Matrix Service Company (MTRX) has reported a 3.33 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $5.25 million, or $0.20 a share in the quarter, compared with $5.43 million, or $0.20 a share for the same period last year. Revenue during the quarter dropped 3.36 percent to $312.66 million from $323.53 million in the previous year period. Gross margin for the quarter contracted 25 basis points over the previous year period to 9.02 percent. Total expenses were 97.37 percent of quarterly revenues, down from 98.47 percent for the same period last year. This has led to an improvement of 111 basis points in operating margin to 2.63 percent.
Operating income for the quarter was $8.24 million, compared with $4.94 million in the previous year period.
"As reflected in our second quarter results, we are experiencing delays in the timing of awards, as well as ongoing conservative spending patterns by our customers caused by persistently challenging and uncertain market conditions. We expect these conditions to negatively impact our third quarter and, to a lesser degree, full year results," said Matrix Service Company president and chief executive officer, John R. Hewitt.
For financial year 2017, Matrix Service Company projects revenue to be in the range of $1,200 million to $1,300 million. The company forecasts diluted earnings per share to be in the range of $0.75 to $1.05.
Working capital increases sharply
Matrix Service Company has recorded an increase in the working capital over the last year. It stood at $177.95 million as at Dec. 31, 2016, up 38.34 percent or $49.32 million from $128.63 million on Dec. 31, 2015. Current ratio was at 1.77 as on Dec. 31, 2016, up from 1.50 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 31 days for the quarter from 24 days for the last year period. Days sales outstanding went up to 64 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 34 days for the quarter, when compared with the previous year period.
Debt increases substantially
Matrix Service Company has witnessed an increase in total debt over the last one year. It stood at $72.41 million as on Dec. 31, 2016, up 902.10 percent or $65.19 million from $7.23 million on Dec. 31, 2015. Matrix Service Co has witnessed an increase in long-term debt over the last one year. It stood at $72.41 million as on Dec. 31, 2016, up 902.10 percent or $65.19 million from $7.23 million on Dec. 31, 2015. Total debt was 11.39 percent of total assets as on Dec. 31, 2016, compared with 1.26 percent on Dec. 31, 2015. Debt to equity ratio was at 0.22 as on Dec. 31, 2016, up from 0.02 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 16.57 for the quarter from 19.58 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
