MusclePharm Corporation (MSLP) saw its loss narrow to $1.45 million, or $0.10 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $27.65 million, or $2.01 a share.
Revenue during the quarter dropped 9.68 percent to $30.69 million from $33.98 million in the previous year period. Gross margin for the quarter expanded 241 basis points over the previous year period to 33.22 percent. Operating margin for the quarter stood at negative 4.32 percent as compared to a negative 79.51 percent for the previous year period.
Operating loss for the quarter was $1.32 million, compared with an operating loss of $27.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.28 million compared to negative $3.03 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 4.19 percent for the quarter compared to negative 8.91 percent in the last year period.
Ryan Drexler, MusclePharm's Interim chief executive officer, president and chairman of the board of directors, said: “We believe that the strong results of the third quarter validate the immense strides we have made in the implementation of our strategic restructuring program. We have turned a corner on our plan to return the Company to profitability and value creation, and anticipate continued improvement in our operating margins and expense structure going forward.”
Working capital remains negative
Working capital of MusclePharm Corporation was negative $20.99 million on Sep. 30, 2016 compared with negative $22.28 million on Sep. 30, 2015. Current ratio was at 0.61 as on Sep. 30, 2016, down from 0.67 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 87 days for the quarter from 32 days for the last year period. Days sales outstanding went up to 61 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 67 days for the previous year period. At the same time, days payable outstanding went up to 166 days for the quarter from 153 for the same period last year.
Debt comes down marginally
MusclePharm Corporation has recorded a decline in total debt over the last one year. It stood at $6 million as on Sep. 30, 2016, down 4.28 percent or $0.27 million from $6.27 million on Sep. 30, 2015. Total debt was 15.65 percent of total assets as on Sep. 30, 2016, compared with 10.07 percent on Sep. 30, 2015.
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