PRGX Global, Inc. (PRGX) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.23 million, or $ 0.01 a share in the quarter, against a net profit of $2.04 million, or $0.08 a share in the last year period. Revenue during the quarter grew 12.09 percent to $39.18 million from $34.96 million in the previous year period. Gross margin for the quarter expanded 315 basis points over the previous year period to 39.12 percent. Total expenses were 93.82 percent of quarterly revenues, up from 89.21 percent for the same period last year. That has resulted in a contraction of 461 basis points in operating margin to 6.18 percent.
Operating income for the quarter was $2.42 million, compared with $3.77 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.92 million compared with $3.04 million in the prior year period. At the same time, adjusted EBITDA margin improved 640 basis points in the quarter to 15.11 percent from 8.71 percent in the last year period.
"I am pleased to report a very solid quarter, with revenue from continuing operations growing 15.0% and adjusted EBITDA increasing 13.8% on a constant dollar basis compared to the same period in 2015. Our largest business, retail recovery audit, grew 17.3%, which is the third consecutive quarter of year over year constant dollar revenue growth,” said Ron Stewart, president and chief executive officer.
Operating cash flow declinesPRGX Global, Inc. has generated cash of $10.12 million from operating activities during the year, down 24.79 percent or $3.33 million, when compared with the last year. The company has spent $9.56 million cash to meet investing activities during the year as against cash outgo of $4.22 million in the last year.
The company has spent $0.06 million cash to carry out financing activities during the year as against cash outgo of $18.39 million in the last year period.
Cash and cash equivalents stood at $15.72 million as on Dec. 31, 2016, up 3.97 percent or $0.60 million from $15.12 million on Dec. 31, 2015.
Working capital declines
PRGX Global, Inc. has witnessed a decline in the working capital over the last year. It stood at $16.71 million as at Dec. 31, 2016, down 22.80 percent or $4.94 million from $21.64 million on Dec. 31, 2015. Current ratio was at 1.46 as on Dec. 31, 2016, down from 1.83 on Dec. 31, 2015.
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