Bankrate, Inc (RATE) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $4.15 million, or $ 0.05 a share in the quarter, against a net profit of $4.77 million, or $0.05 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $14.66 million, or $0.16 a share compared with $13.76 million or $0.14 a share, a year ago. Revenue during the quarter grew 21.16 percent to $113.58 million from $93.75 million in the previous year period. Gross margin for the quarter contracted 731 basis points over the previous year period to 44.86 percent. Total expenses were 95.29 percent of quarterly revenues, up from 87.84 percent for the same period last year. That has resulted in a contraction of 745 basis points in operating margin to 4.71 percent.
Operating income for the quarter was $5.35 million, compared with $11.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $30.39 million compared with $28.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 365 basis points in the quarter to 26.75 percent from 30.40 percent in the last year period.
“I am proud of the team’s strong execution of our ambitious 2016 change agenda. With RATE’s solid fourth quarter results, we entered 2017 with momentum. We are laser-focused on continuing to scale revenue, while accelerating Adjusted EBITDA growth,” said Kenneth S. Esterow, President and Chief executive officer of Bankrate, Inc.
For the first-quarter, Bankrate, Inc forecasts revenue to be in the range of $115 million to $118 million. Bankrate forecasts revenue to be in the range of $500 million to $515 million for fiscal year 2017.
Working capital declines
Bankrate, Inc has witnessed a decline in the working capital over the last year. It stood at $217.09 million as at Dec. 31, 2016, down 17.10 percent or $44.78 million from $261.86 million on Dec. 31, 2015. Current ratio was at 5.03 as on Dec. 31, 2016, down from 5.37 on Dec. 31, 2015. Days sales outstanding went down to 21 days for the quarter compared with 28 days for the same period last year.
At the same time, days payable outstanding went down to 8 days for the quarter from 10 for the same period last year.
Debt remains almost stable
Bankrate, Inc has witnessed an increase in total debt over the last one year. It stood at $295.72 million as on Dec. 31, 2016, up 0.83 percent or $2.44 million from $293.28 million on Dec. 31, 2015. Bankrate has witnessed an increase in long-term debt over the last one year. It stood at $295.72 million as on Dec. 31, 2016, up 0.83 percent or $2.44 million from $293.28 million on Dec. 31, 2015. Total debt was 27.28 percent of total assets as on Dec. 31, 2016, compared with 25.89 percent on Dec. 31, 2015. Debt to equity ratio was at 0.43 as on Dec. 31, 2016, up from 0.39 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.07 for the quarter from 2.27 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
