Myers Industries, Inc (MYE) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $3.11 million, or $ 0.10 a share in the quarter, against a net loss of $3.39 million, or $0.11 a share in the last year period. Revenue during the quarter dropped 6.28 percent to $141.70 million from $151.20 million in the previous year period. Gross margin for the quarter contracted 222 basis points over the previous year period to 29.64 percent. Total expenses were 94.81 percent of quarterly revenues, down from 99.25 percent for the same period last year. This has led to an improvement of 445 basis points in operating margin to 5.19 percent.
Operating income for the quarter was $7.36 million, compared with $1.13 million in the previous year period.
President and Chief Executive Officer Dave Banyard commented, “First quarter earnings were in line with our expectations, despite softer than expected demand in the auto aftermarket end market. Net sales were down mid-single digits due to the decline in auto aftermarket as well as the expected continued weakness in agricultural end markets. Despite the lower sales volumes, we are executing well on our strategic initiatives. We have made solid progress with our niche market growth teams, and our strategic realignment to improve operating flexibility is well underway. Our continued focus on working capital and disciplined capital spending helped us generate strong free cash flow of $12.6 million during the quarter.”
Operating cash flow turns positive
Myers Industries, Inc has generated cash of $13.05 million from operating activities during the quarter as against cash outgo of $11.32 million in the last year period. Cash flow from investing activities was $0.62 million for the quarter as against cash outgo of $11.17 million in the last year period.
The company has spent $14.40 million cash to carry out financing activities during the quarter as against cash inflow of $20.36 million in the last year period.
Cash and cash equivalents stood at $7.32 million as on Mar. 31, 2017, up 30.78 percent or $1.72 million from $5.60 million on Mar. 31, 2016.
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