Corporate Executive Board Co (EXBD), a provider member-based advisory services, swung to a net loss for the quarter ended Jun. 30, 2014. The company made a net loss of $6.42 million or $0.19 a share in the second-quarter against a profit of $13.57 million or $0.40 a share in the previous year period. Non-GAAP earnings per share came in at $0.75, when analysts expected $0.71.
Revenue during the second-quarter grew 12.62 percent to $230.43 million from $204.61 million in the last year period.
Gross margin expanded by 14 basis points over the previous year period to 63.10 percent. Operating margin for the current period stood at negative 4 percent as compared to positive 13.94 percent for the previous year period.
The company disclosed operating loss of $9.23 million, compared with operating income of $28.52 million in the last year period.
''CEB's second quarter results reflect broad-based growth across our primary markets,'' said Tom Monahan, chairman and CEO. ''Ongoing challenges in the US Federal Government sector led us to record a non-cash impairment loss related to PDRI's carrying value. Nevertheless, our focused execution produced healthy operating metrics and keeps us on track to achieve our strategic and financial objectives for the year.''
The company reaffirmed its 2014 annual guidance. It expects adjusted revenue to be in the range of $910 to $935 million while GAAP revenue in the range of $904 to $929 million. Non-GAAP diluted earnings per share is expected in the range of $3.15 to $3.40, it said.
Cash Flow
Corporate Executive Board Co has generated cash of $90.16 million from operating activities during the first half, up 16.09 percent or $12.50 million when compared with the last year period.
The company has spent $83.81 million cash to meet investing activities during the first half, as against cash outgo of $21.68 million in the last year period. It has made net capital expenditure of $23.82 million during the first half, which was higher by 65.59 percent or $9.44 million, from a year ago.
The company's free cash flow accounted for 73.58 percent of operating cash flow for the first half, compared with 81.48 percent in the last year period.
The company has spent $31.37 million cash to meet financing activities during the first half, as against cash outgo of $45.39 million in the last year period. It has made net repayment of $5.38 million debt during the first half. It has spent net of $4.68 million on repurchase of common stocks.
The company's cash dividend payment increased 17.44 percent or $2.63 million to $17.69 million.
As on Jun. 30, 2014, the company's cash balance stood at $95.24 million, up 16.76 percent or $13.67 million from Jun. 30, 2013.
Working Capital
Corporate Executive Board Co's working capital remained negative at $164.37 million on Jun. 30, 2014, compared with negative $167.36 million on Jun. 30, 2013. It registered an increase in current ratio to 0.70 as at Jun. 30, 2014 from 0.66 on Jun. 30, 2013.
Debt Position
Corporate Executive Board Co has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $510.69 million, down 0.74 percent or $3.83 million, from Jun. 30, 2013.
The company's total debt was 37.83 percent of total assets as on Jun. 30, 2014, compared with 41.47 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 3.72 on Jun. 30, 2014 compared with 5.91 on Jun. 30, 2013.
Shares of the company declined $0.39 or 0.61 percent to settle at $63.51 on Tuesday.
