Xcel Brands, Inc. (XELB) has reported 258.59 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $2.75 million, or $0.14 a share in the quarter, compared with $0.77 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.29 million, or $0.01 a share compared with $2.07 million or $0.10 a share, a year ago.
Revenue during the quarter dropped 7.47 percent to $6.92 million from $7.47 million in the previous year period. Gross margin for the quarter expanded 111 basis points over the previous year period to 99.29 percent. Total expenses were 49.98 percent of quarterly revenues, down from 82.50 percent for the same period last year. This has led to an improvement of 3252 basis points in operating margin to 50.02 percent.
Operating income for the quarter was $3.46 million, compared with $1.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.44 million compared with $2.98 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1915 basis points in the quarter to 20.80 percent from 39.94 percent in the last year period.
"This was a transformative year for us in which we achieved another year of double-digit revenue growth while continuing to make progress on our strategic plan to better position the company for long-term growth," said Robert W. D'Loren, Xcel's chairman and chief executive officer.
Operating cash flow improves significantly
Xcel Brands, Inc. has generated cash of $7.92 million from operating activities during the year, up 140.24 percent or $4.62 million, when compared with the last year.
The company has spent $2.76 million cash to meet investing activities during the year as against cash outgo of $4.13 million in the last year.
The company has spent $7.49 million cash to carry out financing activities during the year as against cash inflow of $10.27 million in the last year period.
Working capital declines
Xcel Brands, Inc. has witnessed a decline in the working capital over the last year. It stood at $11.53 million as at Dec. 31, 2016, down 11.83 percent or $1.55 million from $13.08 million on Dec. 31, 2015. Current ratio was at 2.11 as on Dec. 31, 2016, up from 2 on Dec. 31, 2015.
Debt comes down
Xcel Brands, Inc. has recorded a decline in total debt over the last one year. It stood at $31.92 million as on Dec. 31, 2016, down 22.19 percent or $9.11 million from $41.03 million on Dec. 31, 2015. Total debt was 21.12 percent of total assets as on Dec. 31, 2016, compared with 26.97 percent on Dec. 31, 2015. Debt to equity ratio was at 0.30 as on Dec. 31, 2016, down from 0.41 as on Dec. 31, 2015. Interest coverage ratio improved to 10.48 for the quarter from 4.43 for the same period last year.
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