Huttig Building Products, Inc. (HBP) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.20 million, or $ 0.01 a share in the quarter, against a net profit of $0.40 million, or $0.02 a share in the last year period.
Revenue during the quarter grew 5.79 percent to $164.40 million from $155.40 million in the previous year period. Gross margin for the quarter expanded 106 basis points over the previous year period to 21.65 percent. Total expenses were 98.91 percent of quarterly revenues, down from 99.03 percent for the same period last year. This has led to an improvement of 13 basis points in operating margin to 1.09 percent.
Operating income for the quarter was $1.80 million, compared with $1.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.40 million compared with $2.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 27 basis points in the quarter to 2.07 percent from 1.80 percent in the last year period.
"I am incredibly proud of our performance in 2016, a year in which we generated record operating margins since I joined the company in 1999," said Jon Vrabely, Huttig’s President and chief executive officer. "We continue to invest in our growth, as evidenced by the expansion of our Huttig-Grip product line and the completion of our newest high capacity door line in Florida. We anticipate significant new investments in 2017 to continue our growth and profitability."
Operating cash flow remains almost stable
Huttig Building Products, Inc. has generated cash of $17 million from operating activities during the year, down 0.58 percent or $0.10 million, when compared with the last year.
The company has spent $21.40 million cash to meet investing activities during the year as against cash outgo of $0.30 million in the last year.
Cash flow from financing activities was $4.40 million for the year as against cash outgo of $17 million in the last year period.
Working capital increases sharply
Huttig Building Products, Inc. has recorded an increase in the working capital over the last year. It stood at $80 million as at Dec. 31, 2016, up 35.14 percent or $20.80 million from $59.20 million on Dec. 31, 2015. Current ratio was at 2.14 as on Dec. 31, 2016, up from 1.86 on Dec. 31, 2015.
Debt moves up
Huttig Building Products, Inc. has witnessed an increase in total debt over the last one year. It stood at $55.50 million as on Dec. 31, 2016, up 14.20 percent or $6.90 million from $48.60 million on Dec. 31, 2015. Total debt was 27.43 percent of total assets as on Dec. 31, 2016, compared with 27.40 percent on Dec. 31, 2015. Debt to equity ratio was at 0.79 as on Dec. 31, 2016, down from 0.92 as on Dec. 31, 2015. Interest coverage ratio improved to 3 for the quarter from 2.50 for the same period last year.
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