Blucora, Inc. (BCOR) has reported a 34.93 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $30.58 million, or $0.67 a share in the quarter, compared with $22.67 million, or $0.54 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $47.41 million, or $1.04 a share compared with $39.29 million or $0.94 a share, a year ago. Revenue during the quarter grew 10.02 percent to $182.38 million from $165.76 million in the previous year period. Gross margin for the quarter expanded 111 basis points over the previous year period to 67.24 percent. Total expenses were 75.93 percent of quarterly revenues, down from 76.20 percent for the same period last year. This has led to an improvement of 27 basis points in operating margin to 24.07 percent.
Operating income for the quarter was $43.89 million, compared with $39.45 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $58.21 million compared with $53.78 million in the prior year period. At the same time, adjusted EBITDA margin contracted 52 basis points in the quarter to 31.92 percent from 32.44 percent in the last year period.
"A focus on operational execution, a continued shift to profitable customers in tax preparation, and market tailwinds in wealth management have together driven double-digit revenue and segment income growth for the first quarter," said John Clendening, Blucora’s President and Chief Executive Officer. "The strong segment performance coupled with continued debt reduction resulted in strong EPS growth. The efforts we have taken to transform and reposition our company while reducing debt are bearing fruit, which we believe will continue to become more evident as the year progresses."
For the fiscal year 2017, Blucora, Inc. expects revenue to be in the range of $493 million to $506 million and projects adjusted net income to be in the range of $59 million to $66.80 million. The company projects diluted earnings per share to be in the range of $1.28 to $1.45 on adjusted basis.
For the second-quarter, Blucora, Inc. expects revenue to be in the range of $135 million to $138.50 million and forecasts net loss to be in the range of $4 million to $0.20 million. BLUCORA projects adjusted net income to be in the range of $28.50 million to $31.50 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.63 to $0.69.
Operating cash flow drops significantly
Blucora, Inc. has generated cash of $52.90 million from operating activities during the quarter, down 32.63 percent or $ 25.62 million, when compared with the last year period. Cash flow from investing activities was $5.77 million for the quarter as against cash outgo of $1.56 million in the last year period.
The company has spent $36.26 million cash to carry out financing activities during the quarter as against cash outgo of $64.35 million in the last year period.
Cash and cash equivalents stood at $74.61 million as on Mar. 31, 2017, up 9.79 percent or $6.65 million from $67.96 million on Mar. 31, 2016.
Working capital drops significantly
Blucora, Inc. has witnessed a decline in the working capital over the last year. It stood at $53.18 million as at Mar. 31, 2017, down 72.13 percent or $137.64 million from $190.82 million on Mar. 31, 2016. Current ratio was at 1.89 as on Mar. 31, 2017, down from 2.50 on Mar. 31, 2016.
Days sales outstanding went down to 19 days for the quarter compared with 22 days for the same period last year.
At the same time, days payable outstanding went down to 9 days for the quarter from 12 for the same period last year.
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