Stoneridge, Inc. (SRI) has reported a 694.99 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $48.37 million, or $1.70 a share in the quarter, compared with $6.08 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.60 million, or $0.34 a share compared with $6.98 million or $0.25 a share, a year ago. Revenue during the quarter grew 11.62 percent to $172.61 million from $154.64 million in the previous year period. Gross margin for the quarter expanded 37 basis points over the previous year period to 27.68 percent. Total expenses were 94.11 percent of quarterly revenues, down from 94.62 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 5.89 percent.
Operating income for the quarter was $10.17 million, compared with $8.33 million in the previous year period.
Jon DeGaynor, president and chief executive officer, commented, "Strong financial performance through 2016 was supported by top-line growth that exceeds our underlying markets as well as the expansion of our margin through continued operating improvement. More specifically, we are pleased with the results of our shift-by-wire ramp-up in our Control Devices segment in 2016 as well as the improvement in our PST segment, which generated positive operating profit for the second consecutive quarter and continues to operate at sustainably profitable margins."
For fiscal year 2017, Stoneridge, Inc. projects revenue to be in the range of $705 million to $730 million. It projects operating income to grow in the range of 6.50 percent to 7.50 percent. It forecasts diluted earnings per share to be in the range of $1 to $1.15. It forecasts diluted earnings per share to be in the range of $1.40 to $1.50 on adjusted basis for the same period.
Operating cash flow improves
Stoneridge, Inc. has generated cash of $65.28 million from operating activities during the year, up 19.11 percent or $10.47 million, when compared with the last year. The company has spent $23.82 million cash to meet investing activities during the year as against cash outgo of $30.37 million in the last year. It has incurred net capital expenditure of $23.82 million on net basis during the year, down 16.91 percent or $4.85 million from year ago.
The company has spent $43.37 million cash to carry out financing activities during the year as against cash outgo of $11.02 million in the last year period.
Cash and cash equivalents stood at $50.39 million as on Dec. 31, 2016, down 7.31 percent or $3.97 million from $54.36 million on Dec. 31, 2015.
Debt comes down significantly
Stoneridge, Inc. has recorded a decline in total debt over the last one year. It stood at $83.69 million as on Dec. 31, 2016, down 29.30 percent or $34.68 million from $118.36 million on Dec. 31, 2015. Interest coverage ratio improved to 8.21 for the quarter from 4.95 for the same period last year.
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