Spark Energy, Inc. (SPKE) has reported a 273.71 percent jump in profit for the year ended Dec. 31, 2016. The company has earned $14.44 million in the year, compared with $3.86 million for the last year.
Revenue during the year surged 52.64 percent to $546.70 million from $358.15 million in the previous year. Gross margin for the year expanded 425 basis points over the previous year to 36.90 percent. Total expenses were 84.63 percent of annual revenues, down from 91.65 percent for the last year. This has led to an improvement of 702 basis points in operating margin to 15.37 percent.
Operating income for the year was $84 million, compared with $29.90 million in the previous year.
However, the adjusted EBITDA for the year stood at $81.89 million compared with $36.87 million in the prior year period. At the same time, adjusted EBITDA margin improved 469 basis points in the year to 14.98 percent from 10.29 percent in the last year period.
"2016 was truly a transformational year for us," said Nathan Kroeker, Spark Energy's president and chief executive officer. "We delivered record Adjusted EBITDA and Retail Gross Margin and achieved record RCEs of 774,000 through both acquisitions and organic growth. We are confident in our ability to continue our organic growth into 2017 as well as take advantage of a robust M&A pipeline. As we move through the first quarter of 2017, we continue to see strong results."
Operating cash flow improves significantly
Spark Energy, Inc. has generated cash of $67.79 million from operating activities during the year, up 47.60 percent or $21.86 million, when compared with the last year.
The company has spent $36.34 million cash to meet investing activities during the year as against cash outgo of $41.94 million in the last year.
The company has spent $16.96 million cash to carry out financing activities during the year as against cash outgo of $3.87 million in the last year period.
Cash and cash equivalents stood at $18.96 million as on Dec. 31, 2016, up 323.78 percent or $14.49 million from $4.47 million on Dec. 31, 2015.
Debt increases substantially
Spark Energy, Inc. has witnessed an increase in total debt over the last one year. It stood at $78.37 million as on Dec. 31, 2016, up 60.80 percent or $29.63 million from $48.74 million on Dec. 31, 2015. Total debt was 20.83 percent of total assets as on Dec. 31, 2016, compared with 30.04 percent on Dec. 31, 2015. Debt to equity ratio was at 0.63 as on Dec. 31, 2016, down from 1.46 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.48 for the year from 13.12 for the same period last year.
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