EVERTEC (EVTC) has reported 27.16 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $15.97 million, or $0.22 a share in the quarter, compared with $21.93 million, or $0.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.30 million, or $0.43 a share compared with $33.16 million or $0.44 a share, a year ago.
Revenue during the quarter grew 6.48 percent to $101.89 million from $95.68 million in the previous year period. Gross margin for the quarter contracted 303 basis points over the previous year period to 52.22 percent. Total expenses were 75.09 percent of quarterly revenues, up from 71.34 percent for the same period last year. That has resulted in a contraction of 375 basis points in operating margin to 24.91 percent.
Operating income for the quarter was $25.38 million, compared with $27.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $47.58 million compared with $46.62 million in the prior year period. At the same time, adjusted EBITDA margin contracted 203 basis points in the quarter to 46.69 percent from 48.73 percent in the last year period.
Mac Schuessler, president and chief executive officer, stated "We are pleased with the achievement of our annual financial goals in a challenging environment in Puerto Rico. We enhanced our focus on customer engagement and infrastructure improvements as well as completed two strategic acquisitions.
For fiscal year 2017, EVERTEC forecasts revenue to be in the range of $390 million to $400 million. The company expects diluted earnings per share to be in the range of $0.92 to $1.06. The company expects diluted earnings per share to be in the range of $1.50 to $1.63 on adjusted basis.
Operating cash flow improves marginallyEVERTEC has generated cash of $168.05 million from operating activities during the year, up 3.47 percent or $5.63 million, when compared with the last year. The company has spent $54.08 million cash to meet investing activities during the year as against cash outgo of $53.07 million in the last year. It has incurred net capital expenditure of $42.19 million on net basis during the year, down 10.18 percent or $4.78 million from year ago.
The company has spent $90.80 million cash to carry out financing activities during the year as against cash outgo of $112.72 million in the last year period.
Cash and cash equivalents stood at $51.92 million as on Dec. 31, 2016, up 80.61 percent or $23.17 million from $28.75 million on Dec. 31, 2015.
Working capital declines
EVERTEC has witnessed a decline in the working capital over the last year. It stood at $29.10 million as at Dec. 31, 2016, down 9.68 percent or $3.12 million from $32.22 million on Dec. 31, 2015. Current ratio was at 1.23 as on Dec. 31, 2016, down from 1.31 on Dec. 31, 2015.
Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 39 days for the quarter from 23 for the same period last year.
Debt comes down marginallyEVERTEC has recorded a decline in total debt over the last one year. It stood at $647.46 million as on Dec. 31, 2016, down 1.76 percent or $11.59 million from $659.05 million on Dec. 31, 2015. Total debt was 73.10 percent of total assets as on Dec. 31, 2016, compared with 75.74 percent on Dec. 31, 2015. Debt to equity ratio was at 5.99 as on Dec. 31, 2016, down from 6.71 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.01 for the quarter from 4.69 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
