TriNet Group, Inc (TNET) has reported 148.22 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $28.74 million, or $0.41 a share in the quarter, compared with $11.58 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.58 million, or $0.45 a share compared with $19.53 million or $0.27 a share, a year ago. Revenue during the quarter grew 10.19 percent to $807.61 million from $732.94 million in the previous year period. Gross margin for the quarter expanded 161 basis points over the previous year period to 17.65 percent. Total expenses were 93.87 percent of quarterly revenues, down from 96.47 percent for the same period last year. This has led to an improvement of 259 basis points in operating margin to 6.13 percent.
Operating income for the quarter was $49.49 million, compared with $25.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $63.34 million compared with $42.15 million in the prior year period. At the same time, adjusted EBITDA margin improved 209 basis points in the quarter to 7.84 percent from 5.75 percent in the last year period.
“We began the year with strong financial performance, and we are well positioned to achieve our 2017 financial goals,” said Burton M. Goldfield, TriNet's President and Chief executive officer. “The steps we’ve taken during the past year to strengthen our management team, improve our operational discipline and further expand on the differentiated vertical products, are beginning to pay off. Going forward, we are committed to executing our strategic plan, including completing our platform consolidation, laying the groundwork to launch additional vertical products and profitably expanding our business.”
Operating cash flow improves significantly
TriNet Group, Inc has generated cash of $75.90 million from operating activities during the quarter, up 87.74 percent or $35.47 million, when compared with the last year period. The company has spent $6.85 million cash to meet investing activities during the quarter as against cash outgo of $5.61 million in the last year period.
The company has spent $37.05 million cash to carry out financing activities during the quarter as against cash outgo of $5.22 million in the last year period.
Cash and cash equivalents stood at $216.05 million as on Mar. 31, 2017, up 10.27 percent or $20.12 million from $195.94 million on Mar. 31, 2016.
Working capital increases sharplyTriNet Group, Inc has recorded an increase in the working capital over the last year. It stood at $159.87 million as at Mar. 31, 2017, up 110.27 percent or $83.84 million from $76.03 million on Mar. 31, 2016. Current ratio was at 1.14 as on Mar. 31, 2017, up from 1.06 on Mar. 31, 2016.
At the same time, days payable outstanding was almost stable at 2 days for the quarter, when compared with the previous year period.
Debt comes down
TriNet Group, Inc has recorded a decline in total debt over the last one year. It stood at $449.93 million as on Mar. 31, 2017, down 8.08 percent or $39.53 million from $489.46 million on Mar. 31, 2016. Total debt was 24.03 percent of total assets as on Mar. 31, 2017, compared with 27.47 percent on Mar. 31, 2016. Debt to equity ratio was at 10.57 as on Mar. 31, 2017, down from 18.30 as on Mar. 31, 2016. 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]
