Neff Corporation (NEFF) has reported a 35 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $5.40 million, or $0.59 a share in the quarter, compared with $4 million, or $0.33 a share for the same period last year. On an adjusted basis, earnings per share were at $0.32 for the quarter compared with $0.24 in the same period last year. Revenue during the quarter dropped 3.58 percent to $102.30 million from $106.10 million in the previous year period. Gross margin for the quarter expanded 311 basis points over the previous year period to 49.95 percent. Total expenses were 75.66 percent of quarterly revenues, down from 77.29 percent for the same period last year. This has led to an improvement of 163 basis points in operating margin to 24.34 percent.
Operating income for the quarter was $24.90 million, compared with $24.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $49.90 million compared with $49.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 222 basis points in the quarter to 48.78 percent from 46.56 percent in the last year period.
Graham Hood, chief executive officer of Neff Corporation, commented, "We were pleased with the growth we generated in our fourth quarter and full year 2016 results. During 2016, we grew our rental revenues and operating income in our core construction driven end-markets. We anticipate continued growth in these markets in 2017. Our approach for 2017 is to remain focused and selective with our CAPEX spending as we take advantage of strong rental demand in our core construction end-markets."
Neff Corporation forecasts revenue to be in the range of $400 million to $420 million for fiscal year 2017.
Operating cash flow improves
Neff Corporation has generated cash of $148.90 million from operating activities during the year, up 21.85 percent or $26.70 million, when compared with the last year. The company has spent $101.20 million cash to meet investing activities during the year as against cash outgo of $129.40 million in the last year. It has incurred net capital expenditure of $101.10 million on net basis during the year, down 19.63 percent or $24.70 million from year ago.
The company has spent $47.10 million cash to carry out financing activities during the year as against cash inflow of $7.30 million in the last year period.
Cash and cash equivalents stood at $0.90 million as on Dec. 31, 2016, up 200 percent or $0.60 million from $0.30 million on Dec. 31, 2015.
Debt comes down marginally
Neff Corporation has recorded a decline in total debt over the last one year. It stood at $691.40 million as on Dec. 31, 2016, down 4.20 percent or $30.30 million from $721.70 million on Dec. 31, 2015. Neff Corp has recorded a decline in short-term debt over the last one year. It stood at $691.40 million as on Dec. 31, 2016, down 4.20 percent or $30.30 million from $721.70 million on Dec. 31, 2015. Total debt was 106.63 percent of total assets as on Dec. 31, 2016, compared with 110.40 percent on Dec. 31, 2015. Interest coverage ratio improved to 2.26 for the quarter from 2.13 for the same period last year.
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