Genesee & Wyoming Inc. (GWR) has reported 2.89 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $26.24 million, or $0.42 a share in the quarter, compared with $27.02 million, or $0.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $32.90 million, or $0.53 a share compared with $38.60 million or $0.67 a share, a year ago.
Revenue during the quarter grew 7.56 percent to $519.11 million from $482.62 million in the previous year period. Total expenses were 85.08 percent of quarterly revenues, down from 88.19 percent for the same period last year. This has led to an improvement of 311 basis points in operating margin to 14.92 percent.
Operating income for the quarter was $77.45 million, compared with $57 million in the previous year period.
However, the adjusted operating income for the quarter stood at $86.60 million compared to $79.80 million in the prior year period.
Jack Hellmann, president and chief executive officer of G&W, commented, "In the first quarter of 2017, we successfully completed the integration of the Providence & Worcester in the U.S., we operated the first full quarter of Glencore Rail in Australia, and we made good progress in the restructuring of ERS in Continental Europe. Nonetheless, our first quarter financial results were weaker than expected as North American same railroad carload growth of 3% was at the low end of our outlook and our operating ratio was a bit higher than plan, primarily due to track washout and derailment expense."
Operating cash flow improves
Genesee & Wyoming Inc. has generated cash of $85.02 million from operating activities during the quarter, up 21.38 percent or $14.98 million, when compared with the last year period.
The company has spent $24.70 million cash to meet investing activities during the quarter as against cash outgo of $28.97 million in the last year period. It has incurred net capital expenditure of $33.81 million on net basis during the quarter, down 29 percent or $13.81 million from year ago period.
The company has spent $56.25 million cash to carry out financing activities during the quarter as against cash outgo of $38.67 million in the last year period.
Cash and cash equivalents stood at $38.26 million as on Mar. 31, 2017, down 2.17 percent or $0.85 million from $39.11 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Genesee & Wyoming Inc. has turned positive to $39.05 million on Mar. 31, 2017 from negative $45 million on Mar. 31, 2016. Current ratio was at 1.09 as on Mar. 31, 2017, up from 0.92 on Mar. 31, 2016.
Days sales outstanding went down to 64 days for the quarter compared with 70 days for the same period last year.
Debt moves up marginally
Genesee & Wyoming Inc. has witnessed an increase in total debt over the last one year. It stood at $2,354.76 million as on Mar. 31, 2017, up 4.64 percent or $104.34 million from $2,250.42 million on Mar. 31, 2016. Total debt was 30.54 percent of total assets as on Mar. 31, 2017, compared with 33.56 percent on Mar. 31, 2016. Debt to equity ratio was at 0.72 as on Mar. 31, 2017, down from 0.87 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.94 for the quarter from 3.17 for the same period last year.
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