Alarm.com Holdings, Inc. (ALRM) has reported 12.78 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $2.57 million, or $0.05 a share in the quarter, compared with $2.94 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.12 million, or $0.19 a share compared with $6.69 million or $0.14 a share, a year ago.
Revenue during the quarter grew 25.62 percent to $67.85 million from $54.01 million in the previous year period. Gross margin for the quarter contracted 189 basis points over the previous year period to 61.14 percent. Total expenses were 95.82 percent of quarterly revenues, up from 92.85 percent for the same period last year. That has resulted in a contraction of 297 basis points in operating margin to 4.18 percent.
Operating income for the quarter was $2.84 million, compared with $3.86 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.66 million compared with $9.65 million in the prior year period. At the same time, adjusted EBITDA margin contracted 69 basis points in the quarter to 17.18 percent from 17.88 percent in the last year period.
"We continued to execute our strategy in the third quarter and are pleased with the solid results," said Steve Trundle, president and chief executive officer of Alarm.com. "Along with our service providers, we remain well positioned to capture growing momentum in the market for connected home and business solutions. At the same time, we continued to invest in our platform to open new market opportunities for Alarm.com and our partners."
For the fiscal year 2016, Alarm.com Holdings projects revenue to be in the range of $254 million to $256.30 million. Alarm.com Holdings forecasts adjusted net income to be in the range of $28 million to $28.50 million. The company forecasts diluted earnings per share to be in the range of $0.58 to $0.59 on adjusted basis.
Operating cash flow drops significantlyAlarm.com Holdings has generated cash of $8.81 million from operating activities during the nine month period, down 58.42 percent or $12.37 million, when compared with the last year period. The company has spent $5.48 million cash to meet investing activities during the nine month period as against cash outgo of $13.74 million in the last year period.
Cash flow from financing activities was $3.37 million for the nine month period, down 95.60 percent or $73.23 million, when compared with the last year period.
Cash and cash equivalents stood at $135.05 million as on Sep. 30, 2016, up 6.67 percent or $8.45 million from $126.60 million on Sep. 30, 2015.
Working capital increases
Alarm.com Holdings has recorded an increase in the working capital over the last year. It stood at $146.34 million as at Sep. 30, 2016, up 10.18 percent or $13.52 million from $132.81 million on Sep. 30, 2015. Current ratio was at 4.93 as on Sep. 30, 2016, down from 4.96 on Sep. 30, 2015.
Days sales outstanding went down to 35 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 41 days for the previous year period.
Debt remains stableTotal debt remained stable at $6.70 million as on Sep. 30, 2016, when compared with the last year. Long-term debt remained stable at $6.70 million as on Sep. 30, 2016, when compared with the last year. Total debt was 2.68 percent of total assets as on Sep. 30, 2016, compared with 3 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.04 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio deteriorated to 57.86 for the quarter from 87.75 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
