Frontier Communications Corporation (FTR) saw its loss narrow to $75 million, or $0.11 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $186 million, or $0.21 a share. On an adjusted basis, net loss for the quarter was $91 million, when compared with net profit $14 million in the last year period.
Revenue during the quarter surged 73.87 percent to $2,356 million from $1,355 million in the previous year period. Gross margin for the quarter contracted 564 basis points over the previous year period to 82.56 percent. Total expenses were 88.50 percent of quarterly revenues, down from 95.72 percent for the same period last year. This has led to an improvement of 722 basis points in operating margin to 11.50 percent.
Operating income for the quarter was $271 million, compared with $58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $923 million compared with $528 million in the prior year period. At the same time, adjusted EBITDA margin improved 21 basis points in the quarter to 39.18 percent from 38.97 percent in the last year period.
Dan McCarthy, president and chief executive officer, stated, "During the quarter, we continued to realize our targeted efficiencies and synergies, and I am also pleased to have achieved our third consecutive quarter of improved FiOS gross additions in the California, Texas and Florida CTF markets. We are executing on a number of initiatives with the goal of enhancing customer experience, reducing churn, stabilizing revenues and generating cash flow.
Operating cash flow turns positiveFrontier Communications Corporation has generated cash of $300 million from operating activities during the quarter as against cash outgo of $52 million in the last year period. The company has spent $243 million cash to meet investing activities during the quarter as against cash outgo of $259 million in the last year period.
The company has spent $238 million cash to carry out financing activities during the quarter as against cash outgo of $217 million in the last year period.
Cash and cash equivalents stood at $341 million as on Mar. 31, 2017, down 31.80 percent or $159 million from $500 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Frontier Communications Corporation has turned negative to $696 million on Mar. 31, 2017 from positive $7,842 million on Mar. 31, 2016. Current ratio was at 0.67 as on Mar. 31, 2017, down from 5.52 on Mar. 31, 2016.
Days sales outstanding went down to 27 days for the quarter compared with 37 days for the same period last year.
At the same time, days payable outstanding went down to 239 days for the quarter from 268 for the same period last year.
Debt moves upFrontier Communications Corporation has witnessed an increase in total debt over the last one year. It stood at $17,889 million as on Mar. 31, 2017, up 12.75 percent or $2,023 million from $15,866 million on Mar. 31, 2016. Total debt was 62.88 percent of total assets as on Mar. 31, 2017, compared with 59.98 percent on Mar. 31, 2016. Debt to equity ratio was at 4.14 as on Mar. 31, 2017, up from 3.02 as on Mar. 31, 2016. Interest coverage ratio improved to 0.70 for the quarter from 0.16 for the same period 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
