New Media Investment Group (NEWM) swung to a net loss for the quarter ended Mar. 26, 2017. The company has made a net loss of $3.68 million, or $ 0.07 a share in the quarter, against a net profit of $4.97 million, or $0.11 a share in the last year period.
Revenue during the quarter went up marginally by 2.47 percent to $307.52 million from $300.10 million in the previous year period. Operating margin for the quarter stood at negative 0.93 percent as compared to a positive 2.34 percent for the previous year period.
Operating loss for the quarter was $2.84 million, compared with an operating income of $7.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.69 million compared with $29.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 102 basis points in the quarter to 8.68 percent from 9.69 percent in the last year period.
"New Media is pleased to announce our first quarter 2017 results and share our continued optimism about our various growing business lines," said Michael E. Reed, New Media president and chief executive officer. "On an organic same store basis, our quarter over quarter revenue decline of 6.2% was in line with Q4 2016 performance despite the continued softness of revenue coming from customers in the brick and mortar retail sector, which is impacting traditional print revenues. Two of our fast growing businesses, Propel and GateHouse Live, helped to offset these declines and we feel very good about their continued growth during 2017. We are also excited about our growing subscription revenues, our single largest revenue segment.
Operating cash flow improves significantlyNew Media Investment Group has generated cash of $18.25 million from operating activities during the quarter, up 85.67 percent or $8.42 million, when compared with the last year period. The company has spent $23.82 million cash to meet investing activities during the quarter as against cash outgo of $61.07 million in the last year period. It has incurred net capital expenditure of $2.11 million on net basis during the quarter, down 10.11 percent or $0.24 million from year ago period.
The company has spent $30.79 million cash to carry out financing activities during the quarter as against cash outgo of $16 million in the last year period.
Cash and cash equivalents stood at $135.89 million as on Mar. 26, 2017, up 71.16 percent or $56.50 million from $79.39 million on Mar. 27, 2016.
Working capital increases sharply
New Media Investment Group has recorded an increase in the working capital over the last year. It stood at $146.76 million as at Mar. 26, 2017, up 75.39 percent or $63.09 million from $83.68 million on Mar. 27, 2016. Current ratio was at 1.82 as on Mar. 26, 2017, up from 1.48 on Mar. 27, 2016.
Days sales outstanding went up to 39 days for the quarter compared with 21 days for the same period last year.
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