Aegion Corp (AEGN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $17.79 million, or $ 0.52 a share in the quarter, against a net loss of $32.86 million, or $0.91 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $15.04 million, or $0.44 a share compared with $13.16 million or $0.36 a share, a year ago.
Revenue during the quarter went down marginally by 2.69 percent to $321.80 million from $330.71 million in the previous year period. Gross margin for the quarter expanded 175 basis points over the previous year period to 22.14 percent. Operating margin for the quarter period stood at positive 8.18 percent as compared to a negative 8.66 percent for the previous year period.
Operating income for the quarter was $26.32 million, compared with an operating loss of $28.64 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.94 million compared to $21.84 million in the prior year period. At the same time, adjusted operating margin improved 22 basis points in the quarter to 6.82 percent from 6.60 percent in the last year period.
"For 2017, we expect higher top line and operating income across all three platforms to result in strong earnings per share growth, greater cash generation and increasing ROIC. This positive outlook reflects our assessment of growing end markets, including an improving environment for oil & gas infrastructure, the expected completion of the large deepwater pipe coating and insulation project and continued execution of our long-term growth strategy" stated Charles R. Gordon, president and chief executive officer.
Operating cash flow drops significantly
Aegion Corp has generated cash of $73.22 million from operating activities during the year, down 44.54 percent or $58.81 million, when compared with the last year.
The company has spent $127.29 million cash to meet investing activities during the year as against cash outgo of $39.08 million in the last year. It has incurred net capital expenditure of $132.80 million on net basis during the year, up 285.53 percent or $98.35 million from year ago.
The company has spent $25.91 million cash to carry out financing activities during the year as against cash outgo of $50.24 million in the last year period.
Cash and cash equivalents stood at $129.50 million as on Dec. 31, 2016, down 38.11 percent or $79.75 million from $209.25 million on Dec. 31, 2015.
Working capital declines
Aegion Corp has witnessed a decline in the working capital over the last year. It stood at $301.64 million as at Dec. 31, 2016, down 20.71 percent or $78.79 million from $380.43 million on Dec. 31, 2015. Current ratio was at 2.31 as on Dec. 31, 2016, up from 2.28 on Dec. 31, 2015.
Debt moves up
Aegion Corp has witnessed an increase in total debt over the last one year. It stood at $370.62 million as on Dec. 31, 2016, up 5.55 percent or $19.49 million from $351.13 million on Dec. 31, 2015. Total debt was 31.05 percent of total assets as on Dec. 31, 2016, compared with 27.90 percent on Dec. 31, 2015. Debt to equity ratio was at 0.64 as on Dec. 31, 2016, up from 0.59 as on Dec. 31, 2015.
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: editor@irisindia.net
