Hawaiian Telcom Holdco, Inc. (HCOM) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.95 million, or $ 0.17 a share in the quarter, against a net profit of $0.15 million, or $0.01 a share in the last year period.
Revenue during the quarter dropped 4.34 percent to $94.51 million from $98.79 million in the previous year period. Gross margin for the quarter contracted 59 basis points over the previous year period to 56.42 percent. Total expenses were 99.31 percent of quarterly revenues, up from 95.45 percent for the same period last year. That has resulted in a contraction of 386 basis points in operating margin to 0.69 percent.
Operating income for the quarter was $0.66 million, compared with $4.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $27.06 million compared with $28.13 million in the prior year period. At the same time, adjusted EBITDA margin improved 16 basis points in the quarter to 28.63 percent from 28.48 percent in the last year period.
"Hawaiian Telcom’s next-generation fiber network continues to serve as the anchor for consistent growth in strategic services across all three revenue channels," said Scott K. Barber, Hawaiian Telcom's president and chief executive officer.
Operating cash flow falls marginally
Hawaiian Telcom Holdco, Inc. has generated cash of $20.27 million from operating activities during the quarter, down 3.10 percent or $ 0.65 million, when compared with the last year period. The company has spent $27.24 million cash to meet investing activities during the quarter as against cash outgo of $28.14 million in the last year period.
Cash flow from financing activities was $1.63 million for the quarter as against cash outgo of $2.24 million in the last year period.
Working capital remains negative
Working capital of Hawaiian Telcom Holdco, Inc. was negative $25.07 million on Mar. 31, 2017 compared with negative $13.24 million on Mar. 31, 2016. Current ratio was at 0.71 as on Mar. 31, 2017, down from 0.84 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 62 days for the quarter from 45 days for the last year period. Days sales outstanding were almost stable at 31 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 8 days for the quarter compared with 20 days for the previous year period. At the same time, days payable outstanding went up to 101 days for the quarter from 95 for the same period last year.
Debt moves up marginally
Hawaiian Telcom Holdco, Inc. has witnessed an increase in total debt over the last one year. It stood at $290.47 million as on Mar. 31, 2017, up 1.64 percent or $4.69 million from $285.78 million on Mar. 31, 2016. Total debt was 36.57 percent of total assets as on Mar. 31, 2017, compared with 35.98 percent on Mar. 31, 2016. Debt to equity ratio was at 0.92 as on Mar. 31, 2017, down from 0.93 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.16 for the quarter from 1.06 for the same period last year.
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