MSA Safety Incorporated (MSA) has reported a 19.50 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $24.92 million, or $0.65 a share in the quarter, compared with $20.85 million, or $0.55 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $29.90 million, or $0.78 a share compared with $31.56 million or $0.84 a share, a year ago.
Revenue during the quarter dropped 5.52 percent to $296.03 million from $313.32 million in the previous year period. Gross margin for the quarter expanded 395 basis points over the previous year period to 46.73 percent. Total expenses were 83.94 percent of quarterly revenues, down from 89.85 percent for the same period last year. This has led to an improvement of 591 basis points in operating margin to 16.06 percent.
Operating income for the quarter was $47.54 million, compared with $31.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $47.81 million compared to $38.22 million in the prior year period. At the same time, adjusted operating margin improved 395 basis points in the quarter to 16.15 percent from 12.20 percent in the last year period.
"Our results for 2016 reflect strong returns on the strategic investments we've made in new products, acquisitions and restructuring programs to drive earnings expansion in a challenging economic cycle," said William M. Lambert, MSA chairman, president and chief executive officer. "Despite a difficult quarterly revenue comparison - attributable to the clearing of a significant backlog for self-contained breathing apparatus (SCBA) in the fourth quarter of 2015 - we achieved all of our key financial targets for the year and posted record net income of $92 million," he continued.
Operating cash flow improves significantly
MSA Safety Incorporated has generated cash of $134.89 million from operating activities during the year, up 144.13 percent or $79.64 million, when compared with the last year.
The company has spent $25.76 million cash to meet investing activities during the year as against cash outgo of $208.49 million in the last year.
The company has spent $97.84 million cash to carry out financing activities during the year as against cash inflow of $164.95 million in the last year period.
Cash and cash equivalents stood at $113.76 million as on Dec. 31, 2016, up 7.40 percent or $7.83 million from $105.92 million on Dec. 31, 2015.
Debt comes down
MSA Safety Incorporated has recorded a decline in total debt over the last one year. It stood at $390.50 million as on Dec. 31, 2016, down 15.96 percent or $74.17 million from $464.67 million on Dec. 31, 2015. Total debt was 28.84 percent of total assets as on Dec. 31, 2016, compared with 32.61 percent on Dec. 31, 2015. Debt to equity ratio was at 0.70 as on Dec. 31, 2016, down from 0.90 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 12.20 for the quarter from 10.42 for the same period last year.
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