CyrusOne (CONE) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $4.40 million, or $ 0.05 a share in the quarter, against a net loss of $4.60 million, or $0.08 a share in the last year period.
Revenue during the quarter grew 29.32 percent to $143.80 million from $111.20 million in the previous year period.
Cost of revenue rose 26.82 percent or $11.80 million during the quarter to $55.80 million. Gross margin for the quarter expanded 76 basis points over the previous year period to 61.20 percent.
Total expenses were $125 million for the quarter, up 20.54 percent or $21.30 million from year-ago period. Operating margin for the quarter expanded 633 basis points over the previous year period to 13.07 percent.
Operating income for the quarter was $18.80 million, compared with $7.50 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $73.10 million compared with $59 million in the prior year period. At the same time, adjusted EBITDA margin contracted 222 basis points in the quarter to 50.83 percent from 53.06 percent in the last year period.
CyrusOne projects revenue to be in the range of $523 million to $530 million for financial year 2016.
"2016 continues to be a record-setting year for CyrusOne as we are generating strong financial and operational results driven by robust customer demand across our portfolio," said Gary Wojtaszek, president and chief executive officer of CyrusOne. "With a backlog of nearly $70 million and more than 75% of the capital in our development pipeline associated with pre-leased projects, we have excellent visibility into future growth and have significantly de-risked the business while continuing to deliver very attractive returns."
Operating cash flow improves significantlyCyrusOne has generated cash of $141.60 million from operating activities during the nine month period, up 39.51 percent or $40.10 million, when compared with the last year period. Cash flow from investing activities was almost stable for the quarter at $555 million, when compared with the previous year period.
Cash flow from financing activities was $410.10 million for the nine month period, down 10.54 percent or $48.30 million, when compared with the last year period.
Cash and cash equivalents stood at $11 million as on Sep. 30, 2016, down 72.36 percent or $28.80 million from $39.80 million on Sep. 30, 2015.
Net receivables were at $73 million as on Sep. 30, 2016, down 3.69 percent or $2.80 million from year-ago.
Total assets grew 23.59 percent or $514.70 million to $2,696.30 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,506.60 million as on Sep. 30, 2016, up 12.39 percent or $166.10 million from year-ago.
Return on assets moved up 36 basis points to 0.67 percent in the quarter. Return on equity was at 0.37 percent in the quarter against a negative 0.55 percent in the last year period.
Debt moves upTotal debt was at $1,219.50 million as on Sep. 30, 2016, up 6.28 percent or $72.10 million from year-ago. Shareholders equity stood at $1,189.70 million as on Sep. 30, 2016, up 41.45 percent or $348.60 million from year-ago. As a result, debt to equity ratio went down 34 basis points to 1.03 percent in the quarter.
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