Fairway Group Holdings Corporation (FWM), a food retailer, saw its loss narrow to $46.53 million, or $1.07 a share for the quarter ended Mar. 29, 2015. In the previous year period, the company reported a loss of $80.28 million, or $3.10 a share.
Revenue during the year went up marginally by 2.78 percent to $797.56 million from $775.99 million in the previous year. Gross margin for the year contracted 108 basis points over the previous year to 31.31 percent. Operating margin for the year stood at negative 2.97 percent as compared to a negative 4.38 percent for the previous year.
Operating loss for the year was $23.72 million, compared with an operating loss of $34.01 million in the previous year.
"During the fourth quarter, we made significant progress in a number of key operating disciplines and were able to deliver quarter-sequential EBITDA improvement, even with lower sales volumes and added competitive headwinds. Strategic pricing, marketing and merchandising programs were implemented fleetwide which, combined with basic operational disciplines and a collective focus on responsible growth and profitability, have created a strong foundation for future growth. We are extremely pleased with our performance throughout the back half of the fiscal year and look forward to capitalizing on this momentum as we move into fiscal 2016," said Jack Murphy, Fairway’s chief executive officer
Operating cash flow improves significantly
Fairway Group Holdings Corp has generated cash of $14.04 million from operating activities during the year, up 1,028.54 percent or $12.80 million, when compared with the last year. The company has spent $33.47 million cash to meet investing activities during the year as against cash outgo of $39.50 million in the last year.
The company has spent $3.01 million cash to carry out financing activities during the year as against cash inflow of $75.34 million in the last year period. It has made net debt repayment of $2.75 million.
Cash and cash equivalents stood at $36.36 million as on Mar. 29, 2015, down 38.16 percent or $22.44 million from $58.80 million on Mar. 30, 2014.
Working capital drops significantly
Fairway Group Holdings Corp has witnessed a decline in the working capital over the last year. It stood at $17.57 million as at Mar. 29, 2015, down 57.63 percent or $23.89 million from $41.46 million on Mar. 30, 2014. Current ratio was at 1.30 as on Mar. 29, 2015, down from 1.73 on Mar. 30, 2014.
Days sales outstanding were almost stable at 3 days for the year, when compared with the last year period.
Days inventory outstanding was almost stable at 20 days for the year, when compared with the last year period. At the same time, days payable outstanding went down to 23 days for the year from 25 for the same period last year.
Debt remains almost stable
Total debt was 71.58 percent of total assets as on Mar. 29, 2015, compared with 67.43 percent on Mar. 30, 2014. Debt to equity ratio was at 11.37 as on Mar. 29, 2015, down from 22.22 as on Mar. 30, 2014.
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