Revenue during the quarter dropped 5.53 percent to $176.10 million from $186.40 million in the previous year period. Gross margin for the quarter contracted 389 basis points over the previous year period to 25.78 percent. Total expenses were 92.16 percent of quarterly revenues, up from 86.96 percent for the same period last year. That has resulted in a contraction of 520 basis points in operating margin to 7.84 percent.

Operating income for the quarter was $13.80 million, compared with $24.30 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $83.80 million compared with $115.90 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1459 basis points in the quarter to 47.59 percent from 62.18 percent in the last year period.

"Our fourth quarter results helped us deliver solid full-year earnings towards the higher end of our recent expectations," said Jennifer L. Sherman, President and Chief Executive Officer. "Although 2016 was a challenging year for many industrial companies, with persistent market headwinds, we responded well and maintained our focus on positioning the Company for long-term growth. We started the year by selling Bronto and securing additional financial capacity with the execution of a new credit facility. We also completed the acquisition and integration of JJE, which is ahead of our expectations and is executing on solid growth prospects."

For fiscal year 2017, Federal Signal Corporation expects adjusted diluted earnings per share to be in the range of $0.70 to $0.78.

The company has spent $16.80 million cash to meet investing activities during the year as against cash outgo of $12.80 million in the last year.

The company has spent $36.40 million cash to carry out financing activities during the year as against cash outgo of $33 million in the last year period.

Cash and cash equivalents stood at $50.70 million as on Dec. 31, 2016, down 33.29 percent or $25.30 million from $76 million on Dec. 31, 2015.

Working capital declines
Federal Signal Corporation  has witnessed a decline in the working capital over the last year. It stood at $174.70 million as at Dec. 31, 2016, down 11.72 percent or $23.20 million from $197.90 million on Dec. 31, 2015. Current ratio was at 3.06 as on Dec. 31, 2016, up from 2.69 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 51 days for the quarter from 35 days for the last year period. Days sales outstanding went up to 21 days for the quarter compared with 18 days for the same period last year.

Days inventory outstanding has increased to 42 days for the quarter compared with 31 days for the previous year period. At the same time, days payable outstanding was almost stable at 12 days for the quarter, when compared with the previous year period.