Interface Security Systems Holdings, Inc. (ISS) saw its loss narrow to $6.25 million in the quarter ended compared with $11.03 million, a year ago.
Revenue during the quarter grew 15.43 percent to $42.83 million from $37.11 million in the previous year period. Gross margin for the quarter expanded 1008 basis points over the previous year period to 27.40 percent. Operating margin for the quarter period stood at positive 0.04 percent as compared to a negative 12.57 percent for the previous year period.
Operating income for the quarter was $0.02 million, compared with an operating loss of $4.66 million in the previous year period.
"Our third quarter results reflect a continuing positive trend in the company’s financial and operating performance. This trend is attributable to our steady RMR growth and below average industry attrition combined with an established infrastructure to leverage growth with our fixed overhead costs." said Michael Shaw, CEO of Interface Security Systems Holdings, Inc. "We are seeing business momentum with a majority of our current Sales Pipeline representing bundled IP services and our national account sales initiatives are driving consistent new RMR growth."
Operating cash flow remains negative
Interface Security Systems Holdings, Inc. has spent $3.77 million cash to meet operating activities during the nine month period as against cash outgo of $25.01 million in the last year period.
The company has spent $20.94 million cash to meet investing activities during the nine month period as against cash outgo of $23.05 million in the last year period.
Cash flow from financing activities was $13.09 million for the nine month period, down 74.89 percent or $39.06 million, when compared with the last year period.
Cash and cash equivalents stood at $0.48 million as on Sep. 30, 2016, down 98.41 percent or $29.45 million from $29.92 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Interface Security Systems Holdings, Inc. has turned negative to $1.15 million on Sep. 30, 2016 from positive $26.24 million on Sep. 30, 2015. Current ratio was at 0.96 as on Sep. 30, 2016, down from 1.73 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 23 days for the last year period. Days sales outstanding were almost stable at 27 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 18 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 48 for the same period last year.
Debt moves up marginally
Interface Security Systems Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $274.29 million as on Sep. 30, 2016, up 1.43 percent or $3.86 million from $270.43 million on Sep. 30, 2015. Total debt was 187.88 percent of total assets as on Sep. 30, 2016, compared with 154.49 percent on Sep. 30, 2015.
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