Planet Payment, Inc. (PLPM) has reported 19.47 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $1.42 million, or $0.03 a share in the quarter, compared with $1.76 million, or $0.03 a share for the same period last year.
Revenue during the quarter dropped 6.98 percent to $12.73 million from $13.68 million in the previous year period. Gross margin for the quarter expanded 355 basis points over the previous year period to 58.30 percent. Total expenses were 83.75 percent of quarterly revenues, down from 85.30 percent for the same period last year. This has led to an improvement of 155 basis points in operating margin to 16.25 percent.
Operating income for the quarter was $2.07 million, compared with $2.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.01 million compared with $3.22 million in the prior year period. At the same time, adjusted EBITDA margin improved 10 basis points in the quarter to 23.67 percent from 23.57 percent in the last year period.
"From new business wins to contract expansions, our Q1 accomplishments represent our ability to create long-standing, strategic partnerships with some of the industry’s leading players around the world," said Carl Williams, chairman and chief executive officer of Planet Payment. "These various wins represent affirmation of our market expertise, as well as the strength of our leading multi-currency solutions."
For fiscal year 2017, Planet Payment expects revenue to be in the range of $60.10 million to $61.50 million. The company forecasts net income to be in the range of $9.10 million to $10.10 million. The company projects diluted earnings per share to be in the range of $0.16 to $0.18.
Operating cash flow drops significantly
Planet Payment, Inc. has generated cash of $1.75 million from operating activities during the quarter, down 29.91 percent or $ 0.75 million, when compared with the last year period. The company has spent $0.31 million cash to meet investing activities during the quarter as against cash outgo of $0.35 million in the last year period.
Cash flow from financing activities was $0.83 million for the quarter as against cash outgo of $2.98 million in the last year period.
Cash and cash equivalents stood at $15.58 million as on Mar. 31, 2017, up 12.48 percent or $1.73 million from $13.85 million on Mar. 31, 2016.
Working capital increases
Planet Payment, Inc. has recorded an increase in the working capital over the last year. It stood at $17.86 million as at Mar. 31, 2017, up 16.86 percent or $2.58 million from $15.29 million on Mar. 31, 2016. Current ratio was at 2.50 as on Mar. 31, 2017, up from 2.26 on Mar. 31, 2016.
Days sales outstanding went up to 47 days for the quarter compared with 43 days for the same period last year.
At the same time, days payable outstanding went up to 11 days for the quarter from 6 for the same period last year.
Debt increases substantially
Planet Payment, Inc. has witnessed an increase in total debt over the last one year. It stood at $10.14 million as on Mar. 31, 2017, up 3,641.26 percent or $9.87 million from $0.27 million on Mar. 31, 2016. Long-term debt stood at $9.92 million as on Mar. 31, 2017. Total debt was 16.46 percent of total assets as on Mar. 31, 2017, compared with 0.62 percent on Mar. 31, 2016. Debt to equity ratio was at 0.26 as on Mar. 31, 2017, up from 0.01 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 17.78 for the quarter from 137.09 for the same period last year.
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