ENSERVCO Corporation (ENSV) saw its loss widen to $2.36 million, or $0.06 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.65 million, or $0.04 a share.      

Revenue during the quarter grew 3.66 percent to $5.50 million from $5.31 million in the previous year period. Gross margin for the quarter stood at negative 8.33 percent as compared to a negative 0.89 percent for the previous year period. Operating margin for the quarter stood at negative 55.63 percent as compared to a negative 47.94 percent for the previous year period.

Operating loss for the quarter was $3.06 million, compared with an operating loss of $2.55 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $1.25 million compared to negative $0.83 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 22.70 percent for the quarter compared to negative 15.65 percent in the last year period.

"Our financial results in the third quarter " traditionally our slowest quarter of the year were generally in line with our expectations," said Rick Kasch, chairman and chief executive officer. "Although by most accounts the downturn appears to have established a bottom, the lingering effects of reduced drilling and completion activity continued to negatively impact our core well enhancement services. We continued to win new business in the Eagle Ford basin in Texas, where acidizing and hot oiling revenue realized a combined 81% increase year over year ��" a validation of our decision last year to expand our geographic footprint in spite of the downturn and redeploy assets to more active areas. We also saw a significant increase in construction services revenue due to a dirt-hauling contract that commenced in the second quarter and will conclude in the fourth quarter. With oil prices seeming to stabilize in recent weeks and drilling, completion and maintenance activity on a slow but steady rise, we believe we have weathered the worst of the downturn and are well positioned to grow as the recovery continues."

The company has spent $4.48 million cash to meet investing activities during the nine month period as against cash outgo of $3.57 million in the last year period. It has incurred net capital expenditure of $4.48 million on net basis during the nine month period, up 25.57 percent or $0.91 million from year ago period.

Cash flow from financing activities was $4.45 million for the nine month period as against cash outgo of $9.51 million in the last year period.

Cash and cash equivalents stood at $0.78 million as on Sep. 30, 2016, up 4.52 percent or $0.03 million from $0.75 million on Sep. 30, 2015.

Working capital drops significantly
ENSERVCO Corporation has witnessed a decline in the working capital over the last year. It stood at $2.52 million as at Sep. 30, 2016, down 46.18 percent or $2.16 million from $4.69 million on Sep. 30, 2015. Current ratio was at 1.81 as on Sep. 30, 2016, down from 2.57 on Sep. 30, 2015.

Days sales outstanding went down to 78 days for the quarter compared with 95 days for the same period last year.

Days inventory outstanding has decreased to 3 days for the quarter compared with 5 days for the previous year period.