IES Holdings, Inc. (IESC) has reported 77.27 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.50 million, or $0.02 a share in the quarter, compared with $2.20 million, or $0.10 a share for the same period last year. On an adjusted basis, net profit for the quarter was $1.10 million, when compared with $2.10 million in the last year period. Revenue during the quarter grew 27.31 percent to $203.70 million from $160 million in the previous year period. Gross margin for the quarter contracted 176 basis points over the previous year period to 15.61 percent. Total expenses were 99.21 percent of quarterly revenues, up from 98.44 percent for the same period last year. That has resulted in a contraction of 78 basis points in operating margin to 0.79 percent.
Operating income for the quarter was $1.60 million, compared with $2.50 million in the previous year period.
Robert Lewey, President, stated, “We experienced strong revenue growth of 27% and earnings improved in three of our four segments in the second quarter of fiscal 2017 compared with the second quarter of fiscal 2016. These gains were offset by certain project inefficiencies in our Commercial & Industrial segment during the quarter. However, we believe that we are taking appropriate actions to manage this risk and the overall outlook for our Commercial & Industrial business remains positive. Additionally, our newly acquired businesses continue to perform well and are contributing to our consolidated performance. We expect to continue evaluating opportunities to strengthen the mix of our business and improve consolidated operating margins through acquisitions.”
Operating cash flow drops significantly
IES Holdings has generated cash of $2.70 million from operating activities during the first half, down 85.33 percent or $15.70 million, when compared with the last year period. The company has spent $14.50 million cash to meet investing activities during the first six months as against cash outgo of $9.50 million in the last year period.
The company has spent $0.30 million cash to carry out financing activities during the first six months as against cash outgo of $0.02 million in the last year period.
Cash and cash equivalents stood at $20.80 million as on Mar. 31, 2017, down 64.30 percent or $37.47 million from $58.27 million on Mar. 31, 2016.
Working capital declines
IES Holdings has witnessed a decline in the working capital over the last year. It stood at $75 million as at Mar. 31, 2017, down 11.07 percent or $9.34 million from $84.34 million on Mar. 31, 2016. Current ratio was at 1.53 as on Mar. 31, 2017, down from 1.77 on Mar. 31, 2016.
Days sales outstanding went down to 56 days for the quarter compared with 60 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 9 days for the previous year period.
Debt increases substantially
IES Holdings has witnessed an increase in total debt over the last one year. It stood at $29.40 million as on Mar. 31, 2017, up 187.56 percent or $19.18 million from $10.22 million on Mar. 31, 2016. IES Holdings has witnessed an increase in long-term debt over the last one year. It stood at $29.40 million as on Mar. 31, 2017, up 187.56 percent or $19.18 million from $10.22 million on Mar. 31, 2016. Total debt was 7.21 percent of total assets as on Mar. 31, 2017, compared with 4.34 percent on Mar. 31, 2016. Debt to equity ratio was at 0.13 as on Mar. 31, 2017, up from 0.09 as on Mar. 31, 2016. 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
