DST Systems, Inc (DST) has reported 11.65 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $59.90 million, or $1.84 a share in the quarter, compared with $67.80 million, or $1.94 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $53.90 million, or $1.66 a share compared with $48.90 million or $1.40 a share, a year ago. Revenue during the quarter grew 4.07 percent to $398.80 million from $383.20 million in the previous year period. Gross margin for the quarter expanded 287 basis points over the previous year period to 25.65 percent. Total expenses were 81.09 percent of quarterly revenues, down from 83.77 percent for the same period last year. This has led to an improvement of 267 basis points in operating margin to 18.91 percent.
Operating income for the quarter was $75.40 million, compared with $62.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $83.20 million compared to $71.30 million in the prior year period. At the same time, adjusted operating margin improved 226 basis points in the quarter to 20.86 percent from 18.61 percent in the last year period.
“We are very pleased with our fourth quarter results which demonstrate the capability and dedication of our teams around the world to operate in a challenging environment and still deliver excellent results for our clients and our shareholders. We generated positive operating results during the quarter with growth and expanded margins in both our healthcare and financial services segments,” said Steve Hooley, Chairman, Chief executive officer and President of DST. “We are encouraged by the expansion of highly-valued services we are able to provide our clients while improving overall profitability as we implement operational enhancements.”
Working capital drops significantly
DST Systems, Inc has witnessed a decline in the working capital over the last year. It stood at $43.80 million as at Dec. 31, 2016, down 58.99 percent or $63 million from $106.80 million on Dec. 31, 2015. Current ratio was at 1.04 as on Dec. 31, 2016, down from 1.11 on Dec. 31, 2015.
Debt comes down
DST Systems, Inc has recorded a decline in total debt over the last one year. It stood at $508.20 million as on Dec. 31, 2016, down 9.59 percent or $53.90 million from $562.10 million on Dec. 31, 2015. Total debt was 18.19 percent of total assets as on Dec. 31, 2016, compared with 19.98 percent on Dec. 31, 2015. Debt to equity ratio was at 0.45 as on Dec. 31, 2016, down from 0.54 as on Dec. 31, 2015. Interest coverage ratio improved to 13.71 for the quarter from 10.20 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
