Time Inc. (TIME) has reported 229.41 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $56 million, or $0.56 a share in the quarter, compared with $17 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $73 million, or $0.75 a share compared with $62 million or $0.58 a share, a year ago. Revenue during the quarter went down marginally by 1.14 percent to $867 million from $877 million in the previous year period. Gross margin for the quarter contracted 101 basis points over the previous year period to 61.13 percent. Total expenses were 85.93 percent of quarterly revenues, down from 98.86 percent for the same period last year. This has led to an improvement of 1293 basis points in operating margin to 14.07 percent.
Operating income for the quarter was $122 million, compared with $10 million in the previous year period.
Time Inc. president and chief executive officer Rich Battista said, "We are pleased with our progress and achievements during the quarter and our execution against our plan. In 2017, we are well positioned to accelerate our growth across digital and other media. Time Inc. is a unique platform in today dynamic media environment. We combine world-renowned content and iconic brands at massive scale with best-in-class targeting, measurement and data capabilities, giving us a tremendous value proposition for both consumers and advertisers. In December, Time Inc. broke into the top ten for the first time in U.S. multi-platform unique digital audience according to comScore. We reached nearly 60% of the total U.S. adult digital audience. In 2016, our digital video experienced explosive growth, up nearly 150% year-over-year to an all-time high for video starts at 4.6 billion."
Time Inc forecasts revenue to be $3,000 million for fiscal year 2017. For fiscal year 2017, the company expects operating income to be in the range of $273 million to $287 million.
Operating cash flow improves significantlyTime Inc has generated cash of $195 million from operating activities during the year, up 26.62 percent or $41 million, when compared with the last year. The company has spent $282 million cash to meet investing activities during the year as against cash inflow of $216 million in the last year.
The company has spent $258 million cash to carry out financing activities during the year as against cash outgo of $236 million in the last year period.
Cash and cash equivalents stood at $296 million as on Dec. 31, 2016, down 54.53 percent or $355 million from $651 million on Dec. 31, 2015.
Working capital drops significantly
Time Inc has witnessed a decline in the working capital over the last year. It stood at $12 million as at Dec. 31, 2016, down 95.88 percent or $279 million from $291 million on Dec. 31, 2015. Current ratio was at 1.01 as on Dec. 31, 2016, down from 1.26 on Dec. 31, 2015.
Days sales outstanding went up to 29 days for the quarter compared with 25 days for the same period last year.
Days inventory outstanding was almost stable at 4 days for the quarter, when compared with the last year period.
Debt comes down marginally
Time Inc has recorded a decline in total debt over the last one year. It stood at $1,240 million as on Dec. 31, 2016, down 4.10 percent or $53 million from $1,293 million on Dec. 31, 2015. Total debt was 28.80 percent of total assets as on Dec. 31, 2016, compared with 26.47 percent on Dec. 31, 2015. Debt to equity ratio was at 0.86 as on Dec. 31, 2016, up from 0.71 as on Dec. 31, 2015. Interest coverage ratio improved to 7.18 for the quarter from 0.53 for the same period last year.
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