Otter Tail Corporation (OTTR) has reported 20.08 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $17.51 million, or $0.44 a share in the quarter, compared with $14.58 million, or $0.39 a share for the same period last year.
Revenue during the quarter grew 4.16 percent to $196.64 million from $188.79 million in the previous year period. Gross margin for the quarter expanded 346 basis points over the previous year period to 66.32 percent. Total expenses were 85.17 percent of quarterly revenues, up from 84.23 percent for the same period last year. That has resulted in a contraction of 94 basis points in operating margin to 14.83 percent.
Operating income for the quarter was $29.16 million, compared with $29.76 million in the previous year period.
“Our dedicated workforce delivered 2016 diluted earnings per share of $1.60,” said President and Chief executive officer Chuck MacFarlane. “These are solid results accomplished while managing through unfavorable weather at the utility and difficult economic factors that affected our manufacturing companies.
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.60 to $1.75.
Operating cash flow improves significantly
Otter Tail Corporation has generated cash of $163.39 million from operating activities during the year, up 39 percent or $45.85 million, when compared with the last year. The company has spent $159.32 million cash to meet investing activities during the year as against cash outgo of $155.97 million in the last year. It has incurred net capital expenditure of $156.42 million on net basis during the year, down 0.05 percent or $0.07 million from year ago.
The company has spent $4.06 million cash to carry out financing activities during the year as against cash inflow of $38.43 million in the last year period.
Working capital remains negative
Working capital of Otter Tail Corporation was negative $7.66 million on Dec. 31, 2016 compared with negative $64.55 million on Dec. 31, 2015. Current ratio was at 0.96 as on Dec. 31, 2016, up from 0.76 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 20 days for the last year period. Days sales outstanding were almost stable at 22 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 58 days for the quarter compared with 56 days for the previous year period. At the same time, days payable outstanding went up to 62 days for the quarter from 59 for the same period last year.
Debt remains almost stable
Otter Tail Corporation has witnessed an increase in total debt over the last one year. It stood at $581.42 million as on Dec. 31, 2016, up 0.78 percent or $4.48 million from $576.94 million on Dec. 31, 2015. Total debt was 30.40 percent of total assets as on Dec. 31, 2016, compared with 31.68 percent on Dec. 31, 2015. Debt to equity ratio was at 0.87 as on Dec. 31, 2016, down from 0.95 as on Dec. 31, 2015. 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]
