Christopher & Banks Corporation (CBK) swung to a net profit for the quarter ended Oct. 29, 2016. The company has made a net profit of $3.49 million, or $ 0.09 a share in the quarter, against a net loss of $0.32 million, or $0.01 a share in the last year period. Revenue during the quarter went up marginally by 2.92 percent to $106.67 million from $103.64 million in the previous year period. Gross margin for the quarter expanded 95 basis points over the previous year period to 36.77 percent. Total expenses were 96.61 percent of quarterly revenues, down from 99.68 percent for the same period last year. This has led to an improvement of 307 basis points in operating margin to 3.39 percent.
Operating income for the quarter was $3.62 million, compared with $0.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.74 million compared with $3.84 million in the prior year period. At the same time, adjusted EBITDA margin improved 262 basis points in the quarter to 6.32 percent from 3.70 percent in the last year period.
LuAnn Via, President and Chief Executive Officer, commented, "We are very pleased with our third quarter performance, as we exceeded our original guidance as well as our preliminary results reported on
For the fourth-quarter, Christopher & Banks Corporation expects revenue to be in the range of $93 million to $97 million. The company projects diluted earnings per share to be in the range of $0.11 to $0.16 for the fourth-quarter.
Operating cash flow remains negative
Christopher & Banks Corporation has spent $0.76 million cash to meet operating activities during the nine month period as against cash outgo of $3.22 million in the last year period. The company has spent $4.85 million cash to meet investing activities during the nine month period as against cash outgo of $9.63 million in the last year period.
The company has spent $0.01 million cash to carry out financing activities during the nine month period as against cash outgo of $0.03 million in the last year period.
Cash and cash equivalents stood at $25.88 million as on Oct. 29, 2016, up 6.21 percent or $1.51 million from $24.37 million on Oct. 31, 2015.
Working capital declines
Christopher & Banks Corporation has witnessed a decline in the working capital over the last year. It stood at $47.18 million as at Oct. 29, 2016, down 17.23 percent or $9.82 million from $57 million on Oct. 31, 2015. Current ratio was at 2.01 as on Oct. 29, 2016, down from 2.28 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 48 days for the last year period. Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 36 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
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