Time Inc (TIME) saw its loss widen to $28 million, or $0.29 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10 million, or $0.10 a share. On the other hand, adjusted net loss for the quarter widened to $18 million, or $0.18 a share from a loss of $11 million or $0.11 a share, a year ago. Revenue during the quarter dropped 7.83 percent to $636 million from $690 million in the previous year period. Gross margin for the quarter contracted 160 basis points over the previous year period to 55.50 percent. Operating margin for the quarter stood at negative 4.09 percent as compared to a negative 0.43 percent for the previous year period.
Operating loss for the quarter was $26 million, compared with an operating loss of $3 million in the previous year period.
Time Inc. president and chief executive officer Rich Battista said, "In the first quarter of 2017, we made important progress on our strategic plan despite continuing challenges with print advertising revenues. We are taking strategic actions and focusing on key initiatives to put the Company on the right course for the future. We are creating a more vibrant and valuable platform for our advertisers and consumers, further enhancing financial flexibility, aggressively reducing our cost base, rationalizing our portfolio and continuing to invest in transformational growth initiatives. Importantly, our Board of Directors’ April 28 announcement affirming our strategic plan has removed a major distraction for our people and advertisers. While we have a lot of work to do, Time Inc. is very well positioned to emerge as a winner in the rapidly changing consumer and media marketplace."
Operating cash flow turns positive
Time Inc has generated cash of $15 million from operating activities during the quarter as against cash outgo of $52 million in the last year period. The company has spent $44 million cash to meet investing activities during the quarter as against cash outgo of $139 million in the last year period.
The company has spent $27 million cash to carry out financing activities during the quarter as against cash outgo of $117 million in the last year period.
Cash and cash equivalents stood at $241 million as on Mar. 31, 2017, down 29.12 percent or $99 million from $340 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Time Inc has turned negative to $70 million on Mar. 31, 2017 from positive $124 million on Mar. 31, 2016. Current ratio was at 0.93 as on Mar. 31, 2017, down from 1.13 on Mar. 31, 2016.
Days sales outstanding went up to 64 days for the quarter compared with 63 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 11 days for the previous year period.
Debt comes down marginally
Time Inc has recorded a decline in total debt over the last one year. It stood at $1,239 million as on Mar. 31, 2017, down 1.51 percent or $19 million from $1,258 million on Mar. 31, 2016. Total debt was 29.71 percent of total assets as on Mar. 31, 2017, compared with 27.43 percent on Mar. 31, 2016. Debt to equity ratio was at 0.89 as on Mar. 31, 2017, up from 0.73 as on Mar. 31, 2016. 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
