Armstrong Flooring, Inc. (AFI) saw its loss widen to $7.80 million, or $0.28 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.80 million, or $0.03 a share. On the other hand, adjusted net loss for the quarter widened to $3.60 million, or $0.13 a share from a loss of $0.80 million or $0.03 a share, a year ago.
Revenue during the quarter dropped 6.75 percent to $265.20 million from $284.40 million in the previous year period. Gross margin for the quarter expanded 21 basis points over the previous year period to 17.76 percent. Operating margin for the quarter stood at negative 3.62 percent as compared to a negative 0.67 percent for the previous year period.
Operating loss for the quarter was $9.60 million, compared with an operating loss of $1.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.90 million compared with $12.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 104 basis points in the quarter to 3.36 percent from 4.40 percent in the last year period.
Don Maier, chief executive officer, commented: "First quarter 2017 results were below prior year as expected as net sales and adjusted EBITDA largely reflected the timing of load-in and promotional activity in the prior year quarter. We made additional progress with our innovation-based growth initiatives which helped produce double-digit sales gains in LVT; additionally, we experienced better performance in our commercial business."
Working capital increases sharply
Armstrong Flooring, Inc. has recorded an increase in the working capital over the last year. It stood at $291.10 million as at Mar. 31, 2017, up 29.15 percent or $65.70 million from $225.40 million on Mar. 31, 2016. Current ratio was at 2.96 as on Mar. 31, 2017, up from 2.55 on Mar. 31, 2016.
Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 59 days for the quarter compared with 47 days for the previous year period.
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