Park Electrochemical Corp. (PKE) has reported a 54.37 percent plunge in profit for the quarter ended Nov. 27, 2016. The company has earned $1.88 million, or $0.09 a share in the quarter, compared with $4.11 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.94 million, or $0.10 a share compared with $4.21 million or $0.21 a share, a year ago.
Revenue during the quarter dropped 22.90 percent to $26.46 million from $34.32 million in the previous year period. Gross margin for the quarter contracted 493 basis points over the previous year period to 25.07 percent. Total expenses were 92.76 percent of quarterly revenues, up from 85.80 percent for the same period last year. That has resulted in a contraction of 696 basis points in operating margin to 7.24 percent.
Operating income for the quarter was $1.92 million, compared with $4.88 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2.03 million compared to $5.03 million in the prior year period. At the same time, adjusted operating margin contracted 699 basis points in the quarter to 7.67 percent from 14.66 percent in the last year period.
Working capital increases
Park Electrochemical Corp. has recorded an increase in the working capital over the last year. It stood at $256.14 million as at Nov. 27, 2016, up 6.44 percent or $15.50 million from $240.64 million on Nov. 29, 2015. Current ratio was at 19.82 as on Nov. 27, 2016, up from 9.94 on Nov. 29, 2015.
Cash conversion cycle (CCC) has decreased to 64 days for the quarter from 80 days for the last year period. Days sales outstanding went up to 65 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 29 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went up to 30 days for the quarter from 26 for the same period last year.
Debt comes down
Park Electrochemical Corp. has recorded a decline in total debt over the last one year. It stood at $72.75 million as on Nov. 27, 2016, down 15.90 percent or $13.75 million from $86.50 million on Nov. 29, 2015. Total debt was 23.46 percent of total assets as on Nov. 27, 2016, compared with 26.54 percent on Nov. 29, 2015. Debt to equity ratio was at 0.40 as on Nov. 27, 2016, down from 0.49 as on Nov. 29, 2015. Interest coverage ratio deteriorated to 5.59 for the quarter from 13.73 for the same period last year.
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