Telephone and Data Systems, Inc (TDS) has reported a 74.51 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $13 million, or $0.11 a share in the quarter, compared with $51 million, or $0.46 a share for the same period last year. Revenue during the quarter dropped 5.31 percent to $1,301 million from $1,374 million in the previous year period. Gross margin for the quarter contracted 261 basis points over the previous year period to 17.99 percent. Total expenses were 98.46 percent of quarterly revenues, up from 93.23 percent for the same period last year. That has resulted in a contraction of 523 basis points in operating margin to 1.54 percent.
Operating income for the quarter was $20 million, compared with $93 million in the previous year period.
"Each of our businesses continued working toward their long-term objectives," said LeRoy T. Carlson, Jr., TDS president and chief executive officer. "U.S. Cellular achieved strong customer loyalty and TDS Telecom grew residential broadband customers in both wireline and cable."
Operating cash flow declines
Telephone and Data Systems, Inc has generated cash of $638 million from operating activities during the nine month period, down 12.24 percent or $89 million, when compared with the last year period. The company has spent $594 million cash to meet investing activities during the nine month period as against cash outgo of $514 million in the last year period.
The company has spent $44 million cash to carry out financing activities during the nine month period as against cash inflow of $180 million in the last year period.
Cash and cash equivalents stood at $985 million as on Sep. 30, 2016, up 13.82 percent or $119.58 million from $865.42 million on Sep. 30, 2015.
Working capital increases
Telephone and Data Systems, Inc has recorded an increase in the working capital over the last year. It stood at $1,223 million as at Sep. 30, 2016, up 23.47 percent or $232.51 million from $990.49 million on Sep. 30, 2015. Current ratio was at 2.38 as on Sep. 30, 2016, up from 1.91 on Sep. 30, 2015.
Cash conversion cycle (CCC) was almost stable at 30 days for the quarter, when compared with the last year period. Days sales outstanding went up to 54 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 14 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 33 for the same period last year.
Debt moves up
Telephone and Data Systems, Inc has witnessed an increase in total debt over the last one year. It stood at $2,448 million as on Sep. 30, 2016, up 10.32 percent or $228.91 million from $2,219.09 million on Sep. 30, 2015. Total debt was 25.91 percent of total assets as on Sep. 30, 2016, compared with 23.82 percent on Sep. 30, 2015. Debt to equity ratio was at 0.51 as on Sep. 30, 2016, up from 0.47 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.48 for the quarter from 2.66 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
