Chanticleer Holdings Inc (HOTRW) saw its loss narrow to $1.81 million, or $0.08 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.41 million, or $0.11 a share. Revenue during the quarter dropped 9.69 percent to $9.86 million from $10.92 million in the previous year period. Operating margin for the quarter stood at negative 8.25 percent as compared to a negative 8.24 percent for the previous year period.
Operating loss for the quarter was $0.81 million, compared with an operating loss of $0.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.11 million compared with $0.13 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.17 percent for the quarter compared to 1.21 percent in the last year period.
Mike Pruitt, chairman and chief executive officer of Chanticleer commented, “We made great progress in fiscal 2016 and our annual results demonstrate the efforts to build scale and drive efficiencies in our business over the past two years. We achieved our first year of EBITDA profitability, while establishing our regional brand strategy and laying the foundation to begin to accelerate growth.
Operating cash flow remains negative
Chanticleer Holdings Inc has spent $0.51 million cash to meet operating activities during the year as against cash outgo of $5.25 million in the last year. The company has spent $1.25 million cash to meet investing activities during the year as against cash outgo of $10.49 million in the last year.
Cash flow from financing activities was $0.80 million for the year, down 95.23 percent or $15.99 million, when compared with the last year.
Cash and cash equivalents stood at $0.27 million as on Dec. 31, 2016, down 78.07 percent or $0.96 million from $1.22 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Chanticleer Holdings Inc was negative $10.32 million on Dec. 31, 2016 compared with negative $12.36 million on Dec. 31, 2015. Current ratio was at 0.15 as on Dec. 31, 2016, down from 0.24 on Dec. 31, 2015.
Debt increases substantially
Chanticleer Holdings Inc has witnessed an increase in total debt over the last one year. It stood at $10.16 million as on Dec. 31, 2016, up 55.36 percent or $3.62 million from $6.54 million on Dec. 31, 2015. Total debt was 30.33 percent of total assets as on Dec. 31, 2016, compared with 15.49 percent on Dec. 31, 2015. Debt to equity ratio was at 0.76 as on Dec. 31, 2016, up from 0.30 as on Dec. 31, 2015.
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