ENSERVCO (ENSV) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.05 million in the quarter, against a net loss of $1.08 million in the last year period. Revenue during the quarter surged 65.82 percent to $13.77 million from $8.31 million in the previous year period. Operating margin for the quarter period stood at positive 5.68 percent as compared to a negative 15.33 percent for the previous year period.
Operating income for the quarter was $0.78 million, compared with an operating loss of $1.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.52 million compared with $0.66 million in the prior year period. At the same time, adjusted EBITDA margin improved 1032 basis points in the quarter to 18.28 percent from 7.96 percent in the last year period.
"We are pleased to announce solid year over year growth in revenue and adjusted EBITDA in the first quarter," said Ian Dickinson, Chief executive officer. "After two difficult years for our industry, we are off to a strong start in 2017, which we expect to be a rebound year for ENSERVCO as industry activity continues to pick up and the investments we made in our business before and during the downturn yield increasingly positive results.
Operating cash flow turns negative
ENSERVCO has spent $2.38 million cash to meet operating activities during the quarter as against cash inflow of $2.93 million in the last year period. The company has spent $0.62 million cash to meet investing activities during the quarter as against cash outgo of $4.50 million in the last year period.
Cash flow from financing activities was $2.52 million for the quarter, up 7.13 percent or $0.17 million, when compared with the last year period.
Cash and cash equivalents stood at $0.14 million as on Mar. 31, 2017, down 91.03 percent or $1.45 million from $1.59 million on Mar. 31, 2016.
Working capital increases sharply
ENSERVCO has recorded an increase in the working capital over the last year. It stood at $7.11 million as at Mar. 31, 2017, up 70.79 percent or $2.95 million from $4.16 million on Mar. 31, 2016. Current ratio was at 2.66 as on Mar. 31, 2017, up from 2.49 on Mar. 31, 2016.
Days sales outstanding went down to 56 days for the quarter compared with 62 days for the same period last year.
Debt moves up
ENSERVCO has witnessed an increase in total debt over the last one year. It stood at $26.38 million as on Mar. 31, 2017, up 12.39 percent or $2.91 million from $23.47 million on Mar. 31, 2016. Total debt was 57.94 percent of total assets as on Mar. 31, 2017, compared with 50.28 percent on Mar. 31, 2016. Debt to equity ratio was at 1.81 as on Mar. 31, 2017, up from 1.38 as on Mar. 31, 2016. 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: [email protected]
