Cambium Learning Group, Inc. (ABCD) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $10.43 million, or $ 0.22 a share in the year, against a net loss of $1.32 million, or $0.03 a share in the last year. Revenue during the year grew 5.13 percent to $152.36 million from $144.92 million in the previous year. Gross margin for the year expanded 193 basis points over the previous year to 68.32 percent. Total expenses were 87.78 percent of annual revenues, down from 88.83 percent for the last year. This has led to an improvement of 105 basis points in operating margin to 12.22 percent.
Operating income for the year was $18.61 million, compared with $16.19 million in the previous year.
However, the adjusted EBITDA for the year stood at $42.78 million compared with $38.51 million in the prior year period. At the same time, adjusted EBITDA margin improved 150 basis points in the year to 28.08 percent from 26.58 percent in the last year period.
"Our top-line growth in 2016 was more modest than we planned, but we nevertheless made strong progress on all aspects of our strategic plan that we fully expect to drive ongoing improvements in our financial results," said John Campbell, chief executive officer of Cambium Learning Group. "In 2016, on the strength of double-digit Bookings growth in our 100% digital segments, we were able to expand our profit margins, dollars, and free cash flow while we continued to make strategic investments in growth. We continued to revolutionize our business model and our role in the educational marketplace as technology-enabled Bookings increase as a percentage of our mix. Finally, we were able to further strengthen the company by prepaying a portion of our debt. We are excited by the progress we made in 2016, and remain confident that we are moving the company forward with solutions that leverage technology to dramatically improve the learning trajectory of every student we reach. We look forward to extending our educational impact and further growing our company in 2017."
Working capital remains negative
Working capital of Cambium Learning Group, Inc. was negative $71.16 million on Dec. 31, 2016 compared with negative $54.95 million on Dec. 31, 2015. Current ratio was at 0.32 as on Dec. 31, 2016, down from 0.42 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 40 days for the year from 69 days for the last year. Days sales outstanding went down to 51 days for the year compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 11 days for the year compared with 35 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the year, when compared with the previous year period.
Debt comes down significantly
Cambium Learning Group, Inc. has recorded a decline in total debt over the last one year. It stood at $74.48 million as on Dec. 31, 2016, down 26.78 percent or $27.24 million from $101.72 million on Dec. 31, 2015. Total debt was 56.45 percent of total assets as on Dec. 31, 2016, compared with 71.95 percent on Dec. 31, 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
