Black Box Corporation (BBOX) has reported 77.19 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $1.30 million, or $0.09 a share in the quarter, compared with $5.70 million, or $0.37 a share for the same period last year. Revenue during the quarter dropped 5.44 percent to $210.40 million from $222.50 million in the previous year period. Gross margin for the quarter contracted 162 basis points over the previous year period to 29.66 percent. Total expenses were 98.67 percent of quarterly revenues, up from 96.81 percent for the same period last year. That has resulted in a contraction of 186 basis points in operating margin to 1.33 percent.
Operating income for the quarter was $2.80 million, compared with $7.10 million in the previous year period.
"We continue to improve in areas within our operational control - working capital, cash generation, debt reduction and operating expense management," said E.C. Sykes, President and Chief executive officer. "The foundation has been laid to return to revenue growth and we are now in a position to focus more of the efforts there. I remain convinced that we are on the correct path to rebuild Black Box."
Operating cash flow improves significantly
Black Box Corporation has generated cash of $24.70 million from operating activities during the nine month period, up 65.77 percent or $9.80 million, when compared with the last year period. The company has spent $2.50 million cash to meet investing activities during the nine month period as against cash outgo of $8 million in the last year period. It has incurred net capital expenditure of $2.50 million on net basis during the nine month period, down 68.75 percent or $5.50 million from year ago period.
The company has spent $31.70 million cash to carry out financing activities during the nine month period as against cash outgo of $13.20 million in the last year period.
Cash and cash equivalents stood at $13.80 million as on Dec. 31, 2016, down 23.33 percent or $4.20 million from $18 million on Dec. 26, 2015.
Working capital drops significantly
Black Box Corporation has witnessed a decline in the working capital over the last year. It stood at $100.20 million as at Dec. 31, 2016, down 34.95 percent or $53.84 million from $154.04 million on Dec. 26, 2015. Current ratio was at 1.57 as on Dec. 31, 2016, down from 1.92 on Dec. 26, 2015.
Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 62 days for the last year period. Days sales outstanding went down to 65 days for the quarter compared with 67 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding went up to 36 days for the quarter from 34 for the same period last year.
Debt comes down significantly
Black Box Corporation has recorded a decline in total debt over the last one year. It stood at $94 million as on Dec. 31, 2016, down 26.93 percent or $34.65 million from $128.65 million on Dec. 26, 2015. Black Box Corp has recorded a decline in long-term debt over the last one year. It stood at $94 million as on Dec. 31, 2016, down 26.93 percent or $34.65 million from $128.65 million on Dec. 26, 2015. Total debt was 21.54 percent of total assets as on Dec. 31, 2016, compared with 24.35 percent on Dec. 26, 2015. Debt to equity ratio was at 0.66 as on Dec. 31, 2016, up from 0.62 as on Dec. 26, 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
