Cypress Energy Partners, L.P. (CELP) saw its loss widen to $3.76 million in the quarter ended compared with $0.99 million a year ago. Revenue during the quarter dropped 11.91 percent to $64.72 million from $73.47 million in the previous year period. Gross margin for the quarter contracted 78 basis points over the previous year period to 9.78 percent. Operating margin for the quarter stood at negative 5.48 percent as compared to a positive 0.47 percent for the previous year period.
Operating loss for the quarter was $3.55 million, compared with an operating income of $0.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.80 million compared with $3.09 million in the prior year period. At the same time, adjusted EBITDA margin improved 13 basis points in the quarter to 4.33 percent from 4.20 percent in the last year period.
Peter C. Boylan III, CELP’s chairman and chief executive officer stated, "As discussed in March, the first quarter is seasonally our slowest quarter and it was compounded by our Orla, Texas Permian Basin SWD facility fire and insured loss. Although the first quarter financial performance was sequentially down in all segments, we have seen slow but steady progress through April and into May across all business segments. We have continued to focus on growing and diversifying our customer base and during the quarter we added 21 new customers across our three business segments. Average domestic inspector headcounts continue to improve, our hydrostatic testing utilization rate has materially improved and our backlog has risen over 30.8% since the end of the first quarter. Our water volumes in April were 4% higher than March, which was also in turn higher than February. Our lines of business are not directly tied to rig count growth and upstream completions and therefore we tend to lag behind the recovery in commodity prices, drilling, and completions that will eventually benefit our operations. 80% of our SWD’s are located in the Bakken region, which has materially lagged behind the recovery in the Permian basin, and a significant number of DUCs exist in both basins that when completed should benefit us. On a positive note, our inspection clients are once again starting new projects and increasing their spending on maintenance and integrity work that was deferred, when possible, during the two year industry downturn."
Working capital declines
Cypress Energy Partners, L.P. has witnessed a decline in the working capital over the last year. It stood at $51.56 million as at Mar. 31, 2017, down 8.75 percent or $4.94 million from $56.51 million on Mar. 31, 2016. Current ratio was at 4.42 as on Mar. 31, 2017, down from 5.69 on Mar. 31, 2016. Days sales outstanding went up to 61 days for the quarter compared with 55 days for the same period last year.
At the same time, days payable outstanding was almost stable at 2 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Cypress Energy Partners, L.P. remained almost stable for the quarter at $135.85 million, when compared with the last year period. Long-term debt of Cypress Energy Partners, L.P. remained almost stable for the quarter at $135.85 million, when compared with the last year period. Total debt was 83.88 percent of total assets as on Mar. 31, 2017, compared with 73.57 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]
