EchoStar Corporation (SATS) has reported a 27.63 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $36.80 million, or $0.39 a share in the quarter, compared with $28.84 million, or $0.32 a share for the same period last year.
Revenue during the quarter went down marginally by 2.44 percent to $742.35 million from $760.88 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 44.15 percent. Total expenses were 88.96 percent of quarterly revenues, up from 88.35 percent for the same period last year. That has resulted in a contraction of 60 basis points in operating margin to 11.04 percent.
Operating income for the quarter was $81.98 million, compared with $88.61 million in the previous year period.
Operating cash flow declines
EchoStar Corporation has generated cash of $574.71 million from operating activities during the nine month period, down 5.46 percent or $33.21 million, when compared with the last year period.
The company has spent $759.82 million cash to meet investing activities during the nine month period as against cash outgo of $241.50 million in the last year period.
Cash flow from financing activities was $1,475.89 million for the nine month period as against cash outgo of $127.18 million in the last year period.
Cash and cash equivalents stood at $2,215.71 million as on Sep. 30, 2016, up 184.39 percent or $1,436.60 million from $779.10 million on Sep. 30, 2015.
Working capital increases sharply
EchoStar Corporation has recorded an increase in the working capital over the last year. It stood at $3,169.25 million as at Sep. 30, 2016, up 84.82 percent or $1,454.47 million from $1,714.79 million on Sep. 30, 2015. Current ratio was at 6.78 as on Sep. 30, 2016, up from 4.16 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 23 days for the last year period. Days sales outstanding went up to 58 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding went up to 47 days for the quarter from 44 for the same period last year.
Debt increases substantially
EchoStar Corporation has witnessed an increase in total debt over the last one year. It stood at $3,667.69 million as on Sep. 30, 2016, up 64.60 percent or $1,439.48 million from $2,228.21 million on Sep. 30, 2015. Total debt was 40.85 percent of total assets as on Sep. 30, 2016, compared with 30.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.92 as on Sep. 30, 2016, up from 0.60 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.19 for the quarter from 3.07 for the same period last year.
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