Cinedigm Corp (CIDM) saw its loss narrow to $0.46 million, or $0.07 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.46 million, or $0.40 a share. Revenue during the quarter dropped 20.40 percent to $24.44 million from $30.71 million in the previous year period. Total expenses were 87.90 percent of quarterly revenues, down from 89.11 percent for the same period last year. This has led to an improvement of 122 basis points in operating margin to 12.10 percent.
Operating income for the quarter was $2.96 million, compared with $3.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.50 million compared with $14.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 21 basis points in the quarter to 47.03 percent from 47.24 percent in the last year period.
“Our recent successes in further strengthening our balance sheet continue to position Cinedigm’s operations for growing profitability,” said Chris McGurk, Chairman and Chief executive officer. “Our OTT channels continued to gain momentum during the quarter and we also generated strong results in our entertainment distribution business from several Family, Action/Western and Sports releases, including the Official World Series Cubs release. Additionally, we anticipate similar strong performance from the upcoming Official NFL Super Bowl Release in March. It is also important to note that we own more than 4,600 digital projector systems and are now actively pursuing options to realize the significant residual value of that equipment.”
Working capital increases sharply
Cinedigm Corp has recorded an increase in the working capital over the last year. It stood at $11.42 million as at Dec. 31, 2016, up 74.96 percent or $4.89 million from $6.52 million on Dec. 31, 2015. Current ratio was at 1.12 as on Dec. 31, 2016, up from 1.06 on Dec. 31, 2015. Days sales outstanding went up to 268 days for the quarter compared with 209 days for the same period last year.
Debt comes down significantly
Cinedigm Corp has recorded a decline in total debt over the last one year. It stood at $156.52 million as on Dec. 31, 2016, down 26.91 percent or $57.64 million from $214.16 million on Dec. 31, 2015. Total debt was 88.37 percent of total assets as on Dec. 31, 2016, compared with 88.42 percent on Dec. 31, 2015. Interest coverage ratio improved to 0.61 for the quarter from 0.65 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
