California Water Service Group (CWT) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1.13 million, or $ 0.02 a share in the quarter, against a net loss of $0.80 million, or $0.02 a share in the last year period. Revenue during the quarter went up marginally by 0.25 percent to $122.04 million from $121.73 million in the previous year period. Total expenses were 93.40 percent of quarterly revenues, down from 94.85 percent for the same period last year. This has led to an improvement of 145 basis points in operating margin to 6.60 percent.
Operating income for the quarter was $8.05 million, compared with $6.27 million in the previous year period.
According to president and chief executive officer Martin A. Kropelnicki, "the quarterly operating results were in line with the Company’s expectations and reflect the authorized rate increases that went into effect at the beginning of the year."
Working capital remains negativeWorking capital of California Water Service Group was negative $165.17 million on Mar. 31, 2017 compared with negative $9.58 million on Mar. 31, 2016. Current ratio was at 0.44 as on Mar. 31, 2017, down from 0.94 on Mar. 31, 2016. Days sales outstanding went down to 50 days for the quarter compared with 52 days for the same period last year.
Debt moves up
California Water Service Group has witnessed an increase in total debt over the last one year. It stood at $687.95 million as on Mar. 31, 2017, up 14.95 percent or $89.49 million from $598.46 million on Mar. 31, 2016. Total debt was 28.19 percent of total assets as on Mar. 31, 2017, compared with 26.02 percent on Mar. 31, 2016. Debt to equity ratio was at 1.06 as on Mar. 31, 2017, up from 0.95 as on Mar. 31, 2016. Interest coverage ratio improved to 0.98 for the quarter from 0.85 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]
