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.
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.
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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