Time Inc (TIME) saw its loss narrow to $112 million, or $1.13 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $913 million, or $8.30 a share. On the other hand, adjusted net income for the quarter stood at $33 million, or $0.31 a share compared with $40 million or $0.32 a share, a year ago. Revenue during the quarter went down marginally by 2.98 percent to $750 million from $773 million in the previous year period. Gross margin for the quarter contracted 336 basis points over the previous year period to 56.53 percent.
Operating loss for the quarter was $167 million, compared with an operating loss of $899 million in the previous year period.
Time Inc. president and chief executive officer Rich Battista said, "As we continue our aggressive transformation to a digital-first company, I am pleased with the strong growth of our digital advertising revenues and digital audiences in the third quarter. The integration of Viant, our proprietary targeting and data platform, into the overall Time Inc. go-to-market approach is bringing new, unique capabilities to our advertising partners, and beginning to yield incremental revenue across the portfolio. Our native advertising business, through The Foundry, is experiencing rapid growth. We now have a more compelling, exciting and differentiated set of solutions for marketers, which combine our premium content and large-scale audiences with our unique data and people-based targeting capabilities. The recent realignment of our ad sales and editorial operations will allow us to move with more speed, agility and focus, while better leveraging our major audience scale. I see opportunity to unlock significant value through our portfolio of assets despite the disruption going on in media and advertising."
For fiscal year 2016, Time Inc expects operating income to be in the range of $15 million to $25 million.
Operating cash flow declines
Time Inc has generated cash of $106 million from operating activities during the nine month period, down 16.54 percent or $21 million, when compared with the last year period. The company has spent $276 million cash to meet investing activities during the nine month period as against cash outgo of $302 million in the last year period.
The company has spent $229 million cash to carry out financing activities during the nine month period as against cash outgo of $79 million in the last year period.
Cash and cash equivalents stood at $244 million as on Sep. 30, 2016, down 7.92 percent or $21 million from $265 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Time Inc has turned negative to $53 million on Sep. 30, 2016 from positive $35 million on Sep. 30, 2015. Current ratio was at 0.95 as on Sep. 30, 2016, down from 1.03 on Sep. 30, 2015.
Days sales outstanding went up to 53 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 12 days for the previous year period.
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