Alaska Communications Systems Group, Inc. (ALSK) has reported a 380.53 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.63 million, or $0.03 a share in the quarter, compared with $0.34 million, or $0.01 a share for the same period last year.
Revenue during the quarter went up marginally by 2.05 percent to $57.79 million from $56.63 million in the previous year period. Gross margin for the quarter expanded 271 basis points over the previous year period to 56.62 percent. Total expenses were 88.36 percent of quarterly revenues, down from 91.82 percent for the same period last year. This has led to an improvement of 347 basis points in operating margin to 11.64 percent.
Operating income for the quarter was $6.73 million, compared with $4.63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.44 million compared with $13.84 million in the prior year period. At the same time, adjusted EBITDA margin improved 400 basis points in the quarter to 28.45 percent from 24.45 percent in the last year period.
"We are confident in performing to our organic plan. In addition, we will continue to explore strategic actions to develop scale and geographic diversification for Alaska Communications by evaluating opportunities that leverage the very unique portfolio of skills and competencies we have developed over the last several years. We look forward to reporting progress on all fronts over the upcoming quarters," said Anand Vadapalli, Alaska Communications president and chief executive officer.
For financial year 2017, Alaska Communications Systems Group, Inc. expects revenue to be in the range of $229 million to $235 million.
Operating cash flow improves significantly
Alaska Communications Systems Group, Inc. has generated cash of $37.25 million from operating activities during the year, up 196.11 percent or $24.67 million, when compared with the last year.
The company has spent $37.73 million cash to meet investing activities during the year as against cash inflow of $240.34 million in the last year.
The company has spent $14.30 million cash to carry out financing activities during the year as against cash outgo of $248.63 million in the last year period.
Cash and cash equivalents stood at $21.23 million as on Dec. 31, 2016, down 41.03 percent or $14.77 million from $36 million on Dec. 31, 2015.
Working capital declines
Alaska Communications Systems Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $14.80 million as at Dec. 31, 2016, down 9.39 percent or $1.53 million from $16.33 million on Dec. 31, 2015. Current ratio was at 1.33 as on Dec. 31, 2016, up from 1.27 on Dec. 31, 2015.
Days sales outstanding were almost stable at 20 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 9 days for the quarter, when compared with the last year period.
Debt comes down marginally
Alaska Communications Systems Group, Inc. has recorded a decline in total debt over the last one year. It stood at $179.60 million as on Dec. 31, 2016, down 4.82 percent or $9.09 million from $188.69 million on Dec. 31, 2015. Total debt was 40.60 percent of total assets as on Dec. 31, 2016, compared with 40.70 percent on Dec. 31, 2015. Debt to equity ratio was at 1.13 as on Dec. 31, 2016, down from 1.23 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.74 for the quarter from 1.13 for the same period last year.
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