Weyco Group, Inc. (WEYS) has reported 16.71 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $8.18 million, or $0.78 a share in the quarter, compared with $7.01 million, or $0.65 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.12 million, or $0.58 a share compared with $6.73 million or $0.62 a share, a year ago. Revenue during the quarter dropped 6.07 percent to $82.10 million from $87.40 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 40.57 percent. Total expenses were 89.62 percent of quarterly revenues, up from 86.81 percent for the same period last year. That has resulted in a contraction of 282 basis points in operating margin to 10.38 percent.
Operating income for the quarter was $8.52 million, compared with $11.53 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10.29 million compared to $11.07 million in the prior year period. At the same time, adjusted operating margin contracted 14 basis points in the quarter to 12.53 percent from 12.67 percent in the last year period.
"It was a tough year for our North American wholesale business," stated Thomas W. Florsheim, Jr., the Companys chairman and chief executive officer. "Not only were BOGS sales down following last years mild winter, but our legacy brands also struggled, echoing the challenges our retail partners are facing, particularly at their brick and mortar locations. While we are disappointed in our results for the year, we are committed to addressing the challenges brought out by this rapidly changing marketplace. We believe we have the right products and long-term strategies in place that will position the Company for sustained growth in the long-term."
Operating cash flow turns positiveWeyco Group, Inc. has generated cash of $46.87 million from operating activities during the year as against cash outgo of $5.73 million in the last year. The company has spent $6.69 million cash to meet investing activities during the year as against cash inflow of $2.52 million in the last year.
The company has spent $44.44 million cash to carry out financing activities during the year as against cash inflow of $9.47 million in the last year period.
Cash and cash equivalents stood at $13.71 million as on Dec. 31, 2016, down 23.52 percent or $4.22 million from $17.93 million on Dec. 31, 2015.
Working capital decreases marginally
Weyco Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $116.95 million as at Dec. 31, 2016, down 1.13 percent or $1.34 million from $118.29 million on Dec. 31, 2015. Current ratio was at 5.04 as on Dec. 31, 2016, up from 2.93 on Dec. 31, 2015.
Debt comes down significantly
Weyco Group, Inc. has recorded a decline in total debt over the last one year. It stood at $4.27 million as on Dec. 31, 2016, down 83.98 percent or $22.38 million from $26.65 million on Dec. 31, 2015. Weyco Group, Inc. has recorded a decline in short-term debt over the last one year. Total debt was 1.59 percent of total assets as on Dec. 31, 2016, compared with 8.91 percent on Dec. 31, 2015. Debt to equity ratio was at 0.02 as on Dec. 31, 2016, down from 0.13 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 40.96 for the quarter from 137.27 for the same period last year. 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]
