Aerogrow International (AERO) saw its loss narrow to $1.13 million, or $0.17 a share for the quarter ended Sep. 30, 2016. Aerogrow International (AERO) saw its loss narrow to $1.13 million in the quarter ended compared with $1.17 million, a year ago. Revenue during the quarter surged 105.50 percent to $2.24 million from $1.09 million in the previous year period. Gross margin for the quarter expanded 57 basis points over the previous year period to 30.82 percent. Operating margin for the quarter stood at negative 27.97 percent as compared to a negative 95.51 percent for the previous year period.
Operating loss for the quarter was $0.63 million, compared with an operating loss of $1.04 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.39 million compared to negative $0.82 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 17.48 percent for the quarter compared to negative 75.34 percent in the last year period.
"Weve made substantial progress during the first half of our fiscal year 2017 - and this progress accelerated during the second quarter” said president and chief executive officer J. Michael Wolfe. "Net sales for the Company were up 106% for the quarter and now stand at +65% for the year. Our sales growth has been driven by strong gains in both our retail and direct response businesses - up 162% and 42% respectively in the quarter. Our retail business experienced solid growth with Amazon, our largest account as well as good traction at new partners such as Sur La Table, Williams-Sonoma, Ace Hardware and others. All of this led to cutting our quarterly EBITDA loss by over half from last year ��" which represents a very solid start for our fiscal year, especially as we enter our traditionally strong selling season.
Working capital turns positiveWorking capital of Aerogrow International has turned positive to $0.71 million on Sep. 30, 2016 from negative $0.66 million on Sep. 30, 2015. Current ratio was at 1.09 as on Sep. 30, 2016, up from 0.93 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 109 days for the quarter from 272 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 163 days for the quarter compared with 381 days for the previous year period. At the same time, days payable outstanding went down to 113 days for the quarter from 180 for the same period last year.
Debt comes down
Aerogrow International has recorded a decline in total debt over the last one year. It stood at $0.16 million as on Sep. 30, 2016, down 13.59 percent or $0.02 million from $0.18 million on Sep. 30, 2015. Long-term debt stood at $0.02 million as on Sep. 30, 2016. Total debt was 1.69 percent of total assets as on Sep. 30, 2016, compared with 1.97 percent on Sep. 30, 2015. Debt to equity ratio was at 0.12 as on Sep. 30, 2016, down from 0.75 as on Sep. 30, 2015. 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: editor@irisindia.net
