Windstream (WIN) saw its loss widen to $66.20 million, or $0.72 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $7.20 million, or $0.08 a share. Revenue during the quarter dropped 10.26 percent to $1,344.90 million from $1,498.60 million in the previous year period. Gross margin for the quarter contracted 223 basis points over the previous year period to 48.03 percent. Total expenses were 90.38 percent of quarterly revenues, up from 88.09 percent for the same period last year. That has resulted in a contraction of 229 basis points in operating margin to 9.62 percent.
Operating income for the quarter was $129.40 million, compared with $178.50 million in the previous year period.
“Windstream continues to advance our strategy to maximize shareholder value. During the third quarter, we further expanded enterprise contribution margin and grew consumer service revenue sequentially. We continued to make prudent capital investments to better leverage our extensive network to serve customers and provide incremental returns to shareholders. Additionally we further improved our debt maturity profile and reduced future cash interest,” said Tony Thomas, president and chief executive officer at Windstream.
Operating cash flow declines
Windstream has generated cash of $622.10 million from operating activities during the nine month period, down 17.74 percent or $134.20 million, when compared with the last year period. The company has spent $753.60 million cash to meet investing activities during the nine month period as against cash outgo of $772.70 million in the last year period.
Cash flow from financing activities was $161.60 million for the nine month period, up 88.34 percent or $75.80 million, when compared with the last year period.
Cash and cash equivalents stood at $61.40 million as on Sep. 30, 2016, down 36.83 percent or $35.80 million from $97.20 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Windstream was negative $227.40 million on Sep. 30, 2016 compared with negative $174.70 million on Sep. 30, 2015. Current ratio was at 0.80 as on Sep. 30, 2016, down from 0.87 on Sep. 30, 2015.
Cash conversion cycle (CCC) was almost stable at 4 days for the quarter, when compared with the last year period. Days sales outstanding went up to 45 days for the quarter compared with 41 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 10 days for the previous year period. At the same time, days payable outstanding was almost stable at 46 days for the quarter, when compared with the previous year period.
Debt comes down
Windstream has recorded a decline in total debt over the last one year. It stood at $9,906.30 million as on Sep. 30, 2016, down 8.73 percent or $947 million from $10,853.30 million on Sep. 30, 2015. Total debt was 83.78 percent of total assets as on Sep. 30, 2016, compared with 83.46 percent on Sep. 30, 2015. Debt to equity ratio was at 39.58 as on Sep. 30, 2016, down from 62.27 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.60 for the quarter from 0.78 for the same period last year. 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
