Chanticleer Holdings, Inc (HOTR) saw its loss narrow to $0.90 million, or $0.04 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.52 million, or $0.30 a share.
Revenue during the quarter grew 18.31 percent to $10.98 million from $9.28 million in the previous year period. Operating margin for the quarter stood at negative 4.71 percent as compared to a negative 11.68 percent for the previous year period.
Operating loss for the quarter was $0.52 million, compared with an operating loss of $1.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.23 million compared to negative $0.20 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.11 percent for the quarter compared to negative 2.20 percent in the last year period.
Mike Pruitt, Chairman and Chief executive officer of Chanticleer commented, “We’re pleased to have delivered excellent third quarter results, highlighted by strong revenue growth. Revenue growth in the quarter was driven by continued strength from our fast casual better burger business which has grown to represent 52% of our revenue. Little Big Burger is performing particularly well, contributing significantly to the 19% sequential growth in Adjusted EBITDA from continuing operations from Q2, and further validating our regional brand strategy.”
Operating cash flow turns positive
The company has spent $0.77 million cash to meet investing activities during the nine month period as against cash outgo of $10.41 million in the last year period. Cash flow from financing activities was $0.55 million for the nine month period, down 96.75 percent or $16.31 million, when compared with the last year period.
Cash and cash equivalents stood at $0.99 million as on Sep. 30, 2016, down 44.69 percent or $0.80 million from $1.79 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Chanticleer Holdings, Inc was negative $12.77 million on Sep. 30, 2016 compared with negative $5.15 million on Sep. 30, 2015. Current ratio was at 0.14 as on Sep. 30, 2016, down from 0.37 on Sep. 30, 2015.
Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.
Debt comes down significantly
Chanticleer Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $6.46 million as on Sep. 30, 2016, down 29.27 percent or $2.67 million from $9.14 million on Sep. 30, 2015. Total debt was 18.94 percent of total assets as on Sep. 30, 2016, compared with 21.44 percent on Sep. 30, 2015. Debt to equity ratio was at 0.40 as on Sep. 30, 2016, up from 0.38 as on Sep. 30, 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
