Envestnet (ENV) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $4.06 million, or $ 0.09 a share in the quarter, against a net profit of $3.30 million, or $0.09 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $12.46 million, or $0.28 a share compared with $9.27 million or $0.25 a share, a year ago. Revenue during the quarter surged 44.30 percent to $149.16 million from $103.37 million in the previous year period. Gross margin for the quarter expanded 801 basis points over the previous year period to 68.32 percent. Operating margin for the quarter stood at negative 0.87 percent as compared to a positive 8.06 percent for the previous year period.
Operating loss for the quarter was $1.29 million, compared with an operating income of $8.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $27.50 million compared with $19.22 million in the prior year period. At the same time, adjusted EBITDA margin contracted 15 basis points in the quarter to 18.44 percent from 18.59 percent in the last year period.
"Our enterprise clients and financial advisors are turning to Envestnets integrated offering of automated data aggregation, goals-based planning, data analytics and advisor-centric wealth management solutions to leverage better intelligence and deliver better outcomes in support of their clients best interest," said Jud Bergman, chairman and chief executive officer.
For the fourth-quarter, Envestnet expects revenue to be in the range of $153 million to $155.50 million. For the fourth-quarter, Envestnet expects adjusted revenue to be in the range of $153 million to $155.50 million. On an adjusted basis, the company projects diluted earnings per share to be $0.30 for the fourth-quarter.
Operating cash flow improves significantlyEnvestnet has generated cash of $51.88 million from operating activities during the nine month period, up 100.84 percent or $26.05 million, when compared with the last year period. The company has spent $37.69 million cash to meet investing activities during the nine month period as against cash outgo of $39.57 million in the last year period.
The company has spent $15.25 million cash to carry out financing activities during the nine month period as against cash inflow of $12.33 million in the last year period.
Cash and cash equivalents stood at $50.66 million as on Sep. 30, 2016, down 75.68 percent or $157.69 million from $208.35 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Envestnet has turned negative to $22.67 million on Sep. 30, 2016 from positive $189.33 million on Sep. 30, 2015. Current ratio was at 0.83 as on Sep. 30, 2016, down from 3.71 on Sep. 30, 2015.
Days sales outstanding went down to 22 days for the quarter compared with 24 days for the same period last year.
At the same time, days payable outstanding went up to 16 days for the quarter from 13 for the same period last year.
Debt increases substantially
Envestnet has witnessed an increase in total debt over the last one year. It stood at $290.87 million as on Sep. 30, 2016, up 95.38 percent or $141.99 million from $148.88 million on Sep. 30, 2015. Short-term debt stood at $33.18 million as on Sep. 30, 2016. Total debt was 33.44 percent of total assets as on Sep. 30, 2016, compared with 29.92 percent on Sep. 30, 2015. Debt to equity ratio was at 0.67 as on Sep. 30, 2016, up from 0.60 as on Sep. 30, 2015. 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: editor@irisindia.net
