Genesee Wyoming (GWR) has reported 10.38 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $56.78 million, or $0.98 a share in the quarter, compared with $63.36 million, or $1.10 a share for the same period last year. Revenue during the quarter dropped 8.29 percent to $501 million from $546.30 million in the previous year period. Total expenses were 81.67 percent of quarterly revenues, up from 78.48 percent for the same period last year. That has resulted in a contraction of 319 basis points in operating margin to 18.33 percent.
Operating income for the quarter was $91.85 million, compared with $117.56 million in the previous year period.
However, the adjusted operating income for the quarter stood at $95.80 million compared to $118.30 million in the prior year period.
Jack Hellmann, president and chief executive officer of G W, commented, "Our financial results for the third quarter of 2016 were consistent with our expectations with reported diluted EPS of $0.98 and adjusted diluted EPS of $0.95. In North America, better than expected steam coal shipments combined with strong cost controls yielded a better than expected operating ratio of 71.9%. In Australia, financial results were in-line with our outlook as we continued to effectively manage costs in the weak commodity environment. In the U.K. Europe, our financial results in the first full quarter since we restructured the U.K. coal business were below our expectations for three reasons: congestion in the port of Felixstowe which weakened U.K. intermodal shipments; unscheduled reductions in U.K. infrastructure services; and weak performance from continental European intermodal."
Operating cash flow declinesGenesee Wyoming has generated cash of $303.56 million from operating activities during the nine month period, down 11.82 percent or $40.70 million, when compared with the last year period. The company has spent $117.25 million cash to meet investing activities during the nine month period as against cash outgo of $986.06 million in the last year period. It has incurred net capital expenditure of $157.52 million on net basis during the nine month period, down 42.28 percent or $115.41 million from year ago period.
The company has spent $197.66 million cash to carry out financing activities during the nine month period as against cash inflow of $630.68 million in the last year period.
Cash and cash equivalents stood at $26.37 million as on Sep. 30, 2016, down 32.35 percent or $12.61 million from $38.97 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Genesee Wyoming has turned negative to $8.77 million on Sep. 30, 2016 from positive $44.70 million on Sep. 30, 2015. Current ratio was at 0.98 as on Sep. 30, 2016, down from 1.09 on Sep. 30, 2015.
Days sales outstanding went up to 69 days for the quarter compared with 63 days for the same period last year.
Debt comes down
Genesee Wyoming has recorded a decline in total debt over the last one year. It stood at $2,063.49 million as on Sep. 30, 2016, down 10.27 percent or $236.29 million from $2,299.78 million on Sep. 30, 2015. Total debt was 31.19 percent of total assets as on Sep. 30, 2016, compared with 34.24 percent on Sep. 30, 2015. Debt to equity ratio was at 0.78 as on Sep. 30, 2016, down from 0.95 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 5.30 for the quarter from 6.73 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
