RealPage, Inc. (RP) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $4.21 million, or $ 0.05 a share in the quarter, against a net loss of $8.19 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $15.42 million, or $0.20 a share compared with $11.30 million or $0.15 a share, a year ago.
Revenue during the quarter grew 21.69 percent to $147.96 million from $121.59 million in the previous year period. Gross margin for the quarter contracted 78 basis points over the previous year period to 56.67 percent. Operating margin for the quarter period stood at positive 5.96 percent as compared to a negative 11.03 percent for the previous year period.
Operating income for the quarter was $8.81 million, compared with an operating loss of $13.41 million in the previous year period.
However, the adjusted operating income for the quarter stood at $26.76 million compared to $19.23 million in the prior year period. At the same time, adjusted operating margin improved 227 basis points in the quarter to 18.08 percent from 15.82 percent in the last year period.
Comments on the News "During the third quarter, RealPage again achieved strong operating results," said Steve Winn, chairman and chief executive officer of RealPage. "Total revenue growth of 22% was driven primarily by strong subscription revenue growth of 24%, which represents 90% of total on demand revenue. With each quarter we get closer to achieving our vision for the rental housing market one in which property owners and managers utilize our massive data repository and comprehensive solutions to fundamentally transform the operational and transactional elements of their businesses."
For fiscal year 2016, RealPage, Inc. forecasts adjusted revenue to be in the range of $566 million to $569 million for fiscal year 2016. The company expects diluted earnings per share to be in the range of $0.13 to $0.19 and the company expects diluted earnings per share to be in the range of $0.73 to $0.75 on adjusted basis.
Operating cash flow improves significantly
RealPage, Inc. has generated cash of $105.12 million from operating activities during the nine month period, up 53.43 percent or $36.61 million, when compared with the last year period.
The company has spent $135.40 million cash to meet investing activities during the nine month period as against cash outgo of $63.93 million in the last year period.
Cash flow from financing activities was $68.42 million for the nine month period as against cash outgo of $12.69 million in the last year period.
Cash and cash equivalents stood at $69.09 million as on Sep. 30, 2016, up 272.13 percent or $50.52 million from $18.57 million on Sep. 30, 2015.
Working capital turns positive
Working capital of RealPage, Inc. has turned positive to $20.98 million on Sep. 30, 2016 from negative $9.50 million on Sep. 30, 2015. Current ratio was at 1.09 as on Sep. 30, 2016, up from 0.96 on Sep. 30, 2015.
Days sales outstanding went down to 46 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went down to 27 days for the quarter from 29 for the same period last year.
Debt increases substantially
RealPage, Inc. has witnessed an increase in total debt over the last one year. It stood at $122.86 million as on Sep. 30, 2016, up 179.22 percent or $78.86 million from $44 million on Sep. 30, 2015. Short-term debt stood at $4.69 million as on Sep. 30, 2016. Total debt was 16.24 percent of total assets as on Sep. 30, 2016, compared with 7.39 percent on Sep. 30, 2015. Debt to equity ratio was at 0.35 as on Sep. 30, 2016, up from 0.14 as on Sep. 30, 2015.
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
