RetailMeNot, Inc. (SALE) has reported 66.76 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.11 million in the quarter, compared with $0.34 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.76 million, or $0.10 a share compared with $6.33 million or $0.12 a share, a year ago.
Revenue during the quarter grew 23.32 percent to $64.64 million from $52.41 million in the previous year period. Gross margin for the quarter contracted 1961 basis points over the previous year period to 71.78 percent. Operating margin for the quarter stood at negative 5 percent as compared to a negative 0.44 percent for the previous year period.
Operating loss for the quarter was $3.24 million, compared with an operating loss of $0.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.83 million compared with $11.82 million in the prior year period. At the same time, adjusted EBITDA margin contracted 735 basis points in the quarter to 15.21 percent from 22.55 percent in the last year period.
“In the third quarter, we made progress in executing on our strategy to deliver stable and profitable long-term growth, while delivering consolidated net revenues within our guidance range, and adjusted EBITDA coming in ahead of expectations," said Cotter Cunningham, chief executive officer & Founder, RetailMeNot, Inc. "We continue to educate the market and our consumers, while expanding upon our promotional savings content, which over time we believe will drive increased traffic to our websites and US mobile application."
For the fourth-quarter, RetailMeNot expects revenue to be in the range of $90 million to $98 million.
For financial year 2016, RetailMeNot expects revenue to be in the range of $273.60 million to $281.50 million.
Operating cash flow declinesRetailMeNot has generated cash of $43.40 million from operating activities during the nine month period, down 16.94 percent or $8.85 million, when compared with the last year period. The company has spent $30.20 million cash to meet investing activities during the nine month period as against cash outgo of $17.03 million in the last year period.
The company has spent $37.44 million cash to carry out financing activities during the nine month period as against cash outgo of $8.20 million in the last year period.
Cash and cash equivalents stood at $235.27 million as on Sep. 30, 2016, down 13.09 percent or $35.44 million from $270.70 million on Sep. 30, 2015.
Working capital declines
RetailMeNot has witnessed a decline in the working capital over the last year. It stood at $259.79 million as at Sep. 30, 2016, down 12.57 percent or $37.35 million from $297.14 million on Sep. 30, 2015. Current ratio was at 8.18 as on Sep. 30, 2016, down from 10.44 on Sep. 30, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 69 days for the same period last year.
At the same time, days payable outstanding went down to 31 days for the quarter from 100 for the same period last year.
Debt comes downRetailMeNot has recorded a decline in total debt over the last one year. It stood at $63.49 million as on Sep. 30, 2016, down 15.35 percent or $11.51 million from $75 million on Sep. 30, 2015. Total debt was 10.99 percent of total assets as on Sep. 30, 2016, compared with 12.50 percent on Sep. 30, 2015. Debt to equity ratio was at 0.13 as on Sep. 30, 2016, down from 0.15 as on Sep. 30, 2015. 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
