Revenue during the quarter grew 7.99 percent to $195.73 million from $181.25 million in the previous year period. Gross margin for the quarter expanded 474 basis points over the previous year period to 13.69 percent. Operating margin for the quarter stood at negative 3.55 percent as compared to a negative 14.15 percent for the previous year period.

Operating loss for the quarter was $6.95 million, compared with an operating loss of $25.64 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $20.40 million compared to negative $1.30 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 10.42 percent for the quarter compared to negative 0.72 percent in the last year period.

Colin Marshall, President and Chief Executive Officer, commented, “Our lower operating costs reflect the many cost control and efficiency initiatives we put in place during 2016 to adapt to lower shipments. We delivered a solid operational and financial performance in the first quarter as the industry environment continued to improve. During the quarter, we continued to increase our export shipments, although the volume ramp-up was challenged by severe weather in the Pacific Northwest that negatively impacted rail performance. We currently have contracted 3.3 million tons to be exported during 2017, with additional sales anticipated as the year progresses.”

The company has spent $4.12 million cash to meet investing activities during the quarter as against cash outgo of $8.70 million in the last year period.

Cash flow from financing activities was $1.24 million for the quarter as against cash outgo of $0.56 million in the last year period.

Cash and cash equivalents stood at $100.52 million as on Mar. 31, 2017, up 26.61 percent or $21.12 million from $79.39 million on Mar. 31, 2016.

Working capital increases sharply
Cloud Peak Energy Inc has recorded an increase in the working capital over the last year. It stood at $114.63 million as at Mar. 31, 2017, up 51.32 percent or $38.88 million from $75.75 million on Mar. 31, 2016. Current ratio was at 1.89 as on Mar. 31, 2017, up from 1.53 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 46 days for the last year period. Days sales outstanding went down to 20 days for the quarter compared with 24 days for the same period last year.

Days inventory outstanding has decreased to 19 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding was almost stable at 20 days for the quarter, when compared with the previous year period.