MCBC Holdings (MCFT) has reported 115.56 percent jump in profit for the quarter ended Jan. 01, 2017. The company has earned $4.03 million, or $0.22 a share in the quarter, compared with $1.87 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.90 million, or $0.26 a share compared with $6.17 million or $0.33 a share, a year ago. Revenue during the quarter dropped 7.37 percent to $51.13 million from $55.20 million in the previous year period. Gross margin for the quarter expanded 10 basis points over the previous year period to 27.94 percent. Total expenses were 86.23 percent of quarterly revenues, down from 94.96 percent for the same period last year. This has led to an improvement of 873 basis points in operating margin to 13.77 percent.
Operating income for the quarter was $7.04 million, compared with $2.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9 million compared with $10.53 million in the prior year period. At the same time, adjusted EBITDA margin contracted 147 basis points in the quarter to 17.60 percent from 19.07 percent in the last year period.
Terry McNew, MasterCrafts president and chief executive officer, commented, "We were pleased to see low double-digit growth in retail demand during the first half of our fiscal year. Market reception for our recently released XT20 has been strong, and the second-quarter launch of the XT21 will allow this series to continue setting the new industry standard in premium features and performance for towboat activities. In the first half of 2017, we continued our solid operational performance delivering gains in gross margins, net income and earnings per share, as well as improving on our already outstanding working capital management. Lower shipments to dealers in the second quarter of 2017 were in line with our expectations and reflected the timing of production compared to the prior year, as well as efforts to manage retailer pipeline inventories."
Working capital turns negativeWorking capital of MCBC has turned negative to $14.45 million on Jan. 01, 2017 from positive $12.88 million on Dec. 27, 2015. Current ratio was at 0.61 as on Jan. 01, 2017, down from 1.43 on Dec. 27, 2015. Cash conversion cycle (CCC) has increased to 10 days for the quarter from 7 days for the last year period. Days sales outstanding went up to 6 days for the quarter compared with 5 days for the same period last year.
Days inventory outstanding has decreased to 14 days for the quarter compared with 27 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 26 for the same period last year.
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