FTD Companies (FTD) saw its loss narrow to $9.97 million, or $0.36 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $16.48 million, or $0.57 a share. On an adjusted basis, net profit for the quarter was $4.88 million, when compared with $2.67 million in the last year period.
Revenue during the quarter dropped 8.15 percent to $173.15 million from $188.52 million in the previous year period. Gross margin for the quarter expanded 22 basis points over the previous year period to 37.49 percent. Operating margin for the quarter stood at negative 6.76 percent as compared to a negative 7.99 percent for the previous year period.
Operating loss for the quarter was $11.70 million, compared with an operating loss of $15.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.70 million compared with $12.44 million in the prior year period. At the same time, adjusted EBITDA margin improved 189 basis points in the quarter to 8.49 percent from 6.60 percent in the last year period.
"Our performance for the quarter showed improved segment operating income, reflecting our ongoing cost management discipline," commented Christopher W. Shean, FTD’s Interim president and chief executive officer. "With our combination of world class brands and a talented management team, we believe that we are well positioned to more aggressively pursue growth strategies across our floral and gifting businesses. As part of our strategies, we intend to strengthen and differentiate the market positions of ProFlowers as a leader in providing consumers with great value, fresh flowers, and FTD as a leader in premium flowers, celebrating the artistry of our member florists. Our goal is to achieve the appropriate balance between revenue growth and profitability through our strategic initiatives."
For fiscal year 2016, FTD Companies projects revenue to grow in the range of 7 percent to 8 percent. FTD Companies expects net income to be in the range of $5 million to $7 million.
Operating cash flow remains negativeFTD Companies has spent $3.19 million cash to meet operating activities during the nine month period as against cash outgo of $2.70 million in the last year period. The company has spent $10.07 million cash to meet investing activities during the nine month period as against cash outgo of $20.70 million in the last year period.
The company has spent $27.78 million cash to carry out financing activities during the nine month period as against cash outgo of $56.22 million in the last year period.
Cash and cash equivalents stood at $16.19 million as on Sep. 30, 2016, up 7.24 percent or $1.09 million from $15.10 million on Sep. 30, 2015.
Debt comes downFTD Companies has recorded a decline in total debt over the last one year. It stood at $280.97 million as on Sep. 30, 2016, down 7.88 percent or $24.03 million from $305 million on Sep. 30, 2015. Total debt was 27.95 percent of total assets as on Sep. 30, 2016, compared with 25.30 percent on Sep. 30, 2015. Debt to equity ratio was at 0.53 as on Sep. 30, 2016, up from 0.47 as on Sep. 30, 2015.
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