Gencor Industries, Inc. (GENC) has reported an 11.49 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1.39 million, or $0.10 a share in the quarter, compared with $1.58 million, or $0.11 a share for the same period last year.
Revenue during the quarter grew 19.05 percent to $15.78 million from $13.26 million in the previous year period. Gross margin for the quarter expanded 154 basis points over the previous year period to 26.29 percent. Total expenses were 90.22 percent of quarterly revenues, down from 91.59 percent for the same period last year. This has led to an improvement of 137 basis points in operating margin to 9.78 percent.
Operating income for the quarter was $1.54 million, compared with $1.12 million in the previous year period.
John Elliott, Gencor's chief executive officer, commented, "Gencor began fiscal 2017 with the largest backlog of asphalt plants and components in the company’s history. Many of our clients placed orders earlier in anticipation of 2017 construction work which has resulted in an increase in demand for our products. Federal funds from the FAST ACT are being dispersed to state departments of transportation and should result in an increase in bidding activity for our domestic customers."
Working capital increases
Gencor Industries, Inc. has recorded an increase in the working capital over the last year. It stood at $116.76 million as at Dec. 31, 2016, up 8.93 percent or $9.58 million from $107.18 million on Dec. 31, 2015. Current ratio was at 10.94 as on Dec. 31, 2016, down from 12.18 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 142 days for the last year period. Days sales outstanding went down to 12 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has decreased to 50 days for the quarter compared with 128 days for the previous year period. At the same time, days payable outstanding went down to 14 days for the quarter from 16 for the same period last year.
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