Star Gas Partners Lp (SGU) has reported 51.56 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $18.28 million in the quarter, compared with $12.06 million for the same period last year.
Revenue during the quarter grew 20.39 percent to $384.12 million from $319.06 million in the previous year period. Gross margin for the quarter contracted 249 basis points over the previous year period to 30.91 percent. Total expenses were 91.35 percent of quarterly revenues, down from 92.59 percent for the same period last year. This has led to an improvement of 124 basis points in operating margin to 8.65 percent.
Operating income for the quarter was $33.24 million, compared with $23.65 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.25 million compared with $35.95 million in the prior year period. At the same time, adjusted EBITDA margin contracted 313 basis points in the quarter to 8.13 percent from 11.27 percent in the last year period.
"We got off to a great start this year and were pleased to see temperatures in the first quarter rebound nicely from fiscal 2016, when temperatures were much higher than normal across our operations," said Steven J. Goldman, Star Gas partners' chief executive officer. "In part due to the colder weather, an increased demand for service, and a more responsive approach to managing margins, we were able to post a net gain in customer accounts during the period ��" which reflects well on the efforts of our employees as well as the strength of our brands. We also acquired three small businesses in the quarter, including the one in Michigan previously announced, as we continue our drive to expand and diversify our overall operating footprint."
Working capital drops significantlyStar Gas Partners Lp has witnessed a decline in the working capital over the last year. It stood at $5.60 million as at Dec. 31, 2016, down 83.46 percent or $28.25 million from $33.85 million on Dec. 31, 2015. Current ratio was at 1.02 as on Dec. 31, 2016, down from 1.11 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 45 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has decreased to 19 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding went up to 12 days for the quarter from 10 for the same period last year.
Debt comes downStar Gas Partners Lp has recorded a decline in total debt over the last one year. It stood at $83.01 million as on Dec. 31, 2016, down 16.99 percent or $16.99 million from $100 million on Dec. 31, 2015. Total debt was 11.78 percent of total assets as on Dec. 31, 2016, compared with 13.50 percent on Dec. 31, 2015. Interest coverage ratio improved to 18.60 for the quarter from 12.72 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
