Consolidated Communications Holdings (CNSL) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.01 million in the quarter, against a net profit of $4.68 million in the last year period. On the other hand, adjusted net income for the quarter stood at $5.54 million, or $0.11 a share compared with $8.13 million or $0.16 a share, a year ago.
Revenue during the quarter dropped 6.52 percent to $175.92 million from $188.19 million in the previous year period. Gross margin for the quarter contracted 164 basis points over the previous year period to 56.42 percent. Total expenses were 90.09 percent of quarterly revenues, up from 89.53 percent for the same period last year. That has resulted in a contraction of 56 basis points in operating margin to 9.91 percent.
Operating income for the quarter was $17.44 million, compared with $19.71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $72.02 million compared with $79.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 127 basis points in the quarter to 40.94 percent from 42.21 percent in the last year period.
"We've made great progress advancing our business and broadband strategy in the fourth quarter and announced a key transaction with our agreement to acquire FairPoint," said Bob Udell, president and chief executive officer. "We are well positioned for future growth and long-term sustainability as we create a stronger business and broadband communications provider with significantly more scale and resources. We continue to manage legacy declines while we build a foundation for future commercial and broadband growth. Last year, we delivered value to our shareholders through $78.4 million in declared dividends, at a comfortable payout ratio of 71 percent. As we look to 2017, we are confident in our position and our ability to continue to deliver value to our shareholders."
Operating cash flow remains almost stableCash flow from operating activities was almost stable for the quarter at $218.23 million, when compared with the previous year period The company has spent $108.29 million cash to meet investing activities during the year as against cash outgo of $119.54 million in the last year. It has incurred net capital expenditure of $124.98 million on net basis during the year, up 3.82 percent or $4.60 million from year ago.
The company has spent $98.75 million cash to carry out financing activities during the year as against cash outgo of $90.44 million in the last year period.
Cash and cash equivalents stood at $27.08 million as on Dec. 31, 2016, up 70.53 percent or $11.20 million from $15.88 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Consolidated Communications Holdings was negative $16.88 million on Dec. 31, 2016 compared with negative $17.89 million on Dec. 31, 2015. Current ratio was at 0.89 as on Dec. 31, 2016, up from 0.88 on Dec. 31, 2015.
Debt remains almost stableTotal debt of Consolidated Communications Holdings remained almost stable for the quarter at $1,391.68 million, when compared with the last year period. Total debt was 66.50 percent of total assets as on Dec. 31, 2016, compared with 64.94 percent on Dec. 31, 2015. Debt to equity ratio was at 7.90 as on Dec. 31, 2016, up from 5.54 as on Dec. 31, 2015. 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]
