Fidelity National Information Services, Inc. (FIS) has reported 97.14 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $207 million, or $0.63 a share in the quarter, compared with $105 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $377 million, or $1.14 a share compared with $278 million or $0.93 a share, a year ago.
Revenue during the quarter surged 30.40 percent to $2,445 million from $1,875 million in the previous year period. Gross margin for the quarter expanded 224 basis points over the previous year period to 36.48 percent. Total expenses were 82.33 percent of quarterly revenues, down from 86.19 percent for the same period last year. This has led to an improvement of 386 basis points in operating margin to 17.67 percent.
Operating income for the quarter was $432 million, compared with $259 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $846 million compared with $625 million in the prior year period. At the same time, adjusted EBITDA margin improved 127 basis points in the quarter to 34.60 percent from 33.33 percent in the last year period.
"One year after the acquisition of SunGard, the combination is surpassing our goals on all dimensions," said Gary Norcross, FIS president and chief executive officer. "FIS delivered a consistently strong performance in 2016, exceeding our original expectations on every meaningful measure."
For the fiscal year 2017, Fidelity National Information Services forecasts revenue to grow in the range of 1 percent to 2 percent. The company expects diluted earnings per share to be in the range of $4.15 to $4.30 on adjusted basis.
Operating cash flow improves significantly
Fidelity National Information Services, Inc. has generated cash of $1,925 million from operating activities during the year, up 70.20 percent or $794 million, when compared with the last year.
The company has spent $619 million cash to meet investing activities during the year as against cash outgo of $1,898 million in the last year.
The company has spent $1,309 million cash to carry out financing activities during the year as against cash inflow of $1,015 million in the last year period.
Cash and cash equivalents stood at $683 million as on Dec. 31, 2016, up 0.15 percent or $1 million from $682 million on Dec. 31, 2015.
Working capital decreases marginally
Fidelity National Information Services, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,131 million as at Dec. 31, 2016, down 1.44 percent or $16.50 million from $1,147.50 million on Dec. 31, 2015. Current ratio was at 1.36 as on Dec. 31, 2016, down from 1.49 on Dec. 31, 2015.
Days sales outstanding went down to 32 days for the quarter compared with 47 days for the same period last year.
Debt comes down
Fidelity National Information Services, Inc. has recorded a decline in total debt over the last one year. It stood at $10,478 million as on Dec. 31, 2016, down 8.44 percent or $966 million from $11,444 million on Dec. 31, 2015. Total debt was 40.25 percent of total assets as on Dec. 31, 2016, compared with 43.56 percent on Dec. 31, 2015. Debt to equity ratio was at 1.06 as on Dec. 31, 2016, down from 1.22 as on Dec. 31, 2015. Interest coverage ratio improved to 4.36 for the quarter from 3.45 for the same period last year.
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