Foresight Energy (FELP) saw its loss widen to $111.18 million in the quarter ended compared with $41.70 million a year ago. Revenue during the quarter surged 38.72 percent to $230.39 million from $166.08 million in the previous year period. Gross margin for the quarter contracted 55 basis points over the previous year period to 45.43 percent. Total expenses were 92 percent of quarterly revenues, down from 99.27 percent for the same period last year. This has led to an improvement of 727 basis points in operating margin to 8 percent.
Operating income for the quarter was $18.43 million, compared with $1.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $63.97 million compared with $50.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 249 basis points in the quarter to 27.77 percent from 30.25 percent in the last year period.
"The first quarter was successful for Foresight as we realized significant year-over-year improvements in sales volumes, coal sales and production costs, as our operations continued to perform exceptionally well," said Mr. Robert D. Moore, chairman, president and chief executive officer. "We were able to take advantage of improved capital markets during the first quarter and successfully complete the refinancing of our indebtedness. The new facilities extend maturities well into the future, lower our effective interest rate compared to the August 2016 restructuring, provides Foresight with adequate headroom under the new financial covenants, and, importantly, prevents massive dilution to the current unitholders by refinancing the former exchangeable notes prior to their maturity," stated Mr. Moore.
Operating cash flow drops significantly
Foresight Energy has generated cash of $22.39 million from operating activities during the quarter, down 34.57 percent or $ 11.83 million, when compared with the last year period. The company has spent $13.78 million cash to meet investing activities during the quarter as against cash outgo of $4.30 million in the last year period. It has incurred capital expenditure of $18.01 million on net basis during the quarter, up 263.32 percent or $13.05 million from year ago period.
The company has spent $108.06 million cash to carry out financing activities during the quarter as against cash outgo of $31.24 million in the last year period.
Cash and cash equivalents stood at $4.24 million as on Mar. 31, 2017, down 73.89 percent or $11.98 million from $16.22 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Foresight Energy was negative $45.30 million on Mar. 31, 2017 compared with negative $1,343.82 million on Mar. 31, 2016. Current ratio was at 0.80 as on Mar. 31, 2017, up from 0.13 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 1 days for the quarter from 41 days for the last year period. Days sales outstanding went down to 27 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 54 for the same period last year.
Debt comes down marginally
Foresight Energy has recorded a decline in total debt over the last one year. It stood at $1,367.78 million as on Mar. 31, 2017, down 2.64 percent or $37.10 million from $1,404.87 million on Mar. 31, 2016. Long-term debt stood at $1,300 million as on Mar. 31, 2017. Total debt was 47.76 percent of total assets as on Mar. 31, 2017, compared with 79.69 percent on Mar. 31, 2016. Interest coverage ratio improved to 0.42 for the quarter from 0.04 for the same period last year.
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