Affinion Group Holdings (AGHI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1.50 million, or $ 0.15 a share in the quarter, against a net profit of $217.90 million, or $23.96 a share in the last year period. Revenue during the quarter dropped 17.35 percent to $232.40 million from $281.20 million in the previous year period. Gross margin for the quarter expanded 363 basis points over the previous year period to 30.94 percent. Operating margin for the quarter period stood at positive 11.88 percent as compared to a negative 20.45 percent for the previous year period.
Operating income for the quarter was $27.60 million, compared with an operating loss of $57.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55.70 million compared with $72.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 182 basis points in the quarter to 23.97 percent from 25.78 percent in the last year period.
"As anticipated, 2016 was a transitional year for the Company, as strong growth in our three core businesses ��" loyalty, customer engagement and insurance - was offset by the expected decline in our Legacy Membership and Package segment," said Todd Siegel, the Companys chief executive officer. "In addition, during 2016 we have successfully executed against our key initiatives, including the transition to a new global organizational structure, as well as generating significant wins and securing key renewals in Global Loyalty and Global Customer Engagement, all of which should provide for a solid foundation for the long-term success of the Company in 2017 and beyond."
Operating cash flow improves significantly
Affinion Group Holdings has generated cash of $25.60 million from operating activities during the year, up 146.15 percent or $15.20 million, when compared with the last year. The company has spent $32.50 million cash to meet investing activities during the year as against cash outgo of $32.20 million in the last year.
The company has spent $8.30 million cash to carry out financing activities during the year as against cash inflow of $46.80 million in the last year period.
Cash and cash equivalents stood at $37.70 million as on Dec. 31, 2016, down 31.95 percent or $17.70 million from $55.40 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Affinion Group Holdings was negative $69.90 million on Dec. 31, 2016 compared with negative $87.30 million on Dec. 31, 2015. Current ratio was at 0.82 as on Dec. 31, 2016, up from 0.80 on Dec. 31, 2015.
Debt comes down marginally
Affinion Group Holdings has recorded a decline in total debt over the last one year. It stood at $1,863.60 million as on Dec. 31, 2016, down 1.64 percent or $31 million from $1,894.60 million on Dec. 31, 2015. Total debt was 252.21 percent of total assets as on Dec. 31, 2016, compared with 231.22 percent on Dec. 31, 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: editor@irisindia.net
