AAON, Inc. (AAON) has reported an 11.55 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $10.22 million, or $0.19 a share in the quarter, compared with $11.55 million, or $0.22 a share for the same period last year.
Revenue during the quarter went up marginally by 0.77 percent to $86.08 million from $85.42 million in the previous year period. Gross margin for the quarter contracted 110 basis points over the previous year period to 29.03 percent. Total expenses were 83.20 percent of quarterly revenues, up from 80.30 percent for the same period last year. That has resulted in a contraction of 290 basis points in operating margin to 16.80 percent.
Operating income for the quarter was $14.46 million, compared with $16.83 million in the previous year period.
Norman H. Asbjornson, chief executive officer, said, "We implemented selective price increases on March 1st which should begin to impact our sales in the latter half of the year. We are closely monitoring our SG&A expenses and we expect to witness reduction of these expenses throughout the year."
Operating cash flow drops significantly
AAON, Inc. has generated cash of $10.17 million from operating activities during the quarter, down 36.43 percent or $ 5.83 million, when compared with the last year period.
Cash flow from investing activities was $3.27 million for the quarter as against cash outgo of $3.91 million in the last year period. It has incurred net capital expenditure of $6.06 million on net basis during the quarter, down 17.20 percent or $1.26 million from year ago period.
The company has spent $5.96 million cash to carry out financing activities during the quarter as against cash outgo of $2.75 million in the last year period.
Cash and cash equivalents stood at $31.62 million as on Mar. 31, 2017, up 83.34 percent or $14.38 million from $17.25 million on Mar. 31, 2016.
Working capital increases
AAON, Inc. has recorded an increase in the working capital over the last year. It stood at $105.09 million as at Mar. 31, 2017, up 14.04 percent or $12.94 million from $92.15 million on Mar. 31, 2016. Current ratio was at 3.56 as on Mar. 31, 2017, up from 3.42 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 106 days for the last year period. Days sales outstanding went up to 53 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 62 days for the previous year period. At the same time, days payable outstanding went up to 12 days for the quarter from 7 for the same period last year.
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