WisdomTree Investments, Inc. (WETF) has reported an 87.93 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $2.48 million, or $0.02 a share in the quarter, compared with $20.53 million, or $0.15 a share for the same period last year. On an adjusted basis, the company has earned $4.15 million, or $0.03 a share for the quarter. Revenue during the quarter plunged 33.59 percent to $50.80 million from $76.49 million in the previous year period. Total expenses were 83.25 percent of quarterly revenues, up from 53.33 percent for the same period last year. That has resulted in a contraction of 2991 basis points in operating margin to 16.75 percent.
Operating income for the quarter was $8.51 million, compared with $35.69 million in the previous year period.
WisdomTree chief executive officer and President Jonathan Steinberg said, "Negative sentiment around our two largest exposures in 2016 overshadowed several noteworthy accomplishments. From an asset gathering standpoint we generated a record $1.9 billion of inflows into our U.S. Equity suite in addition to launching the industry’s most successful new ETF - the WisdomTree Dynamic Currency Hedged International Equity ETF (DDWM)."
Operating cash flow drops significantly
WisdomTree Investments, Inc. has generated cash of $54.91 million from operating activities during the year, down 64.60 percent or $100.20 million, when compared with the last year. The company has spent $89.26 million cash to meet investing activities during the year as against cash outgo of $12.32 million in the last year.
The company has spent $82.84 million cash to carry out financing activities during the year as against cash outgo of $98.14 million in the last year period.
Cash and cash equivalents stood at $92.72 million as on Dec. 31, 2016, down 55.86 percent or $117.35 million from $210.07 million on Dec. 31, 2015.
Working capital drops significantly
Wisdomtree Investments has witnessed a decline in the working capital over the last year. It stood at $132.60 million as at Dec. 31, 2016, down 30.74 percent or $58.86 million from $191.45 million on Dec. 31, 2015. Current ratio was at 3.97 as on Dec. 31, 2016, down from 4.90 on Dec. 31, 2015.
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