Sprint Corporation (S) saw its loss narrow to $142 million, or $0.04 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $585 million, or $0.15 a share. Revenue during the quarter grew 3.41 percent to $8,247 million from $7,975 million in the previous year period. Gross margin for the quarter expanded 93 basis points over the previous year period to 54 percent. Operating margin for the quarter period stood at positive 7.54 percent as compared to a negative 0.03 percent for the previous year period.
Operating income for the quarter was $622 million, compared with an operating loss of $2 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2,347 million compared with $2,008 million in the prior year period. At the same time, adjusted EBITDA margin improved 328 basis points in the quarter to 28.46 percent from 25.18 percent in the last year period.
"We took another step forward in our plan toward sustainable profitability and cash generation with this quarter’s results," said Sprint chief executive officer Marcelo Claure. "The top line is now growing, we continue to take costs out of the business, and we are successfully raising money at materially lower rates to reduce our future cash interest expenses."
For fiscal year 2016, Sprint Corporation projects operating income to be in the range of $1,200 million to $1,700 million.
Operating cash flow improves significantly
Sprint Corporation has generated cash of $2,250 million from operating activities during the first half, up 25.21 percent or $453 million, when compared with the last year period. The company has spent $3,358 million cash to meet investing activities during the first six months as against cash outgo of $4,080 million in the last year period. It has incurred net capital expenditure of $1,672 million on net basis during the first six months, down 59.44 percent or $2,450 million from year ago period.
Cash flow from financing activities was $2,473 million for the first six months, up 909.39 percent or $2,228 million, when compared with the last year period.
Cash and cash equivalents stood at $4,006 million as on Sep. 30, 2016, up 103.14 percent or $2,034 million from $1,972 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Sprint Corporation was negative $4,092 million on Sep. 30, 2016 compared with negative $2,159 million on Sep. 30, 2015. Current ratio was at 0.71 as on Sep. 30, 2016, down from 0.77 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 33 days for the quarter from 28 days for the last year period. Days sales outstanding went down to 27 days for the quarter compared with 33 days for the same period last year.
Days inventory outstanding has decreased to 12 days for the quarter compared with 23 days for the previous year period. At the same time, days payable outstanding went down to 72 days for the quarter from 84 for the same period last year.
Debt moves up
Sprint Corporation has witnessed an increase in total debt over the last one year. It stood at $36,555 million as on Sep. 30, 2016, up 7.63 percent or $2,590 million from $33,965 million on Sep. 30, 2015. Total debt was 45.23 percent of total assets as on Sep. 30, 2016, compared with 42.01 percent on Sep. 30, 2015. Debt to equity ratio was at 1.88 as on Sep. 30, 2016, up from 1.61 as on Sep. 30, 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
