Joy Global Inc. (JOY) saw its loss narrow to $0.28 million in the quarter ended compared with $40.22 million, a year ago. On the other hand, adjusted net loss for the quarter narrowed to $6.10 million, or $0.06 a share from a loss of $22.40 million or $0.23 a share, a year ago.
Revenue during the quarter dropped 5.42 percent to $497.77 million from $526.30 million in the previous year period. Gross margin for the quarter expanded 510 basis points over the previous year period to 21.83 percent. Operating margin for the quarter stood at negative 0.35 percent as compared to a negative 8.57 percent for the previous year period.
Operating loss for the quarter was $1.75 million, compared with an operating loss of $45.09 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $4.81 million compared to operating loss of $18.43 million in prior year period.
"Over the last several months we have seen further evidence of commodity markets rebalancing, which has helped improve commodity pricing," said Ted Doheny, president and chief executive officer. "These pricing improvements and increased production levels have strengthened cash flows for many mining companies. This has led to increased rebuild activity in what is typically a seasonally slower fiscal first quarter. While we are encouraged by recent market developments, the level of service bookings achieved in the first quarter is not expected to repeat over the remainder of the year. The mining industry remains cautious with overall capital expenditures still projected to decline in 2017."
Operating cash flow drops significantly
Joy Global Inc. has generated cash of $41.47 million from operating activities during the quarter, down 61.81 percent or $ 67.12 million, when compared with the last year period. The company has spent $1.71 million cash to meet investing activities during the quarter as against cash inflow of $1.19 million in the last year period.
Cash flow from financing activities was $5.57 million for the quarter as against cash outgo of $66.80 million in the last year period.
Working capital increases
Joy Global Inc. has recorded an increase in the working capital over the last year. It stood at $1,145.67 million as at Jan. 27, 2017, up 11.15 percent or $114.92 million from $1,030.75 million on Jan. 29, 2016. Current ratio was at 2.46 as on Jan. 27, 2017, up from 2.24 on Jan. 29, 2016.
Cash conversion cycle (CCC) has decreased to 173 days for the quarter from 280 days for the last year period. Days sales outstanding went up to 133 days for the quarter compared with 126 days for the same period last year.
Days inventory outstanding has decreased to 98 days for the quarter compared with 205 days for the previous year period. At the same time, days payable outstanding went up to 58 days for the quarter from 51 for the same period last year.
Debt comes down marginally
Joy Global Inc. has recorded a decline in total debt over the last one year. It stood at $996.25 million as on Jan. 27, 2017, down 2.55 percent or $26.03 million from $1,022.27 million on Jan. 29, 2016. Total debt was 28.91 percent of total assets as on Jan. 27, 2017, compared with 29.37 percent on Jan. 29, 2016. Debt to equity ratio was at 0.71 as on Jan. 27, 2017, down from 0.76 as on Jan. 29, 2016.
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