Kaman Corporation (KAMN) has reported 35.66 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $6.29 million, or $0.22 a share in the quarter, compared with $9.78 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.29 million, or $0.22 a share compared with $11.30 million or $0.41 a share, a year ago. Revenue during the quarter dropped 3.38 percent to $435.94 million from $451.20 million in the previous year period. Gross margin for the quarter contracted 116 basis points over the previous year period to 28.63 percent. Total expenses were 96.74 percent of quarterly revenues, up from 95.93 percent for the same period last year. That has resulted in a contraction of 81 basis points in operating margin to 3.26 percent.
Operating income for the quarter was $14.21 million, compared with $18.35 million in the previous year period.
However, the adjusted operating income for the quarter stood at $14.21 million compared to $20.70 million in the prior year period. At the same time, adjusted operating margin contracted 133 basis points in the quarter to 3.26 percent from 4.59 percent in the last year period.
Neal J. Keating, chairman, president and chief executive officer, commented, "The results for the first quarter demonstrate that our focus on operational initiatives to drive improved profitability continue to gain traction, from our ongoing efforts to improve operating margins at Distribution to the actions we have implemented to improve the financial performance of our structures programs at Aerospace.
Operating cash flow turns negativeKaman Corporation has spent $18.45 million cash to meet operating activities during the quarter as against cash inflow of $5.73 million in the last year period. The company has spent $8.25 million cash to meet investing activities during the quarter as against cash outgo of $8.07 million in the last year period.
Cash flow from financing activities was $9.95 million for the quarter, up 178.12 percent or $6.38 million, when compared with the last year period.
Cash and cash equivalents stood at $24.68 million as on Mar. 31, 2017, up 36.88 percent or $6.65 million from $18.03 million on Apr. 01, 2016.
Working capital declines
Kaman Corporation has witnessed a decline in the working capital over the last year. It stood at $356.26 million as at Mar. 31, 2017, down 19.70 percent or $87.37 million from $443.64 million on Apr. 01, 2016. Current ratio was at 2.02 as on Mar. 31, 2017, down from 2.76 on Apr. 01, 2016.
Cash conversion cycle (CCC) has decreased to 75 days for the quarter from 127 days for the last year period. Days sales outstanding went up to 52 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 56 days for the quarter compared with 113 days for the previous year period. At the same time, days payable outstanding went down to 34 days for the quarter from 36 for the same period last year.
Debt comes down marginally
Kaman Corporation has recorded a decline in total debt over the last one year. It stood at $430.99 million as on Mar. 31, 2017, down 3.74 percent or $16.74 million from $447.73 million on Apr. 01, 2016. Total debt was 30.16 percent of total assets as on Mar. 31, 2017, compared with 30.58 percent on Apr. 01, 2016. Debt to equity ratio was at 0.75 as on Mar. 31, 2017, down from 0.81 as on Apr. 01, 2016. Interest coverage ratio deteriorated to 3.42 for the quarter from 4.82 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]
