Public Service Enterprise Group (PEG) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $98 million, or $ 0.19 a share in the quarter, against a net profit of $309 million, or $0.60 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $279 million, or $0.54 a share compared with $255 million or $0.50 a share, a year ago.
Revenue during the quarter dropped 8.25 percent to $2,090 million from $2,278 million in the previous year period. Gross margin for the quarter contracted 227 basis points over the previous year period to 67.70 percent. Operating margin for the quarter stood at negative 8.37 percent as compared to a positive 23.35 percent for the previous year period.
Operating loss for the quarter was $175 million, compared with an operating income of $532 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $155 million compared with $218 million in the prior year period. At the same time, adjusted EBITDA margin contracted 215 basis points in the quarter to 7.42 percent from 9.57 percent in the last year period.
"We delivered strong results in 2016 with full year non-GAAP Operating Earnings solidly within the range of our guidance" said Ralph Izzo, chairman, president and chief executive officer. "Continued growth at our regulated utility and a disciplined approach to expenses across Enterprise supported results. The Board’s recent decision to increase the common dividend by 4.9% to the indicative annual level of $1.72 per share represents confidence in our firm’s investment strategy and an acknowledgment of our strong financial condition."
For the fiscal year 2017, Public Service Enterprise Group forecasts adjusted net income to be in the range of $1,415 million to $1,530 million. The company forecasts diluted earnings per share to be in the range of $2.80 to $3 on adjusted basis.
Operating cash flow declines
Public Service Enterprise Group has generated cash of $3,311 million from operating activities during the year, down 15.51 percent or $608 million, when compared with the last year.
The company has spent $4,248 million cash to meet investing activities during the year as against cash outgo of $3,942 million in the last year.
Cash flow from financing activities was $966 million for the year, up 6,340 percent or $951 million, when compared with the last year.
Cash and cash equivalents stood at $423 million as on Dec. 31, 2016, up 7.36 percent or $29 million from $394 million on Dec. 31, 2015.
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