Alamo Group Inc. (ALG) has reported 40.51 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $12.17 million, or $1.05 a share in the quarter, compared with $8.66 million, or $0.75 a share for the same period last year. Revenue during the quarter went up marginally by 2.09 percent to $215.39 million from $210.97 million in the previous year period. Gross margin for the quarter expanded 132 basis points over the previous year period to 25.15 percent. Total expenses were 90.67 percent of quarterly revenues, down from 92.28 percent for the same period last year. This has led to an improvement of 161 basis points in operating margin to 9.33 percent.
Operating income for the quarter was $20.10 million, compared with $16.29 million in the previous year period.
Ron Robinson, Alamo Groups president and chief executive officer, commented, "We are very pleased with our performance in the first quarter of 2017 and glad to have a good start to the current fiscal year. Given the headwinds which we have faced in a number of our markets, we were pleased to have some sales growth and more importantly, to have so much of this growth flow straight to the bottom line. This provided record results for our Company even compared to last years first quarter which was itself a record quarter.
Working capital remains almost stableAlamo Group Inc. has recorded an increase in the working capital over the last year. It stood at $324.45 million as at Mar. 31, 2017, up 0.76 percent or $2.45 million from $322 million on Mar. 31, 2016. Current ratio was at 4.64 as on Mar. 31, 2017, down from 4.73 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 90 days for the quarter from 140 days for the last year period. Days sales outstanding went down to 79 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 39 days for the quarter compared with 87 days for the previous year period. At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Alamo Group Inc. has recorded a decline in total debt over the last one year. It stood at $127.55 million as on Mar. 31, 2017, down 26.30 percent or $45.53 million from $173.08 million on Mar. 31, 2016. Total debt was 20.08 percent of total assets as on Mar. 31, 2017, compared with 26.78 percent on Mar. 31, 2016. Debt to equity ratio was at 0.32 as on Mar. 31, 2017, down from 0.46 as on Mar. 31, 2016. Interest coverage ratio improved to 15.15 for the quarter from 11.59 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: [email protected]
