Wesco Aircraft Holdings (WAIR) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $23.26 million, or $ 0.24 a share in the quarter, against a net loss of $214 million, or $2.21 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $29.93 million, or $0.30 a share compared with $26.46 million or $0.27 a share, a year ago.
Revenue during the quarter went down marginally by 1.10 percent to $365.60 million from $369.65 million in the previous year period. Gross margin for the quarter expanded 2446 basis points over the previous year period to 26.12 percent. Operating margin for the quarter period stood at positive 11.01 percent as compared to a negative 88.23 percent for the previous year period.
Operating income for the quarter was $40.25 million, compared with an operating loss of $326.15 million in the previous year period.
However, the adjusted operating income for the quarter stood at $40.25 million compared to $28.90 million in the prior year period. At the same time, adjusted operating margin improved 319 basis points in the quarter to 11.01 percent from 7.82 percent in the last year period.
Dave Castagnola, president and chief executive officer, said, "Our fiscal 2016 fourth-quarter performance was a solid end to the fiscal year, with continued contract sales momentum, reduced SG&A expenses and higher operating income. Net cash from operating activities and free cash flow 3 were strong in the quarter, enabling us to pay down debt further. We booked new business and expanded the scope of work with customers in the fourth quarter of fiscal 2016 at a sustained pace, setting us on a path for sales growth in fiscal 2017.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1 to $1.05. The company forecasts diluted earnings per share to be in the range of $1.15 to $1.20 on adjusted basis.
Operating cash flow declinesWesco Aircraft Holdings has generated cash of $117.46 million from operating activities during the year, down 16.80 percent or $23.72 million, when compared with the last year. The company has spent $11.99 million cash to meet investing activities during the year as against cash outgo of $9.86 million in the last year. It has incurred net capital expenditure of $11.99 million on net basis during the year, up 24.73 percent or $2.38 million from year ago.
The company has spent $108.12 million cash to carry out financing activities during the year as against cash outgo of $150.70 million in the last year period.
Cash and cash equivalents stood at $77.06 million as on Sep. 30, 2016, down 7.01 percent or $5.80 million from $82.87 million on Sep. 30, 2015.
Working capital declines
Wesco Aircraft Holdings has witnessed a decline in the working capital over the last year. It stood at $835.01 million as at Sep. 30, 2016, down 9.86 percent or $91.33 million from $926.34 million on Sep. 30, 2015. Current ratio was at 4.86 as on Sep. 30, 2016, down from 5.39 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 122 days for the quarter from 101 days for the last year period. Days sales outstanding were almost stable at 32 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 122 days for the quarter compared with 89 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 19 for the same period last year.
Debt comes downWesco Aircraft Holdings has recorded a decline in total debt over the last one year. It stood at $845.09 million as on Sep. 30, 2016, down 11.58 percent or $110.69 million from $955.77 million on Sep. 30, 2015. Total debt was 43.20 percent of total assets as on Sep. 30, 2016, compared with 47.29 percent on Sep. 30, 2015. Debt to equity ratio was at 0.96 as on Sep. 30, 2016, down from 1.17 as on Sep. 30, 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: editor@irisindia.net
