Kewaunee Scientific Corporation (KEQU) has reported an 113.81 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $1.49 million, or $0.54 a share in the quarter, compared with $0.70 million, or $0.26 a share for the same period last year.
Revenue during the quarter grew 17.05 percent to $36.33 million from $31.04 million in the previous year period. Gross margin for the quarter expanded 173 basis points over the previous year period to 19.55 percent. Total expenses were 93.70 percent of quarterly revenues, down from 96.36 percent for the same period last year. This has led to an improvement of 266 basis points in operating margin to 6.30 percent.
Operating income for the quarter was $2.29 million, compared with $1.13 million in the previous year period.
"I am very happy with our results this quarter as we continue to compete for and win significant orders globally, demonstrating the strength and market leadership of Kewaunee," said David M. Rausch, Kewaunee's president and chief executive officer. "I am extremely pleased that Kewaunee has been awarded a second large order in Kuwait on which we will begin design and engineering during the second half of the current fiscal year, followed promptly by the production phase of the project.
Working capital increases
Kewaunee Scientific Corporation has recorded an increase in the working capital over the last year. It stood at $31.44 million as at Oct. 31, 2016, up 8.39 percent or $2.43 million from $29.01 million on Oct. 31, 2015. Current ratio was at 2.28 as on Oct. 31, 2016, down from 2.42 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 95 days for the last year period. Days sales outstanding went down to 72 days for the quarter compared with 84 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 39 for the same period last year.
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