AeroGrow International, Inc. swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.64 million, or $ 0.09 a share in the quarter, against a net profit of $2.28 million, or $0.24 a share in the last year period. Revenue during the quarter grew 11.06 percent to $13.21 million from $11.89 million in the previous year period. Gross margin for the quarter contracted 105 basis points over the previous year period to 36.61 percent. Total expenses were 95.29 percent of quarterly revenues, up from 92.77 percent for the same period last year. That has resulted in a contraction of 252 basis points in operating margin to 4.71 percent.
Operating income for the quarter was $0.62 million, compared with $0.86 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.48 million compared with $1.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 275 basis points in the quarter to 11.24 percent from 13.98 percent in the last year period.
"I’m very pleased to report on our 2016 holiday selling season ��" overall the best in our Company’s history," said president and chief executive officer J. Michael Wolfe. "Our focus this year was to continue the growth in our highly successful on-line channels and to establish in-store success with prominent national retailers. The results were exceptional as we experienced + 49% sell-thru growth at Amazon.com and + 101% at Amazon.ca. We also had good results with our other on-line retailers, including a very successful launch at Target.com. But I think the really big news for us was the success we had in-store as we experienced nearly 100% chain-wide sell-thru at Bed, Bath & Beyond and Sur La Table, with high-profile rollouts at both stores."
Working capital increases sharply
AeroGrow International, Inc. has recorded an increase in the working capital over the last year. It stood at $11.04 million as at Dec. 31, 2016, up 543.41 percent or $9.33 million from $1.72 million on Dec. 31, 2015. Current ratio was at 1.24 as on Dec. 31, 2016, up from 1.14 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 54 days for the last year period. Days sales outstanding went down to 17 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went down to 23 days for the quarter from 28 for the same period last year.
Debt comes down
AeroGrow International, Inc. has recorded a decline in total debt over the last one year. It stood at $0.15 million as on Dec. 31, 2016, down 13.95 percent or $0.02 million from $0.17 million on Dec. 31, 2015. Long-term debt stood at $0.02 million as on Dec. 31, 2016. Total debt was 0.26 percent of total assets as on Dec. 31, 2016, compared with 1.14 percent on Dec. 31, 2015. Debt to equity ratio was at 0.01 as on Dec. 31, 2016, down from 0.07 as on Dec. 31, 2015. Interest coverage ratio improved to 8.08 for the quarter from 6.19 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: [email protected]
