InnerWorkings, Inc (INWK) has reported a 10.29 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $4.34 million, or $0.08 a share in the quarter, compared with $3.94 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.77 million, or $0.11 a share compared with $4.64 million or $0.09 a share, a year ago.
Revenue during the quarter grew 5.77 percent to $279.99 million from $264.72 million in the previous year period. Gross margin for the quarter expanded 18 basis points over the previous year period to 24.21 percent. Total expenses were 96.84 percent of quarterly revenues, up from 96.36 percent for the same period last year. That has resulted in a contraction of 48 basis points in operating margin to 3.16 percent.
Operating income for the quarter was $8.86 million, compared with $9.64 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.92 million compared with $16.05 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2 basis points in the quarter to 6.04 percent from 6.06 percent in the last year period.
“We have devoted considerable energy to developing our presence in the international markets and new service offerings over the last few years, and the benefits of these investments are becoming more apparent,” said Eric D. Belcher, chief executive officer of InnerWorkings. “With the strength of our global capabilities and rate of penetration with our existing accounts, I’m excited by our performance and the path I see ahead for InnerWorkings.”
Innerworkings forecasts revenue to be in the range of $1,075 million to $1,082 million for fiscal year 2016. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $0.31 to $0.34 on adjusted basis.
Operating cash flow remains negative
InnerWorkings, Inc has spent $23.63 million cash to meet operating activities during the nine month period as against cash outgo of $7.26 million in the last year period.
The company has spent $10.50 million cash to meet investing activities during the nine month period as against cash outgo of $12.13 million in the last year period.
Cash flow from financing activities was $24.22 million for the nine month period, up 136.14 percent or $13.96 million, when compared with the last year period.
Cash and cash equivalents stood at $20.79 million as on Sep. 30, 2016, up 64.48 percent or $8.15 million from $12.64 million on Sep. 30, 2015.
Working capital increases marginally
InnerWorkings, Inc has recorded an increase in the working capital over the last year. It stood at $132.08 million as at Sep. 30, 2016, up 3.67 percent or $4.68 million from $127.41 million on Sep. 30, 2015. Current ratio was at 1.64 as on Sep. 30, 2016, up from 1.61 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 27 days for the last year period. Days sales outstanding went down to 74 days for the quarter compared with 78 days for the same period last year.
Days inventory outstanding has decreased to 10 days for the quarter compared with 18 days for the previous year period. At the same time, days payable outstanding went down to 61 days for the quarter from 68 for the same period last year.
Debt moves up marginally
InnerWorkings, Inc has witnessed an increase in total debt over the last one year. It stood at $133.73 million as on Sep. 30, 2016, up 4.46 percent or $5.71 million from $128.03 million on Sep. 30, 2015. Innerworkings has witnessed an increase in long-term debt over the last one year. It stood at $133.73 million as on Sep. 30, 2016, up 4.46 percent or $5.71 million from $128.03 million on Sep. 30, 2015. Total debt was 21.82 percent of total assets as on Sep. 30, 2016, compared with 19.38 percent on Sep. 30, 2015. Debt to equity ratio was at 0.52 as on Sep. 30, 2016, up from 0.43 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 7.44 for the quarter from 8.51 for the same period last year.
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