Cloud Peak Energy Inc (CLD) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.58 million, or $ 0.03 a share in the quarter, against a net profit of $8.87 million, or $0.14 a share in the last year period. On an adjusted basis, earnings per share were at $0.06 for the quarter compared with $0.24 in the same period last year. Revenue during the quarter dropped 28.04 percent to $217.07 million from $301.67 million in the previous year period. Gross margin for the quarter expanded 669 basis points over the previous year period to 24.32 percent. Total expenses were 95 percent of quarterly revenues, up from 94.21 percent for the same period last year. That has resulted in a contraction of 78 basis points in operating margin to 5 percent.
Operating income for the quarter was $10.86 million, compared with $17.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $40.60 million compared with $39 million in the prior year period. At the same time, adjusted EBITDA margin improved 578 basis points in the quarter to 18.70 percent from 12.93 percent in the last year period.
Colin Marshall, President and Chief Executive Officer, commented, “This was a very good quarter for Cloud Peak Energy. The warm summer led to increased shipments that resulted in lower per ton costs and strong Adjusted EBITDA. The mines ran very well with great cost control and no safety or environmental incidents.”
Operating cash flow drops significantly
Cloud Peak Energy Inc has generated cash of $36.33 million from operating activities during the nine month period, down 41.46 percent or $25.73 million, when compared with the last year period. The company has spent $30.05 million cash to meet investing activities during the nine month period as against cash outgo of $41.75 million in the last year period.
The company has spent $5.29 million cash to carry out financing activities during the nine month period as against cash outgo of $65.54 million in the last year period.
Cash and cash equivalents stood at $90.30 million as on Sep. 30, 2016, down 26.89 percent or $33.22 million from $123.52 million on Sep. 30, 2015.
Working capital declines
Cloud Peak Energy Inc has witnessed a decline in the working capital over the last year. It stood at $86.02 million as at Sep. 30, 2016, down 6.56 percent or $6.04 million from $92.07 million on Sep. 30, 2015. Current ratio was at 1.61 as on Sep. 30, 2016, up from 1.40 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 28 days for the last year period. Days sales outstanding went up to 21 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding went up to 21 days for the quarter from 19 for the same period last year.
Debt remains almost stable
Total debt of Cloud Peak Energy Inc remained almost stable for the quarter at $492.31 million, when compared with the last year period. Long-term debt of Cloud Peak Energy remained almost stable for the quarter at $492.31 million, when compared with the last year period. Total debt was 28.51 percent of total assets as on Sep. 30, 2016, compared with 24.56 percent on Sep. 30, 2015. Debt to equity ratio was at 0.53 as on Sep. 30, 2016, up from 0.47 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.83 for the quarter from 1.59 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]
