VeriFone trims debt by $48 million after ‘strong’ cash flow quarter

By Devika Patel

Knoxville, Tenn., Dec. 12 – VeriFone Systems, Inc. decreased its gross debt levels to $926 million, a $48 million drop, during the fourth quarter from the prior quarter, largely due to strong free cash flow generation of $44 million, an executive said on Monday.

“I am pleased to report a $48 million decrease in gross debt versus the prior quarter, driven mainly by our very strong free cash flow generation as well as further tax efficient repatriation of cash from our balance sheet,” chief financial officer Marc Rothman said on the company’s fourth-quarter earnings call on Monday.

The company had $67 million of cash from operations during the fourth quarter, and free cash flow generation was $44 million, “significantly better than the prior quarter and expectations,” Rothman said.

The company reported an operating cash flow of $194 million for the year and $67 million for the fourth quarter.

VeriFone ended the quarter with total cash of $148 million, gross debt of $926 million and net debt of $778 million.

The company’s total capital expenditures were $23 million in the fourth quarter.

VeriFone is a San Jose, Calif.-based secure electronic payment services company.

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