K12 (LRN) has reported a 36.14 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $9.12 million, or $0.23 a share in the quarter, compared with $14.27 million, or $0.37 a share for the same period last year.
Revenue during the quarter went up marginally by 0.54 percent to $222.53 million from $221.34 million in the previous year period. Gross margin for the quarter contracted 43 basis points over the previous year period to 38.69 percent. Total expenses were 94.26 percent of quarterly revenues, up from 91.36 percent for the same period last year. That has resulted in a contraction of 291 basis points in operating margin to 5.74 percent.
Operating income for the quarter was $12.76 million, compared with $19.13 million in the previous year period.
However, the adjusted operating income for the quarter stood at $18.03 million compared to $23.35 million in the prior year period. At the same time, adjusted operating margin contracted 245 basis points in the quarter to 8.10 percent from 10.55 percent in the last year period.
"We continue to focus on improving the student and family learning experience through targeted investments in curriculum, platforms and programs," said Stuart Udell, chief executive officer. "The charges recorded this quarter stem from our ongoing effort to review our operations, and portfolio of assets, and look for ways to improve long term profitability for all the stakeholders we serve."
For the fourth-quarter 2017, K12 forecasts revenue to be in the range of $215 million to $220 million. The company forecasts operating income to be in the range of $3 million to $6 million. The company forecasts adjusted operating income to be in the range of $7 million to $10 million.
Operating cash flow drops significantly K12 has generated cash of $37.38 million from operating activities during the nine month period, down 38.85 percent or $23.75 million, when compared with the last year period.
The company has spent $42.30 million cash to meet investing activities during the nine month period as against cash outgo of $40.98 million in the last year period.
The company has spent $14.35 million cash to carry out financing activities during the nine month period as against cash outgo of $16.46 million in the last year period.
Cash and cash equivalents stood at $194.71 million as on Mar. 31, 2017, down 2.41 percent or $4.80 million from $199.51 million on Mar. 31, 2016.
Working capital decreases marginally
K12 has witnessed a decline in the working capital over the last year. It stood at $356.45 million as at Mar. 31, 2017, down 2.97 percent or $10.93 million from $367.38 million on Mar. 31, 2016. Current ratio was at 3.90 as on Mar. 31, 2017, down from 4.03 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 87 days for the quarter from 94 days for the last year period. Days sales outstanding were almost stable at 92 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 6 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding was almost stable at 11 days for the quarter, when compared with the previous year period.
Debt moves up K12 has witnessed an increase in total debt over the last one year. It stood at $25.22 million as on Mar. 31, 2017, up 9.12 percent or $2.11 million from $23.11 million on Mar. 31, 2016. Total debt was 3.38 percent of total assets as on Mar. 31, 2017, compared with 3.15 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.04 as on Mar. 31, 2017, when compared with the 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]
