Douglas Dynamics (PLOW) has reported 53.04 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $7.20 million, or $0.32 a share in the quarter, compared with $15.33 million, or $0.68 a share for the same period last year.
Revenue during the quarter went up marginally by 2.49 percent to $123.57 million from $120.56 million in the previous year period. Gross margin for the quarter contracted 424 basis points over the previous year period to 29.65 percent. Total expenses were 86.66 percent of quarterly revenues, up from 77.97 percent for the same period last year. That has resulted in a contraction of 868 basis points in operating margin to 13.34 percent.
Operating income for the quarter was $16.49 million, compared with $26.56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $25.09 million compared with $31.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 547 basis points in the quarter to 20.30 percent from 25.77 percent in the last year period.
For fiscal year 2016, Douglas Dynamics projects revenue to be in the range of $395 million to $450 million. It expects net income to be in the range of $31 million to $40 million. The company forecasts diluted earnings per share to be in the range of $1.36 to $1.79.
Operating cash flow turns positiveDouglas Dynamics has generated cash of $11.21 million from operating activities during the nine month period as against cash outgo of $11.92 million in the last year period. The company has spent $183.01 million cash to meet investing activities during the nine month period as against cash outgo of $18.93 million in the last year period.
Cash flow from financing activities was $135.26 million for the nine month period, up 1,184.75 percent or $124.73 million, when compared with the last year period.
Cash and cash equivalents stood at $0.30 million as on Sep. 30, 2016, down 92.18 percent or $3.57 million from $3.87 million on Sep. 30, 2015.
Working capital increases marginally
Douglas Dynamics has recorded an increase in the working capital over the last year. It stood at $119.84 million as at Sep. 30, 2016, up 3.71 percent or $4.29 million from $115.55 million on Sep. 30, 2015. Current ratio was at 2.34 as on Sep. 30, 2016, down from 2.65 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 96 days for the quarter from 124 days for the last year period. Days sales outstanding went down to 68 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 69 days for the previous year period. At the same time, days payable outstanding was almost stable at 13 days for the quarter, when compared with the previous year period.
Debt increases substantiallyDouglas Dynamics has witnessed an increase in total debt over the last one year. It stood at $336.12 million as on Sep. 30, 2016, up 57.16 percent or $122.24 million from $213.88 million on Sep. 30, 2015. Total debt was 48.01 percent of total assets as on Sep. 30, 2016, compared with 40.99 percent on Sep. 30, 2015. Debt to equity ratio was at 1.57 as on Sep. 30, 2016, up from 1.13 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
