Cafepress (PRSS) has reported 257.95 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $2.90 million, or $0.17 a share in the quarter, compared with $0.81 million, or $0.05 a share for the same period last year.
Revenue during the quarter grew 7.46 percent to $43.73 million from $40.69 million in the previous year period. Gross margin for the quarter contracted 294 basis points over the previous year period to 38.44 percent. Total expenses were 94.69 percent of quarterly revenues, down from 98.10 percent for the same period last year. This has led to an improvement of 341 basis points in operating margin to 5.31 percent.
Operating income for the quarter was $2.32 million, compared with $0.77 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.90 million compared with $4.15 million in the prior year period. At the same time, adjusted EBITDA margin improved 102 basis points in the quarter to 11.21 percent from 10.19 percent in the last year period.
"We are proud to report year-over-year revenue growth in the fourth quarter, capping a successful year that demonstrates the steady progress we are making. 2016 was a year of inflection for CafePress, as years of revenue decline in the core business slowed quarter over quarter and returned to growth," said Fred Durham, chief executive officer. "While we believe we were a bit too aggressive in our pricing strategy during the fourth quarter when holiday demand was strong, we are actively assessing how to optimize pricing across CafePress.com and Retail Partner Channels. Our investments in core systems have allowed us to better optimize our customer acquisition efforts and customer experience. From this base, we look forward to re-energizing the consumer experience and making CafePress an even better place to shop."
Operating cash flow remains negativeCafepress has spent $1.85 million cash to meet operating activities during the year as against cash outgo of $1.88 million in the last year. The company has spent $9.26 million cash to meet investing activities during the year as against cash inflow of $8.17 million in the last year. It has incurred net capital expenditure of $6.48 million on net basis during the year, up 23.64 percent or $1.24 million from year ago.
The company has spent $1.58 million cash to carry out financing activities during the year as against cash outgo of $4.28 million in the last year period.
Cash and cash equivalents stood at $19.98 million as on Dec. 31, 2016, down 38.83 percent or $12.68 million from $32.66 million on Dec. 31, 2015.
Working capital declines
Cafepress has witnessed a decline in the working capital over the last year. It stood at $33.02 million as at Dec. 31, 2016, down 19.26 percent or $7.88 million from $40.89 million on Dec. 31, 2015. Current ratio was at 2.81 as on Dec. 31, 2016, down from 3.01 on Dec. 31, 2015.
Debt comes down significantlyCafepress has recorded a decline in total debt over the last one year. It stood at $0.35 million as on Dec. 31, 2016, down 61.95 percent or $0.57 million from $0.91 million on Dec. 31, 2015. Total debt was 0.55 percent of total assets as on Dec. 31, 2016, compared with 1 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 77.33 for the quarter from 48.31 for the same period last year. 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: [email protected]
