Atlantic Power Corp (AT) saw its loss widen to $80.30 million, or $0.69 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.90 million, or $0.05 a share.
Revenue during the quarter dropped 5.86 percent to $101.20 million from $107.50 million in the previous year period. Operating margin for the quarter stood at negative 56.42 percent as compared to a positive 22.51 percent for the previous year period.
Operating loss for the quarter was $57.10 million, compared with an operating income of $24.20 million in the previous year period.
"During the third quarter we continued to make significant progress in strengthening our balance sheet and improving our debt maturity profile, repaying nearly $24 million of term loan and project debt and repurchasing approximately $63 million of our June 2019 convertible debentures. Continued debt repayment should improve our leverage ratio of 5.8 times by more than a turn by the end of next year," said James J. Moore, Jr., president and chief executive officer of Atlantic Power. "In addition, during the quarter we repurchased nearly 3.7 million common shares, for a total of 7.1 million repurchased under the normal course issuer bid implemented last December. The average repurchase price of $2.44 per share represents a significant discount to our estimate of intrinsic value. We currently have approximately $60 million of discretionary cash available for further debt and equity repurchases and internal or external growth investments, which we will continue to allocate to the highest-return uses."
Operating cash flow improves significantly
Atlantic Power Corp has generated cash of $91.90 million from operating activities during the nine month period, up 35.75 percent or $24.20 million, when compared with the last year period.
Cash flow from investing activities was $0.80 million for the nine month period, down 99.75 percent or $322.80 million, when compared with the last year period.
The company has spent $71.30 million cash to carry out financing activities during the nine month period as against cash outgo of $424.80 million in the last year period.
Cash and cash equivalents stood at $93.80 million as on Sep. 30, 2016, up 22.77 percent or $17.40 million from $76.40 million on Sep. 30, 2015.
Working capital drops significantly
Atlantic Power Corp has witnessed a decline in the working capital over the last year. It stood at $16.40 million as at Sep. 30, 2016, down 70.56 percent or $39.30 million from $55.70 million on Sep. 30, 2015. Current ratio was at 1.10 as on Sep. 30, 2016, down from 1.52 on Sep. 30, 2015.
Days sales outstanding went up to 38 days for the quarter compared with 37 days for the same period last year.
Debt comes down
Atlantic Power Corp has recorded a decline in total debt over the last one year. It stood at $981.70 million as on Sep. 30, 2016, down 6.24 percent or $65.30 million from $1,047 million on Sep. 30, 2015. Total debt was 64.50 percent of total assets as on Sep. 30, 2016, compared with 54.81 percent on Sep. 30, 2015. Debt to equity ratio was at 3.23 as on Sep. 30, 2016, up from 1.92 as on Sep. 30, 2015.
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