Korn Ferry International (KFY) has reported 67.78 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $30.15 million, or $0.52 a share in the quarter, compared with $17.97 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $34.06 million, or $0.59 a share compared with $25.80 million or $0.51 a share, a year ago. Revenue during the quarter surged 42.43 percent to $414.95 million from $291.34 million in the previous year period. Gross margin for the quarter contracted 15 basis points over the previous year period to 92.31 percent. Total expenses were 88.78 percent of quarterly revenues, down from 90.04 percent for the same period last year. This has led to an improvement of 126 basis points in operating margin to 11.22 percent.
Operating income for the quarter was $46.55 million, compared with $29.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $63.27 million compared with $46.08 million in the prior year period. At the same time, adjusted EBITDA margin contracted 57 basis points in the quarter to 15.25 percent from 15.82 percent in the last year period.
"I am proud of the performance of our firm during the fiscal second quarter, achieving $402 million of fee revenue, representing 43% year over year growth. Profitability was also strong, with diluted earnings per share and adjusted diluted earnings per share of $0.52 and $0.59, respectively," said Gary D. Burnison, chief executive officer, Korn Ferry.
For the third-quarter, Korn Ferry International expects revenue to be in the range of $370 million to $390 million. The company projects diluted earnings per share to be in the range of $0.36 to $0.46 for the third-quarter.
Working capital increases marginallyKorn Ferry International has recorded an increase in the working capital over the last year. It stood at $349.92 million as at Oct. 31, 2016, up 3.01 percent or $10.21 million from $339.71 million on Oct. 31, 2015. Current ratio was at 1.96 as on Oct. 31, 2016, down from 2.45 on Oct. 31, 2015. Days sales outstanding went down to 66 days for the quarter compared with 73 days for the same period last year.
At the same time, days payable outstanding went down to 66 days for the quarter from 74 for the same period last year.
Debt increases substantially
Korn Ferry International has witnessed an increase in total debt over the last one year. It stood at $265.85 million as on Oct. 31, 2016, up 6,082.63 percent or $261.55 million from $4.30 million on Oct. 31, 2015. Short-term debt stood at $19.75 million as on Oct. 31, 2016. Long-term debt stood at $246.10 million as on Oct. 31, 2016. Total debt was 13.63 percent of total assets as on Oct. 31, 2016, compared with 0.34 percent on Oct. 31, 2015. Debt to equity ratio was at 0.25 as on Oct. 31, 2016, up from 0.01 as on Oct. 31, 2015. Interest coverage ratio deteriorated to 17.01 for the quarter from 53.33 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: editor@irisindia.net
