Planet Payment, Inc. (PLPM) has reported a 2,000.02 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2.23 million in the quarter, compared with $0.11 million for the same period last year.
Revenue during the quarter grew 7.95 percent to $13.62 million from $12.62 million in the previous year period. Gross margin for the quarter expanded 971 basis points over the previous year period to 58.45 percent. Total expenses were 81.57 percent of quarterly revenues, down from 98.35 percent for the same period last year. This has led to an improvement of 1678 basis points in operating margin to 18.43 percent.
Operating income for the quarter was $2.51 million, compared with $0.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.75 million compared with $1.93 million in the prior year period. At the same time, adjusted EBITDA margin improved 1225 basis points in the quarter to 27.52 percent from 15.27 percent in the last year period.
"This past quarter we announced several new partnership and merchant wins across multiple industries, from the Americas and EMEA to Asia-Pacific," said Carl Williams, chairman and chief executive officer of Planet Payment. "We are continuing to expand into growing and profitable avenues, while maintaining our core existing business, creating a steady framework for success."
For fiscal year 2016, Planet Payment, Inc. expects revenue to be in the range of $56 million to $57 million. The company forecasts net income to be in the range of $8.60 million to $9.60 million. It projects diluted earnings per share to be in the range of $0.15 to $0.17.
Operating cash flow drops significantly
Planet Payment, Inc. has generated cash of $5.85 million from operating activities during the nine month period, down 27.21 percent or $2.19 million, when compared with the last year period.
The company has spent $1.17 million cash to meet investing activities during the nine month period as against cash outgo of $1.14 million in the last year period.
The company has spent $11.91 million cash to carry out financing activities during the nine month period as against cash outgo of $3.77 million in the last year period.
Cash and cash equivalents stood at $7.44 million as on Sep. 30, 2016, down 42.60 percent or $5.52 million from $12.96 million on Sep. 30, 2015.
Working capital drops significantly
Planet Payment, Inc. has witnessed a decline in the working capital over the last year. It stood at $10.55 million as at Sep. 30, 2016, down 27.29 percent or $3.96 million from $14.51 million on Sep. 30, 2015. Current ratio was at 2.15 as on Sep. 30, 2016, down from 2.36 on Sep. 30, 2015.
Days sales outstanding went down to 42 days for the quarter compared with 44 days for the same period last year.
At the same time, days payable outstanding went up to 7 days for the quarter from 5 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 $10.12 million as on Sep. 30, 2016, up 2,851.81 percent or $9.78 million from $0.34 million on Sep. 30, 2015. Long-term debt stood at $9.92 million as on Sep. 30, 2016. Total debt was 28.65 percent of total assets as on Sep. 30, 2016, compared with 0.90 percent on Sep. 30, 2015. Debt to equity ratio was at 0.67 as on Sep. 30, 2016, up from 0.01 as on Sep. 30, 2015. Interest coverage ratio improved to 28.31 for the quarter from 20.11 for the same period last year.
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