Foresight Energy LP (FELP) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $24.29 million in the quarter, against a net profit of $8.07 million in the last year period. Revenue during the quarter dropped 8.79 percent to $230.82 million from $253.07 million in the previous year period. Gross margin for the quarter expanded 479 basis points over the previous year period to 52.13 percent. Total expenses were 86.39 percent of quarterly revenues, up from 84.95 percent for the same period last year. That has resulted in a contraction of 144 basis points in operating margin to 13.61 percent.
Operating income for the quarter was $31.41 million, compared with $38.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $85.40 million compared with $91.11 million in the prior year period. At the same time, adjusted EBITDA margin improved 100 basis points in the quarter to 37 percent from 36 percent in the last year period.
"Despite challenging market conditions and all of the activities related to the global restructuring of our indebtedness, we delivered very solid operating and financial results for the third quarter. These results demonstrate the superior quality of our asset base and our operational excellence," said Robert D. Moore, president and chief executive officer. "Our operating costs continue to be best-in-class and allow us to generate positive Adjusted EBITDA margins at all points in the commodity cycle. Additionally, domestic and export realizations showed modest improvement during the quarter allowing us to contract over 4.0 million tons for delivery though 2018."
Operating cash flow improves marginally
Foresight Energy LP has generated cash of $146.34 million from operating activities during the nine month period, up 4.70 percent or $6.57 million, when compared with the last year period. The company has spent $23.68 million cash to meet investing activities during the nine month period as against cash outgo of $124.32 million in the last year period.
The company has spent $63.36 million cash to carry out financing activities during the nine month period as against cash outgo of $16.96 million in the last year period.
Cash and cash equivalents stood at $76.85 million as on Sep. 30, 2016, up 207.47 percent or $51.85 million from $24.99 million on Sep. 30, 2015.
Working capital drops significantly
Foresight Energy LP has witnessed a decline in the working capital over the last year. It stood at $55.37 million as at Sep. 30, 2016, down 25.17 percent or $18.62 million from $73.99 million on Sep. 30, 2015. Current ratio was at 1.31 as on Sep. 30, 2016, down from 1.40 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 75 days for the last year period. Days sales outstanding went up to 33 days for the quarter compared with 30 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 27 for the same period last year.
Debt comes down
Foresight Energy LP has recorded a decline in total debt over the last one year. It stood at $1,413.20 million as on Sep. 30, 2016, down 5.51 percent or $82.45 million from $1,495.65 million on Sep. 30, 2015. Total debt was 81.41 percent of total assets as on Sep. 30, 2016, compared with 78.41 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.83 for the quarter from 1.27 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: editor@irisindia.net
