TransUnion (TRU) has reported a 394.44 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $62.30 million, or $0.33 a share in the quarter, compared with $12.60 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $80.20 million, or $0.42 a share compared with $58.20 million or $0.32 a share, a year ago.
Revenue during the quarter grew 12.15 percent to $455 million from $405.70 million in the previous year period. Gross margin for the quarter expanded 352 basis points over the previous year period to 66.77 percent. Total expenses were 77.78 percent of quarterly revenues, down from 87.21 percent for the same period last year. This has led to an improvement of 943 basis points in operating margin to 22.22 percent.
Operating income for the quarter was $101.10 million, compared with $51.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $171.60 million compared with $141.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 286 basis points in the quarter to 37.71 percent from 34.85 percent in the last year period.
"TransUnion delivered a strong first quarter, highlighted by double-digit revenue, Adjusted EBITDA and Adjusted EPS growth while continuing to expand Adjusted EBITDA margin," said Jim Peck, TransUnion's president and chief executive officer. "As a result of our unique combination of data assets, analytic capabilities and technology infrastructure, we are in a great position to continue to innovate and to drive growth in our core business, new verticals and international geographies. We are off to a solid start in 2017 and feel confident in the rest of the year and our long-term outlook."
For financial year 2017, TransUnion projects revenue to be in the range of $1,845 million to $1,860 million. It forecasts diluted earnings per share to be in the range of $1.74 to $1.79 on adjusted basis.
For the second-quarter, TransUnion projects revenue to be in the range of $460 million to $465 million. It forecasts diluted earnings per share to be in the range of $0.42 to $0.43 on an adjusted basis for the same period.
Operating cash flow improves significantly
TransUnion has generated cash of $67.30 million from operating activities during the quarter, up 61.39 percent or $25.60 million, when compared with the last year period.
The company has spent $76.20 million cash to meet investing activities during the quarter as against cash outgo of $161 million in the last year period.
The company has spent $43.40 million cash to carry out financing activities during the quarter as against cash inflow of $135.90 million in the last year period.
Cash and cash equivalents stood at $131.20 million as on Mar. 31, 2017, down 12.71 percent or $19.10 million from $150.30 million on Mar. 31, 2016.
Working capital drops significantly
TransUnion has witnessed a decline in the working capital over the last year. It stood at $132.20 million as at Mar. 31, 2017, down 37.76 percent or $80.20 million from $212.40 million on Mar. 31, 2016. Current ratio was at 1.35 as on Mar. 31, 2017, down from 1.75 on Mar. 31, 2016.
Days sales outstanding went down to 51 days for the quarter compared with 55 days for the same period last year.
At the same time, days payable outstanding was almost stable at 66 days for the quarter, when compared with the previous year period.
Debt moves up marginally
TransUnion has witnessed an increase in total debt over the last one year. It stood at $2,402 million as on Mar. 31, 2017, up 1.89 percent or $44.50 million from $2,357.50 million on Mar. 31, 2016. Total debt was 50.53 percent of total assets as on Mar. 31, 2017, compared with 49.85 percent on Mar. 31, 2016. Debt to equity ratio was at 1.64 as on Mar. 31, 2017, down from 1.70 as on Mar. 31, 2016. Interest coverage ratio improved to 4.70 for the quarter from 2.54 for the same period last year.
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