NRG Yield, Inc. (NYLD) has reported 94.12 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $33 million in the quarter, compared with $17 million for the same period last year.
Revenue during the quarter grew 6.25 percent to $272 million from $256 million in the previous year period. Gross margin for the quarter expanded 409 basis points over the previous year period to 72.06 percent. Total expenses were 56.99 percent of quarterly revenues, down from 60.55 percent for the same period last year. This has led to an improvement of 356 basis points in operating margin to 43.01 percent.
Operating income for the quarter was $117 million, compared with $101 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $246 million compared with $221 million in the prior year period. At the same time, adjusted EBITDA margin improved 411 basis points in the quarter to 90.44 percent from 86.33 percent in the last year period.
"NRG Yield's diversified contracted generation portfolio performed exceptionally well during the third quarter largely as a result of strong wind conditions across the renewable segment," said Christopher Sotos, NRG Yield's president and chief executive officer.
For fiscal year 2016, NRG Yield projects net income to be $140 million.
Operating cash flow improves significantly
NRG Yield, Inc. has generated cash of $439 million from operating activities during the nine month period, up 41.61 percent or $129 million, when compared with the last year period.
The company has spent $142 million cash to meet investing activities during the nine month period as against cash outgo of $867 million in the last year period.
The company has spent $208 million cash to carry out financing activities during the nine month period as against cash inflow of $273 million in the last year period.
Cash and cash equivalents stood at $200 million as on Sep. 30, 2016, up 37.93 percent or $55 million from $145 million on Sep. 30, 2015.
Working capital turns positive
Working capital of NRG Yield, Inc. has turned positive to $72 million on Sep. 30, 2016 from negative $49 million on Sep. 30, 2015. Current ratio was at 1.16 as on Sep. 30, 2016, up from 0.88 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 47 days for the last year period. Days sales outstanding went up to 41 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went up to 28 days for the quarter from 25 for the same period last year.
Debt increases substantially
NRG Yield, Inc. has witnessed an increase in total debt over the last one year. It stood at $5,640 million as on Sep. 30, 2016, up 25.08 percent or $1,131 million from $4,509 million on Sep. 30, 2015. Total debt was 66.49 percent of total assets as on Sep. 30, 2016, compared with 64.52 percent on Sep. 30, 2015. Debt to equity ratio was at 2.29 as on Sep. 30, 2016, up from 2.10 as on Sep. 30, 2015. Interest coverage ratio improved to 1.65 for the quarter from 1.42 for the same period last year.
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