General Finance Corporation (GFNCZ) saw its loss widen to $1.22 million, or $0.08 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.10 million, or $0.08 a share.
Revenue during the quarter went down marginally by 1.55 percent to $62.80 million from $63.79 million in the previous year period. Gross margin for the quarter expanded 50 basis points over the previous year period to 47.28 percent. Total expenses were 94.17 percent of quarterly revenues, up from 93.73 percent for the same period last year. That has resulted in a contraction of 44 basis points in operating margin to 5.83 percent.
Operating income for the quarter was $3.66 million, compared with $4 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.96 million compared with $13.91 million in the prior year period. At the same time, adjusted EBITDA margin contracted 117 basis points in the quarter to 20.64 percent from 21.81 percent in the last year period.
"Our North American leasing operations continued to benefit from geographic expansion and diversification," said Ronald Valenta, president and chief executive officer. "We delivered increased leasing revenues during the first quarter of fiscal year 2017 outside of the oil and gas sector. In September, we began to see positive signs in the energy sector, including increased drilling activity and improved fleet utilization. In the Asia-Pacific region, our non-oil and gas leasing revenues also increased, primarily driven by continued strength from the construction sector and a moderately higher Australian dollar relative to the U.S. dollar."
For financial year 2017, General Finance Corporation expects revenue to be in the range of $280 million to $300 million.
Debt moves up marginally
General Finance Corporation has witnessed an increase in total debt over the last one year. It stood at $365.73 million as on Sep. 30, 2016, up 4.21 percent or $14.79 million from $350.94 million on Sep. 30, 2015. Total debt was 53.43 percent of total assets as on Sep. 30, 2016, compared with 51.45 percent on Sep. 30, 2015. Debt to equity ratio was at 1.63 as on Sep. 30, 2016, up from 1.59 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.76 for the quarter from 0.80 for the same period last year.
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