Black Knight Financial Services, Inc. (FNF) has reported a 20.41 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $11.80 million, or $0.17 a share in the quarter, compared with $9.80 million, or $0.14 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $45.20 million, or $0.30 a share compared with $40.40 million or $0.26 a share, a year ago.
Revenue during the quarter grew 9.97 percent to $261.50 million from $237.80 million in the previous year period. Total expenses were 77.78 percent of quarterly revenues, up from 77.71 percent for the same period last year. That has resulted in a contraction of 7 basis points in operating margin to 22.22 percent.
Operating income for the quarter was $58.10 million, compared with $53 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $116.70 million compared with $107.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 66 basis points in the quarter to 44.63 percent from 45.29 percent in the last year period.
Black Knight President and Chief Executive Officer Tom Sanzone added, "We are pleased with the consistent strength of our results in the fourth quarter, which included Adjusted Revenues growth of 10% and Adjusted EBITDA growth of 8%. For the year, we delivered Adjusted Revenues growth of 10% and Adjusted EBITDA growth of 12%, which drove margin expansion of 80 basis points. As we begin 2017, we remain very excited about Black Knightâs strong business momentum across the enterprise."
For financial year 2017, Black Knight Financial Services, Inc. expects adjusted revenue to grow in the range of 3 percent to 5 percent. The company projects diluted earnings per share to be in the range of $1.32 to $1.36 on adjusted basis.
Operating cash flow improves significantly
Black Knight Financial Services, Inc. has generated cash of $325.70 million from operating activities during the year, up 31.22 percent or $77.50 million, when compared with the last year.
The company has spent $230.20 million cash to meet investing activities during the year as against cash outgo of $102.50 million in the last year.
The company has spent $147.60 million cash to carry out financing activities during the year as against cash outgo of $21.60 million in the last year period.
Cash and cash equivalents stood at $133.90 million as on Dec. 31, 2016, down 28.01 percent or $52.10 million from $186 million on Dec. 31, 2015.
Debt comes down
Black Knight Financial Services, Inc. has recorded a decline in total debt over the last one year. It stood at $1,570.20 million as on Dec. 31, 2016, down 5.50 percent or $91.30 million from $1,661.50 million on Dec. 31, 2015. Total debt was 41.74 percent of total assets as on Dec. 31, 2016, compared with 44.86 percent on Dec. 31, 2015. Debt to equity ratio was at 0.81 as on Dec. 31, 2016, down from 0.90 as on Dec. 31, 2015. Interest coverage ratio improved to 3.42 for the quarter from 3.21 for the same period last year.
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