USD Partners LP (USDP) has reported an 141.77 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $5.20 million in the quarter, compared with $2.15 million for the same period last year. Revenue during the quarter grew 5.29 percent to $27.75 million from $26.36 million in the previous year period. Gross margin for the quarter contracted 46 basis points over the previous year period to 74.39 percent. Total expenses were 66.72 percent of quarterly revenues, down from 71.46 percent for the same period last year. This has led to an improvement of 474 basis points in operating margin to 33.28 percent.
Operating income for the quarter was $9.24 million, compared with $7.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.25 million compared with $10.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 282 basis points in the quarter to 44.14 percent from 41.32 percent in the last year period.
“The Partnership’s results continue to benefit from stable and predictable cash flows from high-quality customers,” said Dan Borgen, the Partnership’s chief executive officer. “This enabled us to deliver another quarter of distribution growth, with approximately 1.6x coverage, while remaining well-positioned to execute on accretive growth opportunities.”
Operating cash flow improves significantly
USD Partners LP has generated cash of $12.82 million from operating activities during the quarter, up 38.93 percent or $3.59 million, when compared with the last year period. The company has spent $0.13 million cash to meet investing activities during the quarter as against cash outgo of $0.27 million in the last year period.
The company has spent $20.32 million cash to carry out financing activities during the quarter as against cash outgo of $11.18 million in the last year period.
Cash and cash equivalents stood at $4.18 million as on Mar. 31, 2017, down 51.30 percent or $4.41 million from $8.59 million on Mar. 31, 2016.
Working capital remains negative
Working capital of USD Partners LP was negative $12.31 million on Mar. 31, 2017 compared with negative $3.97 million on Mar. 31, 2016. Current ratio was at 0.67 as on Mar. 31, 2017, down from 0.89 on Mar. 31, 2016.
Days sales outstanding went down to 7 days for the quarter compared with 13 days for the same period last year.
Debt comes down
USD Partners LP has recorded a decline in total debt over the last one year. It stood at $209.98 million as on Mar. 31, 2017, down 11.91 percent or $28.40 million from $238.38 million on Mar. 31, 2016. USD Partners LP has recorded a decline in long-term debt over the last one year. It stood at $209.98 million as on Mar. 31, 2017, down 11.91 percent or $28.40 million from $238.38 million on Mar. 31, 2016. Total debt was 71.88 percent of total assets as on Mar. 31, 2017, compared with 73.22 percent on Mar. 31, 2016. Interest coverage ratio improved to 3.54 for the quarter from 3.45 for the same period last year.
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