Genie Energy Ltd (GNE) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $32.14 million, or $ 1.43 a share in the quarter, against a net profit of $2.84 million, or $0.10 a share in the last year period. Revenue during the quarter grew 7.86 percent to $57.15 million from $52.99 million in the previous year period. Gross margin for the quarter contracted 471 basis points over the previous year period to 35.36 percent. Operating margin for the quarter stood at negative 64.92 percent as compared to a positive 6.13 percent for the previous year period.
Operating loss for the quarter was $37.10 million, compared with an operating income of $3.25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.20 million compared with $4.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 42 basis points in the quarter to 9.09 percent from 8.68 percent in the last year period.
Howard Jonas, Genie Energy’s chairman and chief executive officer, said, "Genie Retail Energy delivered solid results in the third quarter, generating $7.9 million in income from operations. We are excited about the recently closed acquisition of Town Square Energy and Genie Retail’s growth prospects. At Afek, we are shifting our operational focus to the Northern region of our license area even as we continue to analyze the results of our work in the South, where we have suspended field operations. The hydrocarbon deposits that we identified in the Southern region appear to extend to the North where there is a potentially more favorable geology for more mature hydrocarbons. We intend to drill an exploratory well in the Northern region to test this hypothesis early next year."
Operating cash flow improves significantly
Genie Energy Ltd has generated cash of $11.61 million from operating activities during the nine month period, up 1,972.50 percent or $11.05 million, when compared with the last year period. The company has spent $0.69 million cash to meet investing activities during the nine month period as against cash outgo of $22.35 million in the last year period.
The company has spent $7.60 million cash to carry out financing activities during the nine month period as against cash outgo of $1.70 million in the last year period.
Cash and cash equivalents stood at $42.30 million as on Sep. 30, 2016, down 12.57 percent or $6.08 million from $48.38 million on Sep. 30, 2015.
Working capital declines
Genie Energy Ltd has witnessed a decline in the working capital over the last year. It stood at $69.34 million as at Sep. 30, 2016, down 21.71 percent or $19.23 million from $88.57 million on Sep. 30, 2015. Current ratio was at 2.95 as on Sep. 30, 2016, down from 3.71 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 45 days for the last year period. Days sales outstanding went up to 47 days for the quarter compared with 46 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 31 days for the previous year period. At the same time, days payable outstanding went down to 28 days for the quarter from 32 for the same period last year.
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