Drew Industries Incorporated (DW) has reported a 72.88 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $29.84 million, or $1.19 a share in the quarter, compared with $17.26 million, or $0.70 a share for the same period last year.
Revenue during the quarter grew 19.43 percent to $412.37 million from $345.30 million in the previous year period. Gross margin for the quarter expanded 413 basis points over the previous year period to 25.60 percent. Total expenses were 89.05 percent of quarterly revenues, down from 92.13 percent for the same period last year. This has led to an improvement of 308 basis points in operating margin to 10.95 percent.
Operating income for the quarter was $45.14 million, compared with $27.17 million in the previous year period.
"RV industry volume continues to out-pace 2015, as 2016 third quarter wholesale travel trailers are up nearly 21 percent and fifth-wheels are up over 17 percent," stated Jason Lippert, Drew’s Chief Executive Officer. "Travel trailer sales momentum has continued as the industry attracts a new generation of RV enthusiasts. We are also pleased to see fifth-wheel wholesale units up approximately 2,500 units and 3,500 units over the third quarter and the first nine months of 2015, respectively. A 14 percent increase in wholesale shipments of motorhome RVs also contributed to the third quarter growth."
Operating cash flow improves significantly
Drew Industries Incorporated has generated cash of $164.11 million from operating activities during the nine month period, up 266.71 percent or $119.36 million, when compared with the last year period.
The company has spent $55.95 million cash to meet investing activities during the nine month period as against cash outgo of $61 million in the last year period. It has incurred net capital expenditure of $21.39 million on net basis during the nine month period, up 8.78 percent or $1.73 million from year ago period.
The company has spent $25.41 million cash to carry out financing activities during the nine month period as against cash inflow of $23.49 million in the last year period.
Cash and cash equivalents stood at $95.06 million as on Sep. 30, 2016, up 1,210.81 percent or $87.81 million from $7.25 million on Sep. 30, 2015.
Debt comes down significantly
Drew Industries Incorporated has recorded a decline in total debt over the last one year. It stood at $49.94 million as on Sep. 30, 2016, down 45.56 percent or $41.79 million from $91.73 million on Sep. 30, 2015. Drew Industries has recorded a decline in long-term debt over the last one year. It stood at $49.94 million as on Sep. 30, 2016, down 45.56 percent or $41.79 million from $91.73 million on Sep. 30, 2015. Total debt was 6.45 percent of total assets as on Sep. 30, 2016, compared with 13.70 percent on Sep. 30, 2015. Debt to equity ratio was at 0.09 as on Sep. 30, 2016, down from 0.22 as on Sep. 30, 2015.
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