Edison International (EIX) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $376 million, or $ 1.05 a share in the quarter, against a net loss of $50 million, or $0.24 a share in the last year period.
Revenue during the quarter grew 23.20 percent to $2,884 million from $2,341 million in the previous year period. Gross margin for the quarter contracted 658 basis points over the previous year period to 67.02 percent. Total expenses were 80.37 percent of quarterly revenues, down from 85.48 percent for the same period last year. This has led to an improvement of 510 basis points in operating margin to 19.63 percent.
Operating income for the quarter was $566 million, compared with $340 million in the previous year period.
"Edison International delivered excellent fourth quarter and full-year results at the high end of our guidance range, led by SCE’s strong operating performance," said Pedro Pizarro, Edison International president and chief executive officer. "Additionally, we have introduced 2017 earnings guidance with the midpoint above consensus analyst estimates."
Operating cash flow drops significantlyEdison International has generated cash of $3,256 million from operating activities during the year, down 27.79 percent or $1,253 million, when compared with the last year. The company has spent $3,416 million cash to meet investing activities during the year as against cash outgo of $3,892 million in the last year.
Cash flow from financing activities was $95 million for the year as against cash outgo of $588 million in the last year period.
Cash and cash equivalents stood at $96 million as on Dec. 31, 2016, down 40.37 percent or $65 million from $161 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Edison International was negative $3,789 million on Dec. 31, 2016 compared with negative $2,273 million on Dec. 31, 2015. Current ratio was at 0.36 as on Dec. 31, 2016, down from 0.54 on Dec. 31, 2015.
Debt moves up marginallyEdison International has witnessed an increase in total debt over the last one year. It stood at $12,463 million as on Dec. 31, 2016, up 4.97 percent or $590 million from $11,873 million on Dec. 31, 2015. Total debt was 24.29 percent of total assets as on Dec. 31, 2016, compared with 23.60 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.88 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 3.77 for the quarter from 2.50 for the same period 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
