Knoll (KNL) has reported 59.44 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $21.44 million, or $0.44 a share in the quarter, compared with $13.45 million, or $0.28 a share for the same period last year. On an adjusted basis, earnings per share were at $0.44 for the quarter compared with $0.43 in the same period last year.
Revenue during the quarter dropped 4.21 percent to $292.87 million from $305.73 million in the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 38.02 percent. Total expenses were 87.78 percent of quarterly revenues, down from 92.85 percent for the same period last year. This has led to an improvement of 507 basis points in operating margin to 12.22 percent.
Operating income for the quarter was $35.78 million, compared with $21.85 million in the previous year period.
However, the adjusted operating income for the quarter stood at $35.80 million compared to $33.90 million in the prior year period. At the same time, adjusted operating margin improved 114 basis points in the quarter to 12.22 percent from 11.09 percent in the last year period.
"2016 was a good year for Knoll as our expanding constellation of high-design and high-margin brands and capabilities yielded strong results," commented Andrew Cogan, president and chief executive officer. "We set an all-time record for sales, grew sales faster than the market, expanded our industry leading operating margins as committed by over 100 basis points and laid the foundation for longer term growth with investments in new capabilities in ancillary categories with Rockwell Unscripted and the fourth quarter acquisition of the conference and meeting furniture company DatesWeiser. While we were impacted in the fourth quarter by the slowdown in demand that has been sweeping across the industry, we see reasons to be hopeful that with the uncertainty of the presidential election behind us, demand should improve later in the year."
Operating cash flow improvesKnoll has generated cash of $104.30 million from operating activities during the year, up 17.38 percent or $15.44 million, when compared with the last year. The company has spent $58.56 million cash to meet investing activities during the year as against cash outgo of $29.61 million in the last year.
The company has spent $38.83 million cash to carry out financing activities during the year as against cash outgo of $67.52 million in the last year period.
Cash and cash equivalents stood at $9.85 million as on Dec. 31, 2016, up 135.07 percent or $5.66 million from $4.19 million on Dec. 31, 2015.
Working capital drops significantly
Knoll has witnessed a decline in the working capital over the last year. It stood at $54.44 million as at Dec. 31, 2016, down 41.30 percent or $38.30 million from $92.73 million on Dec. 31, 2015. Current ratio was at 1.24 as on Dec. 31, 2016, down from 1.43 on Dec. 31, 2015.
Debt remains almost stableKnoll has recorded a decline in total debt over the last one year. It stood at $218.38 million as on Dec. 31, 2016, down 0.61 percent or $1.33 million from $219.72 million on Dec. 31, 2015. Total debt was 25.43 percent of total assets as on Dec. 31, 2016, compared with 25.67 percent on Dec. 31, 2015. Debt to equity ratio was at 0.71 as on Dec. 31, 2016, down from 0.86 as on Dec. 31, 2015. Interest coverage ratio improved to 28.65 for the quarter from 14.77 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
