Tucows Inc. (TCX) has reported 44.88 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $2.45 million, or $0.23 a share in the quarter, compared with $4.44 million, or $0.41 a share for the same period last year. Revenue during the quarter surged 55.47 percent to $69.57 million from $44.75 million in the previous year period. Gross margin for the quarter contracted 771 basis points over the previous year period to 24.36 percent. Total expenses were 95.60 percent of quarterly revenues, up from 86.01 percent for the same period last year. That has resulted in a contraction of 959 basis points in operating margin to 4.40 percent.
Operating income for the quarter was $3.06 million, compared with $6.26 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.20 million compared with $7.32 million in the prior year period. At the same time, adjusted EBITDA margin contracted 745 basis points in the quarter to 8.91 percent from 16.35 percent in the last year period.
"During the first quarter of 2017 we successfully began integrating Enom into our domain business and we successfully migrated over 20,000 mobile customers to Ting from RingPlus. We also continued to deploy significant resources to develop our Ting Internet operations and to invest in building out our Ting Fiber network. With a solid quarter behind us, I am pleased to report that we remain on track to meet our adjusted EBITDA goal of $50 million less $8 million of acquisition related non-cash impacts for fiscal 2017,”2 said Elliot Noss, president and chief executive officer, Tucows Inc.
Operating cash flow drops significantlyTucows Inc. has generated cash of $2.40 million from operating activities during the quarter, down 57.22 percent or $ 3.21 million, when compared with the last year period. The company has spent $81.93 million cash to meet investing activities during the quarter as against cash outgo of $6.91 million in the last year period.
Cash flow from financing activities was $79.46 million for the quarter, up 2,117.07 percent or $75.87 million, when compared with the last year period.
Cash and cash equivalents stood at $15.03 million as on Mar. 31, 2017, up 50.17 percent or $5.02 million from $10.01 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Tucows Inc. was negative $24.84 million on Mar. 31, 2017 compared with negative $12.44 million on Mar. 31, 2016. Current ratio was at 0.87 as on Mar. 31, 2017, up from 0.85 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 9 days for the last year period. Days sales outstanding went down to 17 days for the quarter compared with 19 days for the same period last year.
Days inventory outstanding has decreased to 1 days for the quarter compared with 3 days for the previous year period. At the same time, days payable outstanding went down to 10 days for the quarter from 13 for the same period last year.
Debt increases substantially
Tucows Inc. has witnessed an increase in total debt over the last one year. It stood at $90.46 million as on Mar. 31, 2017, up 874.70 percent or $81.18 million from $9.28 million on Mar. 31, 2016. Long-term debt stood at $72.17 million as on Mar. 31, 2017. Total debt was 25.72 percent of total assets as on Mar. 31, 2017, compared with 6.71 percent on Mar. 31, 2016. Debt to equity ratio was at 2.26 as on Mar. 31, 2017, up from 0.31 as on Mar. 31, 2016. 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
