Scripps Networks Interactive, Inc. (SNI) has reported a 68.37 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $52.09 million, or $0.40 a share in the quarter, compared with $164.71 million, or $1.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $133.72 million, or $1.02 a share compared with $175.32 million or $1.35 a share, a year ago.
Revenue during the quarter grew 4.34 percent to $888.70 million from $851.75 million in the previous year period. Gross margin for the quarter expanded 97 basis points over the previous year period to 63.05 percent. Total expenses were 74.37 percent of quarterly revenues, up from 67.70 percent for the same period last year. That has resulted in a contraction of 667 basis points in operating margin to 25.63 percent.
Operating income for the quarter was $227.75 million, compared with $275.09 million in the previous year period.
"2016 was an extraordinary year for Scripps Networks Interactive. We achieved record levels of revenue and significantly improved our earnings. We increased ratings and engagement with audiences across our linear and digital platforms and expanded our international reach to new markets," said Kenneth W. Lowe, chairman, president and chief executive officer. "This standout performance is a direct result of our relentless focus on operational execution and the deliberate investment we've made in programming, international businesses and in Scripps Lifestyle Studios."
Operating cash flow improves
Scripps Networks Interactive, Inc. has generated cash of $948.83 million from operating activities during the year, up 16.71 percent or $135.84 million, when compared with the last year.
Cash flow from investing activities was $140.73 million from investing activities during the year as against cash outgo of $604.50 million in the last year.
The company has spent $1,175.44 million cash to carry out financing activities during the year as against cash outgo of $875.74 million in the last year period.
Cash and cash equivalents stood at $122.94 million as on Dec. 31, 2016, down 44.98 percent or $100.51 million from $223.44 million on Dec. 31, 2015.
Working capital increases sharply
Scripps Networks Interactive, Inc. has recorded an increase in the working capital over the last year. It stood at $941.57 million as at Dec. 31, 2016, up 25 percent or $188.34 million from $753.23 million on Dec. 31, 2015. Current ratio was at 2.31 as on Dec. 31, 2016, up from 1.77 on Dec. 31, 2015.
Debt comes down
Scripps Networks Interactive, Inc. has recorded a decline in total debt over the last one year. It stood at $3,202.39 million as on Dec. 31, 2016, down 20.15 percent or $807.89 million from $4,010.27 million on Dec. 31, 2015. Total debt was 51.65 percent of total assets as on Dec. 31, 2016, compared with 60.10 percent on Dec. 31, 2015. Debt to equity ratio was at 1.44 as on Dec. 31, 2016, down from 2.18 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 7.61 for the quarter from 9.89 for the same period last year.
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