Tyler Technologies, Inc. (TYL) has reported a 261.99 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $31.20 million, or $0.80 a share in the quarter, compared with $8.62 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.23 million, or $0.90 a share compared with $22.40 million or $0.59 a share, a year ago. Revenue during the quarter grew 21.62 percent to $193.28 million from $158.92 million in the previous year period. Gross margin for the quarter expanded 195 basis points over the previous year period to 48.02 percent. Total expenses were 81.68 percent of quarterly revenues, down from 87.55 percent for the same period last year. This has led to an improvement of 587 basis points in operating margin to 18.32 percent.
Operating income for the quarter was $35.40 million, compared with $19.78 million in the previous year period.
However, the adjusted operating income for the quarter stood at $54.84 million compared to $40.73 million in the prior year period. At the same time, adjusted operating margin improved 275 basis points in the quarter to 28.38 percent from 25.63 percent in the last year period.
"Our fourth quarter performance provided a strong finish to another great year for Tyler," said John S. Marr Jr., Tyler’s chairman and chief executive officer. "Software licenses and royalties revenue grew 38 percent, of which 20 percent was organic, and subscription revenue grew 23 percent, which was almost all organic. With the addition of New World's operations for a full year, we achieved exceptional margin expansion while investing in product development at a high level, as our non-GAAP gross and operating margins increased by 270 and 300 basis points, respectively. Without the increase in diluted shares resulting from the adoption of ASU 2016-09, our fourth quarter and full year non-GAAP diluted earnings per share would have been $0.91 and $3.53, respectively."
For financial year 2017, Tyler Technologies, Inc. expects revenue to be in the range of $844 million to $854 million and adjusted revenue to be in the range of $845 million to $855 million. The company projects diluted earnings per share to be in the range of $3.26 to $3.34. It company projects diluted earnings per share to be in the range of $3.83 to $3.91 on adjusted basis.
Operating cash flow improves significantly
Tyler Technologies, Inc. has generated cash of $191.86 million from operating activities during the year, up 42.83 percent or $57.53 million, when compared with the last year. The company has spent $50.72 million cash to meet investing activities during the year as against cash outgo of $398.46 million in the last year.
The company has spent $138.08 million cash to carry out financing activities during the year as against cash inflow of $91.05 million in the last year period.
Cash and cash equivalents stood at $36.15 million as on Dec. 31, 2016, up 9.26 percent or $3.06 million from $33.09 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Tyler Technologies, Inc. was negative $78.54 million on Dec. 31, 2016 compared with negative $69.36 million on Dec. 31, 2015. Current ratio was at 0.78 as on Dec. 31, 2016, down from 0.79 on Dec. 31, 2015.
Days sales outstanding went down to 48 days for the quarter compared with 57 days for the same period last year.
Debt comes down significantly
Tyler Technologies, Inc. has recorded a decline in total debt over the last one year. It stood at $10 million as on Dec. 31, 2016, down 84.85 percent or $56 million from $66 million on Dec. 31, 2015. Tyler Technologies has recorded a decline in long-term debt over the last one year. It stood at $10 million as on Dec. 31, 2016, down 84.85 percent or $56 million from $66 million on Dec. 31, 2015. Total debt was 0.74 percent of total assets as on Dec. 31, 2016, compared with 4.87 percent on Dec. 31, 2015. Debt to equity ratio was at 0.01 as on Dec. 31, 2016, down from 0.08 as on Dec. 31, 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
