Meredith Corporation (MDP) has reported 120.81 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $71.80 million, or $1.58 a share in the quarter, compared with $32.52 million, or $0.72 a share for the same period last year.
Revenue during the quarter grew 8.91 percent to $442.64 million from $406.41 million in the previous year period. Total expenses were 75.19 percent of quarterly revenues, down from 85.21 percent for the same period last year. This has led to an improvement of 1002 basis points in operating margin to 24.81 percent.
Operating income for the quarter was $109.82 million, compared with $60.11 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $113.45 million compared with $79.06 million in the prior year period. At the same time, adjusted EBITDA margin improved 618 basis points in the quarter to 25.63 percent from 19.45 percent in the last year period.
"We continued our record-setting performance in the second quarter and first half of fiscal 2017, driven by record political advertising revenues at our television stations and double-digit growth in digital ad revenues in both the national and local businesses," said Meredith chairman and chief executive officer Stephen M. Lacy. "We continue to expect to deliver record full fiscal year 2017 revenue and earnings performance, driven by aggressive execution of our strategic growth initiatives."
For the third-quarter, The company projects diluted earnings per share to be in the range of $0.75 to $0.80.
For financial year 2017, the company projects diluted earnings per share to be in the range of $3.78 to $4.08. The company projects diluted earnings per share to be in the range of $3.50 to $3.80 on adjusted basis.
Operating cash flow improves significantlyMeredith Corporation has generated cash of $117.28 million from operating activities during the first half, up 145.86 percent or $69.58 million, when compared with the last year period. The company has spent $22.77 million cash to meet investing activities during the first six months as against cash outgo of $6.28 million in the last year period.
The company has spent $75 million cash to carry out financing activities during the first six months as against cash outgo of $36.39 million in the last year period.
Cash and cash equivalents stood at $44.49 million as on Dec. 31, 2016, up 59.69 percent or $16.63 million from $27.86 million on Dec. 31, 2015.
Working capital increases sharply
Meredith Corporation has recorded an increase in the working capital over the last year. It stood at $40.09 million as at Dec. 31, 2016, up 87.66 percent or $18.73 million from $21.36 million on Dec. 31, 2015. Current ratio was at 1.08 as on Dec. 31, 2016, up from 1.04 on Dec. 31, 2015.
Days sales outstanding went down to 59 days for the quarter compared with 65 days for the same period last year.
Debt comes downMeredith Corporation has recorded a decline in total debt over the last one year. It stood at $674.19 million as on Dec. 31, 2016, down 15.59 percent or $124.56 million from $798.75 million on Dec. 31, 2015. Total debt was 25.12 percent of total assets as on Dec. 31, 2016, compared with 27.75 percent on Dec. 31, 2015. Debt to equity ratio was at 0.71 as on Dec. 31, 2016, down from 0.83 as on Dec. 31, 2015. Interest coverage ratio improved to 23.47 for the quarter from 11.42 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
