Issuer Direct Corporation (ISDR) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.51 million, or $ 0.17 a share in the quarter, against a net loss of $0.29 million, or $0.10 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $0.50 million, or $0.17 a share compared with $0.40 million or $0.14 a share, a year ago. Revenue during the quarter grew 3.43 percent to $2.77 million from $2.68 million in the previous year period. Gross margin for the quarter expanded 464 basis points over the previous year period to 75.09 percent. Operating margin for the quarter period stood at positive 17.46 percent as compared to a negative 11.68 percent for the previous year period.
Operating income for the quarter was $0.48 million, compared with an operating loss of $0.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.67 million compared with $0.53 million in the prior year period. At the same time, adjusted EBITDA margin improved 416 basis points in the quarter to 24.04 percent from 19.87 percent in the last year period.
Brian Balbirnie, chief executive officer of Issuer Direct, commented, "We are pleased with our quarterly and annual performance. Our Accesswire and platform and technology businesses increased 12% and 18%, sequentially in Q4, respectively. Combined, these areas accounted for 43% of total revenue in the fourth quarter, up from 36% in Q3 and 26% last year. Our goal is to make this 50% by mid-2017. Strong growth in these businesses fueled gross margin expansion to 75% for the year and quarter, up from 70% in both periods last year. EBITDA margins also benefited, increasing to 26% for the year, up from 20% last year, with total annual EBITDA growing 36% year over year. Our focus in 2017 will be on the continued development of our rapidly growing, highly profitable, and scalable Accesswire business and our platform and technology products."
Operating cash flow declines
Issuer Direct Corporation has generated cash of $2.76 million from operating activities during the year, down 13.07 percent or $0.42 million, when compared with the last year. The company has spent $1.19 million cash to meet investing activities during the year as against cash outgo of $0.66 million in the last year.
The company has spent $0.42 million cash to carry out financing activities during the year as against cash outgo of $0.02 million in the last year period.
Cash and cash equivalents stood at $5.34 million as on Dec. 31, 2016, up 26.66 percent or $1.12 million from $4.22 million on Dec. 31, 2015.
Working capital increases sharply
Issuer Direct Corporation has recorded an increase in the working capital over the last year. It stood at $4.72 million as at Dec. 31, 2016, up 42.35 percent or $1.40 million from $3.32 million on Dec. 31, 2015. Current ratio was at 3.24 as on Dec. 31, 2016, up from 2.38 on Dec. 31, 2015.
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