DHI Group, Inc. (DHX) has reported a 20.61 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1.34 million, or $0.03 a share in the quarter, compared with $1.11 million, or $0.02 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.85 million, or $0.04 a share compared with $3.37 million or $0.07 a share, a year ago. Revenue during the quarter dropped 10.46 percent to $52.19 million from $58.29 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 85.83 percent. Total expenses were 91.77 percent of quarterly revenues, down from 95.47 percent for the same period last year. This has led to an improvement of 370 basis points in operating margin to 8.23 percent.
Operating income for the quarter was $4.30 million, compared with $2.64 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.50 million compared with $12.87 million in the prior year period. At the same time, adjusted EBITDA margin contracted 196 basis points in the quarter to 20.11 percent from 22.07 percent in the last year period.
"In November 2016, we announced not only an initiative to review strategic alternatives related to the ownership of the Company, but also a tech-focused strategy to reinvigorate growth. While the Company’s Board of Directors decided to terminate the review of strategic alternatives in April, we have been continuing to execute on the initiatives to improve our core tech talent acquisition services, add next generation solutions, and deepen our engagement with tech professionals," said Michael Durney, president and chief executive officer of DHI Group, Inc. “Today, we announce a critical step in our strategy, a plan to divest certain businesses and align our talent in a more unified operating structure behind our core tech business to focus our resources on the global technology recruiting market, which we believe offers the greatest opportunity for growth and ultimately shareholder value creation."
Operating cash flow improves
DHI Group, Inc. has generated cash of $14.52 million from operating activities during the quarter, up 13.96 percent or $1.78 million, when compared with the last year period. The company has spent $4.20 million cash to meet investing activities during the quarter as against cash inflow of $0.11 million in the last year period.
The company has spent $8.69 million cash to carry out financing activities during the quarter as against cash outgo of $15.14 million in the last year period.
Cash and cash equivalents stood at $24.66 million as on Mar. 31, 2017, down 24 percent or $7.79 million from $32.45 million on Mar. 31, 2016.
Working capital remains negative
Working capital of DHI Group, Inc. was negative $43.89 million on Mar. 31, 2017 compared with negative $30.74 million on Mar. 31, 2016. Current ratio was at 0.61 as on Mar. 31, 2017, down from 0.73 on Mar. 31, 2016.
Days sales outstanding went up to 74 days for the quarter compared with 73 days for the same period last year.
Debt comes down
DHI Group, Inc. has recorded a decline in total debt over the last one year. It stood at $76.84 million as on Mar. 31, 2017, down 22.79 percent or $22.68 million from $99.52 million on Mar. 31, 2016. DHI GROUP, INC. has recorded a decline in long-term debt over the last one year. It stood at $76.84 million as on Mar. 31, 2017, down 22.79 percent or $22.68 million from $99.52 million on Mar. 31, 2016. Total debt was 24.75 percent of total assets as on Mar. 31, 2017, compared with 27.85 percent on Mar. 31, 2016. Debt to equity ratio was at 0.71 as on Mar. 31, 2017, down from 0.78 as on Mar. 31, 2016. Interest coverage ratio improved to 5.44 for the quarter from 3.03 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
