NPC Restaurant Holdings, LLC (NPCI) saw its loss widen to $4.49 million in the quarter ended compared with $2.12 million a year ago.
Revenue during the quarter went up marginally by 1.47 percent to $305.08 million from $300.65 million in the previous year period. Gross margin for the quarter expanded 42 basis points over the previous year period to 71.97 percent. Total expenses were 98.51 percent of quarterly revenues, up from 98.43 percent for the same period last year. That has resulted in a contraction of 8 basis points in operating margin to 1.49 percent.
Operating income for the quarter was $4.54 million, compared with $4.72 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $24.72 million compared with $21.99 million in the prior year period. At the same time, adjusted EBITDA margin improved 79 basis points in the quarter to 8.10 percent from 7.31 percent in the last year period.
NPC's president and chief executive officer Jim Schwartz said, "Our Wendy's business rebounded this quarter and posted solid comparable store sales growth of 1.7% while driving significant margin improvement and profit growth. Our Pizza Hut operations generated disappointing comparable store sales with a decline of 2.7% this quarter but remains in positive comp territory on a year to date basis."
Operating cash flow improves
NPC Restaurant Holdings, LLC has generated cash of $69.35 million from operating activities during the nine month period, up 9.61 percent or $6.08 million, when compared with the last year period.
The company has spent $81.69 million cash to meet investing activities during the nine month period as against cash outgo of $40.07 million in the last year period. It has incurred net capital expenditure of $44.06 million on net basis during the nine month period, up 6.23 percent or $2.59 million from year ago period.
The company has spent $4.33 million cash to carry out financing activities during the nine month period as against cash outgo of $3.12 million in the last year period.
Cash and cash equivalents stood at $16.05 million as on Sep. 27, 2016, down 50.06 percent or $16.09 million from $32.15 million on Sep. 29, 2015.
Working capital remains negative
Working capital of NPC Restaurant Holdings, LLC was negative $74.83 million on Sep. 27, 2016 compared with negative $37.94 million on Sep. 29, 2015. Current ratio was at 0.36 as on Sep. 27, 2016, down from 0.66 on Sep. 29, 2015.
Days sales outstanding went down to 1 days for the quarter compared with 2 days for the same period last year.
Debt comes down marginally
NPC Restaurant Holdings, LLC has recorded a decline in total debt over the last one year. It stood at $579.20 million as on Sep. 27, 2016, down 2.21 percent or $13.10 million from $592.30 million on Sep. 29, 2015. Total debt was 47.45 percent of total assets as on Sep. 27, 2016, compared with 47.97 percent on Sep. 29, 2015. Interest coverage ratio deteriorated to 0.41 for the quarter from 0.46 for the same period last year.
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