Houghton Mifflin Harcourt (HMHC) saw its loss narrow to $120.66 million, or $0.98 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $165.15 million, or $1.34 a share. Revenue during the quarter grew 7.82 percent to $221.92 million from $205.82 million in the previous year period. Gross margin for the quarter expanded 412 basis points over the previous year period to 39.12 percent. Operating margin for the quarter stood at negative 43.31 percent as compared to a negative 59.38 percent for the previous year period.
Operating loss for the quarter was $96.10 million, compared with an operating loss of $122.20 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $24.09 million compared to negative $41.20 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 10.86 percent for the quarter compared to negative 20.02 percent in the last year period.
“We began 2017 with a solid first quarter,” said Jack Lynch, Chief Executive Officer of HMH. “This is a transitional time for HMH as we make the necessary operational changes to streamline the Company. Importantly, we remain focused on strengthening our core business and improving our industry-leading educational offerings.”
Operating cash flow remains negative
Houghton Mifflin Harcourt has spent $95.88 million cash to meet operating activities during the quarter as against cash outgo of $112.75 million in the last year period. Cash flow from investing activities was $21.21 million for the quarter, down 70.83 percent or $51.51 million, when compared with the last year period.
The company has spent $1.89 million cash to carry out financing activities during the quarter as against cash outgo of $25.34 million in the last year period.
Cash and cash equivalents stood at $149.54 million as on Mar. 31, 2017, down 11.45 percent or $19.34 million from $168.88 million on Mar. 31, 2016.
Working capital drops significantly
Houghton Mifflin Harcourt has witnessed a decline in the working capital over the last year. It stood at $99.40 million as at Mar. 31, 2017, down 53.44 percent or $114.08 million from $213.49 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.47 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 91 days for the quarter from 164 days for the last year period. Days sales outstanding went down to 86 days for the quarter compared with 97 days for the same period last year.
Days inventory outstanding has decreased to 70 days for the quarter compared with 134 days for the previous year period. At the same time, days payable outstanding went down to 65 days for the quarter from 66 for the same period last year.
Debt remains almost stable
Houghton Mifflin Harcourt has recorded a decline in total debt over the last one year. It stood at $771.60 million as on Mar. 31, 2017, down 0.59 percent or $4.55 million from $776.15 million on Mar. 31, 2016. Total debt was 30.05 percent of total assets as on Mar. 31, 2017, compared with 26.81 percent on Mar. 31, 2016. Debt to equity ratio was at 1.01 as on Mar. 31, 2017, up from 0.95 as on Mar. 31, 2016. 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
