Frontier Communications Corporation (FTR) saw its loss widen to $80 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $14 million, or $0.07 a share. Revenue during the quarter surged 77.25 percent to $2,524 million from $1,424 million in the previous year period. Gross margin for the quarter contracted 627 basis points over the previous year period to 82.57 percent. Total expenses were 89.54 percent of quarterly revenues, up from 85.46 percent for the same period last year. That has resulted in a contraction of 408 basis points in operating margin to 10.46 percent.
Operating income for the quarter was $264 million, compared with $207 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $999 million compared with $588 million in the prior year period. At the same time, adjusted EBITDA margin contracted 171 basis points in the quarter to 39.58 percent from 41.29 percent in the last year period.
Dan McCarthy, president and chief executive officer, stated, "I am pleased that we achieved third quarter adjusted EBITDA of $1 billion. We are reaffirming our adjusted EBITDA guidance for the 4th quarter and outlook for 2017. We are on course to improve our revenue performance, principally by returning to normal customer trends in the CTF market over the coming quarters."
Operating cash flow remains almost stableFrontier Communications Corp has generated cash of $952 million from operating activities during the nine month period, down 0.94 percent or $9 million, when compared with the last year period. The company has spent $2,501 million cash to meet investing activities during the nine month period as against cash outgo of $9,107 million in the last year period.
Cash flow from financing activities was $944 million for the nine month period, down 88.86 percent or $7,531 million, when compared with the last year period.
Cash and cash equivalents stood at $331 million as on Sep. 30, 2016, down 67.26 percent or $680 million from $1,011 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Frontier Communications Corp has turned negative to $762 million on Sep. 30, 2016 from positive $8,767 million on Sep. 30, 2015. Current ratio was at 0.68 as on Sep. 30, 2016, down from 7.14 on Sep. 30, 2015.
Days sales outstanding went down to 28 days for the quarter compared with 35 days for the same period last year.
At the same time, days payable outstanding went up to 232 days for the quarter from 191 for the same period last year.
Debt moves up
Frontier Communications Corp has witnessed an increase in total debt over the last one year. It stood at $17,943 million as on Sep. 30, 2016, up 11.36 percent or $1,830 million from $16,113 million on Sep. 30, 2015. Total debt was 61.78 percent of total assets as on Sep. 30, 2016, compared with 58.88 percent on Sep. 30, 2015. Debt to equity ratio was at 3.77 as on Sep. 30, 2016, up from 2.75 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.68 for the quarter from 0.84 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacyy 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
