L.B. Foster Company (FSTR) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $40.85 million, or $ 3.97 a share in the quarter, against a net profit of $3.33 million, or $0.32 a share in the last year period. Revenue during the quarter dropped 23.41 percent to $106.57 million from $139.14 million in the previous year period. Gross margin for the quarter contracted 385 basis points over the previous year period to 17.62 percent.
Operating loss for the quarter was $3.01 million, compared with an operating income of $2.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.96 million compared with $13.43 million in the prior year period. At the same time, adjusted EBITDA margin contracted 688 basis points in the quarter to 2.77 percent from 9.65 percent in the last year period.
Bob Bauer, president and chief executive officer, commented, “We accomplished a great deal in the fourth quarter as we completed several restructuring actions that have lowered our operating expenses further. The Company incurred an additional $1.2 million of one-time charges in the quarter to complete these actions. With these significant restructuring actions behind us, the Company is positioned to benefit from operating leverage as markets recover. These actions, combined with a further reduction in capital spending, are expected to drive improvement in free cash flow in 2017.
Working capital decreases marginally
L.B. Foster Company has witnessed a decline in the working capital over the last year. It stood at $117.27 million as at Dec. 31, 2016, down 4.52 percent or $5.55 million from $122.83 million on Dec. 31, 2015. Current ratio was at 2.42 as on Dec. 31, 2016, up from 2.34 on Dec. 31, 2015.
Debt comes down
L.B. Foster Company has recorded a decline in total debt over the last one year. It stood at $159.56 million as on Dec. 31, 2016, down 5.45 percent or $9.19 million from $168.75 million on Dec. 31, 2015. Total debt was 40.60 percent of total assets as on Dec. 31, 2016, compared with 29.78 percent on Dec. 31, 2015. Debt to equity ratio was at 1.20 as on Dec. 31, 2016, up from 0.60 as on Dec. 31, 2015.
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