Modine Manufacturing Company (MOD) has reported a 5.26 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $8 million, or $0.16 a share in the quarter, compared with $7.60 million, or $0.16 a share for the same period last year. On an adjusted basis, earnings per share were at $0.35 for the quarter compared with $0.36 in the same period last year. Revenue during the quarter surged 42.07 percent to $488.30 million from $343.70 million in the previous year period. Gross margin for the quarter contracted 71 basis points over the previous year period to 17.39 percent. Operating margin for the quarter period stood at positive 4.14 percent as compared to a negative 0.20 percent for the previous year period.
Operating income for the quarter was $20.20 million, compared with an operating loss of $0.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $29.20 million compared to $23.70 million in the prior year period. At the same time, adjusted operating margin contracted 92 basis points in the quarter to 5.98 percent from 6.90 percent in the last year period.
“Fiscal 2017 was a year of significant transformation for Modine, and we finished on a strong note, achieving significant sales and earnings growth, driven by the addition of CIS to our business portfolio,” said Modine president and chief executive officer, Thomas A. Burke. “Our base business also returned to growth in the fourth quarter, driven in part by significant increases in Asia and market improvements. We are very pleased with the integration of the CIS organization into Modine, and we remain on track to deliver annual cost synergies of at least $15 million within the next three to four years. These will be driven by ongoing optimization of manufacturing, procurement savings, and maximizing shared support functions.”
Modine Manufacturing Co expects revenue to grow in the range of 25 percent to 30 percent for the financial year 2017. For fiscal year 2017, the company expects adjusted operating income to be in the range of $100 million to $110 million. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.20 to $1.35 on adjusted basis.
Operating cash flow drops significantly
Modine Manufacturing Company has generated cash of $41.60 million from operating activities during the year, down 42.54 percent or $30.80 million, when compared with the last year. The company has spent $422.20 million cash to meet investing activities during the year as against cash outgo of $77.80 million in the last year. It has incurred net capital expenditure of $58.70 million on net basis during the year, down 5.93 percent or $3.70 million from year ago.
Cash flow from financing activities was $347.60 million for the year, up 12,774.07 percent or $344.90 million, when compared with the last year.
Cash and cash equivalents stood at $34.20 million as on Mar. 31, 2017, down 50.36 percent or $34.70 million from $68.90 million on Mar. 31, 2016.
Working capital drops significantly
Modine Manufacturing Company has witnessed a decline in the working capital over the last year. It stood at $97.90 million as at Mar. 31, 2017, down 29.52 percent or $41 million from $138.90 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.51 on Mar. 31, 2016.
Debt increases substantially
Modine Manufacturing Company has witnessed an increase in total debt over the last one year. It stood at $510.90 million as on Mar. 31, 2017, up 214.21 percent or $348.30 million from $162.60 million on Mar. 31, 2016. Total debt was 35.25 percent of total assets as on Mar. 31, 2017, compared with 17.66 percent on Mar. 31, 2016. Debt to equity ratio was at 1.21 as on Mar. 31, 2017, up from 0.42 as on Mar. 31, 2016.
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