Solera Holdings (SLH), a provider of software and services to the automobile insurance companies, has announced a 53.90 percent plunge in profit for the quarter ended Jun. 30, 2014.
The company earned $8.76 million or $0.13 a share in the quarter compared with $19.00 million or $0.27 a share a year ago. Adjusted earnings per share came in at $0.70, when analysts expected $0.80.
Revenue during the quarter climbed 22.59 percent to $267.90 million from $218.53 million in the last year period.
Total expenses as a percentage of revenues increased to 91.17 percent from 86.05 percent in the same period last year. That has resulted in contraction of 512 basis points in operating margins to 8.83 percent.
The company reported operating income of $23.66 million, compared with $30.48 million in the previous year period.
''Solera had a strong finish to a solid year, with constant currency total revenue growth of 16.8% for the full year and 20.6% for the fourth quarter, despite volatility in certain European markets,'' said Tony Aquila, Solera's founder, chairman and chief executive officer.
Cash Flow
Solera Holdings has generated cash of $248.53 million from operating activities during the year, up 9.62 percent or $21.82 million when compared with the last year period.
The company has spent $417.58 million cash to meet investing activities during the year, as against cash outgo of $181.48 million in the last year period.
The Company has generated net cash of $542.15 million from financing activities during the year, as against cash outgo of $88.52 million in the last year period.
As on Jun. 30, 2014, the company's cash balance stood at $837.75 million, up 80.46 percent or $373.51 million from Jun. 30, 2013.
Working Capital
Solera Holdings has witnessed an increase in the working capital over the last one year. The company's working capital stood at $774.93 million as at Jun. 30, 2014, up $333.50 million or 75.55 percent from $441.43 million on Jun. 30, 2013. It registered an increase in current ratio to 3.74 as at Jun. 30, 2014 from 3.04 on Jun. 30, 2013.
Debt Position
Solera Holdings has witnessed an increase in long-term debt over the last one year. As on Jun. 30, 2014, long-term debt stood at $1867.81 million, up 63.20 percent or $723.35 million, from Jun. 30, 2013.
The company's total debt was 54.93 percent of total assets as on Jun. 30, 2014, compared with 50.82 percent on Jun. 30, 2013. It has witnessed an increase in debt to equity ratio to 2.68 on Jun. 30, 2014 compared with 1.53 on Jun. 30, 2013.
Shares of the company gained $0.99 or 1.49 percent to settle at $67.29 on Tuesday.
