Graco Inc. (GGG) swung to a net loss for the quarter ended Dec. 30, 2016. The company has made a net loss of $104.21 million, or $ 1.83 a share in the quarter, against a net profit of $53.54 million, or $0.94 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $57.20 million, or $1 a share compared with $52.90 million or $0.93 a share, a year ago. Revenue during the quarter grew 7.22 percent to $349.06 million from $325.56 million in the previous year period. Gross margin for the quarter expanded 16 basis points over the previous year period to 52.91 percent. Operating margin for the quarter stood at negative 30.62 percent as compared to a positive 23.37 percent for the previous year period.
Operating loss for the quarter was $106.88 million, compared with an operating income of $76.08 million in the previous year period.
However, the adjusted operating income for the quarter stood at $85.10 million compared to $76.10 million in the prior year period. At the same time, adjusted operating margin improved 100 basis points in the quarter to 24.38 percent from 23.38 percent in the last year period.
"The Company posted the highest quarterly sales growth rate of the year in the 14-week fourth quarter, with double-digit performance from our Contractor segment and high single-digit growth from our EMEA region," said Patrick J. McHale, Gracos president and chief executive officer. "On an organic, constant currency basis we achieved growth in every region and reportable segment for the quarter and the full year, with the exception of our Process segment, which continues to experience headwinds from ongoing weakness in the oil and natural gas market. The large impairment charge in our Oil and Natural Gas business this quarter is a disappointment, but we remain committed to the long-term potential of this business. We continue to invest in commercial resources to expand geographic coverage, drive innovation, grow our channel, and increase market share. As the market recovers, we expect to benefit from these actions and will strive to turn this business into a solid performer for Graco."
Operating cash flow improves significantlyGraco Inc. has generated cash of $269.09 million from operating activities during the year, up 41.90 percent or $79.45 million, when compared with the last year. The company has spent $90.94 million cash to meet investing activities during the year as against cash inflow of $369.94 million in the last year.
The company has spent $178.25 million cash to carry out financing activities during the year as against cash outgo of $534.41 million in the last year period.
Cash and cash equivalents stood at $52.36 million as on Dec. 30, 2016, up 0.13 percent or $0.07 million from $52.30 million on Dec. 25, 2015.
Working capital increases marginally
Graco Inc. has recorded an increase in the working capital over the last year. It stood at $325.38 million as at Dec. 30, 2016, up 3.49 percent or $10.98 million from $314.40 million on Dec. 25, 2015. Current ratio was at 2.83 as on Dec. 30, 2016, up from 2.62 on Dec. 25, 2015.
Debt comes down
Graco Inc. has recorded a decline in total debt over the last one year. It stood at $314.60 million as on Dec. 30, 2016, down 23.01 percent or $94 million from $408.60 million on Dec. 25, 2015. Total debt was 25.31 percent of total assets as on Dec. 30, 2016, compared with 29.37 percent on Dec. 25, 2015. Debt to equity ratio was at 0.55 as on Dec. 30, 2016, down from 0.64 as on Dec. 25, 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
