Calpine Corp (CPN) saw its loss narrow to $56 million, or $0.16 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $198 million, or $0.56 a share. On an adjusted basis, net loss for the quarter was $114 million, when compared with $104 million in the last year period.
Revenue during the quarter surged 41.24 percent to $2,281 million from $1,615 million in the previous year period. Gross margin for the quarter contracted 446 basis points over the previous year period to 25.82 percent. Total expenses were 96.84 percent of quarterly revenues, down from 99.81 percent for the same period last year. This has led to an improvement of 297 basis points in operating margin to 3.16 percent.
Operating income for the quarter was $72 million, compared with $3 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $326 million compared with $374 million in the prior year period. At the same time, adjusted EBITDA margin contracted 887 basis points in the quarter to 14.29 percent from 23.16 percent in the last year period.
"This year's first quarter results reflect our ability to meet our financial commitments despite a very mild winter in Texas and the East and above-normal hydroelectric generation in the West," said Thad Hill, Calpine's president and chief executive officer. "We are reaffirming our full year guidance range of $1.8 to $1.95 billion of Adjusted EBITDA, given upside in the back half of the year from our retail acquisitions and higher regulatory capacity payments in the East."
For financial year 2017, Calpine Corp projects net income to be in the range of $78 million to $228 million.
Operating cash flow improves significantly
Calpine Corp has generated cash of $94 million from operating activities during the quarter, up 203.23 percent or $63 million, when compared with the last year period.
The company has spent $13 million cash to meet investing activities during the quarter as against cash outgo of $611 million in the last year period.
The company has spent $256 million cash to carry out financing activities during the quarter as against cash outgo of $82 million in the last year period.
Cash and cash equivalents stood at $243 million as on Mar. 31, 2017, down 0.41 percent or $1 million from $244 million on Mar. 31, 2016.
Working capital drops significantly
Calpine Corp has witnessed a decline in the working capital over the last year. It stood at $401 million as at Mar. 31, 2017, down 41.88 percent or $289 million from $690 million on Mar. 31, 2016. Current ratio was at 1.13 as on Mar. 31, 2017, down from 1.22 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 33 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has decreased to 14 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went down to 32 days for the quarter from 40 for the same period last year.
Debt remains almost stable
Calpine Corp has witnessed an increase in total debt over the last one year. It stood at $11,952 million as on Mar. 31, 2017, up 0.63 percent or $75 million from $11,877 million on Mar. 31, 2016. Total debt was 64.34 percent of total assets as on Mar. 31, 2017, compared with 63.65 percent on Mar. 31, 2016. Debt to equity ratio was at 3.64 as on Mar. 31, 2017, down from 3.99 as on Mar. 31, 2016. Interest coverage ratio improved to 0.45 for the quarter from 0.02 for the same period last year.
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