CSW Industrials, Inc. (CSWI) has reported a 46.67 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $2.73 million, or $0.17 a share in the quarter, compared with $1.86 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.88 million, or $0.43 a share compared with $5.57 million or $0.35 a share, a year ago. Revenue during the quarter grew 14.54 percent to $87.35 million from $76.26 million in the previous year period. Gross margin for the quarter contracted 957 basis points over the previous year period to 35.57 percent. Total expenses were 94.60 percent of quarterly revenues, up from 91.09 percent for the same period last year. That has resulted in a contraction of 351 basis points in operating margin to 5.40 percent.
Operating income for the quarter was $4.72 million, compared with $6.80 million in the previous year period.
However, the adjusted operating income for the quarter stood at $11.14 million compared to $7.97 million in the prior year period. At the same time, adjusted operating margin improved 230 basis points in the quarter to 12.75 percent from 10.45 percent in the last year period.
Joseph B. Armes, CSW Industrials' chief executive officer, commented, "We are pleased to report the successful completion of our first full-year as a public company. We achieved several milestones during the year, including successfully rationalizing the footprint of our Jet-Lube operations and the acquisition of Greco. We finished the fourth quarter with a record-breaking performance in several of our construction related end markets, and while we are still managing macro pressure in rail and the volatility in the energy markets, we are beginning to see some stability and modest recovery in some areas." Armes concluded, "Fiscal 2017 was a year of transition, which included a substantial effort to optimize our management structure and our operations as a new public company against a backdrop of mixed end market conditions. We are excited to enter Fiscal 2018 with the bulk of our most significant reorganization efforts behind us, and we expect to leverage our greater efficiency to drive further improvement in our results."
Operating cash flow declines
CSW Industrials, Inc. has generated cash of $39.04 million from operating activities during the year, down 6.01 percent or $2.49 million, when compared with the last year. The company has spent $25.97 million cash to meet investing activities during the year as against cash outgo of $110.22 million in the last year. It has incurred net capital expenditure of $8.76 million on net basis during the year, down 20.44 percent or $2.25 million from year ago.
The company has spent $15.32 million cash to carry out financing activities during the year as against cash inflow of $74.69 million in the last year period.
Cash and cash equivalents stood at $23.15 million as on Mar. 31, 2017, down 10.93 percent or $2.84 million from $25.99 million on Mar. 31, 2016.
Working capital declines
CSW Industrials, Inc. has witnessed a decline in the working capital over the last year. It stood at $108.55 million as at Mar. 31, 2017, down 12.43 percent or $15.41 million from $123.96 million on Mar. 31, 2016. Current ratio was at 3.88 as on Mar. 31, 2017, down from 4.93 on Mar. 31, 2016.
Debt comes down
CSW Industrials, Inc. has recorded a decline in total debt over the last one year. It stood at $73.21 million as on Mar. 31, 2017, down 18.37 percent or $16.48 million from $89.68 million on Mar. 31, 2016. Total debt was 18.41 percent of total assets as on Mar. 31, 2017, compared with 22.86 percent on Mar. 31, 2016. Debt to equity ratio was at 0.27 as on Mar. 31, 2017, down from 0.35 as on Mar. 31, 2016.
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]
