Windstream Holdings, Inc. (WIN) saw its loss narrow to $111.30 million, or $0.89 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $231.90 million, or $2.52 a share.
Revenue during the quarter went down marginally by 0.56 percent to $1,365.70 million from $1,373.40 million in the previous year period. Gross margin for the quarter contracted 69 basis points over the previous year period to 48.51 percent. Total expenses were 96.63 percent of quarterly revenues, up from 88.52 percent for the same period last year. That has resulted in a contraction of 811 basis points in operating margin to 3.37 percent.
Operating income for the quarter was $46 million, compared with $157.70 million in the previous year period.
"Windstream's focused operational strategy and targeted network investments continue to drive improvements to our business and create value for our shareholders. Additionally, our recent strategic transactions with EarthLink and Broadview Networks will expand our capabilities to provide cutting edge technology solutions to customers," said Tony Thomas, president and chief executive officer at Windstream.
Operating cash flow improves marginally
Windstream Holdings, Inc. has generated cash of $132.50 million from operating activities during the quarter, up 4.17 percent or $5.30 million, when compared with the last year period.
The company has spent $240.90 million cash to meet investing activities during the quarter as against cash outgo of $257.60 million in the last year period.
Cash flow from financing activities was $100.80 million for the quarter, down 41.97 percent or $72.90 million, when compared with the last year period.
Cash and cash equivalents stood at $51.50 million as on Mar. 31, 2017, down 30.97 percent or $23.10 million from $74.60 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Windstream Holdings, Inc. was negative $337.90 million on Mar. 31, 2017 compared with negative $209.60 million on Mar. 31, 2016. Current ratio was at 0.74 as on Mar. 31, 2017, down from 0.82 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 4 days for the last year period. Days sales outstanding were almost stable at 43 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 6 days for the quarter compared with 10 days for the previous year period. At the same time, days payable outstanding was almost stable at 49 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Windstream Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $10,439.10 million as on Mar. 31, 2017, down 1.16 percent or $122.30 million from $10,561.40 million on Mar. 31, 2016. Total debt was 80.90 percent of total assets as on Mar. 31, 2017, compared with 83.75 percent on Mar. 31, 2016. Debt to equity ratio was at 14.45 as on Mar. 31, 2017, down from 31.27 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.22 for the quarter from 0.72 for the same period last year.
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