Zayo Group Holdings, Inc. (ZAYO) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $27 million, or $ 0.11 a share in the quarter, against a net loss of $19.30 million, or $0.08 a share in the last year period.

Revenue during the quarter grew 15.10 percent to $550.20 million from $478 million in the previous year period. Gross margin for the quarter expanded 29 basis points over the previous year period to 64.56 percent. Total expenses were 83.52 percent of quarterly revenues, down from 87.97 percent for the same period last year. This has led to an improvement of 446 basis points in operating margin to 16.48 percent.

Operating income for the quarter was $90.70 million, compared with $57.50 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $282 million compared with $242.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 46 basis points in the quarter to 51.25 percent from 50.79 percent in the last year period.

The company has spent $2,055.50 million cash to meet investing activities during the nine month period as against cash outgo of $933.70 million in the last year period.

Cash flow from financing activities was $1,422.60 million for the nine month period, up 370.44 percent or $1,120.20 million, when compared with the last year period.

Cash and cash equivalents stood at $198.40 million as on Mar. 31, 2017, down 7.81 percent or $16.80 million from $215.20 million on Mar. 31, 2016.

Working capital turns negative

Working capital of Zayo Group Holdings, Inc. has turned negative to $91.40 million on Mar. 31, 2017 from positive $25.40 million on Mar. 31, 2016. Current ratio was at 0.84 as on Mar. 31, 2017, down from 1.05 on Mar. 31, 2016.

Days sales outstanding went up to 22 days for the quarter compared with 20 days for the same period last year.

At the same time, days payable outstanding went down to 27 days for the quarter from 38 for the same period last year.