Revenue during the quarter dropped 5.69 percent to $339.37 million from $359.84 million in the previous year period. Gross margin for the quarter contracted 49 basis points over the previous year period to 26.36 percent. Total expenses were 92.26 percent of quarterly revenues, up from 89.69 percent for the same period last year. That has resulted in a contraction of 257 basis points in operating margin to 7.74 percent.

Operating income for the quarter was $26.26 million, compared with $37.08 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $34.29 million compared with $45.61 million in the prior year period. At the same time, adjusted EBITDA margin contracted 257 basis points in the quarter to 10.10 percent from 12.68 percent in the last year period.

Dave Castagnola, president and chief executive officer, said, “We continue to book significant wins and renewals in fiscal 2017, building on the value proposition Wesco provides to major aerospace and defense customers. Sales wins with strategic customers in fiscal 2016 and the first quarter of fiscal 2017 totaled approximately $130 million on an annualized basis, approximately half of which is expected to be realized in fiscal 2017. We also have renewed long-term agreements with existing customers totaling $400 million on an annualized basis over the same period of time. New business

For financial year 2017, the company projects diluted earnings per share to be in the range of $1 to $1.05. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.15 to $1.20 on adjusted basis.

The company has spent $1.32 million cash to meet investing activities during the quarter as against cash outgo of $1.16 million in the last year period.

Cash flow from financing activities was $5.14 million for the quarter as against cash outgo of $5.49 million in the last year period.

Cash and cash equivalents stood at $51.19 million as on Dec. 31, 2016, down 40.23 percent or $34.46 million from $85.66 million on Dec. 31, 2015.

Working capital declines
Wesco Aircraft Holdings Inc has witnessed a decline in the working capital over the last year. It stood at $816.04 million as at Dec. 31, 2016, down 13.01 percent or $122.04 million from $938.08 million on Dec. 31, 2015. Current ratio was at 4.21 as on Dec. 31, 2016, down from 5.44 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 148 days for the quarter from 257 days for the last year period. Days sales outstanding went up to 69 days for the quarter compared with 63 days for the same period last year.

Days inventory outstanding has decreased to 138 days for the quarter compared with 249 days for the previous year period. At the same time, days payable outstanding went up to 59 days for the quarter from 55 for the same period last year.