Twin Disc (TWIN) saw its loss widen to $2.91 million, or $0.26 a share for the quarter ended Dec. 30, 2016. In the previous year period, the company reported a loss of $2.30 million, or $0.21 a share.
Revenue during the quarter dropped 24.89 percent to $33.67 million from $44.83 million in the previous year period. Gross margin for the quarter expanded 69 basis points over the previous year period to 26.58 percent. Operating margin for the quarter stood at negative 13.15 percent as compared to a negative 7.93 percent for the previous year period.
Operating loss for the quarter was $4.43 million, compared with an operating loss of $3.56 million in the previous year period.
Commenting on the results, John H. Batten, president and chief executive officer, said: "Challenging market conditions continued throughout the fiscal 2017 second quarter. However, the initiatives we have implemented to improve operating and financial efficiencies have helped us navigate a weak environment across many of our end markets. We generated positive operating cash flow in the fiscal 2017 second quarter, despite a 24.9 percent decline in sales compared to the same period last fiscal year. We remain focused on proactively adjusting our cost structure for changes in demand, working with customers to provide exceptional service, and developing next generation products that will drive higher market share once our markets recover. As oil and gas prices have stabilized and started to slowly improve, we are cautiously optimistic that demand in the oil and gas market, as well as adjacent markets in which we operate, will begin to benefit our results in the second half of fiscal 2017."
Operating cash flow remains negativeTwin Disc has spent $2.44 million cash to meet operating activities during the first half as against cash outgo of $4.45 million in the last year period. The company has spent $1.21 million cash to meet investing activities during the first half as against cash inflow of $2.34 million in the last year period It has incurred net capital expenditure of $1.09 million on net basis during the first six months, down 61.19 percent or $1.71 million from year ago period.
The company has spent $1.12 million cash to carry out financing activities during the first six months as against cash inflow of $0.88 million in the last year period.
Cash and cash equivalents stood at $12.99 million as on Dec. 30, 2016, down 37.03 percent or $7.64 million from $20.63 million on Dec. 25, 2015.
Working capital declines
Twin Disc has witnessed a decline in the working capital over the last year. It stood at $80.48 million as at Dec. 30, 2016, down 5.98 percent or $5.12 million from $85.60 million on Dec. 25, 2015. Current ratio was at 3.35 as on Dec. 30, 2016, up from 2.49 on Dec. 25, 2015.
Cash conversion cycle (CCC) has increased to 254 days for the quarter from 222 days for the last year period. Days sales outstanding were almost stable at 66 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 242 days for the quarter compared with 206 days for the previous year period. At the same time, days payable outstanding went up to 54 days for the quarter from 49 for the same period last year.
Debt comes down significantlyTwin Disc has recorded a decline in total debt over the last one year. It stood at $7.78 million as on Dec. 30, 2016, down 55.17 percent or $9.58 million from $17.36 million on Dec. 25, 2015. Total debt was 3.84 percent of total assets as on Dec. 30, 2016, compared with 7.69 percent on Dec. 25, 2015. Debt to equity ratio was at 0.07 as on Dec. 30, 2016, down from 0.13 as on Dec. 25, 2015. 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]
