General Communication, Inc. (GCI) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $55.13 million in the quarter, against a net profit of $1.10 million in the last year period.
Revenue during the quarter went down marginally by 1.29 percent to $228.12 million from $231.10 million in the previous year period. Gross margin for the quarter expanded 264 basis points over the previous year period to 69.63 percent. Total expenses were 93.27 percent of quarterly revenues, up from 91.34 percent for the same period last year. That has resulted in a contraction of 194 basis points in operating margin to 6.73 percent.
Operating income for the quarter was $15.35 million, compared with $20.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $68.81 million compared with $70.61 million in the prior year period. At the same time, adjusted EBITDA margin contracted 39 basis points in the quarter to 30.16 percent from 30.55 percent in the last year period.
Working capital declines
General Communication, Inc. has witnessed a decline in the working capital over the last year. It stood at $81.54 million as at Mar. 31, 2017, down 12.71 percent or $11.88 million from $93.41 million on Mar. 31, 2016. Current ratio was at 1.47 as on Mar. 31, 2017, down from 1.55 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 32 days for the last year period. Days sales outstanding went down to 81 days for the quarter compared with 84 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding went up to 74 days for the quarter from 65 for the same period last year.
Debt moves up marginally
General Communication, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,425.06 million as on Mar. 31, 2017, up 1.48 percent or $20.84 million from $1,404.23 million on Mar. 31, 2016. Total debt was 68.39 percent of total assets as on Mar. 31, 2017, compared with 71.61 percent on Mar. 31, 2016. Debt to equity ratio was at 267.07 as on Mar. 31, 2017, up from 12.64 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.71 for the quarter from 0.95 for the same period last year.
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