Shiloh Industries (SHLO) Q3 Earnings Flat Y/Y, Sales Down
Zacks Investment Research | Sep 07, 2016 09:04PM ET
Shiloh Industries Inc. (NASDAQ:SHLO) reported third-quarter fiscal 2016 (ended Jul 31, 2016) results, wherein its adjusted earnings came in at 6 cents per share, matching the year-ago figure.
Weak Top-Line Results
Talking about Shiloh Industries’ top-line, third-quarter’s revenues totaled $248.8 million, down 6.5% year over year. Results were adversely impacted by less number of shipping days in the quarter and by changes in customer production schedule.
Geographically, revenues generated in Europe increased 7.8% while that in the United States and Rest of the World decreased 8.2% and 11%, respectively.
Margin Grew on Low Costs Offsetting Revenue Weakness
In the quarter, Shiloh Industries’ cost of sales declined 8.6% year over year, representing roughly 90.3% of net revenues compared with 92.4% in the year-ago quarter. Gross margin increased 210 basis points to 9.7%. Selling, general and administrative expenses were 7.1% of net revenue, compared with 4.6% in third-quarter fiscal 2015.
Adjusted earnings before interest, tax, depreciation and amortization were $17.2 million, up from $14.9 million in the prior-year quarter. Interest expenses soared nearly 61% year over year.
Balance Sheet and Cash Flow
Exiting third-quarter fiscal 2016, Shiloh Industries’ cash and cash equivalents decreased 6.6% to $4.6 million from $4.9 million at the end of the preceding quarter. Long-term debt decreased 2.7% sequentially to $259.2 million.
In the nine months ended Jul 31, Shiloh Industries generated net cash of $48.2 million from its operating activities, significantly up from $17.5 million in the prior-year quarter. Capital expenditure totaled $18.2 million, down 24.1% year over year.
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