General Communication, Inc. (GNCMA) has reported a 54.95 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $7.94 million in the quarter, compared with $17.63 million for the same period last year.
Revenue during the quarter dropped 8.48 percent to $236.66 million from $258.57 million in the previous year period. Gross margin for the quarter expanded 93 basis points over the previous year period to 68.94 percent. Total expenses were 88.86 percent of quarterly revenues, up from 82.41 percent for the same period last year. That has resulted in a contraction of 644 basis points in operating margin to 11.14 percent.
Operating income for the quarter was $26.37 million, compared with $45.47 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $78.18 million compared with $96.53 million in the prior year period. At the same time, adjusted EBITDA margin contracted 429 basis points in the quarter to 33.04 percent from 37.33 percent in the last year period.
General Communication forecasts revenue to be in the range of $930 million to $980 million for fiscal year 2016.
Working capital decreases marginally
General Communication has witnessed a decline in the working capital over the last year. It stood at $142.57 million as at Sep. 30, 2016, down 4.38 percent or $6.52 million from $149.09 million on Sep. 30, 2015. Current ratio was at 1.84 as on Sep. 30, 2016, down from 1.88 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 22 days for the last year period. Days sales outstanding went up to 72 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding went up to 62 days for the quarter from 54 for the same period last year.
Debt comes down marginally
General Communication has recorded a decline in total debt over the last one year. It stood at $1,395.96 million as on Sep. 30, 2016, down 1.62 percent or $22.93 million from $1,418.88 million on Sep. 30, 2015. Total debt was 68.70 percent of total assets as on Sep. 30, 2016, compared with 69.84 percent on Sep. 30, 2015. Debt to equity ratio was at 15.19 as on Sep. 30, 2016, up from 12.83 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.22 for the quarter from 2.16 for the same period last year.
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