Enservco Corporation (ENSV) saw its loss widen to $2.74 million, or $0.07 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.89 million, or $0.02 a share.
Revenue during the quarter dropped 22.80 percent to $6.66 million from $8.63 million in the previous year period. Operating margin for the quarter stood at negative 49.79 percent as compared to a negative 8.42 percent for the previous year period.
Operating loss for the quarter was $3.32 million, compared with an operating loss of $0.73 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.21 million compared with $1.03 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 18.15 percent for the quarter compared to 11.97 percent in the last year period.
"Our full-year results reflect reduced drilling and completion activity by our customers during the first part of 2016 and the impact of warm weather during both the first and fourth quarters. However, although 2016 was a difficult year financially, we're pleased to report that our core well enhancement services segment, which represents 73% of overall revenue, generated $2.2 million in gross profit for the year," said Rick Kasch, chief executive officer. "We closed the year with an uptick in customer activity, driven in part by higher oil prices and increased completion activity. That momentum has carried into the first quarter. Through the first two months of 2017 revenue was up approximately 49% and EBITDA was up approximately 68% year over year on an unaudited basis.
Operating cash flow turns negativeEnservco Corporation has spent $2 million cash to meet operating activities during the year as against cash inflow of $12.14 million in the last year. The company has spent $4.75 million cash to meet investing activities during the year as against cash outgo of $4.51 million in the last year. It has incurred net capital expenditure of $4.75 million on net basis during the year, up 5.32 percent or $0.24 million from year ago.
Cash flow from financing activities was $6.56 million for the year as against cash outgo of $7.79 million in the last year period.
Cash and cash equivalents stood at $0.62 million as on Dec. 31, 2016, down 22.86 percent or $0.18 million from $0.80 million on Dec. 31, 2015.
Working capital drops significantly
Enservco Corporation has witnessed a decline in the working capital over the last year. It stood at $3.04 million as at Dec. 31, 2016, down 53.07 percent or $3.43 million from $6.47 million on Dec. 31, 2015. Current ratio was at 1.76 as on Dec. 31, 2016, down from 2.93 on Dec. 31, 2015.
Debt moves upEnservco Corporation has witnessed an increase in total debt over the last one year. It stood at $23.80 million as on Dec. 31, 2016, up 10.14 percent or $2.19 million from $21.61 million on Dec. 31, 2015. Total debt was 56.18 percent of total assets as on Dec. 31, 2016, compared with 45.79 percent on Dec. 31, 2015. Debt to equity ratio was at 1.65 as on Dec. 31, 2016, up from 1.21 as on Dec. 31, 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
