Spartan Motors, Inc. (SPAR) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.10 million, or $ 0.03 a share in the quarter, against a net profit of $0.54 million, or $0.02 a share in the last year period. On an adjusted basis, earnings per share were at $0.04 for the quarter compared with $0.02 in the same period last year. Revenue during the quarter grew 24.94 percent to $167.08 million from $133.73 million in the previous year period. Gross margin for the quarter contracted 202 basis points over the previous year period to 9.81 percent. Operating margin for the quarter stood at negative 0.50 percent as compared to a positive 0.52 percent for the previous year period.
Operating loss for the quarter was $0.84 million, compared with an operating income of $0.69 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.19 million compared with $2.88 million in the prior year period. At the same time, adjusted EBITDA margin improved 36 basis points in the quarter to 2.51 percent from 2.15 percent in the last year period.
"We are very pleased with the operating results achieved for the quarter. On an adjusted basis, this marks our fifth profitable quarter in a row,” said Daryl Adams, president and chief executive officer. “Our solid performance was driven by the continued operational improvements we have made in labor and manufacturing productivity, as a result of implementing the Spartan Production System, lean manufacturing and continuous improvement initiatives."
Spartan Motors, Inc. projects revenue to be in the range of $650 million to $700 million for financial year 2017. For fiscal year 2017, Spartan Motors expects net income to be in the range of $10.30 million to $12 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.29 to $0.34. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.36 to $0.41 on adjusted basis.
Working capital increases marginallySpartan Motors, Inc. has recorded an increase in the working capital over the last year. It stood at $89.74 million as at Mar. 31, 2017, up 3.10 percent or $2.70 million from $87.04 million on Mar. 31, 2016. Current ratio was at 1.72 as on Mar. 31, 2017, down from 1.99 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 65 days for the last year period. Days sales outstanding went down to 33 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went down to 19 days for the quarter from 26 for the same period last year.
Debt increases substantially
Spartan Motors, Inc. has witnessed an increase in total debt over the last one year. It stood at $32.92 million as on Mar. 31, 2017, up 534.72 percent or $27.74 million from $5.19 million on Mar. 31, 2016. Total debt was 10.49 percent of total assets as on Mar. 31, 2017, compared with 2.09 percent on Mar. 31, 2016. Debt to equity ratio was at 0.22 as on Mar. 31, 2017, up from 0.03 as on Mar. 31, 2016. 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]
