Iacteractivecorp (IACI) has reported a 34.22 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $43.16 million, or $0.49 a share in the quarter, compared with $65.61 million, or $0.74 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $60.25 million, or $0.73 a share compared with $90.34 million or $1.01 a share, a year ago.
Revenue during the quarter dropped 8.88 percent to $764.10 million from $838.56 million in the previous year period. Gross margin for the quarter expanded 33 basis points over the previous year period to 76.56 percent. Total expenses were 88.80 percent of quarterly revenues, down from 89.61 percent for the same period last year. This has led to an improvement of 81 basis points in operating margin to 11.20 percent.
Operating income for the quarter was $85.58 million, compared with $87.13 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $139 million compared with $141.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 136 basis points in the quarter to 18.19 percent from 16.83 percent in the last year period.
Operating cash flow declines
Iacteractivecorp has generated cash of $161.58 million from operating activities during the nine month period, down 12.23 percent or $22.53 million, when compared with the last year period.
The company has spent $106.41 million cash to meet investing activities during the nine month period as against cash outgo of $8.67 million in the last year period.
The company has spent $337.60 million cash to carry out financing activities during the nine month period as against cash outgo of $391.10 million in the last year period.
Cash and cash equivalents stood at $1,189.78 million as on Sep. 30, 2016, up 55.23 percent or $423.34 million from $766.45 million on Sep. 30, 2015.
Working capital increases sharply
Iacteractivecorp has recorded an increase in the working capital over the last year. It stood at $1,096.94 million as at Sep. 30, 2016, up 85.05 percent or $504.15 million from $592.79 million on Sep. 30, 2015. Current ratio was at 2.56 as on Sep. 30, 2016, up from 1.91 on Sep. 30, 2015.
Days sales outstanding were almost stable at 25 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 39 days for the quarter from 34 for the same period last year.
Debt increases substantially
Iacteractivecorp has witnessed an increase in total debt over the last one year. It stood at $1,641.28 million as on Sep. 30, 2016, up 64.13 percent or $641.29 million from $1,000 million on Sep. 30, 2015. Iacteractivecorp has witnessed an increase in long-term debt over the last one year. It stood at $1,641.28 million as on Sep. 30, 2016, up 64.13 percent or $641.29 million from $1,000 million on Sep. 30, 2015. Total debt was 35.14 percent of total assets as on Sep. 30, 2016, compared with 24.83 percent on Sep. 30, 2015. Debt to equity ratio was at 0.83 as on Sep. 30, 2016, up from 0.54 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.16 for the quarter from 5.45 for the same period last year.
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