Revenue during the quarter went up marginally by 1.62 percent to $462.27 million from $454.92 million in the previous year period. Gross margin for the quarter expanded 212 basis points over the previous year period to 12.75 percent. Total expenses were 95.50 percent of quarterly revenues, down from 96.99 percent for the same period last year. This has led to an improvement of 149 basis points in operating margin to 4.50 percent.

Operating income for the quarter was $20.80 million, compared with $13.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $56.24 million compared with $45.87 million in the prior year period. At the same time, adjusted EBITDA margin improved 208 basis points in the quarter to 12.17 percent from 10.08 percent in the last year period.

“Tower delivered solid financial results in the fourth quarter as revenue, Adjusted EBITDA, Adjusted EPS and free cash flow were all above our previous outlook,” said chief executive officer Jim Gouin. “With a solid order book of net new business through 2019, Tower is well positioned to grow revenue at a CAGR of 5 points above industry compared to 2017, while expanding margins and generating significant free cash flow.”

Tower International projects revenue to be $1,925 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be $3.60 on adjusted basis.

The company has spent $115.33 million cash to meet investing activities during the year as against cash outgo of $99.68 million in the last year.

The company has spent $86.60 million cash to carry out financing activities during the year as against cash outgo of $22.90 million in the last year period.

Cash and cash equivalents stood at $62.79 million as on Dec. 31, 2016, down 48.36 percent or $58.81 million from $121.59 million on Dec. 31, 2015.

Working capital drops significantly
Tower International, Inc has witnessed a decline in the working capital over the last year. It stood at $58.30 million as at Dec. 31, 2016, down 41.55 percent or $41.44 million from $99.74 million on Dec. 31, 2015. Current ratio was at 1.13 as on Dec. 31, 2016, down from 1.23 on Dec. 31, 2015.

Days sales outstanding went down to 18 days for the quarter compared with 23 days for the same period last year.

Days inventory outstanding was almost stable at 8 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 29 days for the quarter, when compared with the previous year period.