Enviva Partners, LP (EVA) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $7.87 million, or $ 0.34 a share in the quarter, against a net profit of $8.45 million, or $0.29 a share in the last year period. Revenue during the quarter grew 8.31 percent to $126.52 million from $116.81 million in the previous year period. Gross margin for the quarter expanded 34 basis points over the previous year period to 15.86 percent. Total expenses were 98.15 percent of quarterly revenues, up from 91.72 percent for the same period last year. That has resulted in a contraction of 643 basis points in operating margin to 1.85 percent.
Operating income for the quarter was $2.34 million, compared with $9.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $22.76 million compared with $20.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 70 basis points in the quarter to 17.99 percent from 17.29 percent in the last year period.
“Strong plant performance and reduced costs across our operations enabled the partnership to deliver solid financial results for the year,” said John Keppler, chairman and chief executive officer. “We completed the Sampson drop-down acquisition earlier than anticipated, setting the stage for robust growth in 2017.”
For fiscal year 2017, Enviva Partners, LP forecasts net income to be in the range of $31 million to $35 million.
Operating cash flow declines
Enviva Partners, LP has generated cash of $57.39 million from operating activities during the year, down 13.58 percent or $9.02 million, when compared with the last year. The company has spent $69.15 million cash to meet investing activities during the year as against cash outgo of $80.05 million in the last year. It has incurred net capital expenditure of $69.15 million on net basis during the year, down 9.58 percent or $7.33 million from year ago.
Cash flow from financing activities was $10.09 million for the year, down 33.49 percent or $5.08 million, when compared with the last year.
Cash and cash equivalents stood at $0.47 million as on Dec. 31, 2016, down 78.10 percent or $1.66 million from $2.13 million on Dec. 31, 2015.
Debt increases substantially
Enviva Partners, LP has witnessed an increase in total debt over the last one year. It stood at $350.80 million as on Dec. 31, 2016, up 81.93 percent or $157.98 million from $192.82 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.38 for the quarter from 3.29 for the same period last year.
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