MSA Safety Inc (MSA) has reported 22.65 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $14.41 million, or $0.37 a share in the quarter, compared with $11.75 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.26 million, or $0.58 a share compared with $17.99 million or $0.48 a share, a year ago.
Revenue during the quarter dropped 4.84 percent to $265.76 million from $279.27 million in the previous year period. Gross margin for the quarter expanded 183 basis points over the previous year period to 45.05 percent. Total expenses were 92.69 percent of quarterly revenues, up from 89.71 percent for the same period last year. That has resulted in a contraction of 298 basis points in operating margin to 7.31 percent.
Operating income for the quarter was $19.42 million, compared with $28.73 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32.74 million compared to $31.15 million in the prior year period. At the same time, adjusted operating margin improved 117 basis points in the quarter to 12.32 percent from 11.15 percent in the last year period.
"Our first quarter performance reflects the leverage we are gaining from our streamlined cost structure and continued focus on improving profitability," said William M. Lambert, MSA chairman, president and chief executive officer. "Despite a difficult revenue comparison in self-contained breathing apparatus SCBA resulting from several large orders shipped in the first quarter of 2016, we realized adjusted earnings growth of 24 percent," he continued.
Operating cash flow turns positiveMSA Safety Inc has generated cash of $96.39 million from operating activities during the quarter as against cash outgo of $11.01 million in the last year period. The company has spent $1.28 million cash to meet investing activities during the quarter as against cash inflow of $9.89 million in the last year period.
The company has spent $106.05 million cash to carry out financing activities during the quarter as against cash inflow of $3.25 million in the last year period.
Cash and cash equivalents stood at $104.43 million as on Mar. 31, 2017, down 6.68 percent or $7.47 million from $111.90 million on Mar. 31, 2016.
Working capital remains almost stable
MSA Safety Inc has recorded an increase in the working capital over the last year. It stood at $292.79 million as at Mar. 31, 2017, up 0.63 percent or $1.84 million from $290.95 million on Mar. 31, 2016. Current ratio was at 2.45 as on Mar. 31, 2017, up from 2.26 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 75 days for the quarter from 114 days for the last year period. Days sales outstanding were almost stable at 80 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 36 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went up to 41 days for the quarter from 38 for the same period last year.
Debt comes down significantlyMSA Safety Inc has recorded a decline in total debt over the last one year. It stood at $295.42 million as on Mar. 31, 2017, down 38.24 percent or $182.88 million from $478.30 million on Mar. 31, 2016. Total debt was 23.48 percent of total assets as on Mar. 31, 2017, compared with 33.07 percent on Mar. 31, 2016. Debt to equity ratio was at 0.51 as on Mar. 31, 2017, down from 0.88 as on Mar. 31, 2016. Interest coverage ratio improved to 5.41 for the quarter from 7.36 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]
