Terra Tech Corp. (TRTC) saw its loss widen to $5.59 million, or $0.01 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.96 million, or $0.01 a share.
Revenue during the quarter surged 244.36 percent to $6.95 million from $2.02 million in the previous year period. Gross margin for the quarter expanded 66 basis points over the previous year period to 18.98 percent. Operating margin for the quarter stood at negative 67.43 percent as compared to a negative 85.69 percent for the previous year period.
Operating loss for the quarter was $4.69 million, compared with an operating loss of $1.73 million in the previous year period.
Derek Peterson, chief executive officer of Terra Tech, commented, "We are encouraged to see our strategy to expand Terra Tech's retail presence in core target markets drive top line growth, with revenues reaching $7.0 million in the third quarter of 2016, representing a 244% increase compared to the prior year period. Third quarter results were supported by revenues from the Blüm Oakland Dispensary, in California, and the Western Las Vegas Blüm Dispensary, in Nevada, both of which opened in Spring of 2016. During the third quarter, we also opened the South Decatur Boulevard Blüm Dipensary, which is located east of the Las Vegas Strip in Nevada. Furthermore, with the passing of yesterday's ballots to legalize recreational cannabis in Nevada and California, we are well-positioned to accelerate our growth as the market opportunity rapidly expands."
Working capital remains negative
Working capital of Terra Tech Corp. was negative $9.84 million on Sep. 30, 2016 compared with negative $0.40 million on Sep. 30, 2015. Current ratio was at 0.42 as on Sep. 30, 2016, down from 0.87 on Sep. 30, 2015.
Days sales outstanding went down to 10 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 34 days for the previous year period.
Debt increases substantially
Terra Tech Corp. has witnessed an increase in total debt over the last one year. It stood at $2.79 million as on Sep. 30, 2016, up 86.58 percent or $1.29 million from $1.50 million on Sep. 30, 2015. Total debt was 3.99 percent of total assets as on Sep. 30, 2016, compared with 17.31 percent on Sep. 30, 2015. Debt to equity ratio was at 0.07 as on Sep. 30, 2016, down from 0.29 as on Sep. 30, 2015.
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