Craft Brew Alliance, Inc (BREW) saw its loss narrow to $1.79 million, or $0.09 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $3.21 million, or $0.17 a share. Revenue during the quarter grew 12.95 percent to $44.30 million from $39.22 million in the previous year period. Gross margin for the quarter expanded 637 basis points over the previous year period to 28.60 percent. Operating margin for the quarter stood at negative 6.32 percent as compared to a negative 13.28 percent for the previous year period.
Operating loss for the quarter was $2.80 million, compared with an operating loss of $5.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.46 million compared to negative $2.56 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 1.03 percent for the quarter compared to negative 6.54 percent in the last year period.
“Our first quarter results are strong in and of themselves. And they’re especially remarkable given the dynamics in today’s increasingly challenging market,” said Andy Thomas, chief executive officer, CBA. “The substantial progress we made across many areas of our business ��" from continuing Kona’s double-digit growth and strengthening our local brands, to expanding our gross margins while evolving our brewery footprint and reducing our wholesaler inventory days by a third ��" provides tangible evidence that our strategy is working and beginning to bear fruit.”
Operating cash flow turns positive
Craft Brew Alliance, Inc has generated cash of $3.04 million from operating activities during the quarter as against cash outgo of $1.70 million in the last year period. The company has spent $1.96 million cash to meet investing activities during the quarter as against cash outgo of $5.65 million in the last year period.
The company has spent $1.37 million cash to carry out financing activities during the quarter as against cash inflow of $7.54 million in the last year period.
Cash and cash equivalents stood at $0.14 million as on Mar. 31, 2017, down 86.94 percent or $0.97 million from $1.11 million on Mar. 31, 2016.
Working capital declines
Craft Brew Alliance, Inc has witnessed a decline in the working capital over the last year. It stood at $10.81 million as at Mar. 31, 2017, down 7.61 percent or $0.89 million from $11.70 million on Mar. 31, 2016. Current ratio was at 1.30 as on Mar. 31, 2017, down from 1.35 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 45 days for the last year period. Days sales outstanding were almost stable at 42 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 30 days for the quarter compared with 57 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 55 for the same period last year.
Debt moves up marginally
Craft Brew Alliance, Inc has witnessed an increase in total debt over the last one year. It stood at $28.07 million as on Mar. 31, 2017, up 2.03 percent or $0.56 million from $27.52 million on Mar. 31, 2016. Total debt was 14.04 percent of total assets as on Mar. 31, 2017, compared with 14 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.24 as on Mar. 31, 2017, when compared with the last year. 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
