RAVE Restaurant Group, Inc. (RAVE) saw its loss widen to $1.96 million, or $0.18 a share for the quarter ended Mar. 26, 2017. In the previous year period, the company reported a loss of $1.23 million, or $0.12 a share. Revenue during the quarter dropped 7.74 percent to $14.08 million from $15.26 million in the previous year period. Gross margin for the quarter contracted 29 basis points over the previous year period to 93.66 percent. Operating margin for the quarter stood at negative 8.74 percent as compared to a negative 7.78 percent for the previous year period.
Operating loss for the quarter was $1.23 million, compared with an operating loss of $1.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.95 million compared to negative $0.21 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 6.78 percent for the quarter compared to negative 1.40 percent in the last year period.
"We are taking a purposeful approach to improving the overall financial performance of the company by withdrawing from underperforming markets," said Scott Crane, chief executive officer for Rave Restaurant Group, Inc. "In addition, we will be introducing new initiatives that will add occasions and increased incidence."
Operating cash flow turns negative
RAVE Restaurant Group, Inc. has spent $3.03 million cash to meet operating activities during the nine month period as against cash inflow of $2.14 million in the last year period. The company has spent $0.16 million cash to meet investing activities during the nine month period as against cash outgo of $7.61 million in the last year period. It has incurred net capital expenditure of $0.16 million on net basis during the nine month period, down 97.95 percent or $7.45 million from year ago period.
Cash flow from financing activities was $4.69 million for the nine month period, up 504.90 percent or $3.91 million, when compared with the last year period.
Cash and cash equivalents stood at $2.37 million as on Mar. 26, 2017, up 129.28 percent or $1.34 million from $1.04 million on Mar. 27, 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
