Cubic Corporation (CUB) saw its loss narrow to $2.87 million, or $0.11 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.41 million, or $0.20 a share. Revenue during the quarter grew 6.65 percent to $334.68 million from $313.81 million in the previous year period. Gross margin for the quarter expanded 447 basis points over the previous year period to 23.58 percent. Operating margin for the quarter stood at negative 1.23 percent as compared to a negative 2.57 percent for the previous year period.
Operating loss for the quarter was $4.10 million, compared with an operating loss of $8.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $20.10 million compared with $11.29 million in the prior year period. At the same time, adjusted EBITDA margin improved 241 basis points in the quarter to 6.01 percent from 3.60 percent in the last year period.
"We are pleased with our operating performance in the first quarter as sales, gross margin, adjusted EBITDA, and operating cash flow showed strong growth over last year," said Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. "We remain confident in our strategy; we are well positioned for revenue and operating profit growth, and expect our phased ERP implementation to drive further margin expansion going forward."
Operating cash flow turns positiveCubic Corporation has generated cash of $7.10 million from operating activities during the quarter as against cash outgo of $49.59 million in the last year period. The company has spent $18.36 million cash to meet investing activities during the quarter as against cash outgo of $33.44 million in the last year period.
The company has spent $6.86 million cash to carry out financing activities during the quarter as against cash inflow of $44.12 million in the last year period.
Cash and cash equivalents stood at $166.34 million as on Dec. 31, 2016, down 2.93 percent or $5.02 million from $171.36 million on Dec. 31, 2015.
Working capital drops significantly
Cubic Corporation has witnessed a decline in the working capital over the last year. It stood at $242.51 million as at Dec. 31, 2016, down 37.16 percent or $143.39 million from $385.89 million on Dec. 31, 2015. Current ratio was at 1.50 as on Dec. 31, 2016, down from 2.09 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 95 days for the quarter from 118 days for the last year period. Days sales outstanding went down to 97 days for the quarter compared with 106 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went up to 20 days for the quarter from 13 for the same period last year.
Debt increases substantially
Cubic Corporation has witnessed an increase in total debt over the last one year. It stood at $442.39 million as on Dec. 31, 2016, up 87.03 percent or $205.86 million from $236.53 million on Dec. 31, 2015. Total debt was 30.40 percent of total assets as on Dec. 31, 2016, compared with 18.41 percent on Dec. 31, 2015. Debt to equity ratio was at 0.66 as on Dec. 31, 2016, up from 0.32 as on Dec. 31, 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]
