Span-America Medical Systems, Inc. (SPAN) has reported an 126.13 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $1.71 million, or $0.62 a share in the quarter, compared with $0.76 million, or $0.28 a share for the same period last year. Revenue during the quarter went up marginally by 2.51 percent to $15.23 million from $14.85 million in the previous year period. Gross margin for the quarter expanded 354 basis points over the previous year period to 38.49 percent. Total expenses were 90.78 percent of quarterly revenues, down from 92.19 percent for the same period last year. This has led to an improvement of 140 basis points in operating margin to 9.22 percent.
Operating income for the quarter was $1.40 million, compared with $1.16 million in the previous year period.
Working capital increases sharply
Span-America Medical Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $18.63 million as at Apr. 01, 2017, up 44.57 percent or $5.74 million from $12.88 million on Apr. 02, 2016. Current ratio was at 4.77 as on Apr. 01, 2017, up from 3.80 on Apr. 02, 2016. Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 94 days for the last year period. Days sales outstanding went up to 50 days for the quarter compared with 48 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 69 days for the previous year period. At the same time, days payable outstanding went up to 25 days for the quarter from 24 for the same period last year.
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