Vertex Energy, Inc. (VTNR) saw its loss narrow to $0.11 million, or $0.03 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.07 million, or $0.11 a share.
Revenue during the quarter dropped 27.51 percent to $28.46 million from $39.26 million in the previous year period. Gross margin for the quarter expanded 794 basis points over the previous year period to 21.08 percent. Operating margin for the quarter stood at negative 2.06 percent as compared to a negative 6.36 percent for the previous year period.
Operating loss for the quarter was $0.59 million, compared with an operating loss of $2.50 million in the previous year period.
Vertex's chief executive officer, Benjamin P. Cowart said, "I am very pleased with our performance in the third quarter, as we met our internal expectations related to spreads, charge for oil and our day-to-day operations. For the quarter, we held onto most of the margin. Overall, our spreads were good and are improving, and the oil markets were stable compared to quarters in the recent past. This helped us exceed our internal expectations and we had positive EBITDA of $1.8 million for the three months ended September 30, 2016."
Operating cash flow remains negative
Vertex Energy, Inc. has spent $13.39 million cash to meet operating activities during the nine month period as against cash outgo of $7.76 million in the last year period.
Cash flow from investing activities was $16.42 million for the nine month period as against cash outgo of $2.74 million in the last year period.
The company has spent $0.04 million cash to carry out financing activities during the nine month period as against cash inflow of $8.50 million in the last year period.
Cash and cash equivalents stood at $3.75 million as on Sep. 30, 2016, down 6.64 percent or $0.27 million from $4.02 million on Sep. 30, 2015.
Working capital turns positive
Working capital of Vertex Energy, Inc. has turned positive to $0.09 million on Sep. 30, 2016 from negative $0.16 million on Sep. 30, 2015. Current ratio was at 1 as on Sep. 30, 2016, up from 0.99 on Sep. 30, 2015.
Days sales outstanding went up to 35 days for the quarter compared with 27 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 17 days for the previous year period.
Debt comes down significantly
Vertex Energy, Inc. has recorded a decline in total debt over the last one year. It stood at $15.06 million as on Sep. 30, 2016, down 45.12 percent or $12.38 million from $27.44 million on Sep. 30, 2015. Total debt was 17.46 percent of total assets as on Sep. 30, 2016, compared with 25.65 percent on Sep. 30, 2015. Debt to equity ratio was at 0.39 as on Sep. 30, 2016, down from 0.62 as on Sep. 30, 2015.
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