CTS Corporation (CTS) has reported 7.90 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $8.48 million, or $0.25 a share in the quarter, compared with $7.86 million, or $0.24 a share for the same period last year. On an adjusted basis, profit per share for the quarter was stable at $0.26, when compared with the last year period. Revenue during the quarter grew 3.57 percent to $100.15 million from $96.70 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 34.17 percent. Total expenses were 87.82 percent of quarterly revenues, up from 87.14 percent for the same period last year. That has resulted in a contraction of 68 basis points in operating margin to 12.18 percent.
Operating income for the quarter was $12.20 million, compared with $12.44 million in the previous year period.
“The first quarter was a solid start to the year,” said Kieran O’Sullivan, Chief executive officer of CTS Corporation. “We are focused on improving our performance over the balance of the year. Our booked business is growing steadily. Our operational execution remains on track, and various transition projects are moving forward.”
Cts Corp projects revenue to be in the range of $405 million to $420 million for financial year 2017.
Working capital remains almost stable
CTS Corporation has witnessed a decline in the working capital over the last year. It stood at $134.22 million as at Mar. 31, 2017, down 0.66 percent or $0.90 million from $135.12 million on Mar. 31, 2016. Current ratio was at 2.44 as on Mar. 31, 2017, up from 2.34 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 32 days for the last year period. Days sales outstanding went down to 53 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding went down to 56 days for the quarter from 61 for the same period last year.
Debt comes down significantly
CTS Corporation has recorded a decline in total debt over the last one year. It stood at $95.01 million as on Mar. 31, 2017, down 32.76 percent or $46.29 million from $141.30 million on Mar. 31, 2016. Short-term debt stood at $1.01 million as on Mar. 31, 2017. Total debt was 18 percent of total assets as on Mar. 31, 2017, compared with 26.15 percent on Mar. 31, 2016. Debt to equity ratio was at 0.29 as on Mar. 31, 2017, down from 0.49 as on Mar. 31, 2016. Interest coverage ratio improved to 17.83 for the quarter from 15.17 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
