Hawaiian Telcom Holdco, Inc. (HCOM) has reported a 0.55 percent rise in profit for the year ended Dec. 31, 2016. The company has earned $1.11 million, or $0.10 a share in the year, compared with $1.10 million, or $0.10 a share for the last year.
Revenue during the year went down marginally by 0.11 percent to $392.96 million from $393.41 million in the previous year. Gross margin for the year contracted 90 basis points over the previous year to 57.80 percent. Total expenses were 95.22 percent of annual revenues, up from 95.10 percent for the last year. That has resulted in a contraction of 11 basis points in operating margin to 4.78 percent.
Operating income for the year was $18.79 million, compared with $19.26 million in the previous year.
However, the adjusted EBITDA for the year stood at $115.98 million compared with $119.54 million in the prior year period. At the same time, adjusted EBITDA margin contracted 87 basis points in the year to 29.51 percent from 30.38 percent in the last year.
"2016 was a year of significant milestones and growth for Hawaiian Telcom," said Scott K. Barber, Hawaiian Telcom's president and chief executive officer. "Over the past six years, we have invested aggressively in fiber and systems, which has transformed our network, our products and services, and our growth profile. Compared to just three years ago, our combined consumer and business strategic revenue has grown 66 percent, while revenue from Hawaiian Telcom TV, our five-year-old IPTV product, more than tripled. We have made tremendous strides toward our vision of becoming the number one service provider of innovative fiber-based communication, information and entertainment solutions to the people and businesses of Hawaii."
Operating cash flow remains almost stable
Hawaiian Telcom Holdco, Inc. has generated cash of $90.09 million from operating activities during the year, down 0.56 percent or $0.51 million, when compared with the last year.
Cash flow from investing activities was almost stable for the year at $97.84 million, when compared with the previous year.
The company has spent $5.24 million cash to carry out financing activities during the year as against cash inflow of $1.34 million in the last year period.
Working capital remains negative
Working capital of Hawaiian Telcom Holdco, Inc. was negative $24.53 million on Dec. 31, 2016 compared with negative $8.10 million on Dec. 31, 2015. Current ratio was at 0.74 as on Dec. 31, 2016, down from 0.91 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 68 days for the year from 50 days for the last year. Days sales outstanding were almost stable at 31 days for the year, when compared with the last year period.
Days inventory outstanding has decreased to 9 days for the year compared with 20 days for the previous year period. At the same time, days payable outstanding went up to 108 days for the year from 101 for the same period last year.
Debt remains almost stable
Total debt was 35.41 percent of total assets as on Dec. 31, 2016, compared with 35.77 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.93 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 1.10 for the year from 1.15 for the same period last year.
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