Corelogic (CLGX) has reported 24.49 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $35.07 million, or $0.39 a share in the quarter, compared with $28.17 million, or $0.31 a share for the same period last year. On an adjusted basis, earnings per share were at $0.73 for the quarter compared with $0.54 in the same period last year. Revenue during the quarter surged 35.57 percent to $523.90 million from $386.44 million in the previous year period. Gross margin for the quarter contracted 268 basis points over the previous year period to 47.42 percent. Total expenses were 83.81 percent of quarterly revenues, up from 82.94 percent for the same period last year. That has resulted in a contraction of 87 basis points in operating margin to 16.19 percent.
Operating income for the quarter was $84.82 million, compared with $65.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $142.71 million compared with $116.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 288 basis points in the quarter to 27.24 percent from 30.12 percent in the last year period.
“CoreLogic delivered another exceptionally strong operating performance in the third quarter. Quarterly revenues and operating income were at record levels as we continued to grow our market leadership and operational scale. We also aggressively executed against productivity programs through which we expect to yield cost reductions of at least $30 million in 2016 and a similar amount in 2017,” said Anand Nallathambi, President and Chief Executive Officer of CoreLogic. “We generated strong organic growth rates from our core operations during the third quarter. As we enter 2017, we expect to continue this strong performance as we capitalize on opportunities in such areas as valuation solutions, share gains, pricing, and product development.”
Corelogic expects revenue to be in the range of $1,890 million to $1,920 million for financial year 2016. For financial year 2016, the company projects diluted earnings per share to be in the range of $2.20 to $2.30 on adjusted basis.
Operating cash flow improves significantly
Corelogic has generated cash of $316.81 million from operating activities during the nine month period, up 25.68 percent or $64.73 million, when compared with the last year period. The company has spent $476.11 million cash to meet investing activities during the nine month period as against cash outgo of $179.22 million in the last year period. It has incurred net capital expenditure of $62.35 million on net basis during the nine month period, up 8.20 percent or $4.73 million from year ago period.
Cash flow from financing activities was $140.12 million for the nine month period as against cash outgo of $25.09 million in the last year period.
Cash and cash equivalents stood at $79.02 million as on Sep. 30, 2016, down 50.20 percent or $79.65 million from $158.67 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Corelogic was negative $210.27 million on Sep. 30, 2016 compared with negative $16.70 million on Sep. 30, 2015. Current ratio was at 0.68 as on Sep. 30, 2016, down from 0.97 on Sep. 30, 2015.
Days sales outstanding went down to 50 days for the quarter compared with 62 days for the same period last year.
Debt moves up
Corelogic has witnessed an increase in total debt over the last one year. It stood at $1,614.71 million as on Sep. 30, 2016, up 15.41 percent or $215.56 million from $1,399.15 million on Sep. 30, 2015. Total debt was 40.25 percent of total assets as on Sep. 30, 2016, compared with 38.84 percent on Sep. 30, 2015. Debt to equity ratio was at 1.49 as on Sep. 30, 2016, up from 1.41 as on Sep. 30, 2015. Interest coverage ratio improved to 5.87 for the quarter from 3.83 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
