Haynes International, Inc. (HAYN) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.67 million, or $ 0.06 a share in the quarter, against a net profit of $0.23 million, or $0.02 a share in the last year period.

Revenue during the quarter went down marginally by 1.80 percent to $93.36 million from $95.07 million in the previous year period. Gross margin for the quarter contracted 148 basis points over the previous year period to 11.23 percent. Operating margin for the quarter stood at negative 0.82 percent as compared to a positive 0.94 percent for the previous year period.

Operating loss for the quarter was $0.77 million, compared with an operating income of $0.90 million in the previous year period.

"This was a difficult quarter with continued soft demand as customers managed their year-end balance sheets. The industry headwinds persist with the strong dollar, increasingly competitive pricing for the commodity chemical processing business and continued slowness in industrial gas turbines. The narrative we hear from our customers suggests that the next quarter or two may continue to be challenging but that optimism is warranted in the second half of the calendar year," said Mark Comerford, President and Chief Executive Officer.

The company has spent $5.89 million cash to meet investing activities during the quarter as against cash outgo of $7.05 million in the last year period.

The company has spent $3.07 million cash to carry out financing activities during the quarter as against cash outgo of $3.16 million in the last year period.

Cash and cash equivalents stood at $62.96 million as on Dec. 31, 2016, up 30.47 percent or $14.70 million from $48.26 million on Dec. 31, 2015.
 

Working capital declines
Haynes International, Inc. has witnessed a decline in the working capital over the last year. It stood at $308.20 million as at Dec. 31, 2016, down 5.05 percent or $16.38 million from $324.58 million on Dec. 31, 2015. Current ratio was at 6.28 as on Dec. 31, 2016, up from 5.94 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 164 days for the quarter from 320 days for the last year period. Days sales outstanding went down to 67 days for the quarter compared with 73 days for the same period last year.

Days inventory outstanding has decreased to 134 days for the quarter compared with 280 days for the previous year period. At the same time, days payable outstanding went up to 37 days for the quarter from 33 for the same period last year.