CDI Corporation (CDI) saw its loss narrow to $17.82 million, or $0.96 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $20.20 million, or $1.03 a share. On an adjusted basis, loss per share was at $0.09 for the quarter compared with a profit of $0.06a share in the same period last year.
Revenue during the quarter dropped 9.97 percent to $220.26 million from $244.66 million in the previous year period. Gross margin for the quarter contracted 74 basis points over the previous year period to 18.40 percent. Operating margin for the quarter stood at negative 8.14 percent as compared to a negative 9.04 percent for the previous year period.
Operating loss for the quarter was $17.92 million, compared with an operating loss of $22.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.88 million compared with $3.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 95 basis points in the quarter to 0.40 percent from 1.35 percent in the last year period.
"Business performance during the third quarter includes actions taken to improve our expense structure and cash conversion, as well as strategic focus with the sale of UK-based AndersElite Limited," stated president and interim chief executive officer Michael S. Castleman. "Going forward, we share as a company a clear operating imperative to build on common pillars of our business, such as talent acquisition and management, to deliver improved growth and profitability. This imperative is supported by the tremendous commitment and collaborative spirit of all CDI employees."
Working capital drops significantly
CDI Corporation has witnessed a decline in the working capital over the last year. It stood at $116.61 million as at Sep. 30, 2016, down 33.67 percent or $59.19 million from $175.80 million on Sep. 30, 2015. Current ratio was at 2.14 as on Sep. 30, 2016, down from 2.85 on Sep. 30, 2015.
Days sales outstanding went up to 86 days for the quarter compared with 83 days for the same period last year.
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