IES Holdings, Inc. (IESC) has reported a 32.76 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.90 million, or $0.18 a share in the quarter, compared with $5.80 million, or $0.27 a share for the same period last year. On an adjusted basis, net profit for the quarter was $6 million, when compared with $4.50 million in the last year period. Revenue during the quarter grew 27.45 percent to $192.20 million from $150.80 million in the previous year period. Gross margin for the quarter expanded 1 basis points over the previous year period to 18.31 percent. Total expenses were 96.36 percent of quarterly revenues, down from 96.62 percent for the same period last year. This has led to an improvement of 26 basis points in operating margin to 3.64 percent.
Operating income for the quarter was $7 million, compared with $5.10 million in the previous year period.
Tracy McLauchlin, chief financial officer, added, “Over the past twelve months we have seen an expansion in our backlog that is now materializing into revenue, which contributed to our 27% increase in revenue for the first quarter of fiscal 2017 compared to the first quarter of the prior year and overall improvement in operating margins.”
Operating cash flow turns negative
IES Holdings, Inc has spent $5.60 million cash to meet operating activities during the quarter as against cash inflow of $4.90 million in the last year period. The company has spent $1.80 million cash to meet investing activities during the quarter as against cash outgo of $7.90 million in the last year period.
Cash flow from financing activities was $0.20 million for the quarter as against cash outgo of $0.10 million in the last year period.
Cash and cash equivalents stood at $25.70 million as on Dec. 31, 2016, down 44.49 percent or $20.60 million from $46.30 million on Dec. 31, 2015.
Working capital increases marginally
IES Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $83.70 million as at Dec. 31, 2016, up 4.67 percent or $3.74 million from $79.96 million on Dec. 31, 2015. Current ratio was at 1.67 as on Dec. 31, 2016, down from 1.81 on Dec. 31, 2015.
Days sales outstanding went down to 61 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 4 days for the quarter compared with 10 days for the previous year period.
Debt increases substantially
IES Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $29.30 million as on Dec. 31, 2016, up 186.10 percent or $19.06 million from $10.24 million on Dec. 31, 2015. IES Holdings has witnessed an increase in long-term debt over the last one year. It stood at $29.30 million as on Dec. 31, 2016, up 186.10 percent or $19.06 million from $10.24 million on Dec. 31, 2015. Total debt was 7.47 percent of total assets as on Dec. 31, 2016, compared with 4.59 percent on Dec. 31, 2015. Debt to equity ratio was at 0.13 as on Dec. 31, 2016, up from 0.10 as on Dec. 31, 2015.
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