USA Compression Partners (USAC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $3.27 million, or $ 0.05 a share in the quarter, against a net loss of $159.63 million, or $3.03 a share in the last year period.
Revenue during the quarter grew 9.18 percent to $74.91 million from $68.62 million in the previous year period. Gross margin for the quarter contracted 868 basis points over the previous year period to 60.23 percent.
Operating income for the quarter was $8.89 million, compared with an operating loss of $155.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $36.46 million compared with $37.96 million in the prior year period. At the same time, adjusted EBITDA margin contracted 664 basis points in the quarter to 48.67 percent from 55.32 percent in the last year period.
"We are pleased with our solid finish to 2016 and the overall outlook for this coming year. Industry activity is picking up, and we expect that to positively impact our business throughout 2017," said Eric D. Long, USA Compression's president and chief executive officer. "USA Compression's focus on large horsepower, infrastructure-related applications has resulted in relatively stable cash flows as we have managed through the past year. As our customer base continues to move into expansion mode, we expect our business, as it always has, to serve as a lagging indicator, and for demand, and utilization, to pick up over the course of this year. As we have done in past downturns, we have prudently managed our capital spending and balance sheet in order to be in a position to benefit from an active 2017. Based on customer demand, we expect 2017 to be an inflection point in the market rebound, with a continued focus on achieving high gross margins and deploying existing underutilized horsepower."
For fiscal year 2017, USA Compression Partners forecasts net income to be in the range of $15.80 million to $30.80 million.
Operating cash flow declines
USA Compression Partners has generated cash of $103.70 million from operating activities during the year, down 11.67 percent or $13.70 million, when compared with the last year.
The company has spent $50.83 million cash to meet investing activities during the year as against cash outgo of $278.16 million in the last year.
The company has spent $52.81 million cash to carry out financing activities during the year as against cash inflow of $160.76 million in the last year period.
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