CBS Corporation (CBSA) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $252 million, or $ 0.61 a share in the quarter, against a net profit of $473 million, or $1.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $441 million, or $1.06 a share compared with $474 million or $1.02 a share, a year ago.
Revenue during the quarter dropped 6.83 percent to $3,343 million from $3,588 million in the previous year period. Total expenses were 78.94 percent of quarterly revenues, up from 78.68 percent for the same period last year. That has resulted in a contraction of 26 basis points in operating margin to 21.06 percent.
Operating income for the quarter was $704 million, compared with $765 million in the previous year period.
However, the adjusted operating income for the quarter stood at $704 million compared to $756 million in the prior year period.
"Our first-quarter results once again demonstrate the strength of our strategy, which is to diversify our revenue mix as we achieve our long-term financial goals," said Leslie Moonves, Chairman and Chief Executive Officer, CBS Corporation. "Retransmission consent and reverse compensation led the way in Q1, growing 28%. This contributed to a 17% increase in our Company’s affiliate and subscription fee revenue, which also benefited from our over-the-top subscription services, CBS All Access and Showtime OTT.
Operating cash flow drops significantly
CBS Corporation has generated cash of $719 million from operating activities during the quarter, down 30.06 percent or $ 309 million, when compared with the last year period.
The company has spent $89 million cash to meet investing activities during the quarter as against cash outgo of $98 million in the last year period.
The company has spent $1,082 million cash to carry out financing activities during the quarter as against cash outgo of $842 million in the last year period.
Cash and cash equivalents stood at $163 million as on Mar. 31, 2017, down 60.34 percent or $248 million from $411 million on Mar. 31, 2016.
Working capital increases marginally
CBS Corporation has recorded an increase in the working capital over the last year. It stood at $2,196 million as at Mar. 31, 2017, up 2.14 percent or $46 million from $2,150 million on Mar. 31, 2016. Current ratio was at 1.64 as on Mar. 31, 2017, up from 1.64 on Mar. 31, 2016.
Days sales outstanding went up to 96 days for the quarter compared with 93 days for the same period last year.
Debt moves up
CBS Corporation has witnessed an increase in total debt over the last one year. It stood at $8,953 million as on Mar. 31, 2017, up 8.53 percent or $704 million from $8,249 million on Mar. 31, 2016. Total debt was 38.89 percent of total assets as on Mar. 31, 2017, compared with 35.10 percent on Mar. 31, 2016. Debt to equity ratio was at 3.10 as on Mar. 31, 2017, up from 1.50 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 6.46 for the quarter from 7.65 for the same period last year.
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