61 percent for the previous year period.
Operating loss for the quarter was $3.16 million, compared with an operating income of $11.81 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.93 million compared to $14.20 million in the prior year period. At the same time, adjusted operating margin improved 6 basis points in the quarter to 9.22 percent from 9.15 percent in the last year period.
Mark D. Morelli, president and chief executive officer of Columbus McKinnon, commented, "I joined the Company at the end of February and I am encouraged that we ended our fiscal year on a strong note. We had volume growth and demonstrated our consistent ability to generate cash. We will utilize our future cash generation for debt reduction and growth initiatives. The recent acquisition of STAHL is strategically significant for us and the integration is progressing according to plan. STAHL is already proving to be an excellent addition, as it allows us to expand our business in Europe and add a leading global explosion-protected hoist product line."
Operating cash flow improves
Columbus McKinnon Corporation has generated cash of $60.45 million from operating activities during the year, up 14.83 percent or $7.80 million, when compared with the last year.
The company has spent $224.04 million cash to meet investing activities during the year as against cash outgo of $203.23 million in the last year.
Cash flow from financing activities was $190.12 million for the year, up 38.77 percent or $53.12 million, when compared with the last year.
Cash and cash equivalents stood at $77.59 million as on Mar. 31, 2017, up 50.36 percent or $25.99 million from $51.60 million on Mar. 31, 2016.
Working capital increases
Columbus McKinnon Corporation has recorded an increase in the working capital over the last year. It stood at $149.99 million as at Mar. 31, 2017, up 6.97 percent or $9.78 million from $140.21 million on Mar. 31, 2016. Current ratio was at 1.79 as on Mar. 31, 2017, down from 2.06 on Mar. 31, 2016.
Debt increases substantially
Columbus McKinnon Corporation has witnessed an increase in total debt over the last one year. It stood at $421.32 million as on Mar. 31, 2017, up 57.42 percent or $153.69 million from $267.63 million on Mar. 31, 2016. Total debt was 37.83 percent of total assets as on Mar. 31, 2017, compared with 34.62 percent on Mar. 31, 2016. Debt to equity ratio was at 1.23 as on Mar. 31, 2017, up from 0.93 as on Mar. 31, 2016.
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