RetailMeNot, Inc. (SALE) has reported a 73.87 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2.36 million, or $0.05 a share in the quarter, compared with $9.04 million, or $0.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18.26 million, or $0.37 a share compared with $19.08 million or $0.36 a share, a year ago.
Revenue during the quarter grew 16.53 percent to $96.88 million from $83.14 million in the previous year period. Gross margin for the quarter contracted 1805 basis points over the previous year period to 76.09 percent. Total expenses were 84.47 percent of quarterly revenues, up from 79.32 percent for the same period last year. That has resulted in a contraction of 515 basis points in operating margin to 15.53 percent.
Operating income for the quarter was $15.04 million, compared with $17.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $29.66 million compared with $30.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 638 basis points in the quarter to 30.61 percent from 36.99 percent in the last year period.
"During 2016 we continued to make strides toward our long-term goal of becoming a leading savings destination for consumers," said Cotter Cunningham, chief executive officer & Founder, RetailMeNot, Inc. "While the year had its challenges, we closed out the fourth quarter on a positive note and believe we are well positioned to capitalize on our initiatives in 2017 and beyond."
For financial year 2017, RetailMeNot, Inc. expects revenue to be in the range of $296 million to $326 million.
For the first-quarter, RetailMeNot, Inc. expects revenue to be in the range of $62.50 million to $71.50 million.
Operating cash flow drops significantly
RetailMeNot, Inc. has generated cash of $38.89 million from operating activities during the year, down 35.71 percent or $21.60 million, when compared with the last year.
The company has spent $32.94 million cash to meet investing activities during the year as against cash outgo of $19.22 million in the last year. It has incurred net capital expenditure of $12.21 million on net basis during the year, down 19.79 percent or $3.01 million from year ago.
The company has spent $48.02 million cash to carry out financing activities during the year as against cash outgo of $24.89 million in the last year period.
Cash and cash equivalents stood at $216.86 million as on Dec. 31, 2016, down 16.52 percent or $42.91 million from $259.77 million on Dec. 31, 2015.
Debt comes down
RetailMeNot, Inc. has recorded a decline in total debt over the last one year. It stood at $61.11 million as on Dec. 31, 2016, down 13.78 percent or $9.77 million from $70.87 million on Dec. 31, 2015. Total debt was 10.50 percent of total assets as on Dec. 31, 2016, compared with 11.67 percent on Dec. 31, 2015. Debt to equity ratio was at 0.13 as on Dec. 31, 2016, down from 0.14 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 26.91 for the quarter from 31.89 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
