Telephone & Data Systems (TDS) has reported 362.50 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $37 million, or $0.33 a share in the quarter, compared with $8 million, or $0.07 a share for the same period last year.
Revenue during the quarter went down marginally by 1.28 percent to $1,238 million from $1,254 million in the previous year period. Gross margin for the quarter expanded 316 basis points over the previous year period to 22.62 percent. Total expenses were 93.38 percent of quarterly revenues, down from 97.93 percent for the same period last year. This has led to an improvement of 455 basis points in operating margin to 6.62 percent.
Operating income for the quarter was $82 million, compared with $26 million in the previous year period.
"TDS businesses started the year by showing a solid first quarter," said LeRoy T. Carlson Jr., TDS president and chief executive officer. "U.S. Cellular maintained strong customer loyalty, continued network investments and generated a strong increase in profitability, while TDS Telecom grew both IPTV and broadband connections, increasing both revenue and profitability."
For financial year 2017, Telephone & Data Systems projects revenue to be in the range of $5,015 million to $5,265 million.
Operating cash flow drops significantly
Telephone & Data Systems has generated cash of $137 million from operating activities during the quarter, down 44.31 percent or $ 109 million, when compared with the last year period.
The company has spent $125 million cash to meet investing activities during the quarter as against cash outgo of $157 million in the last year period.
The company has spent $16 million cash to carry out financing activities during the quarter as against cash outgo of $20 million in the last year period.
Cash and cash equivalents stood at $896 million as on Mar. 31, 2017, down 14.99 percent or $158 million from $1,054 million on Mar. 31, 2016.
Working capital remains almost stable
Working capital of Telephone & Data Systems remained almost stable for the quarter at $1,287 million, when compared with the previous year period. Current ratio was at 2.74 as on Mar. 31, 2017, up from 2.44 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 40 days for the quarter from 43 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 14 days for the previous year period. At the same time, days payable outstanding went down to 29 days for the quarter from 32 for the same period last year.
Debt remains almost stable
Total debt of Telephone & Data Systems remained almost stable for the quarter at $2,443 million, when compared with the last year period. Debt to equity ratio was at 0.51 as on Mar. 31, 2017, down from 0.52 as on Mar. 31, 2016. Interest coverage ratio improved to 1.95 for the quarter from 0.63 for the same period last year.
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