Ebix, Inc (EBIX) has reported 19.26 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $26.43 million, or $0.83 a share in the quarter, compared with $22.16 million, or $0.67 a share for the same period last year. Revenue during the quarter grew 11.31 percent to $79.10 million from $71.07 million in the previous year period. Gross margin for the quarter contracted 426 basis points over the previous year period to 68.16 percent. Total expenses were 67.52 percent of quarterly revenues, up from 65.15 percent for the same period last year. That has resulted in a contraction of 237 basis points in operating margin to 32.48 percent.
Operating income for the quarter was $25.69 million, compared with $24.76 million in the previous year period.
Ebix Chairman, President and Chief executive officer Robin Raina said, “We are pleased to start 2017 on a consistent and strong note, with respect to revenue, net income and cash flow growth. The first quarter was strong from a business development standpoint as we agreed to undertake a few substantial deals that involve implementations that should contribute to our results over the balance of 2017. Considering one time seasonal revenue increases from the Continuing Education and Health administration exchange segments that contributed approximately $3 million in Q4 of 2016, we were pleased with our Q1 2017 performance on a sequential basis.”
Operating cash flow improves significantly
Ebix, Inc, Inchas generated cash of $15.70 million from operating activities during the quarter, up 49.05 percent or $5.17 million, when compared with the last year period. The company has spent $4.22 million cash to meet investing activities during the quarter as against cash outgo of $1.77 million in the last year period.
The company has spent $6.19 million cash to carry out financing activities during the quarter as against cash inflow of $2.75 million in the last year period.
Cash and cash equivalents stood at $120.20 million as on Mar. 31, 2017, up 74.15 percent or $51.18 million from $69.02 million on Mar. 31, 2016.
Working capital increases sharply
Ebix, Inc has recorded an increase in the working capital over the last year. It stood at $147.96 million as at Mar. 31, 2017, up 55.72 percent or $52.94 million from $95.02 million on Mar. 31, 2016. Current ratio was at 3.14 as on Mar. 31, 2017, down from 3.15 on Mar. 31, 2016.
Days sales outstanding were almost stable at 66 days for the quarter, when compared with the last year period.
Debt increases substantially
Ebix, Inc has witnessed an increase in total debt over the last one year. It stood at $309.12 million as on Mar. 31, 2017, up 36.11 percent or $82.01 million from $227.11 million on Mar. 31, 2016. Total debt was 37.92 percent of total assets as on Mar. 31, 2017, compared with 32.56 percent on Mar. 31, 2016. Debt to equity ratio was at 0.71 as on Mar. 31, 2017, up from 0.54 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 10.41 for the quarter from 19.44 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]
