Foresight Energy LP (FELP) saw its loss widen to $85.01 million in the quarter ended compared with $64.43 million a year ago. Revenue during the quarter grew 4.66 percent to $252.92 million from $241.65 million in the previous year period. Gross margin for the quarter expanded 1619 basis points over the previous year period to 50.48 percent. Operating margin for the quarter stood at negative 8.89 percent as compared to a negative 12.27 percent for the previous year period.
Operating loss for the quarter was $22.48 million, compared with an operating loss of $29.66 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $98.04 million compared with $42.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 2126 basis points in the quarter to 38.76 percent from 17.51 percent in the last year period.
“Calendar year 2016 was extremely challenging for Foresight with a global restructuring of our debt obligations during a period of incredible decline in the coal industry. Despite many distractions, our operations performed exceptionally well. We delivered improved safety results and continued to lead the industry in terms of production and mining cost in the Illinois Basin. While coal markets were under unprecedented downward pressure during most of 2016, our mines generated strong positive cash flow despite operating well below capacity,” said Robert D. Moore, president and chief executive officer. “For the year, we saw moderate improvements in our per ton sales realizations and significant cost per ton improvements of over $1.30 per ton, which led to the generation of $225.2 million of operating cash. This improved operating performance resulted in Foresight ending the year with $103.7 million of cash compared to $17.5 million as of December 31, 2015. As previously mentioned, we have recently undertaken a process to take advantage of our operating successes and improvements in the capital markets to refinance and extend maturities of a portion or all of our existing indebtedness.”
Operating cash flow improves
Foresight Energy LP has generated cash of $225.22 million from operating activities during the year, up 12.38 percent or $24.81 million, when compared with the last year. The company has spent $47.63 million cash to meet investing activities during the year as against cash outgo of $138.78 million in the last year.
The company has spent $91.44 million cash to carry out financing activities during the year as against cash outgo of $70.60 million in the last year period.
Cash and cash equivalents stood at $103.69 million as on Dec. 31, 2016, up 491.23 percent or $86.15 million from $17.54 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Foresight Energy LP was negative $265.88 million on Dec. 31, 2016 compared with negative $1,348.35 million on Dec. 31, 2015. Current ratio was at 0.50 as on Dec. 31, 2016, up from 0.14 on Dec. 31, 2015.
Debt comes down marginally
Foresight Energy LP has recorded a decline in total debt over the last one year. It stood at $1,391.06 million as on Dec. 31, 2016, down 3.03 percent or $43.50 million from $1,434.57 million on Dec. 31, 2015. Long-term debt stood at $1,022.07 million as on Dec. 31, 2016. Total debt was 82.36 percent of total assets as on Dec. 31, 2016, compared with 78.09 percent on Dec. 31, 2015.
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