Gogo (GOGO) saw its loss widen to $33.27 million, or $0.42 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $28.87 million, or $0.37 a share.
Revenue during the quarter grew 16.50 percent to $147.27 million from $126.41 million in the previous year period. Gross margin for the quarter contracted 90 basis points over the previous year period to 54.58 percent. Operating margin for the quarter stood at negative 5.96 percent as compared to a negative 9.15 percent for the previous year period.
Operating loss for the quarter was $8.77 million, compared with an operating loss of $11.56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.21 million compared with $9.68 million in the prior year period. At the same time, adjusted EBITDA margin improved 266 basis points in the quarter to 10.33 percent from 7.66 percent in the last year period.
"We are delighted by the rapid acceptance of our 2Ku system, which is delivering streaming class connectivity service and which we are installing at an ever-growing pace” said Michael Small, Gogo's President and chief executive officer. "By year end, we will have between 75 and 100 2Ku aircraft installed, and we are on track to install up to another 1,200 between 2017 and 2018. The success of 2Ku, and our pending deployment of a much faster ATG system, positions us to deliver 100 Mbps speeds to far more commercial and business aircraft than any other IFC provider."
Gogo forecasts revenue to be in the range of $575 million to $595 million for fiscal year 2016.
Operating cash flow drops significantlyGogo has generated cash of $45.15 million from operating activities during the nine month period, down 48.31 percent or $42.19 million, when compared with the last year period. The company has spent $247.71 million cash to meet investing activities during the nine month period as against cash outgo of $267.42 million in the last year period. It has incurred net capital expenditure of $128.61 million on net basis during the nine month period, up 9.26 percent or $10.90 million from year ago period.
Cash flow from financing activities was $202.43 million for the nine month period, down 1.97 percent or $4.07 million, when compared with the last year period.
Cash and cash equivalents stood at $146.83 million as on Sep. 30, 2016, down 62.15 percent or $241.12 million from $387.96 million on Sep. 30, 2015.
Working capital increases sharply
Gogo has recorded an increase in the working capital over the last year. It stood at $398.41 million as at Sep. 30, 2016, up 32.79 percent or $98.37 million from $300.04 million on Sep. 30, 2015. Current ratio was at 2.86 as on Sep. 30, 2016, up from 2.75 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 34 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 38 for the same period last year.
Debt increases substantiallyGogo has witnessed an increase in total debt over the last one year. It stood at $798.98 million as on Sep. 30, 2016, up 38.56 percent or $222.35 million from $576.62 million on Sep. 30, 2015. Total debt was 65.26 percent of total assets as on Sep. 30, 2016, compared with 57.21 percent on Sep. 30, 2015. 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: editor@irisindia.net
