ESCO Technologies Inc (ESE) has reported 30.29 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $16.92 million, or $0.65 a share in the quarter, compared with $12.98 million, or $0.50 a share for the same period last year. On an adjusted basis, earnings per share were at $0.67 for the quarter compared with $0.50 in the same period last year.
Revenue during the quarter grew 3.84 percent to $159.50 million from $153.61 million in the previous year period. Gross margin for the quarter expanded 432 basis points over the previous year period to 39.79 percent. Total expenses were 83.65 percent of quarterly revenues, down from 86.29 percent for the same period last year. This has led to an improvement of 263 basis points in operating margin to 16.35 percent.
Operating income for the quarter was $26.07 million, compared with $21.06 million in the previous year period.
Vic Richey, Chairman and Chief Executive Officer, commented, “I’m pleased with the way we ended 2016 by delivering operating results above our initial expectations, and by successfully executing several key strategic initiatives we established at the beginning of the year.
Operating cash flow improves
ESCO Technologies Inc has generated cash of $73.86 million from operating activities during the year, up 12.33 percent or $8.11 million, when compared with the last year. The company has spent $104.57 million cash to meet investing activities during the year as against cash outgo of $39.84 million in the last year.
Cash flow from financing activities was $46.22 million for the year as against cash outgo of $16.64 million in the last year period.
Cash and cash equivalents stood at $53.82 million as on Sep. 30, 2016, up 36.57 percent or $14.41 million from $39.41 million on Sep. 30, 2015.
Working capital increases
ESCO Technologies Inc has recorded an increase in the working capital over the last year. It stood at $165.41 million as at Sep. 30, 2016, up 6.69 percent or $10.37 million from $155.04 million on Sep. 30, 2015. Current ratio was at 2.05 as on Sep. 30, 2016, down from 2.08 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 65 days for the quarter from 59 days for the last year period. Days sales outstanding went up to 35 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has increased to 51 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went up to 20 days for the quarter from 18 for the same period last year.
Debt increases substantially
ESCO Technologies Inc has witnessed an increase in total debt over the last one year. It stood at $110 million as on Sep. 30, 2016, up 120 percent or $60 million from $50 million on Sep. 30, 2015. Total debt was 11.24 percent of total assets as on Sep. 30, 2016, compared with 5.79 percent on Sep. 30, 2015. Debt to equity ratio was at 0.18 as on Sep. 30, 2016, up from 0.09 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
