Franklin Electric Co., Inc. (FELE) has reported 9.16 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $17.64 million, or $0.37 a share in the quarter, compared with $16.16 million, or $0.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $17.70 million, or $0.38 a share compared with $16.20 million or $0.35 a share, a year ago.

Revenue during the quarter grew 9.26 percent to $239.59 million from $219.28 million in the previous year period. Gross margin for the quarter expanded 230 basis points over the previous year period to 33.82 percent. Total expenses were 89.47 percent of quarterly revenues, up from 89.26 percent for the same period last year. That has resulted in a contraction of 21 basis points in operating margin to 10.53 percent.

Operating income for the quarter was $25.23 million, compared with $23.56 million in the previous year period.

However, the adjusted operating income for the quarter stood at $25.90 million compared to $24.50 million in the prior year period. At the same time, adjusted operating margin contracted 36 basis points in the quarter to 10.81 percent from 11.17 percent in the last year period.

Gregg Sengstack, Franklin Electric's chairman and chief executive officer, commented: "Overall, we’re pleased with the Company's results in the fourth quarter, particularly the performance of our Water Systems segment. Strong sales performance in the U.S and Canada led the way with overall Water segment organic sales growth of 9 percent. Our Water Systems adjusted operating income margin was 30 basis points higher in the fourth quarter than the same quarter of 2015. Our Fueling Systems segment recorded record sales in the fourth quarter with an organic sales growth of 11 percent after excluding the impact of foreign currency translation."

For financial year 2017, the company projects diluted earnings per share to be in the range of $1.77 to $1.87 on adjusted basis.

The company has spent $33.77 million cash to meet investing activities during the year as against cash outgo of $29.58 million in the last year. It has incurred net capital expenditure of $33.11 million on net basis during the year, up 27.49 percent or $7.14 million from year ago.

The company has spent $51.70 million cash to carry out financing activities during the year as against cash outgo of $41.15 million in the last year period.

Cash and cash equivalents stood at $104.33 million as on Dec. 31, 2016, up 27.92 percent or $22.77 million from $81.56 million on Jan. 02, 2016.

Working capital increases
Franklin Electric Co., Inc. has recorded an increase in the working capital over the last year. It stood at $326.06 million as at Dec. 31, 2016, up 11.11 percent or $32.59 million from $293.46 million on Jan. 02, 2016. Current ratio was at 3.07 as on Dec. 31, 2016, up from 3.03 on Jan. 02, 2016.

Cash conversion cycle (CCC) was almost stable at 68 days for the quarter, when compared with the last year period. Days sales outstanding went up to 28 days for the quarter compared with 26 days for the same period last year.

Days inventory outstanding was almost stable at 58 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 18 days for the quarter, when compared with the previous year period.