MOCON, Inc. (MOCO) has reported a 561.28 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.76 million, or $0.30 a share in the quarter, compared with $0.27 million, or $0.05 a share for the same period last year.
Revenue during the quarter grew 10.23 percent to $16.89 million from $15.32 million in the previous year period. Gross margin for the quarter expanded 192 basis points over the previous year period to 56.74 percent. Total expenses were 87.57 percent of quarterly revenues, down from 96.48 percent for the same period last year. This has led to an improvement of 891 basis points in operating margin to 12.43 percent.
Operating income for the quarter was $2.10 million, compared with $0.54 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.92 million compared with $2.05 million in the prior year period. At the same time, adjusted EBITDA margin improved 390 basis points in the quarter to 17.28 percent from 13.38 percent in the last year period.
Commenting on the company's solid fourth quarter performance, MOCON's president and chief executive officer, Robert L. Demorest said, "We are very pleased with our financial performance in the fourth quarter of 2016. $16.9 million in revenue matches our prior quarterly record that was set in the fourth quarter of 2014. At that time, the euro was much stronger than it is today. We have continued to improve our product cost and operating expense profile which has resulted in a significant improvement in our bottom line results. Our adjusted EBITDA increased for both the fourth quarter and full year to 17 percent of revenue from 13 percent and 14 percent in the respective prior year periods".
Operating cash flow improves
MOCON, Inc. has generated cash of $7.28 million from operating activities during the year, up 14.30 percent or $0.91 million, when compared with the last year.
The company has spent $0.34 million cash to meet investing activities during the year as against cash outgo of $1.68 million in the last year.
The company has spent $4.88 million cash to carry out financing activities during the year as against cash outgo of $4 million in the last year period.
Cash and cash equivalents stood at $8.31 million as on Dec. 31, 2016, up 31.04 percent or $1.97 million from $6.34 million on Dec. 31, 2015.
Working capital increases
MOCON, Inc. has recorded an increase in the working capital over the last year. It stood at $16.45 million as at Dec. 31, 2016, up 8.91 percent or $1.34 million from $15.10 million on Dec. 31, 2015. Current ratio was at 2.53 as on Dec. 31, 2016, down from 2.57 on Dec. 31, 2015.
Debt increases substantially
MOCON, Inc. has witnessed an increase in total debt over the last one year. It stood at $0.08 million as on Dec. 31, 2016, up 27.69 percent or $0.02 million from $0.06 million on Dec. 31, 2015. Total debt was 0.17 percent of total assets as on Dec. 31, 2016, compared with 0.14 percent on Dec. 31, 2015.
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