USA Compression Partners, LP (USAC) has reported an 81.82 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $1.55 million, or $0.02 a share in the quarter, compared with $8.54 million, or $0.24 a share for the same period last year. Revenue during the quarter went down marginally by 0.50 percent to $66.03 million from $66.37 million in the previous year period. Gross margin for the quarter contracted 272 basis points over the previous year period to 65.89 percent. Total expenses were 88.84 percent of quarterly revenues, up from 79.17 percent for the same period last year. That has resulted in a contraction of 968 basis points in operating margin to 11.16 percent.
Operating income for the quarter was $7.37 million, compared with $13.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36 million compared with $38.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 334 basis points in the quarter to 54.52 percent from 57.87 percent in the last year period.
“While the year-over-year comparisons reflect the challenging business environment we faced in mid-to-late 2016, we are pleased to be off to a good start in 2017. The first quarter continued the positive industry trends we experienced coming into the beginning of the year, and we remain optimistic for continued activity in the areas in which we operate,” said Eric D. Long, USA Compression’s president and chief executive officer. “Many of our customers are seeing project ideas turn into reality, and as a result, we have experienced strong demand for our compression services. The Permian and Delaware basins remain our most active areas, and we are taking actions to make sure we have the right equipment for our customers to execute their projects. We expect the supply and demand dynamics for natural gas in the U.S. to continue to evolve, and our fleet of large horsepower assets is well-situated to take advantage of the changing landscape.”
For fiscal year 2017, Usa Compression Partners expects net income to be in the range of $15.80 million to $30.80 million.
Operating cash flow declines
USA Compression Partners, LP has generated cash of $18.29 million from operating activities during the quarter, down 16.73 percent or $ 3.67 million, when compared with the last year period. The company has spent $15.59 million cash to meet investing activities during the quarter as against cash outgo of $16.16 million in the last year period.
The company has spent $2.75 million cash to carry out financing activities during the quarter as against cash outgo of $5.80 million in the last year period.
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