Twin Disc reports 3Q results

Twin Disc said today that fiscal third-quarter sales declined to $41.4 million from $60.9 million in the same period last year.

Twin Disc said today that fiscal third-quarter sales declined to $41.4 million from $60.9 million in the same period last year.

The Wisconsin-based company reported a loss for the quarter that ended March 25 of $963,000, or 9 cents a diluted share, compared with a profit of $2.95 million, or 26 cents a share, in the quarter a year earlier.

For the fiscal year to date, the company reported a loss of $7.6 million, or 68 cents a diluted share, compared with earnings of $10.7 million, or 95 cents a share, for the first nine months of the previous fiscal year.

For the nine-month period through March 25, sales were $123.6 million, compared with $198.5 million for the same period in the previous year.

The “significant decline” in fiscal 2016 sales was the result of reduced demand for the company's oil- and gas-related products in North America and Asia, driven by a global decline in oil and natural gas prices, the company said.

Twin Disc also said it saw softening demand in Asia for commercial marine products.

Twin Disc also said demand from customers in Europe remains weak, but overall demand in North America remains relatively stable for the company's commercial marine and non-oil and gas industrial products.

Currency has had an unfavorable effect on fiscal 2016 sales, compared with the prior year, totaling $1.03 million and $7.86 million for the third quarter and year to date, respectively, because of a strengthening of the U.S. dollar against the euro and Asian currencies.

The company’s loss before interest, taxes, depreciation and amortization was $2.7 million for this year’s third quarter, compared with earnings of $6.2 million for the prior year’s quarter.

For the fiscal 2016 nine-month period, EBITDA showed a loss of $8.5 million, compared with a gain of $23.9 million in the comparable period last year.

"We have significantly strengthened our balance sheet and capital structure over the years, achieving a debt-to-total-capital ratio of 8.3 percent as of March 25, 2016,” Twin Disc CFO Jeffrey Knutson said in a statement. “This has provided the company with substantial financial flexibility and confidence to weather this downturn in our markets.”


‘We’ve been working our butts off’

With his boatbuilding pedigree, 28-year-old Philip Faulkner launched Avid Boats in just six months. The startup has a facility, financial backing, boats on the line and big plans going forward.