SPX FLOW, Inc. (FLOW) has reported a 67.77 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $6.80 million, or $0.16 a share in the quarter, compared with $21.10 million, or $0.51 a share for the same period last year.
Revenue during the quarter dropped 19.14 percent to $495.40 million from $612.70 million in the previous year period. Gross margin for the quarter contracted 101 basis points over the previous year period to 30.78 percent. Total expenses were 98.16 percent of quarterly revenues, up from 93.39 percent for the same period last year. That has resulted in a contraction of 477 basis points in operating margin to 1.84 percent.
Operating income for the quarter was $9.10 million, compared with $40.50 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $40.40 million.
"In 2016, we made great progress on our goal to transition to an operating company despite challenging end markets and currency head winds," said Marc Michael, president and chief executive officer. "I'm pleased with the strong effort by our teams across the enterprise to aggressively execute our realignment program resulting in a reduced cost structure, more flexible footprint and streamlined functional support. We have built a solid foundation for success and I firmly believe we are better positioned to more efficiently serve our customers and grow our business going forward."
For fiscal year 2017, SPX FLOW, Inc. projects revenue to be in the range of $1,825 million to $1,900 million. It projects adjusted revenue to be in the range of $1,825 million to $1,900 million. It projects operating income to be in the range of $110 million to $130 million. It projects adjusted operating income to be in the range of $150 million to $170 million. It forecasts diluted earnings per share to be in the range of $0.90 to $1.20. It forecasts diluted earnings per share to be in the range of $1.60 to $1.90 on adjusted basis for the same period.
Operating cash flow turns negative
SPX FLOW, Inc. has spent $27.90 million cash to meet operating activities during the year as against cash inflow of $213.60 million in the last year.
The company has spent $40 million cash to meet investing activities during the year as against cash outgo of $44.80 million in the last year.
Cash flow from financing activities was $21.10 million for the year as against cash outgo of $68.10 million in the last year period.
Cash and cash equivalents stood at $215.10 million as on Dec. 31, 2016, down 27.31 percent or $80.80 million from $295.90 million on Dec. 31, 2015.
Working capital increases
SPX FLOW, Inc. has recorded an increase in the working capital over the last year. It stood at $414.80 million as at Dec. 31, 2016, up 5.55 percent or $21.80 million from $393 million on Dec. 31, 2015. Current ratio was at 1.70 as on Dec. 31, 2016, up from 1.51 on Dec. 31, 2015.
Debt moves up
SPX FLOW, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,108.80 million as on Dec. 31, 2016, up 7.43 percent or $76.70 million from $1,032.10 million on Dec. 31, 2015. Total debt was 42.59 percent of total assets as on Dec. 31, 2016, compared with 31.19 percent on Dec. 31, 2015. Debt to equity ratio was at 1.49 as on Dec. 31, 2016, up from 0.81 as on Dec. 31, 2015.
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