ESCO Technologies Inc. (ESE) has reported 21.50 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $10.73 million, or $0.41 a share in the quarter, compared with $8.83 million, or $0.34 a share for the same period last year. On an adjusted basis, net profit for the quarter was $10.73 million, when compared with $12.30 million in the last year period. Revenue during the quarter grew 10.19 percent to $146.37 million from $132.83 million in the previous year period. Gross margin for the quarter contracted 322 basis points over the previous year period to 36.52 percent. Total expenses were 89.04 percent of quarterly revenues, up from 87.35 percent for the same period last year. That has resulted in a contraction of 169 basis points in operating margin to 10.96 percent.
Vic Richey, chairman and chief executive officer, commented, "Despite facing some headwind from project timing at VACCO and Test, we were able to exceed our earnings commitments driven by the continued strength of Doble and our commercial aerospace businesses. Our cash flow and entered orders were strong in Q1 as we generated $16 million in cash from operating activities and recorded a positive book-to-bill ratio in every operating segment. The $56 million of Test orders are of special note as weve been experiencing order delays from one of our key customers for the past year, and Im pleased to see these orders released in Q1 which gives me more confidence that Test will be able to meet its commitments for the year.
The company forecasts diluted earnings per share to be in the range of $0.37 to $0.42 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.16 to $2.26.
Working capital increasesESCO Technologies Inc. has recorded an increase in the working capital over the last year. It stood at $183.33 million as at Dec. 31, 2016, up 6.53 percent or $11.24 million from $172.09 million on Dec. 31, 2015. Current ratio was at 2.23 as on Dec. 31, 2016, down from 2.34 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 93 days for the quarter from 149 days for the last year period. Days sales outstanding went up to 72 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 58 days for the quarter compared with 117 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 39 for the same period last year.
Debt increases substantially
ESCO Technologies Inc. has witnessed an increase in total debt over the last one year. It stood at $180 million as on Dec. 31, 2016, up 157.14 percent or $110 million from $70 million on Dec. 31, 2015. Total debt was 16.83 percent of total assets as on Dec. 31, 2016, compared with 7.97 percent on Dec. 31, 2015. Debt to equity ratio was at 0.29 as on Dec. 31, 2016, up from 0.12 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]
