ONE Gas, Inc. (OGS) has reported an 18.09 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $76.46 million, or $1.44 a share in the quarter, compared with $64.74 million, or $1.22 a share for the same period last year. Revenue during the quarter grew 8.27 percent to $550.41 million from $508.36 million in the previous year period. Gross margin for the quarter contracted 144 basis points over the previous year period to 52.19 percent. Total expenses were 77.27 percent of quarterly revenues, up from 77.17 percent for the same period last year. That has resulted in a contraction of 10 basis points in operating margin to 22.73 percent.
Operating income for the quarter was $125.13 million, compared with $116.07 million in the previous year period.
"In the first quarter 2017, we continued to implement our strategy of focusing on safety and reinvestment in our system," said Pierce H. Norton II, president and chief executive officer. "Our solid results are a reflection of this strategy."
For fiscal year 2017, ONE Gas, Inc. expects net income to be in the range of $152 million to $162 million. The company forecasts diluted earnings per share to be in the range of $2.87 to $3.07.
Operating cash flow declines
ONE Gas, Inc. has generated cash of $162.24 million from operating activities during the quarter, down 14.11 percent or $ 26.65 million, when compared with the last year period. The company has spent $70.41 million cash to meet investing activities during the quarter as against cash outgo of $74.87 million in the last year period.
The company has spent $93.28 million cash to carry out financing activities during the quarter as against cash outgo of $63.80 million in the last year period.
Cash and cash equivalents stood at $13.21 million as on Mar. 31, 2017, down 74.92 percent or $39.45 million from $52.66 million on Mar. 31, 2016.
Working capital declines
ONE Gas, Inc. has witnessed a decline in the working capital over the last year. It stood at $173.19 million as at Mar. 31, 2017, down 8.37 percent or $15.83 million from $189.02 million on Mar. 31, 2016. Current ratio was at 1.56 as on Mar. 31, 2017, down from 1.83 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 57 days for the last year period. Days sales outstanding were almost stable at 41 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 21 days for the quarter compared with 49 days for the previous year period. At the same time, days payable outstanding was almost stable at 31 days for the quarter, when compared with the previous year period.
Debt moves up
ONE Gas, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,278.05 million as on Mar. 31, 2017, up 7.23 percent or $86.19 million from $1,191.86 million on Mar. 31, 2016. Total debt was 26.14 percent of total assets as on Mar. 31, 2017, compared with 25.92 percent on Mar. 31, 2016. Debt to equity ratio was at 0.66 as on Mar. 31, 2017, up from 0.64 as on Mar. 31, 2016. Interest coverage ratio improved to 10.90 for the quarter from 10.70 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
