Huttig Building Products (HBP) has reported 77.07 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4.70 million, or $0.19 a share in the quarter, compared with $20.50 million, or $0.82 a share for the same period last year.
Revenue during the quarter grew 6.11 percent to $192.80 million from $181.70 million in the previous year period. Gross margin for the quarter expanded 100 basis points over the previous year period to 21.47 percent. Total expenses were 95.95 percent of quarterly revenues, down from 96.48 percent for the same period last year. This has led to an improvement of 52 basis points in operating margin to 4.05 percent.
Operating income for the quarter was $7.80 million, compared with $6.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.20 million compared with $7.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 59 basis points in the quarter to 4.77 percent from 4.18 percent in the last year period.
"We are pleased with our performance in the third quarter, especially in light of the sluggish growth in the single family new construction segment in recent months," said Jon Vrabely, Huttig’s President and chief executive officer. "We expect to see continued growth and profitability as we execute on our strategies to accelerate our growth, and invest in our people and in our technology platform."
Operating cash flow turns positiveHuttig Building Products has generated cash of $2.10 million from operating activities during the nine month period as against cash outgo of $0.90 million in the last year period. The company has spent $20 million cash to meet investing activities during the nine month period as against cash outgo of $0.10 million in the last year period.
Cash flow from financing activities was $18.70 million for the nine month period, up 466.67 percent or $15.40 million, when compared with the last year period.
Cash and cash equivalents stood at $1.10 million as on Sep. 30, 2016, down 60.71 percent or $1.70 million from $2.80 million on Sep. 30, 2015.
Working capital increases
Huttig Building Products has recorded an increase in the working capital over the last year. It stood at $90.20 million as at Sep. 30, 2016, up 16.84 percent or $13 million from $77.20 million on Sep. 30, 2015. Current ratio was at 2.11 as on Sep. 30, 2016, up from 2 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 50 days for the last year period. Days sales outstanding went down to 36 days for the quarter compared with 37 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding was almost stable at 34 days for the quarter, when compared with the previous year period.
Debt moves up marginallyHuttig Building Products has witnessed an increase in total debt over the last one year. It stood at $68.90 million as on Sep. 30, 2016, up 1.47 percent or $1 million from $67.90 million on Sep. 30, 2015. Total debt was 30.37 percent of total assets as on Sep. 30, 2016, compared with 33.22 percent on Sep. 30, 2015. Debt to equity ratio was at 0.98 as on Sep. 30, 2016, down from 1.30 as on Sep. 30, 2015. Interest coverage ratio improved to 15.60 for the quarter from 10.67 for the same period last year. 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]
