Civeo Corporation (CVEO) saw its loss narrow to $42.13 million, or $0.39 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $107.68 million, or $1.01 a share. Revenue during the quarter went down marginally by 2.16 percent to $104.24 million from $106.54 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 34.80 percent.
Operating loss for the quarter was $48.96 million, compared with an operating loss of $122.84 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $25.38 million, when compared with the prior year period. At the same time, adjusted EBITDA margin improved 58 basis points in the quarter to 24.34 percent from 23.76 percent in the last year period.
"Our operational execution in the third quarter continued to exceed our expectations despite the persistent macroeconomic headwinds impacting our core end markets. Although the recent stabilization in global crude oil spot prices is encouraging, we remain committed to vigilant cost control, positive free cash flow generation and debt reduction,” said Bradley J. Dodson, President and Chief Executive Officer.
For the fourth-quarter, Civeo Corporation expects revenue to be in the range of $88 million to $92 million. Civeo Corporation expects revenue to be in the range of $394 million to $398 million for financial year 2016.
Operating cash flow drops significantly
Civeo Corporation has generated cash of $48.79 million from operating activities during the nine month period, down 72.11 percent or $126.14 million, when compared with the last year period. The company has spent $11.54 million cash to meet investing activities during the nine month period as against cash outgo of $41.45 million in the last year period. It has incurred net capital expenditure of $10.78 million on net basis during the nine month period, down 73.99 percent or $30.66 million from year ago period.
The company has spent $45.76 million cash to carry out financing activities during the nine month period as against cash outgo of $347.35 million in the last year period.
Cash and cash equivalents stood at $2.53 million as on Sep. 30, 2016, down 79.98 percent or $10.10 million from $12.64 million on Sep. 30, 2015.
Working capital drops significantly
Civeo Corporation has witnessed a decline in the working capital over the last year. It stood at $20.12 million as at Sep. 30, 2016, down 41.72 percent or $14.41 million from $34.53 million on Sep. 30, 2015. Current ratio was at 1.29 as on Sep. 30, 2016, down from 1.41 on Sep. 30, 2015.
Cash conversion cycle (CCC) was almost stable at 46 days for the quarter, when compared with the last year period. Days sales outstanding went up to 79 days for the quarter compared with 75 days for the same period last year.
Days inventory outstanding has decreased to 2 days for the quarter compared with 8 days for the previous year period. At the same time, days payable outstanding was almost stable at 36 days for the quarter, when compared with the previous year period.
Debt comes down
Civeo Corporation has recorded a decline in total debt over the last one year. It stood at $373.86 million as on Sep. 30, 2016, down 10.15 percent or $42.22 million from $416.08 million on Sep. 30, 2015. Total debt was 38.23 percent of total assets as on Sep. 30, 2016, compared with 37.22 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.73 as on Sep. 30, 2016, when compared with the last year. 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: editor@irisindia.net
