Kaman Corporation (KAMN) has reported 72.41 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $15.13 million, or $0.53 a share in the quarter, compared with $8.77 million, or $0.32 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.76 million, or $0.56 a share compared with $19.17 million or $0.69 a share, a year ago.
Revenue during the quarter dropped 4.25 percent to $433.06 million from $452.28 million in the previous year period. Gross margin for the quarter expanded 309 basis points over the previous year period to 31.27 percent. Total expenses were 93.84 percent of quarterly revenues, down from 95.14 percent for the same period last year. This has led to an improvement of 130 basis points in operating margin to 6.16 percent.
Operating income for the quarter was $26.66 million, compared with $21.98 million in the previous year period.
However, the adjusted operating income for the quarter stood at $27.63 million compared to $31.72 million in the prior year period. At the same time, adjusted operating margin contracted 63 basis points in the quarter to 6.38 percent from 7.01 percent in the last year period.
Neal J. Keating, chairman, president and chief executive officer, commented, "In the fourth quarter of 2016, we continued to execute on our key strategic initiatives to position Kaman for profitable growth. Against a challenging macroeconomic backdrop in certain of our end markets, we are successfully executing on our productivity and realignment programs to enhance margins and consistently deliver improved financial performance. As a key highlight, we are pleased to report gross margin of 31.3% for the quarter, a 310 bps increase over the fourth quarter of 2015 and a 140 bps increase over the third quarter of 2016, primarily driven by improvements at Distribution. Demonstrating our focus on driving meaningful cash flow generation, 2016 was the third consecutive year in which Free Cash Flows were greater than 130% of our Net Earnings.
Operating cash flow falls marginallyKaman Corporation has generated cash of $107.71 million from operating activities during the year, down 1.71 percent or $1.88 million, when compared with the last year. The company has spent $37.58 million cash to meet investing activities during the year as against cash outgo of $232.61 million in the last year.
The company has spent $43.96 million cash to carry out financing activities during the year as against cash inflow of $127.59 million in the last year period.
Cash and cash equivalents stood at $41.20 million as on Dec. 31, 2016, up 150.30 percent or $24.74 million from $16.46 million on Dec. 31, 2015.
Working capital declines
Kaman Corporation has witnessed a decline in the working capital over the last year. It stood at $344.67 million as at Dec. 31, 2016, down 21.55 percent or $94.68 million from $439.35 million on Dec. 31, 2015. Current ratio was at 1.97 as on Dec. 31, 2016, down from 2.86 on Dec. 31, 2015.
Debt comes downKaman Corporation has recorded a decline in total debt over the last one year. It stood at $416.15 million as on Dec. 31, 2016, down 5.25 percent or $23.08 million from $439.23 million on Dec. 31, 2015. Total debt was 29.18 percent of total assets as on Dec. 31, 2016, compared with 30.48 percent on Dec. 31, 2015. Debt to equity ratio was at 0.74 as on Dec. 31, 2016, down from 0.81 as on Dec. 31, 2015. Interest coverage ratio improved to 7.04 for the quarter from 6.49 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
