Spark Energy, Inc. (SPKE) has reported a 45.63 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $2.27 million in the quarter, compared with $4.17 million for the same period last year. Revenue during the quarter surged 75.80 percent to $194.34 million from $110.55 million in the previous year period. Gross margin for the quarter contracted 1170 basis points over the previous year period to 26.06 percent. Total expenses were 91.23 percent of quarterly revenues, up from 84.10 percent for the same period last year. That has resulted in a contraction of 713 basis points in operating margin to 8.77 percent.
Operating income for the quarter was $17.04 million, compared with $17.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $34.19 million compared with $21.06 million in the prior year period. At the same time, adjusted EBITDA margin contracted 146 basis points in the quarter to 17.59 percent from 19.05 percent in the last year period.
"Spark has continued to build on our successes in 2016 with our strongest first quarter in the company's history," said Nathan Kroeker, Spark Energy’s president and chief executive officer. “Once again, we have delivered record Adjusted EBITDA and Retail Gross Margin and reached another high-water mark with 789,000 RCEs. In April we closed on the acquisition of Perigee Energy and exercised an option for additional customers that combined will add another 60,000 RCEs. This transaction establishes our presence in Delaware, bringing our totals to 91 utilities in 19 states. "As we complete the onboarding process for the customers acquired in the Perigee Energy transactions and prepare to close on and integrate Verde, we continue to anticipate growth through organic means and additional M&A opportunities throughout the rest of the year."
Operating cash flow falls marginally
Spark Energy, Inc. has generated cash of $24.38 million from operating activities during the quarter, down 4.40 percent or $ 1.12 million, when compared with the last year period. The company has spent $9.61 million cash to meet investing activities during the quarter as against cash outgo of $0.83 million in the last year period.
The company has spent $8.80 million cash to carry out financing activities during the quarter as against cash outgo of $26.19 million in the last year period.
Cash and cash equivalents stood at $24.93 million as on Mar. 31, 2017, up 745.41 percent or $21.98 million from $2.95 million on Mar. 31, 2016.
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