Kaman Corp (KAMN), a supplier of industrial parts, has recorded a 7.37 percent fall in profit for the quarter ended Jun. 27, 2014. The company earned $16.57 million or $0.60 a share in the second-quarter compared with $17.89 million or $0.67 a share a year ago. Adjusted earnings per share came in at $0.59, when analysts expected $0.60.
Revenue during the second-quarter grew 6.34 percent to $459.09 million from $431.72 million in the last year period.
Gross margin expanded by 9 basis points over the previous year period to 28.17 percent. Total expenses as a percentage of revenues increased to 93.97 percent from 92.82 percent in the same period last year. That has resulted in contraction of 115 basis points in operating margins to 6.03 percent.
The company disclosed operating income of $27.69 million, compared with $31.02 million in the last year period.
Neal J. Keating, chairman, president and CEO, stated, "Significant improvement at distribution and strong operating profit performance at Aerospace enabled us to achieve diluted earnings per share from continuing operations of $0.59 for the quarter. Our first half performance of $1.00 of earnings per diluted share positions us well to meet our full year outlook."
Cash Flow
Kaman Corp has generated cash of $12.14 million from operating activities during the first half, as against cash outgo of $13.41 million in the last year period.
The company has spent $94.56 million cash to meet investing activities during the first half, as against cash outgo of $26.96 million in the last year period. It has made net capital expenditure of $17.99 million during the first half, which was lower by 15.08 percent or $3.19 million, from a year ago.
The company has generated cash of $83.63 million from financing activities during the first half, up 156.75 percent or $51.06 million, when compared with the last year period. It has borrowed net of $87.72 million through debt during the first half. It has raised net of $3.80 million by selling common stocks.
The company's cash dividend payment increased 1.06 percent or $0.09 million to $8.62 million. Dividend payment accounted for 70.96 percent of operating cash flow for the first half, compared with 63.59 percent in the same period previous year.
As on Jun. 27, 2014, the company's cash balance stood at $11.68 million, up 34.10 percent or $2.97 million from Jun. 28, 2013.
Working Capital
Kaman Corp has witnessed an increase in the working capital over the last one year. The company's working capital stood at $482.47 million as at Jun. 27, 2014, up $40.72 million or 9.22 percent from $441.74 million on Jun. 28, 2013. It registered an increase in current ratio to 3.07 as at Jun. 27, 2014 from 2.90 on Jun. 28, 2013.
Debt Position
Kaman Corp has witnessed an increase in the total debt over the last one year. As on Jun. 27, 2014, total debt stood at $362.87 million, up 22.95 percent or $67.74 million, from Jun. 28, 2013. The company total debt was 29.13 percent of total assets as on Jun. 27, 2014, compared with 25.64 percent on Jun. 28, 2013.
The company in debt to equity ratio remained almost stable at 0.67 as on Jun. 27, 2014, when compared with the last year period.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has declined to 8.40 from 9.81 in the same period last year.
Shares of the company gained 8 cents or 0.20 percent to close at $39.95 on Monday.
