MOCON, Inc. (MOCO) has reported 70.49 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $1.96 million, or $0.34 a share in the quarter, compared with $1.15 million, or $0.20 a share for the same period last year.
Revenue during the quarter grew 6.91 percent to $16.06 million from $15.02 million in the previous year period. Gross margin for the quarter expanded 190 basis points over the previous year period to 57.27 percent. Total expenses were 83.94 percent of quarterly revenues, down from 89.19 percent for the same period last year. This has led to an improvement of 525 basis points in operating margin to 16.06 percent.
Operating income for the quarter was $2.58 million, compared with $1.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.44 million compared with $2.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 415 basis points in the quarter to 21.43 percent from 17.27 percent in the last year period.
Commenting on the Company's quarterly performance, MOCON's president and chief executive officer, Robert L. Demorest said, "Overall, I am pleased with our strong third quarter results. Revenue was up both on a year-over-year and sequential basis. The cost reductions realized from our strategic organizational realignment efforts significantly improved our operating income to 16 percent of revenue compared to 11 percent in the year-ago-quarter. Going forward, we plan to modestly increase our SG&A spending as we continue to strengthen our team. Our search for a Senior Vice President of Sales and Marketing is nearing completion."
Operating cash flow improves significantly
MOCON, Inc. has generated cash of $5.98 million from operating activities during the nine month period, up 35.34 percent or $1.56 million, when compared with the last year period.
The company has spent $0.03 million cash to meet investing activities during the nine month period as against cash outgo of $1.14 million in the last year period.
The company has spent $4.64 million cash to carry out financing activities during the nine month period as against cash outgo of $2.82 million in the last year period.
Cash and cash equivalents stood at $7.80 million as on Sep. 30, 2016, up 21.67 percent or $1.39 million from $6.41 million on Sep. 30, 2015.
Working capital decreases marginally
MOCON, Inc. has witnessed a decline in the working capital over the last year. It stood at $15.50 million as at Sep. 30, 2016, down 4.95 percent or $0.81 million from $16.30 million on Sep. 30, 2015. Current ratio was at 2.53 as on Sep. 30, 2016, down from 2.62 on Sep. 30, 2015.
Days sales outstanding went down to 52 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 121 days for the previous year period.
Debt comes down significantly
MOCON, Inc. has recorded a decline in total debt over the last one year. It stood at $0.06 million as on Sep. 30, 2016, down 98.42 percent or $3.61 million from $3.67 million on Sep. 30, 2015. Total debt was 0.12 percent of total assets as on Sep. 30, 2016, compared with 7.40 percent on Sep. 30, 2015.
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