FirstService Corporation (FSV) has reported an 107.81 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $6.78 million, or $0.19 a share in the quarter, compared with $3.26 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.80 million, or $0.41 a share compared with $10.14 million or $0.28 a share, a year ago.
Revenue during the quarter grew 20.56 percent to $381.12 million from $316.11 million in the previous year period.
Cost of revenue rose 21.35 percent or $47.29 million during the quarter to $268.76 million. Gross margin for the quarter contracted 46 basis points over the previous year period to 29.48 percent.
Total expenses were $362.20 million for the quarter, up 19.88 percent or $60.07 million from year-ago period. Operating margin for the quarter expanded 54 basis points over the previous year period to 4.96 percent.
Operating income for the quarter was $18.92 million, compared with $13.99 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $30.66 million compared with $22.33 million in the prior year period. At the same time, adjusted EBITDA margin improved 98 basis points in the quarter to 8.04 percent from 7.06 percent in the last year period.
"FirstService delivered strong financial results in the fourth quarter to cap off another impressive year of top and bottom line growth. Solid organic growth combined with the continued realization of cost efficiencies drove superior operating results at both divisions. The further addition of several strategic acquisitions resulted in a more than 30% increase to the bottom line," said Scott Patterson, chief executive officer of FirstService. "Healthy market indicators and an active acquisition pipeline give us positive momentum into 2017."
Operating cash flow improves significantly
FirstService Corporation has generated cash of $109 million from operating activities during the year, up 25.16 percent or $21.91 million, when compared with the last year.
The company has spent $130.84 million cash to meet investing activities during the year as against cash outgo of $32.28 million in the last year.
Cash flow from financing activities was $19.50 million for the year as against cash outgo of $75.14 million in the last year period.
Cash and cash equivalents stood at $43.38 million as on Dec. 31, 2016, down 4.78 percent or $2.18 million from $45.56 million on Dec. 31, 2015.
Receivables increase substantially
Net receivables were at $164.07 million as on Dec. 31, 2016, up 43.27 percent or $49.55 million from year-ago.
Total assets stood at $770.96million as on Dec. 31, 2016. On the other hand, total liabilities were at $487.58 million as on Dec. 31, 2016.
Return on assets was at 1.83 percent in the quarter. At the same time, return on equity was at 3.75 percent in the quarter.
Debt moves up
Total debt was at $250.91 million as on Dec. 31, 2016, up 24.71 percent or $49.71 million from year-ago. Shareholders equity was at $181.03 million as on Dec. 31, 2016. Meanwhile, debt to equity ratio was at 1.39 percent in the quarter.
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