Park-Ohio Holdings Corp (PKOH) has reported 262.96 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $9.80 million, or $0.79 a share in the quarter, compared with $2.70 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.50 million, or $0.68 a share compared with $5.70 million or $0.46 a share, a year ago. Revenue during the quarter grew 4.82 percent to $343.80 million from $328 million in the previous year period. Gross margin for the quarter expanded 157 basis points over the previous year period to 16.14 percent. Total expenses were 93.54 percent of quarterly revenues, down from 96.55 percent for the same period last year. This has led to an improvement of 301 basis points in operating margin to 6.46 percent.
Operating income for the quarter was $22.20 million, compared with $11.30 million in the previous year period.
Edward F. Crawford, Chairman and Chief Executive Officer, stated, “We are pleased with the start of 2017. Additionally, the $700 million refinancing of our senior notes and bank agreement positions ParkOhio for substantial growth over the next 3-5 years. Our 2017 EPS guidance remains at $3.15 to $3.35 per diluted share.”
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.15 to $3.35.
Operating cash flow turns negativePark-Ohio Holdings Corp has spent $0.20 million cash to meet operating activities during the quarter as against cash inflow of $10.10 million in the last year period. The company has spent $6.10 million cash to meet investing activities during the quarter as against cash outgo of $8.90 million in the last year period.
Cash flow from financing activities was $8.80 million for the quarter as against cash outgo of $3.60 million in the last year period.
Cash and cash equivalents stood at $67.50 million as on Mar. 31, 2017, up 11.75 percent or $7.10 million from $60.40 million on Mar. 31, 2016.
Working capital increases marginally
Park-Ohio Holdings Corp has recorded an increase in the working capital over the last year. It stood at $327.90 million as at Mar. 31, 2017, up 1.27 percent or $4.10 million from $323.80 million on Mar. 31, 2016. Current ratio was at 2.21 as on Mar. 31, 2017, down from 2.32 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 59 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 39 days for the quarter compared with 82 days for the previous year period. At the same time, days payable outstanding went up to 44 days for the quarter from 43 for the same period last year.
Debt moves up
Park-Ohio Holdings Corp has witnessed an increase in total debt over the last one year. It stood at $481.70 million as on Mar. 31, 2017, up 9.58 percent or $42.10 million from $439.60 million on Mar. 31, 2016. Short-term debt stood at $29.70 million as on Mar. 31, 2017. Total debt was 47.10 percent of total assets as on Mar. 31, 2017, compared with 45.78 percent on Mar. 31, 2016. Debt to equity ratio was at 1.93 as on Mar. 31, 2017, down from 2.01 as on Mar. 31, 2016. Interest coverage ratio improved to 3 for the quarter from 1.59 for the same period last year. 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: [email protected]
