FTD Companies, Inc. (FTD) has reported a 415.31 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $9.02 million, or $0.32 a share in the quarter, compared with $1.75 million, or $0.06 a share for the same period last year.
Revenue during the quarter dropped 4.16 percent to $316.49 million from $330.21 million in the previous year period. Gross margin for the quarter expanded 269 basis points over the previous year period to 37.95 percent. Total expenses were 94.36 percent of quarterly revenues, down from 99.11 percent for the same period last year. This has led to an improvement of 475 basis points in operating margin to 5.64 percent.
Operating income for the quarter was $17.84 million, compared with $2.94 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.06 million compared with $30.62 million in the prior year period. At the same time, adjusted EBITDA margin improved 54 basis points in the quarter to 9.81 percent from 9.27 percent in the last year period.
John C. Walden, FTD's president and chief executive officer, commented, "Our business performed reasonably well in the first quarter, generally in line with expectations. FTD has many positive assets to build upon, however, it continues to be challenged by historical underinvestment and will require improvement over time in the quality of our customer experiences, growth in our customer base and better efficiency in customer and order acquisition. The management team and I have begun our comprehensive strategic review of FTD with the goal of reinvigorating growth. I remain optimistic about our opportunities to create long-term shareholder value and look forward to sharing our plans in due course."
For fiscal year 2017, FTD Companies, Inc. expects net income to be in the range of $10 million to $15 million.
Operating cash flow improves significantly
FTD Companies, Inc. has generated cash of $24.22 million from operating activities during the quarter, up 37.82 percent or $6.64 million, when compared with the last year period.
The company has spent $3.20 million cash to meet investing activities during the quarter as against cash outgo of $3.67 million in the last year period.
The company has spent $51.94 million cash to carry out financing activities during the quarter as against cash outgo of $6.63 million in the last year period.
Cash and cash equivalents stood at $50.44 million as on Mar. 31, 2017, down 22.66 percent or $14.78 million from $65.22 million on Mar. 31, 2016.
Debt comes down
FTD Companies, Inc. has recorded a decline in total debt over the last one year. It stood at $226.65 million as on Mar. 31, 2017, down 21.92 percent or $63.64 million from $290.29 million on Mar. 31, 2016. Total debt was 24.36 percent of total assets as on Mar. 31, 2017, compared with 26.19 percent on Mar. 31, 2016. Debt to equity ratio was at 0.52 as on Mar. 31, 2017, down from 0.54 as on Mar. 31, 2016. Interest coverage ratio improved to 7.85 for the quarter from 1.27 for the same period last year.
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