Hardinge Inc. (HDNG) has reported 34.40 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $3.71 million, or $0.29 a share in the quarter, compared with $2.76 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.07 million, or $0.31 a share compared with $5.85 million or $0.45 a share, a year ago.

Revenue during the quarter went down marginally by 0.19 percent to $86.80 million from $86.96 million in the previous year period. Gross margin for the quarter contracted 255 basis points over the previous year period to 32.35 percent. Total expenses were 94.26 percent of quarterly revenues, down from 96.30 percent for the same period last year. This has led to an improvement of 204 basis points in operating margin to 5.74 percent.

Operating income for the quarter was $4.98 million, compared with $3.22 million in the previous year period.

However, the adjusted operating income for the quarter stood at $5.31 million compared to $6.31 million in the prior year period. At the same time, adjusted operating margin contracted 114 basis points in the quarter to 6.12 percent from 7.26 percent in the last year period.

Richard L. Simons, president and chief executive officer, commented, "We ended 2016 in a much better position than where we started. Market conditions are improving with the order trend in the second half of 2016 healthier than the first half. The restructuring program we worked on most of the year has also proven successful. It was accomplished on time and on budget and, importantly, is achieving our cost reduction goals."

The company has spent $2.36 million cash to meet investing activities during the year as against cash outgo of $4.14 million in the last year. It has incurred net capital expenditure of $2.36 million on net basis during the year, down 42.98 percent or $1.78 million from year ago.

The company has spent $6.48 million cash to carry out financing activities during the year as against cash outgo of $5.70 million in the last year period.

Cash and cash equivalents stood at $28.26 million as on Dec. 31, 2016, down 13.79 percent or $4.52 million from $32.77 million on Dec. 31, 2015.

Working capital decreases marginally
Hardinge Inc. has witnessed a decline in the working capital over the last year. It stood at $127.85 million as at Dec. 31, 2016, down 1.08 percent or $1.40 million from $129.25 million on Dec. 31, 2015. Current ratio was at 2.76 as on Dec. 31, 2016, up from 2.57 on Dec. 31, 2015.

Debt comes down significantly 
Hardinge Inc. has recorded a decline in total debt over the last one year. It stood at $5.89 million as on Dec. 31, 2016, down 49.22 percent or $5.71 million from $11.61 million on Dec. 31, 2015. Total debt was 1.98 percent of total assets as on Dec. 31, 2016, compared with 3.73 percent on Dec. 31, 2015. Debt to equity ratio was at 0.04 as on Dec. 31, 2016, down from 0.07 as on Dec. 31, 2015. Interest coverage ratio improved to 38.89 for the quarter from 17.57 for the same period last year.