SOCIAL REALITY Inc (SCRI) saw its loss widen to $1.34 million, or $0.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.43 million, or $0.08 a share. Revenue during the quarter surged 41.77 percent to $11.51 million from $8.12 million in the previous year period. Gross margin for the quarter contracted 1335 basis points over the previous year period to 40.97 percent. Operating margin for the quarter stood at negative 7.38 percent as compared to a positive 6.04 percent for the previous year period.
Operating loss for the quarter was $0.85 million, compared with an operating income of $0.49 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.58 million compared with $1.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 813 basis points in the quarter to 5.06 percent from 13.19 percent in the last year period.
Bill Foster, president and chief executive officer, commented “Our team accomplished a great deal on many fronts during 2016, but I am most proud of the traction we established in growing relationships in consumer, commercial and mortgage banking and the success we had in attracting talented professionals to our team. We are relationship driven to our core. We build deep and lasting relationships on a foundation of trust, exceptionally professional and caring service, a genuine desire to help our clients thrive and the expertise to help them do just that. Our success in 2016 demonstrates to us that there are plenty of families, businesses, professional firms, nonprofits, business owners, referral sources and prospective team members who value what we offer. In 2017, we will continue to focus on executing our strategy in a disciplined manner and growing the business.”
Operating cash flow turns negative
SOCIAL REALITY Inc has spent $1.27 million cash to meet operating activities during the year as against cash inflow of $0.74 million in the last year. The company has spent $0.15 million cash to meet investing activities during the year as against cash outgo of $0.03 million in the last year.
Cash flow from financing activities was $1.38 million for the year as against cash outgo of $1.46 million in the last year period.
Cash and cash equivalents stood at $1.05 million as on Dec. 31, 2016, down 3.89 percent or $0.04 million from $1.09 million on Dec. 31, 2015.
Working capital remains negative
Working capital of SOCIAL REALITY Inc was negative $8.28 million on Dec. 31, 2016 compared with negative $8.12 million on Dec. 31, 2015. Current ratio was at 0.54 as on Dec. 31, 2016, up from 0.51 on Dec. 31, 2015.
Debt comes down significantly
SOCIAL REALITY Inc has recorded a decline in total debt over the last one year. It stood at $3.42 million as on Dec. 31, 2016, down 61.30 percent or $5.42 million from $8.83 million on Dec. 31, 2015. Total debt was 12.71 percent of total assets as on Dec. 31, 2016, compared with 30.97 percent on Dec. 31, 2015. Debt to equity ratio was at 0.39 as on Dec. 31, 2016, down from 2.28 as on Dec. 31, 2015.
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