Planet Payment, Inc. (PLPM) has reported an 196.93 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $19.80 million, or $0.36 a share in the quarter, compared with $6.67 million, or $0.11 a share for the same period last year.
Revenue during the quarter dropped 9.44 percent to $13.93 million from $15.38 million in the previous year period. Gross margin for the quarter expanded 1253 basis points over the previous year period to 63.81 percent. Total expenses were 72.83 percent of quarterly revenues, down from 84.92 percent for the same period last year. This has led to an improvement of 1209 basis points in operating margin to 27.17 percent.
Operating income for the quarter was $3.78 million, compared with $2.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.83 million compared with $3.95 million in the prior year period. At the same time, adjusted EBITDA margin improved 902 basis points in the quarter to 34.68 percent from 25.66 percent in the last year period.
"I am pleased with our performance in 2016, and our prospects for 2017," said Carl Williams, chairman and chief executive officer of Planet Payment. "With strengthening global travel trends, multiple business wins, improving EBITDA and gross profit, I feel strongly that our progress will continue in 2017 and beyond."
For financial year 2017, Planet Payment, Inc. forecasts revenue to be in the range of $60.10 million to $61.50 million. The company projects net income to be in the range of $11.80 million to $12.80 million. It expects diluted earnings per share to be in the range of $0.21 to $0.22.
Operating cash flow declines
Planet Payment, Inc. has generated cash of $11.22 million from operating activities during the year, down 7.90 percent or $0.96 million, when compared with the last year.
The company has spent $1.75 million cash to meet investing activities during the year as against cash outgo of $1.43 million in the last year.
The company has spent $10.85 million cash to carry out financing activities during the year as against cash outgo of $5.92 million in the last year period.
Cash and cash equivalents stood at $13.31 million as on Dec. 31, 2016, down 9.33 percent or $1.37 million from $14.68 million on Dec. 31, 2015.
Working capital declines
Planet Payment, Inc. has witnessed a decline in the working capital over the last year. It stood at $14.74 million as at Dec. 31, 2016, down 5.87 percent or $0.92 million from $15.66 million on Dec. 31, 2015. Current ratio was at 2.28 as on Dec. 31, 2016, up from 2.28 on Dec. 31, 2015.
Days sales outstanding were almost stable at 20 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 8 days for the quarter from 2 for the same period last year.
Debt increases substantially
Planet Payment, Inc. has witnessed an increase in total debt over the last one year. It stood at $10.08 million as on Dec. 31, 2016, up 3,366 percent or $9.79 million from $0.29 million on Dec. 31, 2015. Total debt was 17.21 percent of total assets as on Dec. 31, 2016, compared with 0.65 percent on Dec. 31, 2015. Debt to equity ratio was at 0.28 as on Dec. 31, 2016, up from 0.01 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 43.25 for the quarter from 123.65 for the same period last year.
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