Global Partners LP (GLP) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $22.95 million, or $ 0.68 a share in the quarter, against a net loss of $7.02 million, or $0.21 a share in the last year period. Revenue during the quarter grew 29.70 percent to $2,270.78 million from $1,750.81 million in the previous year period. Gross margin for the quarter contracted 126 basis points over the previous year period to 6.17 percent. Total expenses were 97.99 percent of quarterly revenues, down from 99.19 percent for the same period last year. This has led to an improvement of 120 basis points in operating margin to 2.01 percent.
Operating income for the quarter was $45.63 million, compared with $14.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $60.06 million compared with $48.68 million in the prior year period. At the same time, adjusted EBITDA margin contracted 14 basis points in the quarter to 2.64 percent from 2.78 percent in the last year period.
“We posted a solid first quarter and continued to position the Partnership for growth,” said Global President and Chief executive officer Eric Slifka. “Over the past several quarters, we have focused on monetizing non-strategic assets, capitalizing on the value of our real estate portfolio and reducing costs. These steps, along with our recently restated credit agreement, have strengthened our financial position and increased our flexibility to invest in opportunities fundamental to our growth strategy.”
Working capital decreases marginally
Global Partners LP has witnessed a decline in the working capital over the last year. It stood at $278.59 million as at Mar. 31, 2017, down 1.44 percent or $4.06 million from $282.65 million on Mar. 31, 2016. Current ratio was at 1.48 as on Mar. 31, 2017, up from 1.47 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 23 days for the last year period. Days sales outstanding went down to 12 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 16 for the same period last year.
Debt moves up
Global Partners LP has witnessed an increase in total debt over the last one year. It stood at $1,339.87 million as on Mar. 31, 2017, up 5.71 percent or $72.36 million from $1,267.51 million on Mar. 31, 2016. Total debt was 57.55 percent of total assets as on Mar. 31, 2017, compared with 47.73 percent on Mar. 31, 2016. Interest coverage ratio improved to 1.96 for the quarter from 0.62 for the same period last year. 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
