Ascent Capital Group (ASCMA) saw its loss narrow to $18.85 million, or $1.55 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $23.22 million, or $1.86 a share.
Revenue during the quarter went down marginally by 1.44 percent to $141.20 million from $143.27 million in the previous year period. Gross margin for the quarter contracted 65 basis points over the previous year period to 78.78 percent. Total expenses were 86.04 percent of quarterly revenues, down from 93.57 percent for the same period last year. This has led to an improvement of 754 basis points in operating margin to 13.96 percent.
Operating income for the quarter was $19.72 million, compared with $9.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $80 million compared with $85.05 million in the prior year period. At the same time, adjusted EBITDA margin contracted 270 basis points in the quarter to 56.66 percent from 59.36 percent in the last year period.
Ascent chairman and chief executive officer, Bill Fitzgerald stated, "Jeff and his team continue to make good progress in advancing the business and driving operational efficiencies across the MONI platform. I remain encouraged by the work he and his team are doing and believe the steps he is taking will serve to strengthen the business for the long term."
Operating cash flow declines
Ascent Capital Group has generated cash of $46 million from operating activities during the quarter, down 17.95 percent or $ 10.06 million, when compared with the last year period.
The company has spent $37.94 million cash to meet investing activities during the quarter as against cash outgo of $49.52 million in the last year period.
Cash flow from financing activities was $21.88 million for the quarter, up 7.16 percent or $1.46 million, when compared with the last year period.
Cash and cash equivalents stood at $42.26 million as on Mar. 31, 2017, up 29.91 percent or $9.73 million from $32.53 million on Mar. 31, 2016.
Working capital declines
Ascent Capital Group has witnessed a decline in the working capital over the last year. It stood at $47.24 million as at Mar. 31, 2017, down 7.86 percent or $4.03 million from $51.27 million on Mar. 31, 2016. Current ratio was at 1.46 as on Mar. 31, 2017, down from 1.51 on Mar. 31, 2016.
Days sales outstanding were almost stable at 8 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 27 days for the quarter from 25 for the same period last year.
Debt moves up marginally
Ascent Capital Group has witnessed an increase in total debt over the last one year. It stood at $1,790.06 million as on Mar. 31, 2017, up 2.72 percent or $47.49 million from $1,742.57 million on Mar. 31, 2016. Total debt was 83.49 percent of total assets as on Mar. 31, 2017, compared with 79.75 percent on Mar. 31, 2016. Debt to equity ratio was at 8.04 as on Mar. 31, 2017, up from 5.99 as on Mar. 31, 2016. Interest coverage ratio improved to 0.53 for the quarter from 0.29 for the same period last year.
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