Echo Global Logistics, Inc. (ECHO) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2.97 million, or $ 0.10 a share in the quarter, against a net profit of $1.74 million, or $0.06 a share in the last year period. On an adjusted basis, earnings per share were at $0.07 for the quarter compared with $0.28 in the same period last year.
Revenue during the quarter went down marginally by 0.08 percent to $406.85 million from $407.17 million in the previous year period. Gross margin for the quarter contracted 205 basis points over the previous year period to 17.62 percent. Operating margin for the quarter stood at negative 0.32 percent as compared to a positive 1.50 percent for the previous year period.
Operating loss for the quarter was $1.28 million, compared with an operating income of $6.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.10 million compared with $18.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 233 basis points in the quarter to 2.24 percent from 4.57 percent in the last year period.
"This has been an exciting year for Echo, as we just completed our 10th consecutive year of annual revenue growth. While softer pricing and market weakness impacted our gross margins in the back half of the year, we are excited for how we are positioned for success in 2017," said Doug Waggoner, chairman of the board of directors and chief executive officer of Echo.
For the first-quarter, Echo Global Logistics expects revenue to be in the range of $410 million to $430 million.
For financial year 2017, Echo Global Logistics expects revenue to be in the range of $1,850 million to $1,970 million.
Operating cash flow declines
Echo Global Logistics, Inc. has generated cash of $59.74 million from operating activities during the year, down 15.67 percent or $11.10 million, when compared with the last year.
The company has spent $46.89 million cash to meet investing activities during the year as against cash outgo of $405.14 million in the last year.
The company has spent $52.72 million cash to carry out financing activities during the year as against cash inflow of $358.28 million in the last year period.
Cash and cash equivalents stood at $16.65 million as on Dec. 31, 2016, down 70.55 percent or $39.88 million from $56.52 million on Dec. 31, 2015.
Debt moves up marginally
Echo Global Logistics, Inc. has witnessed an increase in total debt over the last one year. It stood at $203.56 million as on Dec. 31, 2016, up 3.51 percent or $6.90 million from $196.66 million on Dec. 31, 2015. Echo Global Logistics has witnessed an increase in long-term debt over the last one year. It stood at $203.56 million as on Dec. 31, 2016, up 3.51 percent or $6.90 million from $196.66 million on Dec. 31, 2015. Total debt was 26.55 percent of total assets as on Dec. 31, 2016, compared with 26.34 percent on Dec. 31, 2015. Debt to equity ratio was at 0.57 as on Dec. 31, 2016, up from 0.50 as on Dec. 31, 2015.
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