usell.com (USEL) saw its loss widen to $3.71 million, or $0.19 a share for the year ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.63 million, or $0.27 a share.
Revenue during the year surged 249.37 percent to $94.66 million from $27.09 million in the previous year. Gross margin for the year contracted 693 basis points over the previous year to 6.15 percent. Operating margin for the year stood at negative 1.95 percent as compared to a negative 17.85 percent for the previous year.
Operating loss for the year was $1.84 million, compared with an operating loss of $4.84 million in the previous year.
Adjusted EBITDA for the year stood at $0.59 million compared to negative $0.80 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 0.63 percent for the year compared to negative 2.93 percent in the last year.
Nik Raman, chief executive Ooficer, stated, "In 2016, we validated the synergy with We Sell Cellular by successfully integrating the two companies and moving a meaningful portion of We Sell Cellular’s business online. Furthermore, by empowering We Sell Cellular’s sales force with better technology and actionable data, we were able to drive improvements in efficiency. In 2017, we intend to not only to continue building out our online platform but to also further reduce waste and improve efficiency throughout the entire transaction lifecycle."
Operating cash flow remains negativeusell.com has spent $0.41 million cash to meet operating activities during the year as against cash outgo of $3.34 million in the last year. The company has spent $0.88 million cash to meet investing activities during the year as against cash outgo of $3.79 million in the last year.
Cash flow from financing activities was $1.90 million for the year, down 67.07 percent or $3.86 million, when compared with the last year.
Cash and cash equivalents stood at $1.66 million as on Dec. 31, 2016, up 58.18 percent or $0.61 million from $1.05 million on Dec. 31, 2015.
Debt increases substantially
usell.com has witnessed an increase in total debt over the last one year. It stood at $7.17 million as on Dec. 31, 2016, up 41 percent or $2.09 million from $5.09 million on Dec. 31, 2015. Short-term debt stood at $0.68 million as on Dec. 31, 2016.
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