Wabash National Corporation (WNC) has reported a 30.90 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $23 million, or $0.36 a share in the quarter, compared with $33.29 million, or $0.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $34.14 million, or $0.51 a share compared with $24.21 million or $0.38 a share, a year ago.
Revenue during the quarter dropped 15.02 percent to $462.06 million from $543.71 million in the previous year period. Gross margin for the quarter contracted 68 basis points over the previous year period to 15.47 percent. Total expenses were 91.21 percent of quarterly revenues, up from 89.95 percent for the same period last year. That has resulted in a contraction of 126 basis points in operating margin to 8.79 percent.
Operating income for the quarter was $40.62 million, compared with $54.66 million in the previous year period.
Dick Giromini, chief executive officer, stated, “We are extremely pleased with our consolidated results for 2016 as we set new records in gross profit, gross profit margin, operating income and operating margin. The overall strength in the Company’s operating performance highlights the significant progress made through our growth and diversification initiatives driven by our long-term strategic plan to transform the Company into a diversified industrial manufacturer with a higher growth and margin profile, while leveraging our expertise in lean and six sigma optimization initiatives. These efforts made possible the achievement of record operating income for a fifth consecutive year, at $202.5 million, as well as a 210 basis point improvement in operating income margin to a record level of 11.0 percent.”
Operating cash flow improves significantly
Wabash National Corporation has generated cash of $178.75 million from operating activities during the year, up 35.63 percent or $46.96 million, when compared with the last year.
The company has spent $17.31 million cash to meet investing activities during the year as against cash outgo of $7.64 million in the last year. It has incurred net capital expenditure of $20.32 million on net basis during the year, up 165.87 percent or $12.68 million from year ago.
The company has spent $176.83 million cash to carry out financing activities during the year as against cash outgo of $91.41 million in the last year period.
Cash and cash equivalents stood at $163.47 million as on Dec. 31, 2016, down 8.60 percent or $15.39 million from $178.85 million on Dec. 31, 2015.
Working capital decreases marginally
Wabash National Corporation has witnessed a decline in the working capital over the last year. It stood at $314.79 million as at Dec. 31, 2016, down 1.14 percent or $3.64 million from $318.43 million on Dec. 31, 2015. Current ratio was at 2.89 as on Dec. 31, 2016, up from 2.51 on Dec. 31, 2015.
Debt comes down
Wabash National Corporation has recorded a decline in total debt over the last one year. It stood at $237.84 million as on Dec. 31, 2016, down 24.54 percent or $77.34 million from $315.18 million on Dec. 31, 2015. Total debt was 26.46 percent of total assets as on Dec. 31, 2016, compared with 33.17 percent on Dec. 31, 2015. Debt to equity ratio was at 0.50 as on Dec. 31, 2016, down from 0.72 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 10.90 for the quarter from 11.41 for the same period last year.
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