TriNet Group, Inc (TNET) has reported 370.81 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $14.58 million, or $0.20 a share in the quarter, compared with $3.10 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $20.80 million, or $0.29 a share compared with $13.34 million or $0.19 a share, a year ago.
Revenue during the quarter grew 15.34 percent to $770.46 million from $668.01 million in the previous year period. Gross margin for the quarter expanded 2 basis points over the previous year period to 14.39 percent. Total expenses were 96.24 percent of quarterly revenues, down from 98.25 percent for the same period last year. This has led to an improvement of 201 basis points in operating margin to 3.76 percent.
Operating income for the quarter was $28.97 million, compared with $11.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $45.40 million compared with $30.82 million in the prior year period. At the same time, adjusted EBITDA margin improved 128 basis points in the quarter to 5.89 percent from 4.61 percent in the last year period.
“Our third quarter results reflect continued progress on our strategic growth initiatives,” said Burton M. Goldfield, TriNet’s President and Chief executive officer. “During the quarter, we launched a new vertical product, TriNet Technology, and today we announced the availability of our fourth industry specific product, TriNet Financial Services, strengthening our ability to serve our key vertical markets. We believe we are well positioned to end the year with strong momentum.”
Operating cash flow drops significantly
TriNet Group, Inc has generated cash of $78.11 million from operating activities during the nine month period, down 25.27 percent or $26.41 million, when compared with the last year period.
The company has spent $17.41 million cash to meet investing activities during the nine month period as against cash outgo of $33.21 million in the last year period.
The company has spent $66.41 million cash to carry out financing activities during the nine month period as against cash outgo of $59.10 million in the last year period.
Cash and cash equivalents stood at $160.56 million as on Sep. 30, 2016, up 9.73 percent or $14.24 million from $146.32 million on Sep. 30, 2015.
Working capital increases sharply
TriNet Group, Inc has recorded an increase in the working capital over the last year. It stood at $105.66 million as at Sep. 30, 2016, up 94.19 percent or $51.25 million from $54.41 million on Sep. 30, 2015. Current ratio was at 1.11 as on Sep. 30, 2016, up from 1.05 on Sep. 30, 2015.
At the same time, days payable outstanding was almost stable at 2 days for the quarter, when compared with the previous year period.
Debt comes down
TriNet Group, Inc has recorded a decline in total debt over the last one year. It stood at $468.14 million as on Sep. 30, 2016, down 7.26 percent or $36.62 million from $504.76 million on Sep. 30, 2015. Total debt was 29.25 percent of total assets as on Sep. 30, 2016, compared with 31.36 percent on Sep. 30, 2015.
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