Black Knight Financial Services Inc (FNF) has reported a 13.13 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $11.20 million, or $0.16 a share in the quarter, compared with $9.90 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $44.60 million, or $0.29 a share compared with $38.90 million or $0.25 a share, a year ago.
Revenue during the quarter grew 14.34 percent to $267.10 million from $233.60 million in the previous year period. Total expenses were 78.66 percent of quarterly revenues, up from 77.14 percent for the same period last year. That has resulted in a contraction of 152 basis points in operating margin to 21.34 percent.
Operating income for the quarter was $57 million, compared with $53.40 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $119.80 million compared with $105.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 31 basis points in the quarter to 44.85 percent from 45.16 percent in the last year period.
Black Knight president and chief executive officer Tom Sanzone added, "We are pleased with our results in the third quarter, where we delivered Adjusted Revenues and Adjusted EBITDA growth of 14%. The underlying fundamentals of our business remain strong, and we are on course to achieve the financial targets we have set for 2016. We remain focused on operating the business to win market share, generate superior returns and create sustainable, long-term shareholder value. Black Knight's mission is to be the premier provider of integrated technology, data and analytics to the U.S. mortgage industry.”
Black Knight Financial Services forecasts adjusted revenue to grow in the range of 9 percent to 10 percent for for fiscal year 2016. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $1.13 to $1.15 on adjusted basis.
Operating cash flow improves significantly
Black Knight Financial Services Inc has generated cash of $210.50 million from operating activities during the nine month period, up 32.47 percent or $51.60 million, when compared with the last year period.
The company has spent $206.10 million cash to meet investing activities during the nine month period as against cash outgo of $81.30 million in the last year period.
The company has spent $131.50 million cash to carry out financing activities during the nine month period as against cash outgo of $10.50 million in the last year period.
Cash and cash equivalents stood at $58.90 million as on Sep. 30, 2016, down 54.34 percent or $70.10 million from $129 million on Sep. 30, 2015.
Working capital drops significantly
Black Knight Financial Services Inc has witnessed a decline in the working capital over the last year. It stood at $64.50 million as at Sep. 30, 2016, down 60.62 percent or $99.30 million from $163.80 million on Sep. 30, 2015. Current ratio was at 1.32 as on Sep. 30, 2016, down from 1.89 on Sep. 30, 2015.
Days sales outstanding went down to 58 days for the quarter compared with 67 days for the same period last year.
Debt comes down
Black Knight Financial Services Inc has recorded a decline in total debt over the last one year. It stood at $1,580.50 million as on Sep. 30, 2016, down 5.46 percent or $91.20 million from $1,671.70 million on Sep. 30, 2015. Total debt was 42.56 percent of total assets as on Sep. 30, 2016, compared with 45.31 percent on Sep. 30, 2015. Debt to equity ratio was at 0.83 as on Sep. 30, 2016, down from 0.92 as on Sep. 30, 2015. Interest coverage ratio improved to 3.37 for the quarter from 3.14 for the same period last year.
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