Fiesta Restaurant Group, Inc. (FRGI) swung to a net loss for the quarter ended Apr. 02, 2017. The company has made a net loss of $15.06 million, or $ 0.56 a share in the quarter, against a net profit of $9.90 million, or $0.37 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $6.66 million, or $0.25 a share compared with $10.04 million or $0.37 a share, a year ago. Revenue during the quarter went down marginally by 0.61 percent to $175.61 million from $176.68 million in the previous year period. Gross margin for the quarter expanded 158 basis points over the previous year period to 70.99 percent. Operating margin for the quarter stood at negative 13.16 percent as compared to a positive 9.14 percent for the previous year period.
Operating loss for the quarter was $23.12 million, compared with an operating income of $16.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $19.27 million compared with $25.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 332 basis points in the quarter to 10.97 percent from 14.29 percent in the last year period.
Fiesta president and chief executive officer Richard Stockinger said, "We are addressing our challenges and disappointing financial performance through a strategic Renewal Plan that we believe will create long-term value for our shareholders. We have already taken action by recently closing 30 Pollo Tropical restaurants in emerging markets that contributed material pre-tax operating losses in 2016 and the first quarter of 2017, while we focus on our core markets at both brands. With ignited passion, our entire team is galvanized and focused on re-establishing Fiesta as a best-in-class restaurant operator within our sector. Our goal is to be recognized for providing the best quality and value to our loyal guests, and our revitalization efforts have begun in earnest."
Working capital remains negative
Working capital of Fiesta Restaurant Group, Inc. was negative $14.20 million on Apr. 02, 2017 compared with negative $17.32 million on Apr. 03, 2016. Current ratio was at 0.67 as on Apr. 02, 2017, up from 0.60 on Apr. 03, 2016. Days sales outstanding went down to 4 days for the quarter compared with 7 days for the same period last year.
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