Vantiv Inc (VNTV) has reported a 59.78 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $66.30 million, or $0.41 a share in the quarter, compared with $41.49 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $140.86 million, or $0.71 a share compared with $118.54 million or $0.59 a share, a year ago.
Revenue during the quarter grew 12.01 percent to $914.02 million from $816 million in the previous year period. Total expenses were 82.67 percent of quarterly revenues, down from 85.38 percent for the same period last year. This has led to an improvement of 272 basis points in operating margin to 17.33 percent.
Operating income for the quarter was $158.44 million, compared with $119.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $236.88 million compared with $208.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 38 basis points in the quarter to 25.92 percent from 25.54 percent in the last year period.
“Our business continues to generate high rates of organic growth,” said Charles Drucker, president and chief executive officer at Vantiv. “Our ability to deliver superior financial results by consistently winning market share speaks to the strength of our people and their consistent focus on execution.”
For the fourth-quarter, Vantiv expects revenue to be in the range of $488 million to $498 million. Vantiv expects revenue to be in the range of $1,890 million to $1,900 million for financial year 2016. The company projects diluted earnings per share to be in the range of $0.39 to $0.41 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $1.43 to $1.45. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.70 to $0.72 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $2.67 to $2.69 on adjusted basis.
Operating cash flow declines
Vantiv Inc has generated cash of $430.40 million from operating activities during the nine month period, down 15.04 percent or $76.16 million, when compared with the last year period.
The company has spent $117.52 million cash to meet investing activities during the nine month period as against cash outgo of $103.66 million in the last year period.
The company has spent $326.15 million cash to carry out financing activities during the nine month period as against cash outgo of $526.91 million in the last year period.
Cash and cash equivalents stood at $183.82 million as on Sep. 30, 2016, down 36.08 percent or $103.74 million from $287.56 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Vantiv Inc was negative $226.67 million on Sep. 30, 2016 compared with negative $29.23 million on Sep. 30, 2015. Current ratio was at 0.84 as on Sep. 30, 2016, down from 0.97 on Sep. 30, 2015.
Days sales outstanding went up to 67 days for the quarter compared with 66 days for the same period last year.
Debt comes down marginally
Vantiv Inc has recorded a decline in total debt over the last one year. It stood at $2,997.35 million as on Sep. 30, 2016, down 4.54 percent or $142.68 million from $3,140.03 million on Sep. 30, 2015. Total debt was 47.21 percent of total assets as on Sep. 30, 2016, compared with 51.39 percent on Sep. 30, 2015. Debt to equity ratio was at 1.91 as on Sep. 30, 2016, down from 2.44 as on Sep. 30, 2015.
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