Bankrate, Inc. (RATE) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $10.69 million, or $ 0.12 a share in the quarter, against a net loss of $23.39 million, or $0.23 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $19.79 million, or $0.22 a share compared with $17.59 million or $0.18 a share, a year ago.
Revenue during the quarter grew 29.24 percent to $128.80 million from $99.66 million in the previous year period. Gross margin for the quarter contracted 541 basis points over the previous year period to 49.91 percent. Total expenses were 82 percent of quarterly revenues, down from 85.59 percent for the same period last year. This has led to an improvement of 360 basis points in operating margin to 18 percent.
Operating income for the quarter was $23.19 million, compared with $14.36 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $38.49 million compared with $35.28 million in the prior year period. At the same time, adjusted EBITDA margin contracted 551 basis points in the quarter to 29.88 percent from 35.40 percent in the last year period.
"The strategic initiatives we outlined at the start of 2016 are progressing well. We have a great team and are excited to continue on the path towards sustainable long-term sales and profit growth," said Kenneth S. Esterow, president and chief executive officer of Bankrate, Inc.
For fiscal year 2016, Bankrate, Inc. forecasts revenue to be in the range of $438 million to $443 million.
For the fourth-quarter, Bankrate, Inc. forecasts revenue to be in the range of $117 million to $122 million.
Working capital declines
Bankrate, Inc. has witnessed a decline in the working capital over the last year. It stood at $176.59 million as at Sep. 30, 2016, down 9.73 percent or $19.03 million from $195.62 million on Sep. 30, 2015. Current ratio was at 4.29 as on Sep. 30, 2016, up from 4.22 on Sep. 30, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 75 days for the same period last year.
At the same time, days payable outstanding went down to 17 days for the quarter from 27 for the same period last year.
Debt remains almost stable
Bankrate, Inc. has recorded a decline in total debt over the last one year. It stood at $295.10 million as on Sep. 30, 2016, down 0.99 percent or $2.95 million from $298.06 million on Sep. 30, 2015. Total debt was 26.97 percent of total assets as on Sep. 30, 2016, compared with 24.21 percent on Sep. 30, 2015. Debt to equity ratio was at 0.43 as on Sep. 30, 2016, up from 0.37 as on Sep. 30, 2015. Interest coverage ratio improved to 4.76 for the quarter from 2.57 for the same period last year.
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