MSG Networks Inc (MSGN) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $40.24 million, or $ 0.53 a share in the quarter, against a net loss of $119.69 million, or $1.58 a share in the last year period.
Revenue during the quarter grew 3.67 percent to $153.58 million from $148.15 million in the previous year period. Total expenses were 51.49 percent of quarterly revenues, down from 71.48 percent for the same period last year. This has led to an improvement of 2000 basis points in operating margin to 48.51 percent.
Operating income for the quarter was $74.51 million, compared with $42.25 million in the previous year period.
president and chief executive officer Andrea Greenberg said, “We are pleased with the Company’s start to fiscal 2017 as we continued to build on last year’s strong financial performance with solid revenue and operating results for the first quarter. With the NBA and NHL seasons now underway, we remain focused on capitalizing on our unique position with advertisers and affiliates - as a provider of exclusive live sports content in the nation’s number one media market - to generate significant value for our shareholders.”
Operating cash flow drops significantly
MSG Networks Inc has generated cash of $50.82 million from operating activities during the quarter, down 35.54 percent or $ 28.03 million, when compared with the last year period.
The company has spent $1.73 million cash to meet investing activities during the quarter as against cash outgo of $1.45 million in the last year period.
The company has spent $12.25 million cash to carry out financing activities during the quarter as against cash outgo of $29.19 million in the last year period.
Cash and cash equivalents stood at $155.48 million as on Sep. 30, 2016, down 27.13 percent or $57.88 million from $213.36 million on Sep. 30, 2015.
Working capital increases sharply
MSG Networks Inc has recorded an increase in the working capital over the last year. It stood at $188.17 million as at Sep. 30, 2016, up 138.79 percent or $109.37 million from $78.80 million on Sep. 30, 2015. Current ratio was at 2.71 as on Sep. 30, 2016, up from 1.31 on Sep. 30, 2015.
Days sales outstanding went down to 80 days for the quarter compared with 83 days for the same period last year.
Debt comes down marginally
MSG Networks Inc has recorded a decline in total debt over the last one year. It stood at $1,467.16 million as on Sep. 30, 2016, down 4.55 percent or $69.91 million from $1,537.07 million on Sep. 30, 2015. Total debt was 178.47 percent of total assets as on Sep. 30, 2016, compared with 178.08 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 8.38 for the quarter from 31.98 for the same period last year.
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