TheStreet, Inc. (TST) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.22 million, or $ 0.03 a share in the quarter, against a net profit of $0.35 million, or $0.01 a share in the last year period. Revenue during the quarter dropped 8.69 percent to $15.21 million from $16.66 million in the previous year period. Gross margin for the quarter expanded 17 basis points over the previous year period to 47.91 percent. Operating margin for the quarter stood at negative 5.81 percent as compared to a positive 3.78 percent for the previous year period.
Operating loss for the quarter was $0.88 million, compared with an operating income of $0.63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.04 million compared with $0.82 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.27 percent for the quarter compared to 4.92 percent in the last year period.
"In my first few months here we've added our first chief marketing officer, a half dozen senior journalists in our new, unified newsroom, and changed the structure of the management team with some departures on the senior team and in the newsroom. We have also added a key new board member, Betsy Morgan," said David Callaway, president and chief executive officer, who joined in early July. "Our new focus on leveraging our B-to-B growth in assets such as BoardEx into our overall media strategy is already yielding results. Third quarter subscription revenue from our BoardEx business was up 14% over last year, though the impact was offset by currency headwinds from Brexit."
Operating cash flow remains almost stable
TheStreet, Inc. has spent $1.51 million cash to meet operating activities during the nine month period as against cash outgo of $1.50 million in the last year period. The company has spent $2.55 million cash to meet investing activities during the nine month period as against cash outgo of $0.49 million in the last year period.
The company has spent $0.02 million cash to carry out financing activities during the nine month period as against cash outgo of $2.96 million in the last year period.
Cash and cash equivalents stood at $23.95 million as on Sep. 30, 2016, down 13.06 percent or $3.60 million from $27.54 million on Sep. 30, 2015.
Working capital turns negative
Working capital of TheStreet, Inc. has turned negative to $1.95 million on Sep. 30, 2016 from positive $2.01 million on Sep. 30, 2015. Current ratio was at 0.94 as on Sep. 30, 2016, down from 1.06 on Sep. 30, 2015.
Days sales outstanding went down to 27 days for the quarter compared with 28 days for the same period last year.
At the same time, days payable outstanding went up to 29 days for the quarter from 25 for the same period last year.
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