Briggs & Stratton Corporation (BGG) has reported a 21.43 percent rise in profit for the quarter ended Jan. 01, 2017. The company has earned $15.25 million, or $0.35 a share in the quarter, compared with $12.56 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.25 million, or $0.35 a share compared with $15.14 million or $0.34 a share, a year ago. Revenue during the quarter grew 3.59 percent to $428.24 million from $413.38 million in the previous year period. Gross margin for the quarter expanded 10 basis points over the previous year period to 22.28 percent. Total expenses were 94.07 percent of quarterly revenues, down from 95.46 percent for the same period last year. This has led to an improvement of 139 basis points in operating margin to 5.93 percent.
Operating income for the quarter was $25.38 million, compared with $18.76 million in the previous year period.
However, the adjusted operating income for the quarter stood at $25.38 million compared to $23.76 million in the prior year period. At the same time, adjusted operating margin improved 18 basis points in the quarter to 5.93 percent from 5.75 percent in the last year period.
"We are pleased with how the first half of our fiscal year has played out," said Todd J. Teske, Chairman, President and Chief Executive Officer. "We have set a solid foundation on which to deliver our full year projected sales and profitability growth, which included modest support from generator sales immediately following Hurricane Matthew. Our engine placement on lawn and garden products is set for the upcoming season and is consistent with last season as anticipated."
For fiscal year 2017, Briggs & Stratton Corporation expects revenue to be in the range of $1,860 million to $1,900 million. The company expects net income to be in the range of $57 million to $64 million and operating income to grow in the range of 5.50 percent to 5.80 percent. It projects diluted earnings per share to be in the range of $1.31 to $1.46.
Operating cash flow remains negative
Briggs & Stratton Corporation has spent $128.31 million cash to meet operating activities during the first half as against cash outgo of $98.64 million in the last year period. The company has spent $26.81 million cash to meet investing activities during the first six months as against cash outgo of $27.02 million in the last year period. It has incurred net capital expenditure of $30.15 million on net basis during the first six months, up 21.36 percent or $5.31 million from year ago period.
Cash flow from financing activities was $114.34 million for the first six months, up 64.33 percent or $44.76 million, when compared with the last year period.
Cash and cash equivalents stood at $47.33 million as on Jan. 01, 2017, down 21.60 percent or $13.04 million from $60.37 million on Dec. 27, 2015.
Working capital declines
Briggs & Stratton Corporation has witnessed a decline in the working capital over the last year. It stood at $389.30 million as at Jan. 01, 2017, down 5.78 percent or $23.90 million from $413.21 million on Dec. 27, 2015. Current ratio was at 1.87 as on Jan. 01, 2017, down from 1.98 on Dec. 27, 2015.
Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 124 days for the last year period. Days sales outstanding went up to 42 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 66 days for the quarter compared with 138 days for the previous year period. At the same time, days payable outstanding went down to 51 days for the quarter from 53 for the same period last year.
Debt moves up
Briggs & Stratton Corporation has witnessed an increase in total debt over the last one year. It stood at $353.67 million as on Jan. 01, 2017, up 11.90 percent or $37.62 million from $316.05 million on Dec. 27, 2015. Total debt was 22.92 percent of total assets as on Jan. 01, 2017, compared with 21.18 percent on Dec. 27, 2015. Debt to equity ratio was at 0.75 as on Jan. 01, 2017, up from 0.60 as on Dec. 27, 2015. Interest coverage ratio improved to 4.95 for the quarter from 3.74 for the same period last year.
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