Spartan Motors Inc (SPAR) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $2.74 million, or $ 0.08 a share in the quarter, against a net loss of $5.82 million, or $0.17 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $3.37 million, or $0.10 a share compared with $1.28 million or $0.04 a share, a year ago.
Revenue during the quarter grew 8.85 percent to $148.66 million from $136.57 million in the previous year period. Gross margin for the quarter expanded 274 basis points over the previous year period to 12.11 percent. Operating margin for the quarter period stood at positive 1.74 percent as compared to a negative 0.34 percent for the previous year period.
Operating income for the quarter was $2.59 million, compared with an operating loss of $0.46 million in the previous year period.
However, the adjusted operating income for the quarter stood at $5.04 million compared to $3.66 million in the prior year period. At the same time, adjusted operating margin improved 71 basis points in the quarter to 3.39 percent from 2.68 percent in the last year period.
“Our solid third-quarter 2016 financial performance was primarily led by another strong contribution from our Fleet Vehicles and Services segment that continued to help drive both revenue and profit growth,” said Daryl Adams, president and chief executive officer of Spartan Motors. “Our other businesses performed as anticipated during the quarter, and we are very pleased to see our improvement efforts continuing to gain momentum across all three of our business segments, as we achieved our most profitable year-to-date results since 2009. Our talented and dedicated team remained focused on delivering the operational efficiencies and improved processes that are part of our ongoing, multi-year turnaround plan for the Company.”
Working capital declines
Spartan Motors Inc has witnessed a decline in the working capital over the last year. It stood at $77.05 million as at Sep. 30, 2016, down 19.87 percent or $19.10 million from $96.15 million on Sep. 30, 2015. Current ratio was at 1.73 as on Sep. 30, 2016, down from 2.21 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 40 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 42 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Spartan Motors Inc has recorded a decline in total debt over the last one year. It stood at $5.16 million as on Sep. 30, 2016, down 1.19 percent or $0.06 million from $5.22 million on Sep. 30, 2015. Total debt was 1.97 percent of total assets as on Sep. 30, 2016, compared with 2.10 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.03 as on Sep. 30, 2016, when compared with the last year.
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