CSRA Inc (CSRA) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $37 million, or $ 0.22 a share in the quarter, against a net loss of $72 million, or $0.44 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $80 million, or $0.49 a share compared with $74 million or $0.46 a share, a year ago. Revenue during the quarter went down marginally by 2.79 percent to $1,254 million from $1,290 million in the previous year period. Gross margin for the quarter expanded 1617 basis points over the previous year period to 21.05 percent. Operating margin for the quarter period stood at positive 7.18 percent as compared to a negative 5.89 percent for the previous year period.
Operating income for the quarter was $90 million, compared with an operating loss of $76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $207 million compared with $197 million in the prior year period. At the same time, adjusted EBITDA margin improved 124 basis points in the quarter to 16.51 percent from 15.27 percent in the last year period.
“In fiscal year 2017, we built a strong foundation for the future through robust business development success, differentiated technical offerings, and strong financial management,” said Larry Prior, CSRA president and chief executive officer. “We ended the year on a high note, as our fourth quarter revenue, adjusted EBITDA, and adjusted EPS met or exceeded consensus estimates, and we booked $1.3 billion in awards. Our book-to-bill ratio of 1.1x marked the ninth straight quarter with bookings at or above revenue. This success gives us confidence that we will achieve organic revenue growth in fiscal year 2018 while also maintaining strong profitability and free cash flow. I am also pleased to announce that we will soon make our first acquisition as a public company. NES Associates will bring us strong competitive advantage in a number of large, near-term IT network opportunities��"another example of how we live our tagline, 'Think Next. Now.'"
CSRA forecasts revenue to be in the range of $5,000 million to $5,200 million for fiscal year 2018. For fiscal year 2018, the company expects diluted earnings per share to be in the range of $1.88 to $2 on adjusted basis.
Operating cash flow declines
CSRA Inc has generated cash of $488 million from operating activities during the year, down 11.75 percent or $65 million, when compared with the last year. The company has spent $168 million cash to meet investing activities during the year as against cash outgo of $1,605 million in the last year.
The company has spent $324 million cash to carry out financing activities during the year as against cash inflow of $1,177 million in the last year period.
Cash and cash equivalents stood at $126 million as on Mar. 31, 2017, down 3.08 percent or $4 million from $130 million on Apr. 01, 2016.
Working capital turns positive
Working capital of CSRA Inc has turned positive to $8 million on Mar. 31, 2017 from negative $81.22 million on Apr. 01, 2016. Current ratio was at 1.01 as on Mar. 31, 2017, up from 0.93 on Apr. 01, 2016.
Debt comes down marginally
CSRA Inc has recorded a decline in total debt over the last one year. It stood at $2,799 million as on Mar. 31, 2017, down 4.63 percent or $136 million from $2,935 million on Apr. 01, 2016. Total debt was 57.26 percent of total assets as on Mar. 31, 2017, compared with 60.56 percent on Apr. 01, 2016. Debt to equity ratio was at 7.80 as on Mar. 31, 2017, down from 32.53 as on Apr. 01, 2016.
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