LMI Aerospace Inc. (LMIA) has reported an 808.82 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.31 million in the quarter, compared with $0.03 million for the same period last year. Revenue during the quarter dropped 6.23 percent to $89.67 million from $95.63 million in the previous year period. Gross margin for the quarter expanded 29 basis points over the previous year period to 17.67 percent. Total expenses were 93.64 percent of quarterly revenues, down from 93.65 percent for the same period last year. This has led to an improvement of 1 basis points in operating margin to 6.36 percent.
Operating income for the quarter was $5.70 million, compared with $6.07 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.16 million compared with $11.68 million in the prior year period. At the same time, adjusted EBITDA margin improved 23 basis points in the quarter to 12.44 percent from 12.21 percent in the last year period.
"We improved third quarter sales, operating profit and net income over the previous three quarters," said LMI Aerospace Chief Executive Officer Dan Korte. "We also recently announced the delivery of our first Honda Jet aileron and flap assemblies in the quarter. These results demonstrate progress toward our strategic goals. We took another step toward achieving our long-term growth plans by winning an additional $85,000 per shipset in content on the Boeing 777X. With these latest wins, LMI now has more than $135,000 of new content on this platform, and we continue to pursue other 777X opportunities."
Operating cash flow turns negative
LMI Aerospace Inc. has spent $0.32 million cash to meet operating activities during the nine month period as against cash inflow of $5.72 million in the last year period. The company has spent $7.64 million cash to meet investing activities during the nine month period as against cash outgo of $15.04 million in the last year period. It has incurred net capital expenditure of $7.64 million on net basis during the nine month period, down 49.19 percent or $7.40 million from year ago period.
The company has spent $0.74 million cash to carry out financing activities during the nine month period as against cash inflow of $1.88 million in the last year period.
Cash and cash equivalents stood at $1.80 million as on Sep. 30, 2016, up 278.78 percent or $1.33 million from $0.48 million on Sep. 30, 2015.
Working capital declines
LMI Aerospace Inc. has witnessed a decline in the working capital over the last year. It stood at $138.53 million as at Sep. 30, 2016, down 7.15 percent or $10.67 million from $149.20 million on Sep. 30, 2015. Current ratio was at 4.04 as on Sep. 30, 2016, down from 4.23 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 109 days for the quarter from 176 days for the last year period. Days sales outstanding were almost stable at 59 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 77 days for the quarter compared with 141 days for the previous year period. At the same time, days payable outstanding went up to 28 days for the quarter from 24 for the same period last year.
Debt comes down
LMI Aerospace Inc. has recorded a decline in total debt over the last one year. It stood at $250.39 million as on Sep. 30, 2016, down 7.66 percent or $20.78 million from $271.16 million on Sep. 30, 2015. Total debt was 64.96 percent of total assets as on Sep. 30, 2016, compared with 61.65 percent on Sep. 30, 2015. Debt to equity ratio was at 2.82 as on Sep. 30, 2016, up from 2.28 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.02 for the quarter from 1.07 for the same period last year.
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