The Advisory Board Company (ABCO) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $37.16 million, or $ 0.92 a share in the quarter, against a net loss of $105.28 million, or $2.52 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $41.82 million, or $1.03 a share compared with $20.52 million or $0.48 a share, a year ago.
Revenue during the quarter went down marginally by 0.54 percent to $203.85 million from $204.95 million in the previous year period. Gross margin for the quarter expanded 313 basis points over the previous year period to 52.73 percent. Operating margin for the quarter period stood at positive 12.52 percent as compared to a negative 43.93 percent for the previous year period.
Operating income for the quarter was $25.52 million, compared with an operating loss of $90.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $52.18 million compared with $43.57 million in the prior year period. At the same time, adjusted EBITDA margin improved 434 basis points in the quarter to 25.60 percent from 21.26 percent in the last year period.
For the first-quarter, Advisory Board forecasts revenue to be in the range of $185 million to $190 million.
For fiscal year 2017, Advisory Board forecasts adjusted revenue to be in the range of $780 million to $840 million. The company expects diluted earnings per share to be in the range of $1.80 to $2.10 on adjusted basis.
Operating cash flow drops significantly
The Advisory Board Company has generated cash of $109.22 million from operating activities during the year, down 32.56 percent or $52.72 million, when compared with the last year. The company has spent $1.86 million cash to meet investing activities during the year as against cash outgo of $791.68 million in the last year.
The company has spent $88.03 million cash to carry out financing activities during the year as against cash inflow of $628.63 million in the last year period.
Cash and cash equivalents stood at $91.15 million as on Dec. 31, 2016, up 26.91 percent or $19.33 million from $71.82 million on Dec. 31, 2015.
Working capital turns positive
Working capital of The Advisory Board Company has turned positive to $8.55 million on Dec. 31, 2016 from negative $25.45 million on Dec. 31, 2015. Current ratio was at 1.01 as on Dec. 31, 2016, up from 0.96 on Dec. 31, 2015.
Days sales outstanding were almost stable at 137 days for the quarter, when compared with the last year period.
Debt moves up
The Advisory Board Company has witnessed an increase in total debt over the last one year. It stood at $585.45 million as on Dec. 31, 2016, up 5.88 percent or $32.54 million from $552.92 million on Dec. 31, 2015. Total debt was 28.75 percent of total assets as on Dec. 31, 2016, compared with 27.93 percent on Dec. 31, 2015. Debt to equity ratio was at 1.13 as on Dec. 31, 2016, down from 1.23 as on Dec. 31, 2015.
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