Spire Inc. (SR) has reported 3.62 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $45.20 million, or $0.99 a share in the quarter, compared with $46.90 million, or $1.08 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $47.50 million, or $1.04 a share compared with $45.10 million or $1.04 a share, a year ago. Revenue during the quarter grew 23.96 percent to $495.10 million from $399.40 million in the previous year period. Total expenses were 82 percent of quarterly revenues, up from 78.22 percent for the same period last year. That has resulted in a contraction of 379 basis points in operating margin to 18 percent.
Operating income for the quarter was $89.10 million, compared with $87 million in the previous year period.
However, the adjusted operating income for the quarter stood at $244 million compared to $226 million in the prior year period.
"We are off to a good start in fiscal 2017, building on our strong performance last year. We delivered solid operating and financial performance in the first quarter in warmer than normal weather across our footprint. We remain on track to hit our earnings per share target for the year," said Suzanne Sitherwood, president and chief executive officer of Spire. "We continued to deliver on our strategy and do what we said we would do. This includes investing in infrastructure upgrades and other organic growth initiatives, and progressing with our Spire STL Pipeline project. At the same time, we are working to complete the integration of our newest gas utilities and the transition of all of our utilities to Spire late this summer."
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.50 to $3.60.
Operating cash flow drops significantlySpire Inc. has generated cash of $10.30 million from operating activities during the quarter, down 69.25 percent or $ 23.20 million, when compared with the last year period. The company has spent $85.90 million cash to meet investing activities during the quarter as against cash outgo of $62.80 million in the last year period.
Cash flow from financing activities was $81 million for the quarter, up 302.99 percent or $60.90 million, when compared with the last year period.
Cash and cash equivalents stood at $10.60 million as on Dec. 31, 2016, up 130.43 percent or $6 million from $4.60 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Spire Inc. was negative $526.60 million on Dec. 31, 2016 compared with negative $211.50 million on Dec. 31, 2015. Current ratio was at 0.61 as on Dec. 31, 2016, down from 0.75 on Dec. 31, 2015.
Days sales outstanding were almost stable at 60 days for the quarter, when compared with the last year period.
Debt moves up
Spire Inc. has witnessed an increase in total debt over the last one year. It stood at $2,577.70 million as on Dec. 31, 2016, up 16.32 percent or $361.70 million from $2,216 million on Dec. 31, 2015. Total debt was 40.85 percent of total assets as on Dec. 31, 2016, compared with 40.95 percent on Dec. 31, 2015. Debt to equity ratio was at 1.43 as on Dec. 31, 2016, up from 1.38 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.03 for the quarter from 4.58 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
