PFSweb, Inc. (PFSW) saw its loss widen to $4.86 million, or $0.26 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.75 million, or $0.04 a share. On an adjusted basis, net loss for the quarter was $0.73 million, when compared with net profit $0.04 million in the last year period.
Revenue during the quarter grew 4.91 percent to $78.77 million from $75.08 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 23.20 percent. Operating margin for the quarter stood at negative 4.37 percent as compared to a positive 0.26 percent for the previous year period.
Operating loss for the quarter was $3.44 million, compared with an operating income of $0.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.65 million compared with $3.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 36 basis points in the quarter to 4.64 percent from 4.99 percent in the last year period.
"We are keenly focused in 2017 on driving improved financial results and delivering optimal performance in support of our new and existing client relationships," said Mike Willoughby, CEO of PFS. "During the first quarter, we made strong progress on both of these objectives. Our existing client satisfaction was evidenced through continued contract expansion, including the three-year contract extension we signed in March with our long-time customer, L’Oreal USA."
PFSweb, Inc. forecasts revenue to be in the range of $240 million to $250 million for fiscal year 2017.
Working capital increases
PFSweb, Inc. has recorded an increase in the working capital over the last year. It stood at $12.21 million as at Mar. 31, 2017, up 8.21 percent or $0.93 million from $11.28 million on Mar. 31, 2016. Current ratio was at 1.14 as on Mar. 31, 2017, up from 1.13 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 34 days for the last year period. Days sales outstanding went down to 83 days for the quarter compared with 88 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 14 days for the previous year period. At the same time, days payable outstanding went up to 70 days for the quarter from 69 for the same period last year.
Debt increases substantially
PFSweb, Inc. has witnessed an increase in total debt over the last one year. It stood at $53.02 million as on Mar. 31, 2017, up 43.48 percent or $16.06 million from $36.95 million on Mar. 31, 2016. Total debt was 29.34 percent of total assets as on Mar. 31, 2017, compared with 21.67 percent on Mar. 31, 2016. Debt to equity ratio was at 1.47 as on Mar. 31, 2017, up from 0.84 as on Mar. 31, 2016.
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