Cypress Energy Partners, L.P. (CELP) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $1.92 million in the quarter, against a net loss of $1.81 million in the last year period. Revenue during the quarter dropped 15.15 percent to $81.81 million from $96.41 million in the previous year period. Gross margin for the quarter contracted 42 basis points over the previous year period to 12.13 percent. Operating margin for the quarter period stood at positive 4.47 percent as compared to a negative 1.01 percent for the previous year period.
Operating income for the quarter was $3.66 million, compared with an operating loss of $0.97 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.57 million compared with $7.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 15 basis points in the quarter to 8.03 percent from 7.88 percent in the last year period.
Peter C. Boylan III, CELPs chairman and chief executive officer stated, "Today we announced our third quarter 2016 operating performance, and that we maintained and will pay on November 14th our distribution, consistent with the same distribution per unit the last eight quarters. The third quarters performance sequentially improved in each segment compared to our second quarter. Our businesses require minimal capital expenditures and we again finished the quarter with approximately $25 million of cash. We are clearly seeing the benefits of our cost reductions earlier this year and I would like to thank our dedicated employees for their hard work, and sacrifices."
Working capital declines
Cypress Energy Partners, L.P. has witnessed a decline in the working capital over the last year. It stood at $55.10 million as at Sep. 30, 2016, down 15.15 percent or $9.84 million from $64.94 million on Sep. 30, 2015. Current ratio was at 4.79 as on Sep. 30, 2016, up from 4.19 on Sep. 30, 2015. Days sales outstanding went up to 54 days for the quarter compared with 52 days for the same period last year.
At the same time, days payable outstanding went up to 4 days for the quarter from 3 for the same period last year.
Debt comes down marginally
Cypress Energy Partners, L.P. has recorded a decline in total debt over the last one year. It stood at $135.56 million as on Sep. 30, 2016, down 3.79 percent or $5.34 million from $140.90 million on Sep. 30, 2015. Cypress Energy Partners, L.P. has recorded a decline in long-term debt over the last one year. Total debt was 78.78 percent of total assets as on Sep. 30, 2016, compared with 68.49 percent on Sep. 30, 2015. 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
