Neustar, Inc. (NSR) has reported a 36.01 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $46.12 million, or $0.82 a share in the quarter, compared with $33.91 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $77.87 million, or $1.38 a share compared with $84.48 million or $1.54 a share, a year ago.
Revenue during the quarter grew 15.97 percent to $324.90 million from $280.15 million in the previous year period. Gross margin for the quarter expanded 229 basis points over the previous year period to 71.08 percent. Total expenses were 72.58 percent of quarterly revenues, down from 82.78 percent for the same period last year. This has led to an improvement of 1020 basis points in operating margin to 27.42 percent.
Operating income for the quarter was $89.09 million, compared with $48.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $152.73 million compared with $111.45 million in the prior year period. At the same time, adjusted EBITDA margin improved 723 basis points in the quarter to 47.01 percent from 39.78 percent in the last year period.
Working capital remains negative
Working capital of Neustar, Inc. was negative $21.46 million on Dec. 31, 2016 compared with negative $81.43 million on Dec. 31, 2015. Current ratio was at 0.94 as on Dec. 31, 2016, up from 0.80 on Dec. 31, 2015.
Days sales outstanding went up to 34 days for the quarter compared with 31 days for the same period last year.
At the same time, days payable outstanding went down to 10 days for the quarter from 15 for the same period last year.
Debt comes down significantly
Neustar, Inc. has recorded a decline in total debt over the last one year. It stood at $808.13 million as on Dec. 31, 2016, down 26.23 percent or $287.28 million from $1,095.40 million on Dec. 31, 2015. Total debt was 38.51 percent of total assets as on Dec. 31, 2016, compared with 49.74 percent on Dec. 31, 2015. Debt to equity ratio was at 0.88 as on Dec. 31, 2016, down from 1.51 as on Dec. 31, 2015. Interest coverage ratio improved to 6.39 for the quarter from 3.55 for the same period last year.
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