INC Research Holdings, Inc (INCR) has reported 22.30 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $37.49 million, or $0.68 a share in the quarter, compared with $30.66 million, or $0.53 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $36.89 million, or $0.67 a share compared with $31.40 million or $0.54 a share, a year ago. Revenue during the quarter went up marginally by 0.79 percent to $406.07 million from $402.88 million in the previous year period. Gross margin for the quarter expanded 217 basis points over the previous year period to 26.48 percent. Total expenses were 89.21 percent of quarterly revenues, down from 90.15 percent for the same period last year. This has led to an improvement of 93 basis points in operating margin to 10.79 percent.
Operating income for the quarter was $43.80 million, compared with $39.69 million in the previous year period.
However, the adjusted operating income for the quarter stood at $59.26 million compared to $51.99 million in the prior year period. At the same time, adjusted operating margin improved 169 basis points in the quarter to 14.59 percent from 12.90 percent in the last year period.
"INC Research delivered a solid performance during the quarter in several key areas, growing net service revenues by 9% and adjusted EPS by approximately 24%. We also were pleased to achieve two key milestones for the full year, surpassing $1.0 billion in net service revenue for the first time in INC’s history and wrapping up the year with a backlog of approximately $2.0 billion," said chief executive officer Alistair Macdonald. "While we are proud of these accomplishments, new business in the quarter was lower than anticipated due to delayed client decisions with regard to some of our pending proposals, which negatively impacted awards."
INC Research Holdings, Inc forecasts revenue to be in the range of $1,030 million to $1,100 million for fiscal year 2017. For financial year 2017, INC Research Holdings, Inc projects net income to be in the range of $108 million to $117 million. For the financial year 2017, INC Research Holdings, Inc expects adjusted net income to be in the range of $146.50 million to $153.50 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.94 to $2.10. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.63 to $2.75 on adjusted basis.
Operating cash flow drops significantlyINC Research Holdings, Inc has generated cash of $109.33 million from operating activities during the year, down 46.60 percent or $95.41 million, when compared with the last year. The company has spent $31.35 million cash to meet investing activities during the year as against cash outgo of $21.11 million in the last year.
The company has spent $53.32 million cash to carry out financing activities during the year as against cash outgo of $211.40 million in the last year period.
Cash and cash equivalents stood at $102.47 million as on Dec. 31, 2016, up 20.54 percent or $17.46 million from $85.01 million on Dec. 31, 2015.
Working capital turns positive
Working capital of INC Research Holdings, Inc has turned positive to $55.90 million on Dec. 31, 2016 from negative $52.55 million on Dec. 31, 2015. Current ratio was at 1.12 as on Dec. 31, 2016, up from 0.89 on Dec. 31, 2015.
Days sales outstanding went up to 44 days for the quarter compared with 34 days for the same period last year.
At the same time, days payable outstanding was almost stable at 4 days for the quarter, when compared with the previous year period.
Debt remains almost stable
INC Research Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $497.72 million as on Dec. 31, 2016, down 0.82 percent or $4.12 million from $501.84 million on Dec. 31, 2015. Total debt was 38.63 percent of total assets as on Dec. 31, 2016, compared with 41.43 percent on Dec. 31, 2015. Debt to equity ratio was at 1.65 as on Dec. 31, 2016, down from 2.31 as on Dec. 31, 2015. Interest coverage ratio improved to 16.23 for the quarter from 13.44 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
