Acxiom (ACXM) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1.07 million, or $ 0.01 a share in the quarter, against a net loss of $1.41 million, or $0.02 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $18.93 million, or $0.24 a share compared with $14.15 million or $0.18 a share, a year ago. Revenue during the quarter went up marginally by 0.96 percent to $223.31 million from $221.19 million in the previous year period. Gross margin for the quarter expanded 469 basis points over the previous year period to 47.85 percent. Operating margin for the quarter period stood at positive 4.08 percent as compared to a negative 0.17 percent for the previous year period.
Operating income for the quarter was $9.12 million, compared with an operating loss of $0.37 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $48.72 million compared with $38.86 million in the prior year period. At the same time, adjusted EBITDA margin improved 425 basis points in the quarter to 21.82 percent from 17.57 percent in the last year period.
"Our global momentum continues to accelerate," said Acxiom Chief executive officer Scott Howe. "In addition, the integration of Arbor and Circulate is well underway and we are delivering the client benefits and financial synergies we anticipated. This is a win for our partner network, clients and shareholders."
Acxiom projects revenue to be in the range of $870 million to $875 million for financial year 2017. For fiscal year 2017, the company projects diluted earnings per share to be $0.11. For fiscal year 2017, the company expects diluted earnings per share to be $0.70 on adjusted basis.
Operating cash flow improves
Acxiom has generated cash of $85.16 million from operating activities during the nine month period, up 21.02 percent or $14.79 million, when compared with the last year period. The company has spent $162.12 million cash to meet investing activities during the nine month period as against cash outgo of $50.70 million in the last year period.
Cash flow from financing activities was $26.74 million for the nine month period as against cash outgo of $108.35 million in the last year period.
Cash and cash equivalents stood at $137.85 million as on Dec. 31, 2016, down 26.04 percent or $48.54 million from $186.39 million on Dec. 31, 2015.
Working capital drops significantly
Acxiom has witnessed a decline in the working capital over the last year. It stood at $109.85 million as at Dec. 31, 2016, down 39.13 percent or $70.62 million from $180.48 million on Dec. 31, 2015. Current ratio was at 1.51 as on Dec. 31, 2016, down from 1.88 on Dec. 31, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 60 days for the same period last year.
At the same time, days payable outstanding went up to 33 days for the quarter from 26 for the same period last year.
Debt moves up
Acxiom has witnessed an increase in total debt over the last one year. It stood at $236.85 million as on Dec. 31, 2016, up 17.89 percent or $35.94 million from $200.90 million on Dec. 31, 2015. Total debt was 19.58 percent of total assets as on Dec. 31, 2016, compared with 17.30 percent on Dec. 31, 2015. Debt to equity ratio was at 0.33 as on Dec. 31, 2016, up from 0.29 as on Dec. 31, 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
