Ashford Inc. (AINC) saw its loss widen to $2.38 million, or $1.34 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.73 million, or $1.51 a share. On the other hand, adjusted net income for the quarter stood at $4.42 million, or $1.92 a share compared with $2.37 million or $1.05 a share, a year ago.
Revenue during the quarter went down marginally by 2.95 percent to $13.01 million from $13.41 million in the previous year period. Operating margin for the quarter stood at negative 16.41 percent as compared to a negative 3.82 percent for the previous year period.
Operating loss for the quarter was $2.14 million, compared with an operating loss of $0.51 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.05 million compared with $3.01 million in the prior year period. At the same time, adjusted EBITDA margin improved 1635 basis points in the quarter to 38.83 percent from 22.48 percent in the last year period.
"In the first quarter we continued to execute on our growth strategy with Prime raising capital and announcing the acquisition of two premier assets in attractive markets," commented Monty J. Bennett, Ashford's chairman and chief executive officer. "While we were not able to complete the Remington transaction as contemplated, we are committed to maximizing value for our shareholders by finding opportunities to accretively grow our platforms. To that end, we announced that we had made an investment in another hospitality-related service business, Pure Rooms, which we believe has significant growth prospects moving forward. Additionally, we are exploring the purchase of Remington's project management business, as it would not require a private letter ruling, and would represent a significant addition to our platform. With positive trends in the economy as well as the lodging sector, we remain excited about our ability to drive growth at Ashford and our advised platforms in 2017."
Working capital drops significantly
Ashford Inc. has witnessed a decline in the working capital over the last year. It stood at $36.03 million as at Mar. 31, 2017, down 72.51 percent or $95.01 million from $131.03 million on Mar. 31, 2016. Current ratio was at 2.07 as on Mar. 31, 2017, down from 7.36 on Mar. 31, 2016.
Days sales outstanding went down to 35 days for the quarter compared with 44 days for the same period last year.
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