Cogent Communications Holdings, Inc. (CCOI) has reported a 56.94 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $3.89 million, or $0.09 a share in the quarter, compared with $2.48 million, or $0.06 a share for the same period last year.
Revenue during the quarter grew 9.91 percent to $115.60 million from $105.18 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 56.67 percent. Total expenses were 87.20 percent of quarterly revenues, up from 84.62 percent for the same period last year. That has resulted in a contraction of 258 basis points in operating margin to 12.80 percent.
Operating income for the quarter was $14.80 million, compared with $16.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $37.74 million compared with $36.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 229 basis points in the quarter to 32.65 percent from 34.94 percent in the last year period.
Operating cash flow improves significantly
Cogent Communications Holdings, Inc. has generated cash of $107.97 million from operating activities during the year, up 28.83 percent or $24.16 million, when compared with the last year.
The company has spent $45.23 million cash to meet investing activities during the year as against cash outgo of $35.47 million in the last year.
Cash flow from financing activities was $8.34 million for the year as against cash outgo of $128.85 million in the last year period.
Cash and cash equivalents stood at $274.32 million as on Dec. 31, 2016, up 34.74 percent or $70.73 million from $203.59 million on Dec. 31, 2015.
Working capital increases sharply
Cogent Communications Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $259.71 million as at Dec. 31, 2016, up 42.36 percent or $77.27 million from $182.44 million on Dec. 31, 2015. Current ratio was at 4.82 as on Dec. 31, 2016, up from 3.65 on Dec. 31, 2015.
Debt moves up
Cogent Communications Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $701.82 million as on Dec. 31, 2016, up 20.70 percent or $120.36 million from $581.45 million on Dec. 31, 2015. Total debt was 95.11 percent of total assets as on Dec. 31, 2016, compared with 87.72 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.40 for the quarter from 1.57 for the same period last year.
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