Titan International Inc (TWI) saw its loss narrow to $11.45 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $12.74 million, or $0.33 a share. Revenue during the quarter grew 11.10 percent to $357.50 million from $321.79 million in the previous year period. Gross margin for the quarter expanded 232 basis points over the previous year period to 11.11 percent. Operating margin for the quarter stood at negative 1.98 percent as compared to a negative 3.59 percent for the previous year period.
Operating loss for the quarter was $7.06 million, compared with an operating loss of $11.54 million in the previous year period.
Paul Reitz, president and chief executive officer, commented, "After eighteen consecutive quarters with year-over-year decreases in net sales, adjusted for acquisitions, it’s great to report a solid performance in the first quarter by delivering 11 percent top line growth over the same period last year. On a sequential quarter-over-quarter basis, we grew net sales over 16 percent. We are encouraged by these early signs of growth and cautiously optimistic about the future quarters of this fiscal year. While we experienced top line growth in net sales, we also improved our year-over-year gross profit and gross margin. Our gross margin increased 230 basis points to 11.1 percent of net sales thanks to our Business Improvement Framework. Extended downturns always present numerous challenges and the Titan team has done a good job weathering the storm. Through our consistent efforts, we were able to accomplish the noted increases this quarter. A gross profit increase of $11 million this quarter compared to first quarter 2016 was good, especially considering some notable events that adversely impacted our recent performance.
Operating cash flow turns negative
Titan International Inc has spent $14.54 million cash to meet operating activities during the quarter as against cash inflow of $2.33 million in the last year period. The company has spent $7.82 million cash to meet investing activities during the quarter as against cash outgo of $6.38 million in the last year period.
Cash flow from financing activities was $4.15 million for the quarter as against cash outgo of $7.45 million in the last year period.
Cash and cash equivalents stood at $131.16 million as on Mar. 31, 2017, down 31.37 percent or $59.94 million from $191.10 million on Mar. 31, 2016.
Working capital increases
Titan International Inc has recorded an increase in the working capital over the last year. It stood at $422.41 million as at Mar. 31, 2017, up 10.72 percent or $40.90 million from $381.51 million on Mar. 31, 2016. Current ratio was at 2.17 as on Mar. 31, 2017, up from 2.08 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 55 days for the quarter from 98 days for the last year period. Days sales outstanding went up to 58 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 83 days for the previous year period. At the same time, days payable outstanding went up to 44 days for the quarter from 41 for the same period last year.
Debt comes down
Titan International Inc has recorded a decline in total debt over the last one year. It stood at $455.95 million as on Mar. 31, 2017, down 10.30 percent or $52.34 million from $508.29 million on Mar. 31, 2016. Total debt was 34.38 percent of total assets as on Mar. 31, 2017, compared with 38.86 percent on Mar. 31, 2016. Debt to equity ratio was at 1.30 as on Mar. 31, 2017, down from 1.52 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]
