Star Gas Partners, L.P. (SGU) saw its loss narrow to $19.10 million in the quarter ended compared with $45.33 million, a year ago.
Revenue during the quarter dropped 3.05 percent to $162.06 million from $167.16 million in the previous year period. Gross margin for the quarter expanded 30 basis points over the previous year period to 26.16 percent. Operating margin for the quarter stood at negative 18.27 percent as compared to a negative 36.60 percent for the previous year period.
Operating loss for the quarter was $29.61 million, compared with an operating loss of $61.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $21.18 million compared to negative $23.09 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 13.07 percent for the quarter compared to negative 13.81 percent in the last year period.
"As we do each December, we look back at the fiscal year and assess how Star performed given the various operating challenges we encountered," said Steve Goldman, Star Gas Partners' chief executive officer. "Fiscal 2016 was certainly a period in which we faced one overwhelming obstacle - weather - that was 21.6 percent warmer than in the prior year, negatively affecting demand."
Operating cash flow drops significantly
Star Gas Partners, L.P. has generated cash of $101.96 million from operating activities during the year, down 25.50 percent or $34.90 million, when compared with the last year.
The company has spent $19.63 million cash to meet investing activities during the year as against cash outgo of $30.38 million in the last year.
The company has spent $43.65 million cash to carry out financing activities during the year as against cash outgo of $54.96 million in the last year period.
Cash and cash equivalents stood at $139.19 million as on Sep. 30, 2016, up 38.48 percent or $38.68 million from $100.51 million on Sep. 30, 2015.
Working capital drops significantly
Star Gas Partners, L.P. has witnessed a decline in the working capital over the last year. It stood at $4.94 million as at Sep. 30, 2016, down 83.97 percent or $25.86 million from $30.80 million on Sep. 30, 2015. Current ratio was at 1.02 as on Sep. 30, 2016, down from 1.11 on Sep. 30, 2015.
Debt comes down
Star Gas Partners, L.P. has recorded a decline in total debt over the last one year. It stood at $92.50 million as on Sep. 30, 2016, down 7.50 percent or $7.50 million from $100 million on Sep. 30, 2015. Total debt was 13.35 percent of total assets as on Sep. 30, 2016, compared with 14.14 percent on Sep. 30, 2015.
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