School Specialty (SCOO) saw its loss narrow to $13.84 million, or $13.84 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $22.65 million, or $22.65 a share. Revenue during the quarter grew 9.11 percent to $115.17 million from $105.56 million in the previous year period. Gross margin for the quarter contracted 94 basis points over the previous year period to 32.39 percent. Operating margin for the quarter stood at negative 12.19 percent as compared to a negative 18.39 percent for the previous year period.
Operating loss for the quarter was $14.04 million, compared with an operating loss of $19.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $5.59 million compared to negative $10.85 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 4.85 percent for the quarter compared to negative 10.28 percent in the last year period.
Joseph M. Yorio, president and chief executive officer, stated, "We closed out 2016 strong and Im pleased with what our team accomplished throughout the year. Our exceptional 9% growth in Q4 capped off a year in which we saw 3% growth overall. Achieving back-to-back years of growth is a strong step for our Company and we did so while lowering SG A by over 4% and continuing to invest in our business. Operating Income increased by more than $21 million and Adjusted EBITDA for the fiscal year grew by 13.5%. While accommodating growth and driving cost reductions, our operational performance has been exceptional and our Fulfillment Centers and support departments continue to deliver exceptional service for our customers. As we enter the new fiscal year, our team remains laser-focused on strengthening our product assortment, deploying our innovative team-based sales model, and generating new revenue in existing categories and markets, as well as in new developing areas. Operationally, we continue to build Process Excellence into everything we do and it is having an impact; this is who we are and this is the culture we continue to build, evolve and embrace. We energetically enter fiscal 2017 with a strengthening platform upon which to continue building shareholder value."
School Specialty expects revenue to be in the range of $670 million to $675 million for financial year 2017.
Debt comes down marginally
School Specialty has recorded a decline in total debt over the last one year. It stood at $137.49 million as on Dec. 31, 2016, down 4.69 percent or $6.77 million from $144.26 million on Dec. 26, 2015. 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
