Willis Towers Watson (WSH) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $32 million, or $ 0.23 a share in the quarter, against a net profit of $117 million, or $1.70 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $143 million, or $1.04 a share compared with $38 million or $0.56 a share, a year ago.
Revenue during the quarter surged 110.05 percent to $1,777 million from $846 million in the previous year period.
Total expenses increase substantially
Operating income for the quarter was $1 million, compared with $27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $275 million compared with $111 million in the prior year period. At the same time, adjusted EBITDA margin improved 235 basis points in the quarter to 15.48 percent from 13.12 percent in the last year period.
For financial year 2016, the company projects diluted earnings per share to be in the range of $2.30 to $2.50. For financial year 2016, the company projects diluted earnings per share to be in the range of $7.60 to $7.80 on adjusted basis.
Meanwhile, income from fees and commission for the quarter jumped 109.39 percent or $920 million to $1,761 million.
"We continue to deliver revenue growth led by the acquisition of Gras Savoye and organically by Exchange Solutions," said John Haley, Willis Towers Watson’s chief executive officer. "I am pleased with the progress against our integration plans, revenue synergy activities and our enhanced efforts to manage profit margin. We expect to see strong earnings growth for 2016 and I remain very confident in achieving our long-term merger objectives."
Operating cash flow improves significantly
Willis Towers Watson has generated cash of $608 million from operating activities during the nine month period, up 438.05 percent or $495 million, when compared with the last year period.
Cash flow from investing activities was $283 million for the nine month period as against cash outgo of $348 million in the last year period.
The company has spent $646 million cash to carry out financing activities during the nine month period as against cash inflow of $94 million in the last year period.
Cash and cash equivalents stood at stood at $767 million as at Sep. 30, 2016.
Total assets stood at $31,801million as on Sep. 30, 2016. On the other hand, total liabilities were at $20,847 million as on Sep. 30, 2016.
Return on assets was negative at 0.10 percent in the quarter. Return on equity was negative at 0.29 percent in the quarter.
Total debt was at $3,786 million as on Sep. 30, 2016. Shareholders equity was at $10,901 million as on Sep. 30, 2016. As a result, debt to equity ratio was at 0.35 percent in the quarter.
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