Knight Transportation, Inc. (KNX) has reported a 35.37 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $14.88 million, or $0.18 a share in the quarter, compared with $23.02 million, or $0.28 a share for the same period last year. Revenue during the quarter went down marginally by 0.33 percent to $271.18 million from $272.09 million in the previous year period. Gross margin for the quarter contracted 453 basis points over the previous year period to 57.77 percent. Total expenses were 91.65 percent of quarterly revenues, up from 85.77 percent for the same period last year. That has resulted in a contraction of 589 basis points in operating margin to 8.35 percent.
Operating income for the quarter was $22.64 million, compared with $38.73 million in the previous year period.
Dave Jackson, president and chief executive officer, commented on the quarter, "The freight environment was weak in both January and February, particularly in California, but began to improve in March. Our leadership remains focused on improving the productivity of our assets, expanding our brokerage business, and enhancing our cost control measures. Despite the difficult environment, we expect improved results in the coming quarters."
Working capital declines
Knight Transportation, Inc. has witnessed a decline in the working capital over the last year. It stood at $137.19 million as at Mar. 31, 2017, down 8.21 percent or $12.27 million from $149.46 million on Mar. 31, 2016. Current ratio was at 2.88 as on Mar. 31, 2017, up from 2.77 on Mar. 31, 2016. Days sales outstanding went down to 51 days for the quarter compared with 56 days for the same period last year.
At the same time, days payable outstanding went down to 10 days for the quarter from 17 for the same period last year.
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