Endurance International Group Holdings, Inc. (EIGI) saw its loss widen to $34.86 million, or $0.26 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $9.23 million, or $0.07 a share.
Revenue during the quarter surged 51.33 percent to $292.12 million from $193.04 million in the previous year period. Gross margin for the quarter expanded 649 basis points over the previous year period to 50.36 percent. Total expenses were 91.70 percent of quarterly revenues, down from 92.58 percent for the same period last year. This has led to an improvement of 88 basis points in operating margin to 8.30 percent.
Operating income for the quarter was $24.26 million, compared with $14.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $86.97 million compared with $62.48 million in the prior year period. At the same time, adjusted EBITDA margin contracted 259 basis points in the quarter to 29.77 percent from 32.37 percent in the last year period.
"Our fourth quarter and fiscal year results exceeded our revised guidance for revenue, adjusted EBITDA and free cash flow, the result of continued strong performance from Constant Contact and a more disciplined approach to our marketing investments," commented Hari Ravichandran, chief executive officer and founder of Endurance International Group. "For 2017, we plan to focus on driving improved performance from our key hosting brands, including Bluehost and Host Gator, and building on the solid results we have seen with Constant Contact. We also plan to invest in building brand awareness for these and other key brands, as well as fund operational and infrastructure improvements to enhance the customer product and service experience. We believe this will position us to achieve long term profitable growth and increased free cash flow."
For fiscal year 2017, Endurance International Group Holdings, Inc. projects revenue to grow in the range of 4 percent to 5 percent. The company forecasts net loss to be $91 million.
Operating cash flow declines
Endurance International Group Holdings, Inc. has generated cash of $154.96 million from operating activities during the year, down 12.56 percent or $22.27 million, when compared with the last year.
The company has spent $932.40 million cash to meet investing activities during the year as against cash outgo of $133.80 million in the last year. It has incurred net capital expenditure of $36.61 million on net basis during the year, up 17.96 percent or $5.57 million from year ago.
Cash flow from financing activities was $796.40 million for the year as against cash outgo of $41.63 million in the last year period.
Cash and cash equivalents stood at $53.60 million as on Dec. 31, 2016, up 62.26 percent or $20.57 million from $33.03 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Endurance International Group Holdings, Inc. was negative $362.68 million on Dec. 31, 2016 compared with negative $370.34 million on Dec. 31, 2015. Current ratio was at 0.30 as on Dec. 31, 2016, up from 0.24 on Dec. 31, 2015.
Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 5 days for the quarter, when compared with the previous year period.
Debt increases substantially
Endurance International Group Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,994.18 million as on Dec. 31, 2016, up 80.39 percent or $888.72 million from $1,105.47 million on Dec. 31, 2015. Total debt was 72.35 percent of total assets as on Dec. 31, 2016, compared with 61.30 percent on Dec. 31, 2015. Debt to equity ratio was at 16.03 as on Dec. 31, 2016, up from 6.15 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.60 for the quarter from 0.90 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
