Revenue during the quarter surged 39.13 percent to $203.28 million from $146.11 million in the previous year period. Gross margin for the quarter contracted 341 basis points over the previous year period to 22.33 percent. Operating margin for the quarter stood at negative 0.32 percent as compared to a positive 5.35 percent for the previous year period.

Operating loss for the quarter was $0.66 million, compared with an operating income of $7.81 million in the previous year period.

“During the first quarter, total Company revenue growth was over 39%, with double-digit organic growth in both our Europe-Africa and Asia-Pacific operations,” said A. Mark Zeffiro, President and Chief Executive Officer of Horizon Global. “This revenue growth, coupled with lower-than-planned corporate costs, was more than offset by lower-than-expected performance in our Americas business. The slow start to the year in the Americas was driven by several factors, including overall market conditions with softness in GDP growth and lower retail sales. The first quarter also saw a shift in the timing of customer orders into the second quarter of this year, with this shift partially attributable to the ramp up of our new ERP system in the Americas. Importantly, Horizon Americas entered the second quarter with significant customer orders ready for delivery.

For the second-quarter 2017, Horizon Global Corporation expects revenue to be in the range of $235 million to $245 million and its diluted earnings per share to be in the range of $0.61 to $0.66 and adjusted diluted earnings per share to be in the range of $0.67 to $0.72.

For fiscal year 2017, the company expects operating income to be in the range of $40 million to $48 million and its adjusted operating income to be in the range of $53 million to $59 million and diluted earnings per share to be in the range of $0.50 to $0.60 and adjusted iluted earnings per share to be in the range of $0.94 to $1.04.

The company has spent $7.40 million cash to meet investing activities during the quarter as against cash outgo of $3.28 million in the last year period. It has incurred capital expenditure of $7.40 million on net basis during the quarter, up 125.61 percent or $4.12 million from year ago period.

Cash flow from financing activities was $26.76 million for the quarter, up 22.14 percent or $4.85 million, when compared with the last year period.

Cash and cash equivalents stood at $30.16 million as on Mar. 31, 2017, up 61.20 percent or $11.45 million from $18.71 million on Mar. 31, 2016.

Working capital increases
Horizon Global Corporation has recorded an increase in the working capital over the last year. It stood at $125.13 million as at Mar. 31, 2017, up 12.02 percent or $13.43 million from $111.70 million on Mar. 31, 2016. Current ratio was at 1.70 as on Mar. 31, 2017, down from 1.96 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 84 days for the last year period. Days sales outstanding went down to 37 days for the quarter compared with 46 days for the same period last year.

Days inventory outstanding has decreased to 44 days for the quarter compared with 99 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 61 for the same period last year.