Otelco Inc. (OTT) has reported an 8.11 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $1.61 million, or $0.47 a share in the quarter, compared with $1.75 million, or $0.52 a share for the same period last year. Revenue during the quarter went down marginally by 0.63 percent to $17.38 million from $17.49 million in the previous year period. Gross margin for the quarter expanded 154 basis points over the previous year period to 55.05 percent. Total expenses were 71.12 percent of quarterly revenues, down from 72.86 percent for the same period last year. This has led to an improvement of 175 basis points in operating margin to 28.88 percent.
Operating income for the quarter was $5.02 million, compared with $4.75 million in the previous year period.
The Company continues the detailed pre-conversion work to replace its billing and operations systems with a common platform across its entire operation. “We remain on schedule to complete the system conversion by early 2018," noted Rob Souza, President and Chief Executive Officer of Otelco. "The changes to streamline our organizational structure are already being implemented, allowing our operational teams to work together in the detail planning, design and implementation of revised service processes and leading to enhanced customer service and improved efficiency."
Operating cash flow falls marginally
Otelco Inc. has generated cash of $5.57 million from operating activities during the quarter, down 3.80 percent or $ 0.22 million, when compared with the last year period. The company has spent $1.27 million cash to meet investing activities during the quarter as against cash outgo of $0.71 million in the last year period.
The company has spent $4.17 million cash to carry out financing activities during the quarter as against cash outgo of $5.04 million in the last year period.
Cash and cash equivalents stood at stood at $10.67 million as at Mar. 31, 2017.
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