InnerWorkings, Inc (INWK) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $5.46 million, or $ 0.10 a share in the quarter, against a net loss of $2.69 million, or $0.05 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $4.42 million, or $0.08 a share compared with $2.58 million or $0.05 a share, a year ago. Revenue during the quarter went down marginally by 1.36 percent to $267.39 million from $271.07 million in the previous year period. Gross margin for the quarter expanded 119 basis points over the previous year period to 24.04 percent. Total expenses were 96.64 percent of quarterly revenues, down from 99.78 percent for the same period last year. This has led to an improvement of 314 basis points in operating margin to 3.36 percent.
Operating income for the quarter was $8.99 million, compared with $0.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.27 million compared with $11.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 27 basis points in the quarter to 4.59 percent from 4.31 percent in the last year period.
“The investments we have made to build our global capabilities and technology platform are paying off in a meaningful way,” said Eric D. Belcher, Chief Executive Officer of InnerWorkings. “We have won more new business year-to-date than we had at this time last year, and we expect 2017 to be another record year on the top and bottom line.”
For fiscal year 2017, InnerWorkings, Inc expects revenue to be in the range of $1,155 million to $1,185 million and its adjusted diluted earnings per share to be in the range of $0.45 to $0.49.
Operating cash flow turns positive
InnerWorkings, Inc has generated cash of $0.12 million from operating activities during the quarter as against cash outgo of $24.57 million in the last year period. The company has spent $3.04 million cash to meet investing activities during the quarter as against cash outgo of $3.99 million in the last year period.
Cash flow from financing activities was $1.47 million for the quarter, down 92.01 percent or $16.93 million, when compared with the last year period.
Cash and cash equivalents stood at $29.92 million as on Mar. 31, 2017, up 42.96 percent or $8.99 million from $20.93 million on Mar. 31, 2016.
Working capital increases marginally
InnerWorkings, Inc has recorded an increase in the working capital over the last year. It stood at $124.67 million as at Mar. 31, 2017, up 1.19 percent or $1.47 million from $123.20 million on Mar. 31, 2016. Current ratio was at 1.61 as on Mar. 31, 2017, down from 1.62 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 26 days for the last year period. Days sales outstanding went down to 74 days for the quarter compared with 76 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 15 days for the previous year period. At the same time, days payable outstanding went down to 63 days for the quarter from 65 for the same period last year.
Debt comes down marginally
InnerWorkings, Inc has recorded a decline in total debt over the last one year. It stood at $113.69 million as on Mar. 31, 2017, down 4.15 percent or $4.92 million from $118.62 million on Mar. 31, 2016. Innerworkings has recorded a decline in long-term debt over the last one year. It stood at $113.69 million as on Mar. 31, 2017, down 4.15 percent or $4.92 million from $118.62 million on Mar. 31, 2016. Total debt was 19.01 percent of total assets as on Mar. 31, 2017, compared with 19.82 percent on Mar. 31, 2016. Debt to equity ratio was at 0.42 as on Mar. 31, 2017, down from 0.46 as on Mar. 31, 2016. Interest coverage ratio improved to 8.96 for the quarter from 0.56 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: [email protected]
