Sprint Corporation (S) saw its loss narrow to $479 million, or $0.12 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $836 million, or $0.21 a share.
Revenue during the quarter grew 5.45 percent to $8,549 million from $8,107 million in the previous year period. Gross margin for the quarter expanded 283 basis points over the previous year period to 54.26 percent. Operating margin for the quarter period stood at positive 3.64 percent as compared to a negative 2.43 percent for the previous year period.
Operating income for the quarter was $311 million, compared with an operating loss of $197 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2,450 million compared with $1,898 million in the prior year period. At the same time, adjusted EBITDA margin improved 525 basis points in the quarter to 28.66 percent from 23.41 percent in the last year period.
"Sprint is turning the corner," said Sprint chief executive officer Marcelo Claure. "Even with all the aggressive promotional offers from our competitors, we were still able to add more postpaid phone customers than both Verizon and AT&T while continuing to grow revenues, take costs out of the business, and improve the network."
For financial year 2016, Sprint Corporation forecasts operating income to be in the range of $1,400 million to $1,700 million.
Operating cash flow improves
Sprint Corporation has generated cash of $2,900 million from operating activities during the nine month period, up 11.41 percent or $297 million, when compared with the last year period.
The company has spent $5,194 million cash to meet investing activities during the nine month period as against cash outgo of $4,485 million in the last year period. It has incurred net capital expenditure of $2,871 million on net basis during the nine month period, down 49.82 percent or $2,850 million from year ago period.
Cash flow from financing activities was $3,360 million for the nine month period, up 7,048.94 percent or $3,313 million, when compared with the last year period.
Cash and cash equivalents stood at $3,707 million as on Dec. 31, 2016, up 70.44 percent or $1,532 million from $2,175 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Sprint Corporation was negative $3,065 million on Dec. 31, 2016 compared with negative $4,501 million on Dec. 31, 2015. Current ratio was at 0.78 as on Dec. 31, 2016, up from 0.59 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 43 days for the quarter from 38 days for the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 15 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went down to 76 days for the quarter from 77 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 $37,313 million as on Dec. 31, 2016, up 10.55 percent or $3,560 million from $33,753 million on Dec. 31, 2015. Total debt was 45.90 percent of total assets as on Dec. 31, 2016, compared with 42.43 percent on Dec. 31, 2015. Debt to equity ratio was at 1.96 as on Dec. 31, 2016, up from 1.66 as on Dec. 31, 2015.
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