Sanchez Production Partners LP (SPP) has reported a 269.56 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $28.81 million in the quarter, compared with $7.80 million for the same period last year.
Revenue during the quarter dropped 22.52 percent to $19.85 million from $25.62 million in the previous year period. Gross margin for the quarter contracted 929 basis points over the previous year period to 69.90 percent. Operating margin for the quarter stood at negative 3.96 percent as compared to a positive 32.85 percent for the previous year period.
Operating loss for the quarter was $0.79 million, compared with an operating income of $8.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.85 million compared with $0.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 7365 basis points in the quarter to 74.80 percent from 1.15 percent in the last year period.
Working capital drops significantly
Sanchez Production Partners LP has witnessed a decline in the working capital over the last year. It stood at $8.93 million as at Sep. 30, 2016, down 59.22 percent or $12.97 million from $21.90 million on Sep. 30, 2015. Current ratio was at 2.33 as on Sep. 30, 2016, down from 3.12 on Sep. 30, 2015.
Days sales outstanding went down to 12 days for the quarter compared with 16 days for the same period last year.
Debt increases substantially
Sanchez Production Partners LP has witnessed an increase in total debt over the last one year. It stood at $144.20 million as on Sep. 30, 2016, up 36.04 percent or $38.20 million from $106 million on Sep. 30, 2015. Sanchez Production Partners LP has witnessed an increase in long-term debt over the last one year. It stood at $144.20 million as on Sep. 30, 2016, up 36.04 percent or $38.20 million from $106 million on Sep. 30, 2015. Total debt was 30.95 percent of total assets as on Sep. 30, 2016, compared with 62.43 percent on Sep. 30, 2015.
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