ONE Gas, Inc. (OGS) has reported a 72.80 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $12.74 million, or $0.24 a share in the quarter, compared with $7.37 million, or $0.14 a share for the same period last year.
Revenue during the quarter grew 3.09 percent to $232.19 million from $225.23 million in the previous year period. Gross margin for the quarter expanded 179 basis points over the previous year period to 77.50 percent. Total expenses were 86.70 percent of quarterly revenues, down from 88.92 percent for the same period last year. This has led to an improvement of 223 basis points in operating margin to 13.30 percent.
Operating income for the quarter was $30.89 million, compared with $24.95 million in the previous year period.
"Our focus continues to be on safety and reliability through investing in our systems," said Pierce H. Norton II, president and chief executive officer. "Our solid third quarter is reflective of these investments."
For financial year 2016, ONE Gas, Inc. projects net income to be in the range of $135 million to $140 million. FThe company expects diluted earnings per share to be in the range of $2.55 to $2.65.
Operating cash flow declines
ONE Gas, Inc. has generated cash of $281.43 million from operating activities during the nine month period, down 19.49 percent or $68.11 million, when compared with the last year period.
The company has spent $230.84 million cash to meet investing activities during the nine month period as against cash outgo of $199.68 million in the last year period.
The company has spent $48.51 million cash to carry out financing activities during the nine month period as against cash outgo of $108.83 million in the last year period.
Cash and cash equivalents stood at $4.51 million as on Sep. 30, 2016, down 91.48 percent or $48.46 million from $52.97 million on Sep. 30, 2015.
Working capital drops significantly
ONE Gas, Inc. has witnessed a decline in the working capital over the last year. It stood at $118.34 million as at Sep. 30, 2016, down 35.64 percent or $65.54 million from $183.88 million on Sep. 30, 2015. Current ratio was at 1.46 as on Sep. 30, 2016, down from 1.79 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 91 days for the quarter from 201 days for the last year period. Days sales outstanding went down to 59 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 153 days for the quarter compared with 235 days for the previous year period. At the same time, days payable outstanding went up to 122 days for the quarter from 105 for the same period last year.
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