CIRCOR International, Inc. (CIR) has reported a 23.27 percent rise in profit for the quarter ended Apr. 02, 2017. The company has earned $4.77 million, or $0.29 a share in the quarter, compared with $3.87 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.38 million, or $0.32 a share compared with $8.68 million or $0.52 a share, a year ago. Revenue during the quarter dropped 3.71 percent to $145.21 million from $150.80 million in the previous year period. Gross margin for the quarter expanded 212 basis points over the previous year period to 32.11 percent. Total expenses were 94.94 percent of quarterly revenues, down from 96.36 percent for the same period last year. This has led to an improvement of 142 basis points in operating margin to 5.06 percent.
Operating income for the quarter was $7.35 million, compared with $5.50 million in the previous year period.
However, the adjusted operating income for the quarter stood at $9.10 million compared to $11.26 million in the prior year period. At the same time, adjusted operating margin contracted 120 basis points in the quarter to 6.26 percent from 7.47 percent in the last year period.
"CIRCOR delivered solid first-quarter results with revenue of $145 million and adjusted earnings per share of $0.32," said Scott Buckhout, president and chief executive officer. "Orders in our Energy segment were up 45% due to strong demand in our Distributed Valves business and our recent acquisition of Critical Flow Solutions. In our Advanced Flow Solutions segment, we reported a 26% organic increase in orders primarily due to strength in our aerospace and defense businesses. We expect this increase in order activity to translate into strong revenue growth and margin expansion as we progress through the year."
Operating cash flow improves significantly
CIRCOR International, Inc. has generated cash of $16.20 million from operating activities during the quarter, up 111.59 percent or $8.54 million, when compared with the last year period. The company has spent $1.34 million cash to meet investing activities during the quarter as against cash outgo of $3.93 million in the last year period. It has incurred net capital expenditure of $2.81 million on net basis during the quarter, down 28.55 percent or $1.12 million from year ago period.
The company has spent $8.53 million cash to carry out financing activities during the quarter as against cash inflow of $6.66 million in the last year period.
Cash and cash equivalents stood at $65.66 million as on Apr. 02, 2017, down 1.39 percent or $0.92 million from $66.58 million on Apr. 03, 2016.
Working capital decreases marginally
CIRCOR International, Inc. has witnessed a decline in the working capital over the last year. It stood at $244.92 million as at Apr. 02, 2017, down 2.49 percent or $6.24 million from $251.17 million on Apr. 03, 2016. Current ratio was at 3 as on Apr. 02, 2017, down from 3.02 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 93 days for the quarter from 177 days for the last year period. Days sales outstanding went up to 78 days for the quarter compared with 76 days for the same period last year.
Days inventory outstanding has decreased to 69 days for the quarter compared with 155 days for the previous year period. At the same time, days payable outstanding was almost stable at 54 days for the quarter, when compared with the previous year period.
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