Shiloh Industries (SHLO) Q4 Earnings And Revenues Down Y/Y

Shiloh Industries Inc. (NASDAQ:SHLO) , on Jan 5, reported results for fiscal fourth quarter and fiscal 2017 (ended October 2017). Weak performance compared with the year-ago periods was primarily responsible for the 17.8% fall in the share price on the day.

In fiscal fourth quarter, adjusted earnings were 13 cents per share, down 74% from the year-ago tally of 50 cents. The bottom line suffered from a fall in revenues in the quarter.

For fiscal 2017, adjusted earnings per share came in at 53 cents, down 10.2% from 59 cents in the previous year.

Weak Top-Line Results

Shiloh Industries’ top-line results were weak. Net revenues in the fiscal fourth quarter were $264.2 million, down 6.2% year over year.

For fiscal 2017, the company’s net revenues were approximately $1,042 million, decreasing 2.2% from the previous year. Of the total revenues, roughly 80.5% were generated in the United States, 16.3% in Europe and 3.2% from Rest of the World.

Mixed Margin Results

Shiloh Industries’ cost of sales in the fiscal fourth quarter decreased 6.2% year over year while as a percentage of revenues, it remained unchanged at 89.3%. Gross margin was flat at 10.7%. Likewise, selling, general and administrative expenses remained stable year over year at 7.6%.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $18.3 million, slightly below $19 million in the prior-year quarter. EBITDA margin was 6.9% versus 6.7% in the year-ago quarter.

Balance Sheet and Cash Flow

Exiting the fiscal fourth quarter, Shiloh Industries’ cash and cash equivalents were $8.7 million, down 39.2% from $14.3 million at the previous quarter end. The company’s long-term debt grew 2.1% sequentially to $181.1 million.

In fiscal 2017, the company’s net cash flow from operating activities totaled $76.3 million, increasing 10% from the previous year. Capital expenditure surged 70.9% year over year to $48.4 million.

Outlook

Increase in Shiloh Industries’ new business wins as well as rise in demand for light weighing solutions in its prime operating areas will prove advantageous. Also, initiatives to strengthen its geographical presence and better utilize its resources are added benefits.

For fiscal 2018 (ending October 2018), the company anticipates adjusted EBITDA to be within the $73-$76 million range, with margin of 7.4-7.8%. Capital expenditures are predicted to be roughly 4-5% of revenues.

Shiloh Industries, Inc. Price