Destination Maternity Corporation (DEST) saw its loss widen to $32.79 million, or $2.39 a share for the quarter ended Jan. 28, 2017. In the previous year period, the company reported a loss of $3.06 million, or $0.22 a share. On the other hand, adjusted net loss for the quarter widened to $3.21 million, or $0.23 a share from a loss of $1.52 million or $0.11 a share, a year ago. Revenue during the quarter dropped 15.33 percent to $100.16 million from $118.29 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 50.96 percent. Operating margin for the quarter stood at negative 6.77 percent as compared to a negative 3.89 percent for the previous year period.
Operating loss for the quarter was $6.78 million, compared with an operating loss of $4.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.84 million compared with $0.76 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.84 percent for the quarter compared to 0.64 percent in the last year period.
Anthony M. Romano, Chief Executive Officer & President, stated, "In a challenging year that saw several headwinds pressure sales, we achieved increased adjusted EBITDA before other charges reflecting improvement in gross profit margin and a reduction in expenses. While the year included several headwinds, including business exits from Sears and Gordmans, certain Macy�'s storeclosures, Kohl�'s business wind down, mall traffic declines, and cancelled fourth quarter orders due to the Hanjin bankruptcy, we continued to advance our key strategies.
Operating cash flow drops significantly
Destination Maternity Corp has generated cash of $10.71 million from operating activities during the year, down 33.45 percent or $5.38 million, when compared with the last year. The company has spent $12.78 million cash to meet investing activities during the year as against cash outgo of $29.40 million in the last year. It has incurred net capital expenditure of $12.69 million on net basis during the year, down 56.60 percent or $16.55 million from year ago.
Cash flow from financing activities was $2.82 million for the year, down 80 percent or $11.26 million, when compared with the last year.
Cash and cash equivalents stood at $2.86 million as on Jan. 28, 2017, up 35.11 percent or $0.74 million from $2.12 million on Jan. 30, 2016.
Working capital increases sharply
Destination Maternity Corp has recorded an increase in the working capital over the last year. It stood at $29.73 million as at Jan. 28, 2017, up 87.58 percent or $13.88 million from $15.85 million on Jan. 30, 2016. Current ratio was at 1.49 as on Jan. 28, 2017, up from 1.17 on Jan. 30, 2016.
Debt moves up
Destination Maternity Corp has witnessed an increase in total debt over the last one year. It stood at $43.03 million as on Jan. 28, 2017, up 6 percent or $2.43 million from $40.60 million on Jan. 30, 2016. Total debt was 24.45 percent of total assets as on Jan. 28, 2017, compared with 18.53 percent on Jan. 30, 2016. Debt to equity ratio was at 0.70 as on Jan. 28, 2017, up from 0.44 as on Jan. 30, 2016.
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