Engility Holdings, Inc. (EGL) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $6.93 million, or $ 0.18 a share in the quarter, against a net loss of $3.23 million, or $0.09 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $20.60 million, or $0.55 a share compared with $8.94 million or $0.24 a share, a year ago. Revenue during the quarter dropped 7.19 percent to $485.22 million from $522.78 million in the previous year period. Gross margin for the quarter expanded 42 basis points over the previous year period to 14.47 percent. Total expenses were 93.04 percent of quarterly revenues, down from 94.94 percent for the same period last year. This has led to an improvement of 189 basis points in operating margin to 6.96 percent.
Operating income for the quarter was $33.75 million, compared with $26.47 million in the previous year period.
However, the adjusted operating income for the quarter stood at $40.92 million compared to $39.95 million in the prior year period. At the same time, adjusted operating margin improved 79 basis points in the quarter to 8.43 percent from 7.64 percent in the last year period.
"Today, we reported solid first quarter results reflecting improving company fundamentals," said Lynn Dugle, chief executive officer of Engility. “In particular, we are pleased to report strong margins and a book-to-bill ratio of greater than one for the quarter. Also, as part of upgrading our talent, we successfully recruited a proven executive, Scott Whatmough, to lead our Defense Group. Looking forward, we are aggressively pursuing organic growth by targeting larger opportunities that are aligned with our differentiated capabilities."
For financial year 2017, Engility Holdings, Inc. expects revenue to be in the range of $1,950 million to $2,050 million. The company projects diluted earnings per share to be in the range of $0.75 to $0.85.
Operating cash flow turns negative
Engility Holdings, Inc. has spent $12.39 million cash to meet operating activities during the quarter as against cash inflow of $29.73 million in the last year period. Cash flow from investing activities was $24.40 million for the quarter as against cash outgo of $3.88 million in the last year period.
The company has spent $35.37 million cash to carry out financing activities during the quarter as against cash outgo of $16.48 million in the last year period.
Cash and cash equivalents stood at $24.88 million as on Mar. 31, 2017, down 36.86 percent or $14.52 million from $39.40 million on Apr. 01, 2016.
Working capital declines
Engility Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $108.37 million as at Mar. 31, 2017, down 14.21 percent or $17.95 million from $126.32 million on Apr. 01, 2016. Current ratio was at 1.36 as on Mar. 31, 2017, down from 1.39 on Apr. 01, 2016.
Days sales outstanding went up to 68 days for the quarter compared with 67 days for the same period last year.
At the same time, days payable outstanding was almost stable at 11 days for the quarter, when compared with the previous year period.
Debt comes down
Engility Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $1,036.74 million as on Mar. 31, 2017, down 5.18 percent or $56.68 million from $1,093.42 million on Apr. 01, 2016. Total debt was 48.17 percent of total assets as on Mar. 31, 2017, compared with 48.65 percent on Apr. 01, 2016. Debt to equity ratio was at 1.45 as on Mar. 31, 2017, down from 1.55 as on Apr. 01, 2016. Interest coverage ratio improved to 1.61 for the quarter from 0.90 for the same period last year. 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: [email protected]
