Altisource Portfolio Solutions S.A. (ASPS) has reported 64.61 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $6.54 million, or $0.34 a share in the quarter, compared with $18.49 million, or $0.92 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $13.26 million, or $0.69 a share compared with $29.44 million or $1.47 a share, a year ago. Revenue during the quarter dropped 3.86 percent to $240.48 million from $250.13 million in the previous year period. Gross margin for the quarter contracted 649 basis points over the previous year period to 26 percent. Total expenses were 93.83 percent of quarterly revenues, up from 88.94 percent for the same period last year. That has resulted in a contraction of 489 basis points in operating margin to 6.17 percent.
Operating income for the quarter was $14.83 million, compared with $27.65 million in the previous year period.
“Im pleased with our first quarter financial performance. Compared to the mid-point of our full year 2017 scenarios, first quarter 2017 service revenue is 27% of the mid-point and adjusted diluted earnings per share(1) is 24% of the mid-point. Since our second and third quarters are historically our seasonally strongest, we believe we’re positioned to achieve the mid-point of our 2017 service revenue and adjusted earnings per share financial scenarios,” said chief executive officer William B. Shepro.
Operating cash flow turns negativeAltisource Portfolio Solutions S.A. has spent $18.36 million cash to meet operating activities during the quarter as against cash inflow of $29.03 million in the last year period. The company has spent $1.94 million cash to meet investing activities during the quarter as against cash outgo of $35.40 million in the last year period.
The company has spent $11.89 million cash to carry out financing activities during the quarter as against cash outgo of $13.26 million in the last year period.
Cash and cash equivalents stood at $117.10 million as on Mar. 31, 2017, down 26.68 percent or $42.61 million from $159.70 million on Mar. 31, 2016.
Working capital increases marginally
Altisource Portfolio Solutions S.A. has recorded an increase in the working capital over the last year. It stood at $205.77 million as at Mar. 31, 2017, up 4.52 percent or $8.91 million from $196.86 million on Mar. 31, 2016. Current ratio was at 2.96 as on Mar. 31, 2017, up from 2.67 on Mar. 31, 2016.
Days sales outstanding went down to 35 days for the quarter compared with 37 days for the same period last year.
Debt comes down
Altisource Portfolio Solutions S.A. has recorded a decline in total debt over the last one year. It stood at $472.46 million as on Mar. 31, 2017, down 10.37 percent or $54.68 million from $527.13 million on Mar. 31, 2016. Total debt was 72.30 percent of total assets as on Mar. 31, 2017, compared with 73.66 percent on Mar. 31, 2016. Debt to equity ratio was at 6.53 as on Mar. 31, 2017, down from 8.51 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.56 for the quarter from 4.23 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
