Columbus Mckinnon Corporation (CMCO) has reported 93.01 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.50 million, or $0.02 a share in the quarter, compared with $7.23 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.54 million, or $0.22 a share compared with $6.95 million or $0.34 a share, a year ago. Revenue during the quarter dropped 4.53 percent to $152.50 million from $159.74 million in the previous year period. Gross margin for the quarter contracted 87 basis points over the previous year period to 29.39 percent. Total expenses were 96.51 percent of quarterly revenues, up from 93.14 percent for the same period last year. That has resulted in a contraction of 337 basis points in operating margin to 3.49 percent.
Operating income for the quarter was $5.32 million, compared with $10.96 million in the previous year period.
However, the adjusted operating income for the quarter stood at $8.46 million compared to $12.47 million in the prior year period. At the same time, adjusted operating margin contracted 226 basis points in the quarter to 5.55 percent from 7.81 percent in the last year period.
Timothy T. Tevens, president and chief executive officer, commented, "The quarter was weaker than we had anticipated, especially in the U.S. and EMEA, but our optimism for the longer term is not deterred. Our belief is that new product development combined with the Magnetek and STAHL acquisitions expand our competitive advantages and provides a stronger global market position as industrial economies strengthen."
Operating cash flow improves significantlyColumbus Mckinnon Corporation has generated cash of $48.52 million from operating activities during the nine month period, up 47.47 percent or $15.62 million, when compared with the last year period. The company has spent $8.14 million cash to meet investing activities during the nine month period as against cash outgo of $196.49 million in the last year period.
The company has spent $36.51 million cash to carry out financing activities during the nine month period as against cash inflow of $151.15 million in the last year period.
Cash and cash equivalents stood at $51.54 million as on Dec. 31, 2016, down 0.66 percent or $0.34 million from $51.88 million on Dec. 31, 2015.
Working capital increases
Columbus Mckinnon Corporation has recorded an increase in the working capital over the last year. It stood at $159.34 million as at Dec. 31, 2016, up 11.81 percent or $16.84 million from $142.51 million on Dec. 31, 2015. Current ratio was at 2.72 as on Dec. 31, 2016, up from 2.06 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 71 days for the quarter from 125 days for the last year period. Days sales outstanding were almost stable at 51 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 47 days for the quarter compared with 101 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.
Debt comes down
Columbus Mckinnon Corporation has recorded a decline in total debt over the last one year. It stood at $234.13 million as on Dec. 31, 2016, down 16.70 percent or $46.94 million from $281.07 million on Dec. 31, 2015. Total debt was 32.27 percent of total assets as on Dec. 31, 2016, compared with 36.46 percent on Dec. 31, 2015. Debt to equity ratio was at 0.80 as on Dec. 31, 2016, down from 1 as on Dec. 31, 2015. 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
