Twin Disc, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and First Half Ended December 30, 2016; Provides Capital Expenditures Guidance for the Fiscal Year 2017
January 31, 2017 at 08:00 am
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Twin Disc Inc. reported unaudited consolidated earnings results for the second quarter and first half ended December 30, 2016. For the quarter, the company's sales were $33,672,000, compared to $44,829,000 for the same period last year. Net loss attributable to the company for the fiscal 2017 second quarter was $2,912,000, or $0.26 per basic and diluted share, compared to a net loss attributable to the company of $2,301,000, or $0.21 per basic and diluted share, for the fiscal 2016 second quarter. Loss before interest, taxes, depreciation and amortization (EBITDA) were $2,227,000 for the fiscal 2017 second quarter, compared to $1,598,000 for the fiscal 2016 second quarter. The company generated $222,000 of operating cash flow in the quarter, primarily through improvements in working capital. Loss from operations was $4,427,000 compared with $3,557,000 a year ago. Loss before income taxes and non-controlling interest was $4,093,000 compared with $3,897,000 a year ago.
For the six months, the company's sales were $69,507,000, compared to $82,201,000 for the fiscal 2016 first half. The sales decline for both the fiscal 2017 second quarter and first half was primarily the result of softening demand in Asia for the company's commercial marine products, an ongoing domestic supplier transition issue delaying shipments, a reduction in global demand for industrial products and a decline in volume related to the company's oil and gas products. Net loss attributable to the company was $5,608,000, or $0.50 per basic and diluted share, compared to a net loss attributable to the company of $6,624,000, or $0.59 per basic and diluted share for the fiscal 2016 first half. EBITDA loss was $4,006,000, compared to $5,818,000 for the fiscal 2016 comparable period. The company has invested $1,094,000 in capital expenditures. Loss from operations was $7,987,000 compared with $10,108,000 a year ago. Loss before income taxes and non-controlling interest was $7,816,000 compared with $10,381,000 a year ago. Net cash used by operating activities was $2,439,000 compared with $4,449,000 a year ago. Acquisitions of fixed assets were $1,094,000 compared with $2,876,000 a year ago.
The company expects to invest approximately $3,000,000 to $5,000,000 in capital expenditures in the fiscal year 2017.
Twin Disc, Incorporated designs, manufactures and sells marine and heavy duty off-highway power transmission equipment. The Company has two reportable segments: Manufacturing and Distribution. The Companyâs products offered include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems. The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company also designs and manufactures gearboxes and power transmission components. It provides modeling, modernization, gearbox repair and maintenance services as well as spare parts. The Companyâs worldwide sales to both domestic and foreign customers are conducted through a direct sales force and a distributor network.
Twin Disc, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and First Half Ended December 30, 2016; Provides Capital Expenditures Guidance for the Fiscal Year 2017
TWIN DISC, INCORPORATED 
