Watts Water Technologies, Inc (WTS) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $17.50 million, or $ 0.51 a share in the quarter, against a net loss of $118.20 million, or $3.41 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $22.20 million, or $0.64 a share compared with $20.60 million or $0.59 a share, a year ago. Revenue during the quarter dropped 4.55 percent to $342 million from $358.30 million in the previous year period. Gross margin for the quarter expanded 270 basis points over the previous year period to 40.26 percent. Operating margin for the quarter period stood at positive 9.24 percent as compared to a negative 32.79 percent for the previous year period.
Operating income for the quarter was $31.60 million, compared with an operating loss of $117.50 million in the previous year period.
However, the adjusted operating income for the quarter stood at $37.20 million compared to $35.40 million in the prior year period. At the same time, adjusted operating margin improved 100 basis points in the quarter to 10.88 percent from 9.88 percent in the last year period.
Remarking on operating results, Chief Executive Officer, Robert J. Pagano Jr., said, “Our fourth quarter results were in line with our expectations. We continued to expand operating margins and EPS despite flat organic growth. Our transformation initiatives and on-going productivity focus drove the strong margin increase. We had another strong year of free cash flow, once again exceeding net income.”
Operating cash flow improves significantly
Watts Water Technologies, Inc has generated cash of $138.10 million from operating activities during the year, up 26.23 percent or $28.70 million, when compared with the last year. The company has spent $114 million cash to meet investing activities during the year as against cash outgo of $17.30 million in the last year.
Cash flow from financing activities was $27.70 million for the year as against cash outgo of $70.90 million in the last year period.
Cash and cash equivalents stood at $338.40 million as on Dec. 31, 2016, up 14.25 percent or $42.20 million from $296.20 million on Dec. 31, 2015.
Working capital declines
Watts Water Technologies, Inc has witnessed a decline in the working capital over the last year. It stood at $432.50 million as at Dec. 31, 2016, down 15.86 percent or $81.50 million from $514 million on Dec. 31, 2015. Current ratio was at 2.02 as on Dec. 31, 2016, down from 2.74 on Dec. 31, 2015.
Debt moves up
Watts Water Technologies, Inc has witnessed an increase in total debt over the last one year. It stood at $650.40 million as on Dec. 31, 2016, up 13.05 percent or $75.10 million from $575.30 million on Dec. 31, 2015. Total debt was 36.20 percent of total assets as on Dec. 31, 2016, compared with 33.99 percent on Dec. 31, 2015. Debt to equity ratio was at 0.89 as on Dec. 31, 2016, up from 0.82 as on Dec. 31, 2015. 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
