GREEN DOT CORP (GDOT) has reported 1,037.99 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2.04 million in the quarter, compared with $0.18 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.88 million, or $0.21 a share compared with $7.95 million or $0.15 a share, a year ago. Revenue during the quarter grew 5.56 percent to $154.49 million from $146.36 million in the previous year period. Operating margin for the quarter stood at negative 0.33 percent as compared to a negative 1.17 percent for the previous year period.
Operating loss for the quarter was $0.52 million, compared with an operating loss of $1.71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $23.80 million compared with $22.20 million in the prior year period. At the same time, adjusted EBITDA margin improved 24 basis points in the quarter to 15.40 percent from 15.17 percent in the last year period.
Said Green Dot Founder and chief executive officer, Steve Streit, "Q3 was another solid quarter for Green Dot as the year is playing out along the thematic we laid out when we first provided full year guidance at the beginning of 2016. Non-GAAP total operating revenue, adjusted EBITDA and non-GAAP EPS results are all improving steadily quarter after quarter on a year over year basis. We also experienced stronger than expected bottom line performance in the quarter, driven by the success of our ongoing cost savings initiatives, combined with higher margin revenue from our legacy business lines. We’re pleased with our Companys performance in both the quarter and year-to-date and believe we are well positioned to achieve our financial goals for the remainder of this year and in 2017."
GREEN DOT projects adjusted revenue to be in the range of $708 million to $713 million for financial year 2016. For the fiscal year 2016, GREEN DOT forecasts adjusted net income to be in the range of $71.60 million to $74.10 million. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.39 to $1.44 on adjusted basis.
Operating cash flow declines
GREEN DOT has generated cash of $100.14 million from operating activities during the nine month period, down 11.96 percent or $13.61 million, when compared with the last year period. The company has spent $106.12 million cash to meet investing activities during the nine month period as against cash outgo of $197.82 million in the last year period.
The company has spent $168.62 million cash to carry out financing activities during the nine month period as against cash outgo of $33.42 million in the last year period.
Cash and cash equivalents stood at $597.53 million as on Sep. 30, 2016, down 1.58 percent or $9.62 million from $607.16 million on Sep. 30, 2015.
Working capital drops significantly
GREEN DOT has witnessed a decline in the working capital over the last year. It stood at $39.48 million as at Sep. 30, 2016, down 57.71 percent or $53.86 million from $93.34 million on Sep. 30, 2015. Current ratio was at 1.05 as on Sep. 30, 2016, down from 1.13 on Sep. 30, 2015.
Days sales outstanding went up to 19 days for the quarter compared with 16 days for the same period last year.
Debt comes down
GREEN DOT has recorded a decline in total debt over the last one year. It stood at $105.93 million as on Sep. 30, 2016, down 20.43 percent or $27.20 million from $133.12 million on Sep. 30, 2015. Total debt was 6.75 percent of total assets as on Sep. 30, 2016, compared with 8.75 percent on Sep. 30, 2015. Debt to equity ratio was at 0.16 as on Sep. 30, 2016, down from 0.20 as on Sep. 30, 2015. 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]
