Issuer Direct Corporation (ISDR) has reported a 42.53 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.19 million, or $0.07 a share in the quarter, compared with $0.14 million, or $0.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.40 million, or $0.14 a share compared with $0.48 million or $0.19 a share, a year ago. Revenue during the quarter grew 3.08 percent to $2.87 million from $2.79 million in the previous year period. Gross margin for the quarter expanded 451 basis points over the previous year period to 74.26 percent. Total expenses were 89.76 percent of quarterly revenues, up from 88.08 percent for the same period last year. That has resulted in a contraction of 168 basis points in operating margin to 10.24 percent.
Operating income for the quarter was $0.29 million, compared with $0.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.55 million compared with $0.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 242 basis points in the quarter to 19.14 percent from 21.57 percent in the last year period.
Brian Balbirnie, chief executive officer of Issuer Direct, commented, "We are pleased to announce a year over year increase in quarterly revenue, and a solid profit performance. Notably, our highly scalable, Accesswire and Platforms & Technology businesses, increased 77% and 89% respectively. Combined, these two areas accounted for 36% of total revenue in Q3 up from 20% last year. At the same time, we maintained solid cost controls and reported 74% gross margins, 19% EBITDA margins and generated an additional $533,672 in cash flow from operations."
Operating cash flow declines
Issuer Direct Corporation has generated cash of $2.02 million from operating activities during the nine month period, down 12.61 percent or $0.29 million, when compared with the last year period. The company has spent $0.81 million cash to meet investing activities during the nine month period as against cash outgo of $0.38 million in the last year period.
The company has spent $0.28 million cash to carry out financing activities during the nine month period as against cash inflow of $0.04 million in the last year period.
Cash and cash equivalents stood at $5.14 million as on Sep. 30, 2016, up 39.11 percent or $1.44 million from $3.69 million on Sep. 30, 2015.
Working capital increases sharply
Issuer Direct Corporation has recorded an increase in the working capital over the last year. It stood at $4.73 million as at Sep. 30, 2016, up 35.50 percent or $1.24 million from $3.49 million on Sep. 30, 2015. Current ratio was at 3.24 as on Sep. 30, 2016, up from 2.49 on Sep. 30, 2015.
Days sales outstanding went down to 46 days for the quarter compared with 56 days for the same period last year.
At the same time, days payable outstanding was almost stable at 39 days for the quarter, when compared with the previous year period.
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