Shiloh Industries, Inc. (SHLO) saw its loss narrow to $2.02 million, or $0.11 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $5.13 million, or $0.30 a share.
Revenue during the quarter went down marginally by 1.24 percent to $247.94 million from $251.06 million in the previous year period. Gross margin for the quarter expanded 327 basis points over the previous year period to 9.60 percent. Operating margin for the quarter period stood at positive 1.21 percent as compared to a negative 0.91 percent for the previous year period.
Operating income for the quarter was $3.01 million, compared with an operating loss of $2.29 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.42 million compared with $8.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 227 basis points in the quarter to 5.81 percent from 3.54 percent in the last year period.
"We continue to build on the operational and financial improvements that were achieved in 2016," according to Ramzi Hermiz, president and chief executive officer. "We generated $27 million in cash from operating activities during the first quarter and reduced our long term debt by $20 million compared to year end fiscal 2016. We continue to deliver on our goals to transition our product mix, improve operational efficiencies and drive greater profitability while providing our customers with industry-leading lightweighting solutions," said Hermiz.
Operating cash flow improves significantly
Shiloh Industries, Inc. has generated cash of $26.62 million from operating activities during the quarter, up 43.18 percent or $8.03 million, when compared with the last year period.
The company has spent $9.07 million cash to meet investing activities during the quarter as against cash outgo of $1.66 million in the last year period. It has incurred capital expenditure of $9.07 million on net basis during the quarter, up 445.91 percent or $7.41 million from year ago period.
The company has spent $20.56 million cash to carry out financing activities during the quarter as against cash outgo of $22.74 million in the last year period.
Cash and cash equivalents stood at $6.02 million as on Jan. 31, 2017, down 11.50 percent or $0.78 million from $6.80 million on Jan. 31, 2016.
Working capital drops significantly
Shiloh Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $69.04 million as at Jan. 31, 2017, down 32.43 percent or $33.14 million from $102.18 million on Jan. 31, 2016. Current ratio was at 1.33 as on Jan. 31, 2017, down from 1.59 on Jan. 31, 2016.
Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 29 days for the last year period. Days sales outstanding went up to 68 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 23 days for the previous year period. At the same time, days payable outstanding went up to 66 days for the quarter from 59 for the same period last year.
Debt comes down
Shiloh Industries has recorded a decline in total debt over the last one year. It stood at $238.42 million as on Jan. 31, 2017, down 14.29 percent or $39.75 million from $278.17 million on Jan. 31, 2016. Total debt was 39.19 percent of total assets as on Jan. 31, 2017, compared with 45.40 percent on Jan. 31, 2016. Debt to equity ratio was at 1.81 as on Jan. 31, 2017, down from 2.07 as on Jan. 31, 2016.
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