Consolidated Communications Holdings (CNSL) has reported 170.21 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $7.01 million, or $0.14 a share in the quarter, compared with $2.60 million, or $0.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.20 million, or $0.16 a share compared with $8.80 million or $0.18 a share, a year ago.
Revenue during the quarter went down marginally by 1.25 percent to $191.54 million from $193.96 million in the previous year period. Gross margin for the quarter contracted 181 basis points over the previous year period to 55.29 percent. Total expenses were 88.13 percent of quarterly revenues, down from 92.96 percent for the same period last year. This has led to an improvement of 483 basis points in operating margin to 11.87 percent.
Operating income for the quarter was $22.74 million, compared with $13.65 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $77.14 million compared with $89.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 584 basis points in the quarter to 40.27 percent from 46.11 percent in the last year period.
“I am pleased with the solid financial results for the quarter and the strong growth in our fiber-based commercial and carrier sales," said Bob Udell, president and chief executive officer. "We delivered another comfortable dividend payout ratio and our year-to-date payout of 69.2% is right on plan."
Operating cash flow improves marginallyConsolidated Communications Holdings has generated cash of $173.59 million from operating activities during the nine month period, up 3.55 percent or $5.95 million, when compared with the last year period. The company has spent $86.62 million cash to meet investing activities during the nine month period as against cash outgo of $99.16 million in the last year period. It has incurred net capital expenditure of $73.20 million on net basis during the nine month period, down 26.81 percent or $26.81 million from year ago period.
The company has spent $69.45 million cash to carry out financing activities during the nine month period as against cash outgo of $51.31 million in the last year period.
Cash and cash equivalents stood at $33.40 million as on Sep. 30, 2016, up 40.03 percent or $9.55 million from $23.85 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Consolidated Communications Holdings has turned negative to $22.54 million on Sep. 30, 2016 from positive $0.08 million on Sep. 30, 2015. Current ratio was at 0.85 as on Sep. 30, 2016, down from 1 on Sep. 30, 2015.
Days sales outstanding went down to 46 days for the quarter compared with 50 days for the same period last year.
At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.
Debt comes down marginallyConsolidated Communications Holdings has recorded a decline in total debt over the last one year. It stood at $1,391.98 million as on Sep. 30, 2016, down 1.73 percent or $24.44 million from $1,416.42 million on Sep. 30, 2015. Total debt was 66.15 percent of total assets as on Sep. 30, 2016, compared with 64.29 percent on Sep. 30, 2015. Debt to equity ratio was at 6.58 as on Sep. 30, 2016, up from 5.24 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
