Fiesta Restaurant Group (FRGI) swung to a net loss for the quarter ended Oct. 02, 2016. The company has made a net loss of $4.53 million, or $ 0.17 a share in the quarter, against a net profit of $7.94 million, or $0.30 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $7.99 million, or $0.30 a share compared with $8.80 million or $0.33 a share, a year ago. Revenue during the quarter grew 5.90 percent to $182.26 million from $172.10 million in the previous year period. Gross margin for the quarter expanded 217 basis points over the previous year period to 69.97 percent. Operating margin for the quarter stood at negative 3.70 percent as compared to a positive 7.56 percent for the previous year period.
Operating loss for the quarter was $6.74 million, compared with an operating income of $13.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.65 million compared with $21.99 million in the prior year period. At the same time, adjusted EBITDA margin contracted 90 basis points in the quarter to 11.88 percent from 12.78 percent in the last year period.
Fiesta Interim president and chief executive officer Danny Meisenheimer commented, "The Board and management team are committed to restoring momentum and building long-term shareholder value. We approach 2017 with optimism and a focused plan to deploy capital for new restaurant development in core markets, while we work to build brand awareness and frequency in our emerging Pollo Tropical markets and deliver exceptional brand fundamentals across both systems. We will continue our remodeling program at Pollo Tropical primarily in South Florida, while we invest in keeping our restaurants competitive, and building strategic organizational systems and people capabilities."
Working capital remains negativeWorking capital of Fiesta Restaurant Group was negative $29.16 million on Oct. 02, 2016 compared with negative $18.36 million on Sep. 27, 2015. Current ratio was at 0.48 as on Oct. 02, 2016, down from 0.58 on Sep. 27, 2015. Days sales outstanding went down to 3 days for the quarter compared with 6 days for the same period last year.
Debt comes down marginally
Fiesta Restaurant Group has recorded a decline in total debt over the last one year. It stood at $67.45 million as on Oct. 02, 2016, down 4.26 percent or $3 million from $70.45 million on Sep. 27, 2015. Total debt was 15.35 percent of total assets as on Oct. 02, 2016, compared with 17.64 percent on Sep. 27, 2015. Debt to equity ratio was at 0.26 as on Oct. 02, 2016, down from 0.30 as on Sep. 27, 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
