TriMas (TRS) has reported a 25.02 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $8.78 million, or $0.19 a share in the quarter, compared with $11.71 million, or $0.26 a share for the same period last year. Revenue during the quarter dropped 8.96 percent to $202.29 million from $222.19 million in the previous year period. Gross margin for the quarter expanded 58 basis points over the previous year period to 28.70 percent. Total expenses were 91.21 percent of quarterly revenues, up from 90.30 percent for the same period last year. That has resulted in a contraction of 91 basis points in operating margin to 8.79 percent.
Operating income for the quarter was $17.79 million, compared with $21.56 million in the previous year period.
"We achieved third quarter diluted earnings per share of $0.35, excluding Special Items, despite softer sales levels primarily related to challenges in the oil and gas end markets," said Thomas Amato, TriMas president and chief executive officer. "I am pleased with the renewed focus and sense of urgency to drive future performance improvements, as evidenced by the additional footprint rationalization actions taken during the quarter."
For fiscal year 2016, TriMas forecasts revenue to grow in the range of 6 percent to 8 percent. The company expects diluted earnings per share to be in the range of $1.24 to $1.28.
Operating cash flow improves significantly
TriMas has generated cash of $46.41 million from operating activities during the nine month period, up 215.50 percent or $31.70 million, when compared with the last year period. The company has spent $22.27 million cash to meet investing activities during the nine month period as against cash outgo of $21.19 million in the last year period.
The company has spent $21.04 million cash to carry out financing activities during the nine month period as against cash inflow of $4.52 million in the last year period.
Cash and cash equivalents stood at $22.55 million as on Sep. 30, 2016, up 0.40 percent or $0.09 million from $22.46 million on Sep. 30, 2015.
Working capital declines
TriMas has witnessed a decline in the working capital over the last year. It stood at $195.85 million as at Sep. 30, 2016, down 11.08 percent or $24.41 million from $220.26 million on Sep. 30, 2015. Current ratio was at 2.44 as on Sep. 30, 2016, up from 2.38 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 58 days for the quarter from 107 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 59 days for the same period last year.
Days inventory outstanding has decreased to 55 days for the quarter compared with 103 days for the previous year period. At the same time, days payable outstanding went up to 58 days for the quarter from 55 for the same period last year.
Debt comes down
TriMas has recorded a decline in total debt over the last one year. It stood at $402.42 million as on Sep. 30, 2016, down 12.41 percent or $57 million from $459.42 million on Sep. 30, 2015. Total debt was 34.74 percent of total assets as on Sep. 30, 2016, compared with 34.99 percent on Sep. 30, 2015. Debt to equity ratio was at 0.71 as on Sep. 30, 2016, down from 0.76 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 5.11 for the quarter from 6.27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
