LMI Aerospace Inc (LMIA) saw its loss widen to $3.76 million, or $0.29 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.19 million, or $0.09 a share. Revenue during the quarter dropped 4.76 percent to $85.18 million from $89.44 million in the previous year period. Gross margin for the quarter contracted 379 basis points over the previous year period to 14.31 percent. Total expenses were 98.36 percent of quarterly revenues, up from 94.92 percent for the same period last year. That has resulted in a contraction of 344 basis points in operating margin to 1.64 percent.
Operating income for the quarter was $1.39 million, compared with $4.54 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.94 million compared with $10.91 million in the prior year period. At the same time, adjusted EBITDA margin contracted 406 basis points in the quarter to 8.15 percent from 12.20 percent in the last year period.
“We knew 2016 would be a year of transition as we began preparing our operations for significant growth ahead, and we also faced some unexpected challenges that further impacted our performance for the quarter and the year,” said LMI Aerospace Chief Executive Officer Dan Korte. “At the start of 2017, we reviewed our leadership structure and found a balanced way to manage the business more efficiently and effectively by naming Keith Schrader as vice president of Operations and confirming Jay Inman as president of Engineering Services. They are bringing renewed leadership strength as we ready our Aerostructures business for production ramp-ups and pursue new revenue opportunities for Engineering Services.
Operating cash flow drops significantly
LMI Aerospace Inc has generated cash of $14.55 million from operating activities during the year, down 55.04 percent or $17.81 million, when compared with the last year. The company has spent $11.17 million cash to meet investing activities during the year as against cash outgo of $16.31 million in the last year. It has incurred net capital expenditure of $11.17 million on net basis during the year, down 31.51 percent or $5.14 million from year ago.
The company has spent $11.39 million cash to carry out financing activities during the year as against cash outgo of $13.47 million in the last year period.
Cash and cash equivalents stood at $2.49 million as on Dec. 31, 2016, down 76.29 percent or $8.01 million from $10.50 million on Dec. 31, 2015.
Working capital declines
LMI Aerospace Inc has witnessed a decline in the working capital over the last year. It stood at $122.53 million as at Dec. 31, 2016, down 7.44 percent or $9.85 million from $132.38 million on Dec. 31, 2015. Current ratio was at 3.13 as on Dec. 31, 2016, down from 3.91 on Dec. 31, 2015.
Debt comes down marginally
LMI Aerospace Inc has recorded a decline in total debt over the last one year. It stood at $240.05 million as on Dec. 31, 2016, down 3.98 percent or $9.94 million from $250 million on Dec. 31, 2015. Total debt was 62.57 percent of total assets as on Dec. 31, 2016, compared with 60.10 percent on Dec. 31, 2015. Debt to equity ratio was at 2.81 as on Dec. 31, 2016, up from 2.12 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.27 for the quarter from 0.81 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
