Alaska Communications Systems Group, Inc (ALSK) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.68 million in the quarter, against a net profit of $0.09 million in the last year period.
Revenue during the quarter went up marginally by 0.72 percent to $56.73 million from $56.33 million in the previous year period. Gross margin for the quarter expanded 207 basis points over the previous year period to 55.68 percent. Total expenses were 91.94 percent of quarterly revenues, down from 92.34 percent for the same period last year. This has led to an improvement of 40 basis points in operating margin to 8.06 percent.
Operating income for the quarter was $4.57 million, compared with $4.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14,138 million compared with $13,930 million in the prior year period.
“We continue steady progress on the operating front with top and bottom line growth, driven primarily by broadband revenue growth of 11.1%. New fiber capacity to the North Slope through our Quintillion partnership and several new IT partnership certifications provide opportunities for differentiation and continued growth,” said Anand Vadapalli, president and Chief executive officer of Alaska Communications.
For fiscal year 2017, Alaska Communications Systems Group, Inc projects revenue to be in the range of $229 million to $235 million.
Operating cash flow drops significantly
Alaska Communications Systems Group, Inc has generated cash of $5.30 million from operating activities during the quarter, down 47.96 percent or $ 4.88 million, when compared with the last year period.
The company has spent $6.61 million cash to meet investing activities during the quarter as against cash outgo of $7.04 million in the last year period. It has incurred capital expenditure of $3.92 million on net basis during the quarter, up 312.95 percent or $2.97 million from year ago period.
Cash flow from financing activities was $86.06 million for the quarter as against cash outgo of $11.28 million in the last year period.
Cash and cash equivalents stood at $11.98 million as on Mar. 31, 2017, down 59.66 percent or $17.71 million from $29.69 million on Mar. 31, 2016.
Working capital increases sharply
Alaska Communications Systems Group, Inc has recorded an increase in the working capital over the last year. It stood at $103.30 million as at Mar. 31, 2017, up 978.29 percent or $93.72 million from $9.58 million on Mar. 31, 2016. Current ratio was at 3.28 as on Mar. 31, 2017, up from 1.17 on Mar. 31, 2016.
Days sales outstanding went up to 43 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 17 days for the previous year period.
Debt increases substantially
Alaska Communications Systems Group, Inc has witnessed an increase in total debt over the last one year. It stood at $268.63 million as on Mar. 31, 2017, up 49.76 percent or $89.26 million from $179.37 million on Mar. 31, 2016. Total debt was 50.75 percent of total assets as on Mar. 31, 2017, compared with 39.69 percent on Mar. 31, 2016. Debt to equity ratio was at 1.70 as on Mar. 31, 2017, up from 1.16 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.19 for the quarter from 1.12 for the same period last year.
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