Ironclad Performance Wear Corporation (ICPW) has reported a 30.24 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $0.32 million in the quarter, compared with $0.24 million for the same period last year.
Revenue during the quarter went down marginally by 1.42 percent to $8.30 million from $8.42 million in the previous year period. Gross margin for the quarter expanded 273 basis points over the previous year period to 36.20 percent. Total expenses were 95.64 percent of quarterly revenues, down from 96.88 percent for the same period last year. This has led to an improvement of 124 basis points in operating margin to 4.36 percent.
Operating income for the quarter was $0.36 million, compared with $0.26 million in the previous year period.
Jeff Cordes, chief executive officer of Ironclad commented: "In a year where most industrial distributors and numerous retailers reported declining performance, we are pleased to have grown our business for 2016 nearly 7%. The strong growth we achieved through both the industrial and retail channels in the 4th quarter nearly replaced the old and unprofitable 5.11 contract business, as well as the loss of business from our prior Canadian distributor. That being said, having placed the ORR Safety litigation behind us, we are now taking control of our international business and expect improving performance in 2017 in this segment."
Debt increases substantially
Ironclad Performance Wear Corporation has witnessed an increase in total debt over the last one year. It stood at $4.25 million as on Dec. 31, 2016, up 31.73 percent or $1.02 million from $3.22 million on Dec. 31, 2015. Ironclad Performance Wear Corp has witnessed an increase in short-term debt over the last one year. It stood at $4.25 million as on Dec. 31, 2016, up 31.73 percent or $1.02 million from $3.22 million on Dec. 31, 2015. Total debt was 22.45 percent of total assets as on Dec. 31, 2016, compared with 17.05 percent on Dec. 31, 2015. Debt to equity ratio was at 0.42 as on Dec. 31, 2016, up from 0.26 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 8 for the quarter from 10.21 for the same period last year.
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