CSW INDUSTRIALS, INC. (CSWI) has reported 70.36 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $3.84 million, or $0.24 a share in the quarter, compared with $12.96 million, or $0.83 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.52 million, or $0.48 a share compared with $8.61 million or $0.55 a share, a year ago.
Revenue during the quarter dropped 4.31 percent to $80.13 million from $83.74 million in the previous year period. Gross margin for the quarter contracted 427 basis points over the previous year period to 44.51 percent. Total expenses were 91.30 percent of quarterly revenues, up from 75.19 percent for the same period last year. That has resulted in a contraction of 1611 basis points in operating margin to 8.70 percent.
Operating income for the quarter was $6.97 million, compared with $20.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $11.51 million compared to $14.09 million in the prior year period. At the same time, adjusted operating margin contracted 246 basis points in the quarter to 14.36 percent from 16.82 percent in the last year period.
Joseph B. Armes, CSW Industrials' chief executive officer, commented, "Our diversified end market exposure produced mixed operating performance as divergent themes continued to play out within these end markets. We delivered impressive growth for HVAC and architecturally specified building products in our commercial and residential construction end markets, which was most visible in our Industrial Products segment, driving approximately 16% revenue growth year-over-year."
Operating cash flow declinesCSW INDUSTRIALS has generated cash of $18.97 million from operating activities during the first half, down 12.15 percent or $2.62 million, when compared with the last year period. The company has spent $2 million cash to meet investing activities during the first six months as against cash outgo of $67.53 million in the last year period. It has incurred net capital expenditure of $4.69 million on net basis during the first six months, up 50.14 percent or $1.56 million from year ago period.
The company has spent $17.85 million cash to carry out financing activities during the first six months as against cash inflow of $80.17 million in the last year period.
Cash and cash equivalents stood at $24.62 million as on Sep. 30, 2016, down 54.35 percent or $29.32 million from $53.94 million on Sep. 30, 2015.
Working capital declines
CSW INDUSTRIALS has witnessed a decline in the working capital over the last year. It stood at $124.18 million as at Sep. 30, 2016, down 9.33 percent or $12.78 million from $136.96 million on Sep. 30, 2015. Current ratio was at 5 as on Sep. 30, 2016, up from 3.89 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 78 days for the last year period. Days sales outstanding went up to 33 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has decreased to 51 days for the quarter compared with 59 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.
Debt comes downCSW INDUSTRIALS has recorded a decline in total debt over the last one year. It stood at $72.40 million as on Sep. 30, 2016, down 23.12 percent or $21.77 million from $94.17 million on Sep. 30, 2015. Total debt was 18.84 percent of total assets as on Sep. 30, 2016, compared with 23.93 percent on Sep. 30, 2015. Debt to equity ratio was at 0.27 as on Sep. 30, 2016, down from 0.37 as on Sep. 30, 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
