Global Water Resources, Inc (GWRS) has reported a 94.77 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.15 million, or $0.06 a share in the quarter, compared with $21.90 million, or $1.20 a share for the same period last year. Revenue during the quarter went up marginally by 0.45 percent to $8.18 million from $8.14 million in the previous year period. Total expenses were 67.42 percent of quarterly revenues, down from 74.75 percent for the same period last year. This has led to an improvement of 733 basis points in operating margin to 32.58 percent.
Operating income for the quarter was $2.66 million, compared with $2.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.98 million compared with $4.43 million in the prior year period. At the same time, adjusted EBITDA margin improved 640 basis points in the quarter to 60.84 percent from 54.44 percent in the last year period.
"In Q3, normalized revenue and earnings growth were strong driven by increased rates, organic growth, and reduced operating expenses, as well as reduced quarterly interest expense as a result of a debt refinancing that we completed in June 2016," said Ron Fleming, president and chief executive officer of Global Water. "Looking ahead, we expect to continue to benefit from these key drivers, which will allow us to frequently review our dividend policy. We also plan to continue to accelerate other strategic uses of our significant cash balance that can complement our growth plan and drive long-term value creation."
Operating cash flow drops significantly
Global Water Resources, Inc has generated cash of $2.17 million from operating activities during the nine month period, down 58.62 percent or $3.07 million, when compared with the last year period. The company has spent $2.13 million cash to meet investing activities during the nine month period as against cash inflow of $52.73 million in the last year period
Cash flow from financing activities was $14.73 million for the nine month period as against cash outgo of $47.78 million in the last year period.
Cash and cash equivalents stood at $26.28 million as on Sep. 30, 2016, up 56.75 percent or $9.52 million from $16.77 million on Sep. 30, 2015.
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