Fleetcor Technologies (FLT) has reported 11 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $129.62 million, or $1.36 a share in the quarter, compared with $116.77 million, or $1.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $183.31 million, or $1.92 a share compared with $157.57 million or $1.67 a share, a year ago. Revenue during the quarter grew 7.29 percent to $484.43 million from $451.49 million in the previous year period. Total expenses were 60.56 percent of quarterly revenues, up from 58.26 percent for the same period last year. That has resulted in a contraction of 230 basis points in operating margin to 39.44 percent.
Operating income for the quarter was $191.06 million, compared with $188.46 million in the previous year period.
"We delivered a solid quarter, slightly ahead of our expectations. Adjusted net earnings per share grew 15% on a reported basis, and 25% on a macro neutral basis, ahead of our stated target", said Ron Clarke, chairman and chief executive officer, FleetCor Technologies, Inc. "We also completed the STP and Travelcard acquisitions during the third quarter, and are beginning our transformation work with both assets."
Fleetcor Technologies projects revenue to be in the range of $1,810 million to $1,830 million for financial year 2016. For fiscal year 2016, Fleetcor Technologies expects net income to be in the range of $469 million to $477 million. For the fiscal year 2016, Fleetcor Technologies forecasts adjusted net income to be in the range of $648 million to $654 million. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $4.94 to $5.02. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $6.82 to $6.90 on adjusted basis.
Operating cash flow declinesFleetcor Technologies has generated cash of $404.29 million from operating activities during the nine month period, down 22.91 percent or $120.17 million, when compared with the last year period. The company has spent $1,371.54 million cash to meet investing activities during the nine month period as against cash outgo of $46.55 million in the last year period.
Cash flow from financing activities was $976.41 million for the nine month period as against cash outgo of $502.26 million in the last year period.
Cash and cash equivalents stood at $405.44 million as on Sep. 30, 2016, down 4.01 percent or $16.95 million from $422.39 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Fleetcor Technologies was negative $769.82 million on Sep. 30, 2016 compared with negative $407.72 million on Sep. 30, 2015. Current ratio was at 0.78 as on Sep. 30, 2016, down from 0.83 on Sep. 30, 2015.
Days sales outstanding went up to 340 days for the quarter compared with 303 days for the same period last year.
Debt increases substantially
Fleetcor Technologies has witnessed an increase in total debt over the last one year. It stood at $3,936.12 million as on Sep. 30, 2016, up 27.45 percent or $847.83 million from $3,088.29 million on Sep. 30, 2015. Total debt was 39.62 percent of total assets as on Sep. 30, 2016, compared with 37.28 percent on Sep. 30, 2015. Debt to equity ratio was at 1.24 as on Sep. 30, 2016, up from 1.04 as on Sep. 30, 2015. 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
