Level 3 Communications, Inc (LVLT) has reported 92.48 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $250 million, or $0.69 a share in the quarter, compared with $3,323 million, or $9.24 a share for the same period last year. Revenue during the quarter went down marginally by 1.02 percent to $2,032 million from $2,053 million in the previous year period. Total expenses were 82.58 percent of quarterly revenues, down from 83.54 percent for the same period last year. This has led to an improvement of 96 basis points in operating margin to 17.42 percent.
Operating income for the quarter was $354 million, compared with $338 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $709 million compared with $681 million in the prior year period. At the same time, adjusted EBITDA margin improved 172 basis points in the quarter to 34.89 percent from 33.17 percent in the last year period.
“Throughout 2016, with our focus on profitable growth, we expanded margins and grew Adjusted EBITDA and Free Cash Flow,” said Jeff Storey, president and Chief executive officer of Level 3. “With integration planning well underway, we continue to gain excitement about the combination with CenturyLink. Adding Level 3’s global network, advanced solutions and proven experience serving large, multinational customers to CenturyLink’s extensive capabilities will enhance value for all of our customers, as well as our stockholders.”
Working capital increases sharply
Level 3 Communications, Inc has recorded an increase in the working capital over the last year. It stood at $1,182 million as at Dec. 31, 2016, up 254.95 percent or $849 million from $333 million on Dec. 31, 2015. Current ratio was at 1.80 as on Dec. 31, 2016, up from 1.24 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Level 3 Communications, Inc remained almost stable for the quarter at $10,884 million, when compared with the last year period. Total debt was 43.73 percent of total assets as on Dec. 31, 2016, compared with 45.07 percent on Dec. 31, 2015. Debt to equity ratio was at 1 as on Dec. 31, 2016, down from 1.07 as on Dec. 31, 2015. Interest coverage ratio improved to 2.68 for the quarter from 2.22 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]
