ARC Group Worldwide (ARCW) saw its loss widen to $0.71 million, or $0.04 a share for the quarter ended Jan. 01, 2017. In the previous year period, the company reported a loss of $0.63 million, or $0.03 a share. On the other hand, adjusted net loss for the quarter widened to $0.61 million, or $0.03 a share from a loss of $0.34 million or $0.02 a share, a year ago.
Revenue during the quarter grew 18.30 percent to $28.20 million from $23.84 million in the previous year period. Gross margin for the quarter contracted 29 basis points over the previous year period to 16.99 percent. Total expenses were 99.99 percent of quarterly revenues, up from 99.98 percent for the same period last year. That has resulted in a contraction of 1 basis points in operating margin to 0.01 percent.
Jason Young, chief executive officer, commented, "While strength in the firearm and defense industries helped drive growth in the quarter, we continue to see momentum with our customer-centric initiatives. Further, our focus on accelerating speed-to-market for our customers continues to be core to their needs. While these initiatives have temporarily impacted margins, our recent successful launch of numerous new programs validates the business model, and we believe these efforts should translate into increased margin opportunities in the future."
Operating cash flow turns negativeARC Group Worldwide has spent $0.50 million cash to meet operating activities during the first half as against cash inflow of $2.60 million in the last year period. Cash flow from investing activities was $7.64 million for the first half as against cash outgo of $1.34 million in the last year period.
The company has spent $9.26 million cash to carry out financing activities during the first six months as against cash outgo of $2.22 million in the last year period.
Cash and cash equivalents stood at $1.22 million as on Jan. 01, 2017, down 68.58 percent or $2.65 million from $3.87 million on Dec. 27, 2015.
Working capital increases
ARC Group Worldwide has recorded an increase in the working capital over the last year. It stood at $21.63 million as at Jan. 01, 2017, up 17.53 percent or $3.23 million from $18.41 million on Dec. 27, 2015. Current ratio was at 2.26 as on Jan. 01, 2017, up from 1.89 on Dec. 27, 2015.
Cash conversion cycle (CCC) has decreased to 49 days for the quarter from 94 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 74 days for the previous year period. At the same time, days payable outstanding was almost stable at 34 days for the quarter, when compared with the previous year period.
Debt comes downARC Group Worldwide has recorded a decline in total debt over the last one year. It stood at $48.11 million as on Jan. 01, 2017, down 18.99 percent or $11.28 million from $59.39 million on Dec. 27, 2015. Total debt was 42.57 percent of total assets as on Jan. 01, 2017, compared with 48.78 percent on Dec. 27, 2015. Debt to equity ratio was at 1.03 as on Jan. 01, 2017, down from 1.31 as on Dec. 27, 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: [email protected]
