SP Plus Corporation (SP) has reported a 269.23 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $9.60 million, or $0.43 a share in the quarter, compared with $2.60 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.50 million, or $0.52 a share compared with $6.50 million or $0.29 a share, a year ago. Revenue during the quarter went up marginally by 0.20 percent to $406.20 million from $405.40 million in the previous year period. Gross margin for the quarter expanded 180 basis points over the previous year period to 11.60 percent. Total expenses were 95.77 percent of quarterly revenues, down from 98.30 percent for the same period last year. This has led to an improvement of 253 basis points in operating margin to 4.23 percent.
Operating income for the quarter was $17.20 million, compared with $6.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $27.30 million compared with $20.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 161 basis points in the quarter to 6.72 percent from 5.11 percent in the last year period.
G Marc Baumann, president and chief executive officer, stated, “We are very pleased with the significant progress we’ve made on our key strategic priorities and the strong financial results we produced in 2016. Most notably, we’ve streamlined our organization and optimized processes to reduce costs and improve productivity, as well as implemented new safety and risk programs to reduce our total cost of risk. Successful execution on these initiatives helped drive strong bottom-line performance for the fourth quarter and full year. We are seeing growth across many of our industry verticals and geographic markets and were able to once again achieve record new business as well as maintain a high level of location retention. Finally, the business continued to generate significant adjusted free cash flow of $46.4 million for the 2016 fiscal year, an increase of 26%.”
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.55 to $1.65. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.55 to $1.65 on adjusted basis.
Operating cash flow improves significantly SP Plus Corp has generated cash of $59.70 million from operating activities during the year, up 36.93 percent or $16.10 million, when compared with the last year. The company has spent $13.80 million cash to meet investing activities during the year as against cash outgo of $11.80 million in the last year. It has incurred net capital expenditure of $13.80 million on net basis during the year, up 16.95 percent or $2 million from year ago.
The company has spent $42.10 million cash to carry out financing activities during the year as against cash outgo of $30.60 million in the last year period.
Cash and cash equivalents stood at $22.20 million as on Dec. 31, 2016, up 18.72 percent or $3.50 million from $18.70 million on Dec. 31, 2015.
Working capital remains negative Working capital of SP Plus Corporation was negative $72.30 million on Dec. 31, 2016 compared with negative $57.60 million on Dec. 31, 2015. Current ratio was at 0.68 as on Dec. 31, 2016, down from 0.72 on Dec. 31, 2015.
Debt comes down SP Plus Corporation has recorded a decline in total debt over the last one year. It stood at $195.10 million as on Dec. 31, 2016, down 13.33 percent or $30 million from $225.10 million on Dec. 31, 2015. Total debt was 25.06 percent of total assets as on Dec. 31, 2016, compared with 28.71 percent on Dec. 31, 2015. Debt to equity ratio was at 0.73 as on Dec. 31, 2016, down from 0.90 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 7.17 for the quarter from 2.56 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
