Verisk Analytics, Inc. (VRSK) has reported 17.49 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $108.80 million, or $0.64 a share in the quarter, compared with $92.60 million, or $0.54 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $125.30 million, or $0.74 a share compared with $127.40 million or $0.75 a share, a year ago. Revenue during the quarter went up marginally by 2.01 percent to $502.60 million from $492.70 million in the previous year period. Gross margin for the quarter contracted 122 basis points over the previous year period to 63.61 percent. Total expenses were 62.65 percent of quarterly revenues, up from 60.91 percent for the same period last year. That has resulted in a contraction of 174 basis points in operating margin to 37.35 percent.
Operating income for the quarter was $187.70 million, compared with $192.60 million in the previous year period.
Scott Stephenson, chairman, president, and chief executive officer, said, "First-quarter revenue growth was unusually muted, though consistent with our expectations. We delivered leading margins and strong cash generation despite currency effects, a number of one-time items, and some moderating industry headwinds. Near-term we are confident that our results will improve from here as we sell existing and recently developed solutions. In addition, our teams are working hard on the new solutions in which we are investing, and long-term opportunities remain robust. We continue to repurchase our shares, an indication of our enduring confidence in the business."
Operating cash flow improves marginallyVerisk Analytics, Inc. has generated cash of $317.90 million from operating activities during the quarter, up 4.61 percent or $14 million, when compared with the last year period. The company has spent $107.40 million cash to meet investing activities during the quarter as against cash outgo of $31.30 million in the last year period.
The company has spent $192.30 million cash to carry out financing activities during the quarter as against cash outgo of $277.80 million in the last year period.
Cash and cash equivalents stood at $155 million as on Mar. 31, 2017, up 17.60 percent or $23.20 million from $131.80 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Verisk Analytics, Inc. was negative $158.60 million on Mar. 31, 2017 compared with negative $830.10 million on Mar. 31, 2016. Current ratio was at 0.76 as on Mar. 31, 2017, up from 0.41 on Mar. 31, 2016.
Days sales outstanding went down to 60 days for the quarter compared with 62 days for the same period last year.
Debt comes down
Verisk Analytics, Inc. has recorded a decline in total debt over the last one year. It stood at $2,287.60 million as on Mar. 31, 2017, down 23.26 percent or $693.42 million from $2,981.02 million on Mar. 31, 2016. Total debt was 48.17 percent of total assets as on Mar. 31, 2017, compared with 54.61 percent on Mar. 31, 2016. Debt to equity ratio was at 1.65 as on Mar. 31, 2017, down from 2.31 as on Mar. 31, 2016. Interest coverage ratio improved to 6.61 for the quarter from 6.02 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
