Ebix, Inc. (EBIX) has reported an 18.96 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $24.07 million, or $0.74 a share in the quarter, compared with $20.23 million, or $0.59 a share for the same period last year. Revenue during the quarter grew 11.67 percent to $74.61 million from $66.81 million in the previous year period. Gross margin for the quarter contracted 340 basis points over the previous year period to 69.94 percent. Total expenses were 67.44 percent of quarterly revenues, up from 67.12 percent for the same period last year. That has resulted in a contraction of 32 basis points in operating margin to 32.56 percent.
Operating income for the quarter was $24.29 million, compared with $21.97 million in the previous year period.
Operating cash flow improves significantly
Ebix, Inc. has generated cash of $53.05 million from operating activities during the nine month period, up 106.72 percent or $27.39 million, when compared with the last year period.
The company has spent $7.23 million cash to meet investing activities during the nine month period as against cash outgo of $32.13 million in the last year period.
The company has spent $2.46 million cash to carry out financing activities during the nine month period as against cash outgo of $10.37 million in the last year period.
Cash and cash equivalents stood at $99.81 million as on Sep. 30, 2016, up 200.62 percent or $66.61 million from $33.20 million on Sep. 30, 2015.
Working capital increases sharply
Ebix, Inc. has recorded an increase in the working capital over the last year. It stood at $114.06 million as at Sep. 30, 2016, up 161.85 percent or $70.50 million from $43.56 million on Sep. 30, 2015. Current ratio was at 2.60 as on Sep. 30, 2016, up from 1.88 on Sep. 30, 2015.
Days sales outstanding went up to 67 days for the quarter compared with 65 days for the same period last year.
Debt increases substantially
Ebix, Inc. has witnessed an increase in total debt over the last one year. It stood at $255.26 million as on Sep. 30, 2016, up 36.42 percent or $68.15 million from $187.11 million on Sep. 30, 2015. Total debt was 33.54 percent of total assets as on Sep. 30, 2016, compared with 28.85 percent on Sep. 30, 2015. Debt to equity ratio was at 0.58 as on Sep. 30, 2016, up from 0.47 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 12.64 for the quarter from 20.76 for the same period last year.
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