Luby's, Inc. (LUB) saw its loss widen to $13.18 million, or $0.45 a share for the quarter ended Mar. 15, 2017. In the previous year period, the company reported a loss of $0.60 million, or $0.02 a share.

Revenue during the quarter dropped 6.25 percent to $86.31 million from $92.07 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 58.19 percent. Operating margin for the quarter stood at negative 9.58 percent as compared to a negative 0.33 percent for the previous year period.

Operating loss for the quarter was $8.26 million, compared with an operating loss of $0.30 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.26 million compared with $4.91 million in the prior year period. At the same time, adjusted EBITDA margin contracted 156 basis points in the quarter to 3.77 percent from 5.34 percent in the last year period.

Chris Pappas, president and chief executive officer commented, "During the second quarter we achieved improved cost controls and reduced our capital expenditures as previously planned. Going forward we will continue our efforts to control costs while remaining focused on an enhanced guest experience across all of our brands in a reduced sales environment. In addition, we continue to evaluate under-performing store locations and, when appropriate, close stores to improve overall company profitability. "We opened three Fuddruckers franchise locations in the second quarter and one new company-owned location earlier this month in our third quarter of fiscal 2017."

The company has spent $6.33 million cash to meet investing activities during the first six months as against cash outgo of $6.79 million in the last year period. It has incurred net capital expenditure of $6.33 million on net basis during the first six months, down 6.94 percent or $0.47 million from year ago period.

The company has spent $0.26 million cash to carry out financing activities during the first six months as against cash outgo of $0.47 million in the last year period.

Cash and cash equivalents stood at $1.35 million as on Mar. 15, 2017, down 6.05 percent or $0.09 million from $1.44 million on Mar. 09, 2016.

Working capital remains negative

Working capital of Luby's, Inc. was negative $32.85 million on Mar. 15, 2017 compared with negative $28.79 million on Mar. 09, 2016. Current ratio was at 0.31 as on Mar. 15, 2017, down from 0.34 on Mar. 09, 2016.

Cash conversion cycle (CCC) was almost stable at 13 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 5 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.