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Shiloh Industries Disappoints with Q1 Loss, Revenues Up Y/Y

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Shiloh Industries Inc.SHLO reported disappointing results for first-quarter fiscal 2016 (ended Jan 31, 2016). The company incurred a loss of 20 cents per share, while in the prior-year quarter, it had generated earnings of 18 cents. The results excluded 2 cents per share of amortization of intangibles charges and 7 cents of non-recurring professional fees.

Revenues

In the quarter, Shiloh Industries' net revenue increased 2.1% year over year to $251.1 million. Excluding the adverse impact of unfavorable foreign currency movements, the company's revenues grew 3.9% year over year.

Margins

Shiloh Industries' cost of sales rose 3.5% year over year, representing roughly 93.6% of net revenues compared with 92.4% in the year-ago quarter. Gross margin decreased 120 basis points (bps) to 6.4%. Selling, general and administrative expenses were 7% of net revenue versus 5.5% in first-quarter fiscal 2015.

Adjusted earnings before interest, tax, depreciation and amortization ("BITDA") were $8.7 million, down from $14 million in the prior-year quarter. Interest expenses soared nearly 147% year over year.

Balance Sheet and Cash Flow

Exiting first-quarter fiscal 2016, Shiloh Industries had cash and cash equivalents of $6.8 million, down from $13.1 million at the end of the preceding quarter. Long-term debt decreased 7.5% sequentially to $276.4 million.

In the first quarter, Shiloh Industries generated cash of $18.7 million from its operating activities, up from $2.5 million in the prior-year quarter. Capital expenditure was $1.9 million, down 82.6% year over year.

Shiloh Industries currently has a market capitalization of $79.1 million. Some stocks worth considering in the industry include AK Steel Holding Corporation AKS , Usinas Siderúrgicas de Minas Gerais S.A. USNZY and Cliffs Natural Resources Inc. CLF . All these stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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