TheStreet, Inc. (TST) saw its loss widen to $11.64 million, or $0.33 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.25 million, or $0.01 a share. Revenue during the quarter dropped 6.15 percent to $15.92 million from $16.97 million in the previous year period. Gross margin for the quarter contracted 614 basis points over the previous year period to 46.72 percent. Operating margin for the quarter stood at negative 77.30 percent as compared to a positive 1.33 percent for the previous year period.
Operating loss for the quarter was $12.31 million, compared with an operating income of $0.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.20 million compared with $2.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 431 basis points in the quarter to 7.55 percent from 11.85 percent in the last year period.
"This was an investment year and the seeds of our turnaround efforts began to take hold in the fourth quarter on both our institutional side and our consumer businesses,” said David Callaway, president and chief executive officer. "The rally in financial markets since November helped us begin to put Brexit and the declines in our premium subscription business behind us. We still maintain a strong cash position, have aggressively been cutting costs, and have started offering new products and revenue strategies to our B2B clients and B2C readers and customers alike.” Callaway continued, “As mentioned earlier in the year, our goal is to allow greater transparency and insight to our investors with the breakout of the business to business and business to consumer products we offer."
Operating cash flow turns negative
TheStreet, Inc. has spent $2.76 million cash to meet operating activities during the year as against cash inflow of $0.89 million in the last year. The company has spent $3.51 million cash to meet investing activities during the year as against cash outgo of $0.67 million in the last year.
The company has spent $0.17 million cash to carry out financing activities during the year as against cash outgo of $4.07 million in the last year period.
Cash and cash equivalents stood at $21.37 million as on Dec. 31, 2016, down 24.87 percent or $7.07 million from $28.45 million on Dec. 31, 2015.
Working capital turns negative
Working capital of TheStreet, Inc. has turned negative to $2.84 million on Dec. 31, 2016 from positive $2.07 million on Dec. 31, 2015. Current ratio was at 0.91 as on Dec. 31, 2016, down from 1.06 on Dec. 31, 2015.
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