Energy Recovery Inc. (ERII) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $1.03 million, or $ 0.02 a share in the year, against a net loss of $11.64 million, or $0.22 a share in the last year. On the other hand, adjusted net income for the year stood at $2.04 million, or $0.04 a share. Revenue during the year grew 11.19 percent to $49.72 million from $44.71 million in the previous year.
Operating income for the year was $0.36 million, compared with an operating loss of $11.79 million in the previous year.
However, the adjusted EBITDA for the year stood at $4.04 million.
Joel Gay, President and Chief Executive Officer said, "2016 was a record year for the Company: record revenues in our oil & gas segment, record full year product and total gross margin(1), four consecutive quarters of record gross margins(1) and record full year gross profitability(1). Two years ago on the fiscal year 2014 earnings call, I established the objective of achieving break-even profitability within 24 months. In generating $1.0 million in net income, we not only fulfilled this commitment but returned to the black for the first time since 2009, and did so by a healthy margin."
Operating cash flow drops significantly
Energy Recovery Inc. has generated cash of $4.96 million from operating activities during the year, down 92.81 percent or $64.09 million, when compared with the last year. The company has spent $40.71 million cash to meet investing activities during the year as against cash inflow of $14.02 million in the last year.
The company has spent $2.78 million cash to carry out financing activities during the year as against cash inflow of $1.37 million in the last year period.
Cash and cash equivalents stood at $61.36 million as on Dec. 31, 2016, down 38.59 percent or $38.57 million from $99.93 million on Dec. 31, 2015.
Working capital decreases marginally
Energy Recovery Inc. has witnessed a decline in the working capital over the last year. It stood at $105.21 million as at Dec. 31, 2016, down 2.14 percent or $2.30 million from $107.51 million on Dec. 31, 2015. Current ratio was at 7.13 as on Dec. 31, 2016, down from 7.71 on Dec. 31, 2015.
Debt comes down
Energy Recovery Inc. has recorded a decline in total debt over the last one year. It stood at $0.04 million as on Dec. 31, 2016, down 20.83 percent or $0.01 million from $0.05 million on Dec. 31, 2015. Total debt was 0.03 percent of total assets as on Dec. 31, 2016, compared with 0.03 percent on Dec. 31, 2015.
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