Eversource Energy (ES) has reported a 12.46 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $265.32 million, or $0.83 a share in the quarter, compared with $235.92 million, or $0.74 a share for the same period last year.
Revenue during the quarter grew 5.51 percent to $2,039.71 million from $1,933.10 million in the previous year period. Gross margin for the quarter expanded 371 basis points over the previous year period to 67.36 percent. Total expenses were 75 percent of quarterly revenues, down from 75.73 percent for the same period last year. This has led to an improvement of 72 basis points in operating margin to 25 percent.
Operating income for the quarter was $509.87 million, compared with $469.24 million in the previous year period.
"We look forward to completing a successful 2016," said Jim Judge, Eversource president and chief executive officer. "Our earnings are on track to achieve our full-year guidance of $2.90-$3.05 per share and we continue to be confident in our long-term earnings and dividend growth rate of 5-7 percent. Additionally, our service reliability levels, despite the challenge of a hot summer and increased storm activity, continue to place us in the upper tier of utilities."
Operating cash flow improves
Eversource Energy has generated cash of $1,650.37 million from operating activities during the nine month period, up 22.13 percent or $299.05 million, when compared with the last year period.
The company has spent $1,361.62 million cash to meet investing activities during the nine month period as against cash outgo of $1,158.52 million in the last year period.
The company has spent $272.64 million cash to carry out financing activities during the nine month period as against cash outgo of $195.72 million in the last year period.
Cash and cash equivalents stood at $40.06 million as on Sep. 30, 2016, up 11.95 percent or $4.27 million from $35.78 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Eversource Energy was negative $227.38 million on Sep. 30, 2016 compared with negative $604.01 million on Sep. 30, 2015. Current ratio was at 0.91 as on Sep. 30, 2016, up from 0.80 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 28 days for the quarter from 4 days for the last year period. Days sales outstanding went down to 42 days for the quarter compared with 47 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went up to 91 days for the quarter from 90 for the same period last year.
Debt moves up marginally
Eversource Energy has witnessed an increase in total debt over the last one year. It stood at $10,343.51 million as on Sep. 30, 2016, up 3.42 percent or $341.63 million from $10,001.88 million on Sep. 30, 2015. Total debt was 33.28 percent of total assets as on Sep. 30, 2016, compared with 33.29 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.97 as on Sep. 30, 2016, when compared with the last year. Interest coverage ratio improved to 5.11 for the quarter from 5.07 for the same period last year.
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