LMI Aerospace (LMIA) saw its loss widen to $1.46 million, or $0.11 a share for the quarter ended Mar. 31, 2015. In the previous year period, the company reported a loss of $0.44 million, or $0.03 a share. Revenue during the quarter dropped 3.42 percent to $92.48 million from $95.75 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 18.60 percent. Total expenses were 95.34 percent of quarterly revenues, down from 96.15 percent for the same period last year. This has led to an improvement of 81 basis points in operating margin to 4.66 percent.
Operating income for the quarter was $4.31 million, compared with $3.69 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.54 million compared with $10.43 million in the prior year period. At the same time, adjusted EBITDA margin improved 50 basis points in the quarter to 11.40 percent from 10.90 percent in the last year period.
"The first quarter of 2015 saw a continuation of the trends experienced in the latter half of 2014, as shipment levels were strong within the large commercial aerospace market partially offset softness across other areas of the Company," said Dan Korte, chief executive officer of LMI Aerospace Inc. "Aerostructures growth on the Boeing 737 and 787 platforms drove 9.6% higher revenue in this part of our business, indicative of the demand trends and increased build rates year-over-year."
LMI Aerospace forecasts revenue to be in the range of $370 million to $385 million for fiscal year 2015. For financial year 2015, the company forecasts operating income to be in the range of $18 million to $24 million.
Operating cash flow turns negative
LMI Aerospace has spent $9.28 million cash to meet operating activities during the quarter as against cash inflow of $10.02 million in the last year period. The company has spent $6.88 million cash to meet investing activities during the quarter as against cash outgo of $3.97 million in the last year period. It has incurred net capital expenditure of $6.88 million on net basis during the quarter, down 19.26 percent or $1.11 million from year ago period.
Cash flow from financing activities was $10.79 million for the quarter as against cash outgo of $5.32 million in the last year period. It has made net debt repayment of $10.89 million.
Cash and cash equivalents stood at $2.56 million as on Mar. 31, 2015, up 11.72 percent or $0.27 million from $2.30 million on Mar. 31, 2014.
Working capital increases marginally
LMI Aerospace has recorded an increase in the working capital over the last year. It stood at $153.30 million as at Mar. 31, 2015, up 3.06 percent or $4.55 million from $148.75 million on Mar. 31, 2014. Current ratio was at 4.30 as on Mar. 31, 2015, down from 4.44 on Mar. 31, 2014.
Cash conversion cycle (CCC) has decreased to 173 days for the quarter from 175 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has increased to 141 days for the quarter compared with 132 days for the previous year period. At the same time, days payable outstanding went up to 26 days for the quarter from 23 for the same period last year.
Debt comes down marginally
LMI Aerospace has recorded a decline in total debt over the last one year. It stood at $279.86 million as on Mar. 31, 2015, down 1.89 percent or $5.39 million from $285.26 million on Mar. 31, 2014. Total debt was 62.47 percent of total assets as on Mar. 31, 2015, compared with 60.11 percent on Mar. 31, 2014. Debt to equity ratio was at 2.38 as on Mar. 31, 2015, up from 1.97 as on Mar. 31, 2014. Interest coverage ratio deteriorated to 0.77 for the quarter from 0.87 for the same period last year.
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