NIC Inc. (EGOV) has reported a 51.87 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $13.64 million, or $0.20 a share in the quarter, compared with $8.98 million, or $0.13 a share for the same period last year. Revenue during the quarter grew 10.09 percent to $78.34 million from $71.16 million in the previous year period. Gross margin for the quarter expanded 218 basis points over the previous year period to 39.99 percent. Total expenses were 78.59 percent of quarterly revenues, down from 80.23 percent for the same period last year. This has led to an improvement of 164 basis points in operating margin to 21.41 percent.
Operating income for the quarter was $16.77 million, compared with $14.06 million in the previous year period.
"We finished the year strong, with our business producing solid organic revenue growth. In addition, another full quarter of revenues from Louisiana, our newest enterprise-wide, transaction-based portal, helped contribute to healthy revenue and operating income growth this quarter," said Harry Herington, NIC chief executive officer and chairman of the board. "We were also pleased to declare our first regular quarterly cash dividend, solidifying our commitment to return capital to stockholders and reinforcing our positive, long-term outlook on our business."
For financial year 2017, NIC Inc. projects revenue to be in the range of $323 million to $333 million.
Operating cash flow improves significantly
NIC Inc. has generated cash of $78.43 million from operating activities during the year, up 54.52 percent or $27.68 million, when compared with the last year. The company has spent $8.22 million cash to meet investing activities during the year as against cash outgo of $5.44 million in the last year. It has incurred net capital expenditure of $5.64 million on net basis during the year, up 26.75 percent or $1.19 million from year ago.
The company has spent $41.60 million cash to carry out financing activities during the year as against cash outgo of $34.91 million in the last year period.
Cash and cash equivalents stood at $127.01 million as on Dec. 31, 2016, up 29.09 percent or $28.62 million from $98.39 million on Dec. 31, 2015.
Working capital increases
NIC Inc. has recorded an increase in the working capital over the last year. It stood at $124.97 million as at Dec. 31, 2016, up 17.21 percent or $18.35 million from $106.62 million on Dec. 31, 2015. Current ratio was at 2.25 as on Dec. 31, 2016, up from 1.88 on Dec. 31, 2015.
Days sales outstanding went down to 49 days for the quarter compared with 52 days for the same period last year.
At the same time, days payable outstanding went up to 72 days for the quarter from 64 for the same period last year.
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