PRGX Global, Inc. (PRGX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $2.28 million, or $ 0.11 a share in the quarter, against a net loss of $3.41 million, or $0.14 a share in the last year period. Revenue during the quarter grew 5.31 percent to $35.14 million from $33.36 million in the previous year period. Gross margin for the quarter expanded 680 basis points over the previous year period to 36.34 percent. Operating margin for the quarter period stood at positive 3.18 percent as compared to a negative 0.59 percent for the previous year period.
Operating income for the quarter was $1.12 million, compared with an operating loss of $0.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.59 million compared with $3.28 million in the prior year period. At the same time, adjusted EBITDA margin improved 324 basis points in the quarter to 13.05 percent from 9.82 percent in the last year period.
"Overall, we continue to make good progress on our transformation journey as demonstrated by our performance in the third quarter, which reflects meaningful improvement in both the top and bottom lines. Revenue from continuing operations grew 7.4% and Adjusted EBITDA increased 39%, compared to the same period in 2015 on a constant dollar basis," said Ron Stewart, president and chief executive officer.
Operating cash flow drops significantly
PRGX Global, Inc. has generated cash of $6.17 million from operating activities during the nine month period, down 50.06 percent or $6.19 million, when compared with the last year period. The company has spent $4.65 million cash to meet investing activities during the nine month period as against cash outgo of $3.17 million in the last year period.
The company has spent $3.85 million cash to carry out financing activities during the nine month period as against cash outgo of $17.53 million in the last year period.
Cash and cash equivalents stood at $13.17 million as on Sep. 30, 2016, down 15.97 percent or $2.50 million from $15.67 million on Sep. 30, 2015.
Working capital decreases marginally
PRGX Global, Inc. has witnessed a decline in the working capital over the last year. It stood at $20.36 million as at Sep. 30, 2016, down 4.85 percent or $1.04 million from $21.39 million on Sep. 30, 2015. Current ratio was at 1.76 as on Sep. 30, 2016, down from 1.86 on Sep. 30, 2015.
Days sales outstanding were almost stable at 79 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 29 days for the quarter from 27 for the same period last year.
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