Sanchez Production Partners LP (SPP) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $7.66 million, or $ 1.32 a share in the quarter, against a net profit of $5.28 million, or $3.91 a share in the last year period.
Revenue during the quarter grew 11.39 percent to $25.81 million from $23.17 million in the previous year period. Gross margin for the quarter expanded 298 basis points over the previous year period to 67.78 percent. Operating margin for the quarter stood at negative 24.25 percent as compared to a negative 0.77 percent for the previous year period.
Operating loss for the quarter was $6.26 million, compared with an operating loss of $0.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.54 million compared with $13.52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1752 basis points in the quarter to 40.83 percent from 58.36 percent in the last year period.
"Our activity and results during the first quarter 2017 reflect the transitional nature of our business during the first half of this year," said Gerry Willinger, chief executive officer of the general partner of SPP.
Working capital turns negativeWorking capital of Sanchez Production Partners LP has turned negative to $1.38 million on Mar. 31, 2017 from positive $21.77 million on Mar. 31, 2016. Current ratio was at 0.91 as on Mar. 31, 2017, down from 4.01 on Mar. 31, 2016. Days sales outstanding went down to 7 days for the quarter compared with 15 days for the same period last year.
Debt increases substantiallySanchez Production Partners LP has witnessed an increase in total debt over the last one year. It stood at $158.92 million as on Mar. 31, 2017, up 48.48 percent or $51.89 million from $107.03 million on Mar. 31, 2016. Total debt was 29.65 percent of total assets as on Mar. 31, 2017, compared with 23.28 percent on Mar. 31, 2016. 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: [email protected]
