InnerWorkings, Inc. (INWK) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $5.05 million, or $ 0.09 a share in the quarter, against a net loss of $40.93 million, or $0.77 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $6.74 million, or $0.12 a share compared with $3.12 million or $0.06 a share, a year ago.
Revenue during the quarter went up marginally by 0.04 percent to $270.42 million from $270.31 million in the previous year period. Gross margin for the quarter expanded 228 basis points over the previous year period to 25.42 percent. Operating margin for the quarter period stood at positive 3.34 percent as compared to a negative 11.61 percent for the previous year period.
Operating income for the quarter was $9.04 million, compared with an operating loss of $31.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $15.74 million compared with $13.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 97 basis points in the quarter to 5.82 percent from 4.86 percent in the last year period.
"2016 was another record year of profitable growth and new client wins," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "The success of our strategy in developing global scale across a full suite of marketing execution solutions has yielded improving margins and we expect this trend to continue in 2017."
For fiscal year 2017, Innerworkings forecasts revenue to be in the range of $1,155 million to $1,185 million. The company expects diluted earnings per share to be in the range of $0.44 to $0.47 on adjusted basis.
Operating cash flow drops significantly
InnerWorkings, Inc. has generated cash of $10.52 million from operating activities during the year, down 75.75 percent or $32.88 million, when compared with the last year.
The company has spent $13.32 million cash to meet investing activities during the year as against cash outgo of $15.03 million in the last year.
Cash flow from financing activities was $3.57 million for the year as against cash outgo of $18.39 million in the last year period.
Cash and cash equivalents stood at $30.92 million as on Dec. 31, 2016, up 0.55 percent or $0.17 million from $30.76 million on Dec. 31, 2015.
Debt moves up
InnerWorkings, Inc. has witnessed an increase in total debt over the last one year. It stood at $107.47 million as on Dec. 31, 2016, up 8.27 percent or $8.21 million from $99.26 million on Dec. 31, 2015. Innerworkings has witnessed an increase in long-term debt over the last one year. It stood at $107.47 million as on Dec. 31, 2016, up 8.27 percent or $8.21 million from $99.26 million on Dec. 31, 2015. Total debt was 18.18 percent of total assets as on Dec. 31, 2016, compared with 16.31 percent on Dec. 31, 2015. Debt to equity ratio was at 0.41 as on Dec. 31, 2016, up from 0.38 as on Dec. 31, 2015.
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