Vectren Corporation (VVC) has reported 14.70 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $55.40 million, or $0.67 a share in the quarter, compared with $48.30 million, or $0.58 a share for the same period last year. Revenue during the quarter grew 6.79 percent to $624.50 million from $584.80 million in the previous year period. Gross margin for the quarter expanded 153 basis points over the previous year period to 65.43 percent. Total expenses were 83.76 percent of quarterly revenues, down from 84.23 percent for the same period last year. This has led to an improvement of 47 basis points in operating margin to 16.24 percent.
Operating income for the quarter was $101.40 million, compared with $92.20 million in the previous year period.
"Our first quarter results for the Utility Group are on track, considering first quarter weather that was significantly warmer this year compared to normal," said Carl Chapman, Vectren's chairman, president and Chief executive officer. "Our Utility Group results reflect the on-going investment in our gas infrastructure programs in both Indiana and Ohio. And, while not yet impacting earnings, we continue to work diligently on our electric grid modernization and generation diversification plans that will set the stage for additional growth."
For financial year 2017, Vectren Corporation expects diluted earnings per share to be in the range of $2.55 to $2.65.
Operating cash flow improves marginallyVectren Corporation has generated cash of $212.50 million from operating activities during the quarter, up 4.99 percent or $10.10 million, when compared with the last year period. The company has spent $122.10 million cash to meet investing activities during the quarter as against cash outgo of $108.30 million in the last year period.
The company has spent $126.40 million cash to carry out financing activities during the quarter as against cash outgo of $106.20 million in the last year period.
Cash and cash equivalents stood at $32.60 million as on Mar. 31, 2017, down 47.92 percent or $30 million from $62.60 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Vectren Corporation was negative $150.20 million on Mar. 31, 2017 compared with negative $119.30 million on Mar. 31, 2016. Current ratio was at 0.78 as on Mar. 31, 2017, down from 0.81 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 29 days for the quarter from 6 days for the last year period. Days sales outstanding went down to 49 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went up to 102 days for the quarter from 100 for the same period last year.
Debt moves up
Vectren Corporation has witnessed an increase in total debt over the last one year. It stood at $1,815.70 million as on Mar. 31, 2017, up 5.18 percent or $89.50 million from $1,726.20 million on Mar. 31, 2016. Total debt was 31.78 percent of total assets as on Mar. 31, 2017, compared with 32.43 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 1.01 as on Mar. 31, 2017, when compared with the last year. Interest coverage ratio improved to 4.76 for the quarter from 4.17 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
