Verisk Analytics, Inc. (VRSK) has reported 3.95 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $109.30 million, or $0.64 a share in the quarter, compared with $113.80 million, or $0.66 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $135.40 million, or $0.80 a share compared with $128.30 million or $0.74 a share, a year ago. Revenue during the quarter grew 6.01 percent to $506.10 million from $477.40 million in the previous year period. Gross margin for the quarter contracted 445 basis points over the previous year period to 61.87 percent. Total expenses were 63.35 percent of quarterly revenues, up from 61 percent for the same period last year. That has resulted in a contraction of 235 basis points in operating margin to 36.65 percent.
Operating income for the quarter was $185.50 million, compared with $186.20 million in the previous year period.
Scott Stephenson, chairman, president and chief executive officer, said, "We delivered another quarter of revenue growth, leading margins, and strong cash generation despite currency and energy end-market headwinds. The resilience of our financial performance reflects the distinctiveness of our businesses and the outstanding dedication of our people. Our initiatives during the year position us well to execute on our plans for 2017."
Operating cash flow declinesVerisk Analytics, Inc. has generated cash of $546.10 million from operating activities during the year, down 12.44 percent or $77.60 million, when compared with the last year. Cash flow from investing activities was $493.20 million from investing activities during the year as against cash outgo of $3,006.30 million in the last year.
The company has spent $1,032.80 million cash to carry out financing activities during the year as against cash inflow of $2,481 million in the last year period.
Cash and cash equivalents stood at $135.10 million as on Dec. 31, 2016, down 2.31 percent or $3.20 million from $138.30 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Verisk Analytics, Inc. was negative $120.70 million on Dec. 31, 2016 compared with negative $874.69 million on Dec. 31, 2015. Current ratio was at 0.81 as on Dec. 31, 2016, up from 0.41 on Dec. 31, 2015.
Debt comes down
Verisk Analytics, Inc. has recorded a decline in total debt over the last one year. It stood at $2,387 million as on Dec. 31, 2016, down 24.12 percent or $758.70 million from $3,145.70 million on Dec. 31, 2015. Total debt was 51.54 percent of total assets as on Dec. 31, 2016, compared with 56.01 percent on Dec. 31, 2015. Debt to equity ratio was at 1.79 as on Dec. 31, 2016, down from 2.29 as on Dec. 31, 2015. Interest coverage ratio improved to 6.53 for the quarter from 5.73 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
