NRG Yield, Inc. (NYLD) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $3 million in the quarter, against a net profit of $5 million in the last year period. Revenue during the quarter dropped 6.84 percent to $218 million from $234 million in the previous year period. Gross margin for the quarter contracted 221 basis points over the previous year period to 61.47 percent. Total expenses were 75.23 percent of quarterly revenues, up from 69.23 percent for the same period last year. That has resulted in a contraction of 600 basis points in operating margin to 24.77 percent.
Operating income for the quarter was $54 million, compared with $72 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $184 million compared with $198 million in the prior year period. At the same time, adjusted EBITDA margin contracted 21 basis points in the quarter to 84.40 percent from 84.62 percent in the last year period.
"The Company continues to execute on its growth strategy with the closing of the most recent drop down from NRG and the expansion of the ROFO pipeline with the Buckthorn Solar and Hawaii Solar assets," said Christopher Sotos, NRG Yields president and chief executive officer. "The Company has begun the diligence process for the next drop down offer from NRG, the remaining 25% interest in NRG Wind TE Holdco, to continue its growth trajectory."
For fiscal year 2017, NRG Yield expects net income to be $140 million.
Operating cash flow drops significantlyNRG Yield, Inc. has generated cash of $61 million from operating activities during the quarter, down 31.46 percent or $ 28 million, when compared with the last year period. The company has spent $63 million cash to meet investing activities during the quarter as against cash outgo of $21 million in the last year period.
The company has spent $107 million cash to carry out financing activities during the quarter as against cash outgo of $103 million in the last year period.
Cash and cash equivalents stood at $213 million as on Mar. 31, 2017, up 180.26 percent or $137 million from $76 million on Mar. 31, 2016.
Working capital turns positive
Working capital of NRG Yield, Inc. has turned positive to $21 million on Mar. 31, 2017 from negative $99 million on Mar. 31, 2016. Current ratio was at 1.05 as on Mar. 31, 2017, up from 0.74 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 49 days for the last year period. Days sales outstanding went up to 41 days for the quarter compared with 38 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 37 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.
Debt increases substantially
NRG Yield, Inc. has witnessed an increase in total debt over the last one year. It stood at $5,958 million as on Mar. 31, 2017, up 25.09 percent or $1,195 million from $4,763 million on Mar. 31, 2016. Total debt was 69.44 percent of total assets as on Mar. 31, 2017, compared with 62.19 percent on Mar. 31, 2016. Debt to equity ratio was at 2.55 as on Mar. 31, 2017, up from 1.86 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.71 for the quarter from 0.97 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
