AAON, Inc (AAON) has reported an 18.35 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $15.68 million, or $0.29 a share in the quarter, compared with $13.25 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 10.82 percent to $104.57 million from $94.36 million in the previous year period. Gross margin for the quarter contracted 34 basis points over the previous year period to 31.65 percent. Total expenses were 78.30 percent of quarterly revenues, down from 78.64 percent for the same period last year. This has led to an improvement of 34 basis points in operating margin to 21.70 percent.
Operating income for the quarter was $22.69 million, compared with $20.16 million in the previous year period.
Norman H. Asbjornson, president and chief executive officer, stated, “Our volume continues to increase allowing us to gain efficiencies and cost savings in our manufacturing process and keep our gross profit stable. Our increased focus on quality is helping to keep our warranty costs low and reduce our SG&A expense as a percent of sales to approximately 9.9% and 10.2% , respectively, for the three and nine months ended September 30, 2016."
Operating cash flow improves
AAON, Inc has generated cash of $47.01 million from operating activities during the nine month period, up 22.40 percent or $8.60 million, when compared with the last year period.
The company has spent $21.08 million cash to meet investing activities during the nine month period as against cash outgo of $17.73 million in the last year period.
The company has spent $19.27 million cash to carry out financing activities during the nine month period as against cash outgo of $12.76 million in the last year period.
Cash and cash equivalents stood at $14.56 million as on Sep. 30, 2016, down 51.24 percent or $15.30 million from $29.86 million on Sep. 30, 2015.
Working capital decreases marginally
AAON, Inc has witnessed a decline in the working capital over the last year. It stood at $98.03 million as at Sep. 30, 2016, down 4.53 percent or $4.65 million from $102.68 million on Sep. 30, 2015. Current ratio was at 3.26 as on Sep. 30, 2016, down from 3.43 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 97 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 47 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 13 for the same period last year.
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