TerraForm Power, Inc (TERP) saw its loss widen to $26.17 million, or $0.29 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.82 million, or $0.03 a share. Revenue during the quarter grew 9.08 percent to $178.12 million from $163.29 million in the previous year period. Gross margin for the quarter contracted 894 basis points over the previous year period to 77.56 percent. Total expenses were 71.53 percent of quarterly revenues, up from 60.72 percent for the same period last year. That has resulted in a contraction of 1081 basis points in operating margin to 28.47 percent.
Operating income for the quarter was $50.71 million, compared with $64.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $132.37 million compared with $125.84 million in the prior year period. At the same time, adjusted EBITDA margin contracted 275 basis points in the quarter to 74.32 percent from 77.07 percent in the last year period.
“The reporting of our third quarter 2016 results demonstrates TerraForm Power’s continued progress in positioning the Company for success,” said Peter Blackmore, Chairman and Interim Chief executive officer of TerraForm Power. “The Board and management team are committed to strengthening operations and maximizing value for shareholders.”
Operating cash flow improves significantly
TerraForm Power, Inc has generated cash of $144.92 million from operating activities during the nine month period, up 37.68 percent or $39.66 million, when compared with the last year period. The company has spent $103.45 million cash to meet investing activities during the nine month period as against cash outgo of $1,795.07 million in the last year period.
The company has spent $127.28 million cash to carry out financing activities during the nine month period as against cash inflow of $1,858.46 million in the last year period.
Cash and cash equivalents stood at $540.15 million as on Sep. 30, 2016, down 15.05 percent or $95.67 million from $635.82 million on Sep. 30, 2015.
Working capital turns negative
Working capital of TerraForm Power, Inc has turned negative to $1,042.68 million on Sep. 30, 2016 from positive $618.65 million on Sep. 30, 2015. Current ratio was at 0.47 as on Sep. 30, 2016, down from 3.27 on Sep. 30, 2015.
Days sales outstanding went down to 56 days for the quarter compared with 60 days for the same period last year.
Debt increases substantially
TerraForm Power, Inc has witnessed an increase in total debt over the last one year. It stood at $4,012.27 million as on Sep. 30, 2016, up 57.57 percent or $1,465.88 million from $2,546.38 million on Sep. 30, 2015. Total debt was 50.18 percent of total assets as on Sep. 30, 2016, compared with 46.01 percent on Sep. 30, 2015. Debt to equity ratio was at 1.41 as on Sep. 30, 2016, up from 1.02 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.70 for the quarter from 1.31 for the same period last year. 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]
