NTN Buzztime, Inc. (NTN) saw its loss narrow to $0.57 million, or $0.31 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.35 million, or $0.73 a share. Revenue during the quarter dropped 10.46 percent to $5.44 million from $6.08 million in the previous year period. Gross margin for the quarter expanded 2048 basis points over the previous year period to 67.90 percent. Operating margin for the quarter stood at negative 7.61 percent as compared to a negative 21.62 percent for the previous year period.
Operating loss for the quarter was $0.41 million, compared with an operating loss of $1.31 million in the previous year period.
"During the third quarter, our business fundamentals gained momentum," said Ram Krishnan, NTN Buzztime chief executive officer. "Our overall average revenue per unit (ARPU) continued to climb; our advertising revenue grew; our gross margins continued to be healthy; and our Gen III tablets continued to deploy well into the field. As a result, Buzztime delivered another quarter of bottom line improvement. Further, in November, management along with new and existing investors demonstrated confidence in our plan by infusing $2.7 million in capital into the company for general operations and growth investments. We are very excited about our prospects."
Operating cash flow remains negativeNTN Buzztime, Inc. has spent $0.03 million cash to meet operating activities during the nine month period as against cash outgo of $2.22 million in the last year period. The company has spent $0.68 million cash to meet investing activities during the nine month period as against cash outgo of $1.29 million in the last year period.
Cash flow from financing activities was $0.46 million for the nine month period, down 58.68 percent or $0.66 million, when compared with the last year period.
Cash and cash equivalents stood at $3.02 million as on Sep. 30, 2016, down 35.53 percent or $1.66 million from $4.68 million on Sep. 30, 2015.
Working capital drops significantly
NTN Buzztime, Inc. has witnessed a decline in the working capital over the last year. It stood at $1.20 million as at Sep. 30, 2016, down 69.69 percent or $2.76 million from $3.96 million on Sep. 30, 2015. Current ratio was at 1.18 as on Sep. 30, 2016, down from 1.69 on Sep. 30, 2015.
Days sales outstanding went up to 12 days for the quarter compared with 8 days for the same period last year.
At the same time, days payable outstanding went up to 24 days for the quarter from 12 for the same period last year.
Debt moves up
NTN Buzztime, Inc. has witnessed an increase in total debt over the last one year. It stood at $8.42 million as on Sep. 30, 2016, up 24.57 percent or $1.66 million from $6.76 million on Sep. 30, 2015. Total debt was 58.45 percent of total assets as on Sep. 30, 2016, compared with 39.09 percent on Sep. 30, 2015. Debt to equity ratio was at 4.69 as on Sep. 30, 2016, up from 1.41 as on Sep. 30, 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]
