Fidelity National Information Services (FIS) has reported 5.71 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $185 million, or $0.56 a share in the quarter, compared with $175 million, or $0.62 a share for the same period last year. Revenue during the quarter surged 46.23 percent to $2,309 million from $1,579 million in the previous year period. Gross margin for the quarter contracted 141 basis points over the previous year period to 33.87 percent. Total expenses were 82.76 percent of quarterly revenues, up from 78.59 percent for the same period last year. That has resulted in a contraction of 417 basis points in operating margin to 17.24 percent.
Operating income for the quarter was $398 million, compared with $338 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $766 million compared with $529 million in the prior year period. At the same time, adjusted EBITDA margin contracted 33 basis points in the quarter to 33.17 percent from 33.50 percent in the last year period.
"FIS consistently strong performance in 2016 continues with our third quarter results, delivering profitable growth and strong cash flow," said Gary Norcross, president and chief executive officer. "We are executing well, on track for the full year and focused on exceeding our plan, ensuring that we continue to deliver shareholder value."
For financial year 2016, the company projects diluted earnings per share to be in the range of $3.80 to $3.85 on adjusted basis.
Operating cash flow improves significantlyFidelity National Information Services has generated cash of $1,342 million from operating activities during the nine month period, up 92.26 percent or $644 million, when compared with the last year period. The company has spent $450 million cash to meet investing activities during the nine month period as against cash outgo of $82 million in the last year period.
The company has spent $891 million cash to carry out financing activities during the nine month period as against cash outgo of $612 million in the last year period.
Cash and cash equivalents stood at $701 million as on Sep. 30, 2016, up 58.60 percent or $259 million from $442 million on Sep. 30, 2015.
Working capital drops significantly
Fidelity National Information Services has witnessed a decline in the working capital over the last year. It stood at $586 million as at Sep. 30, 2016, down 32.65 percent or $284.10 million from $870.10 million on Sep. 30, 2015. Current ratio was at 1.20 as on Sep. 30, 2016, down from 1.56 on Sep. 30, 2015.
Days sales outstanding went down to 59 days for the quarter compared with 69 days for the same period last year.
Debt increases substantially
Fidelity National Information Services has witnessed an increase in total debt over the last one year. It stood at $10,787 million as on Sep. 30, 2016, up 117.02 percent or $5,816.60 million from $4,970.40 million on Sep. 30, 2015. Total debt was 41.28 percent of total assets as on Sep. 30, 2016, compared with 35.03 percent on Sep. 30, 2015. Debt to equity ratio was at 1.11 as on Sep. 30, 2016, up from 0.75 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 4.06 for the quarter from 9.39 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
