Rhino Resource Partners LP (RHNO) saw its loss narrow to $3.78 million in the quarter ended compared with $9.31 million, a year ago. Revenue during the quarter dropped 16.34 percent to $43.42 million from $51.90 million in the previous year period. Gross margin for the quarter expanded 1068 basis points over the previous year period to 18.81 percent. Operating margin for the quarter stood at negative 6.65 percent as compared to a negative 17.48 percent for the previous year period.
Operating loss for the quarter was $2.89 million, compared with an operating loss of $9.07 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.60 million compared with $2.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 750 basis points in the quarter to 12.90 percent from 5.40 percent in the last year period.
Joe Funk, chief executive officer of Rhinos general partner, stated, "The sale of our Elk Horn coal leasing business, our strong cash generation and continued support of our sponsor, Royal Energy Resources, Inc. (OTCQB:ROYE) (“Royal”), allowed us to reduce our debt by over $10 million during the third quarter and almost $14 million year-to-date. Our focus on cash generation resulted in positive cash flow from operations and Adjusted EBITDA during the quarter and year-to-date. We remain on track to meet the requirements to extend the maturity of our credit agreement to December 2017. We continue to work toward the closing of the previously announced equity exchange agreement with Yorktown Partners LLC.
Working capital turns positiveWorking capital of Rhino Resource Partners LP has turned positive to $10.74 million on Sep. 30, 2016 from negative $44.04 million on Sep. 30, 2015. Current ratio was at 1.56 as on Sep. 30, 2016, up from 0.43 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 37 days for the last year period. Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 11 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding went up to 28 days for the quarter from 22 for the same period last year.
Debt comes down significantly
Rhino Resource Partners LP has recorded a decline in total debt over the last one year. It stood at $30.35 million as on Sep. 30, 2016, down 40.29 percent or $20.48 million from $50.83 million on Sep. 30, 2015. Total debt was 11.72 percent of total assets as on Sep. 30, 2016, compared with 11.46 percent on Sep. 30, 2015. 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
