USD Partners LP (USDP) has reported 102.86 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $12.83 million in the quarter, compared with $6.32 million for the same period last year. Revenue during the quarter surged 30.03 percent to $28.34 million from $21.80 million in the previous year period. Gross margin for the quarter expanded 1339 basis points over the previous year period to 74.44 percent. Total expenses were 66.48 percent of quarterly revenues, down from 67.65 percent for the same period last year. This has led to an improvement of 117 basis points in operating margin to 33.52 percent.
Operating income for the quarter was $9.50 million, compared with $7.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.18 million compared with $9.73 million in the prior year period. At the same time, adjusted EBITDA margin improved 1246 basis points in the quarter to 57.09 percent from 44.63 percent in the last year period.
“We are pleased to report another strong quarter at USD Partners and to announce our sixth consecutive distribution increase while delivering 1.9x distribution coverage,” said Dan Borgen, the Partnership’s Chief Executive Officer. “We are well positioned in some of the most strategic areas for new development across North America, including Western Canada and the Gulf Coast, and continue working closely with our customers to provide flexible and timely industry solutions.”
Operating cash flow improves significantly
USD Partners LP has generated cash of $37.10 million from operating activities during the nine month period, up 41.18 percent or $10.82 million, when compared with the last year period. The company has spent $0.47 million cash to meet investing activities during the nine month period as against cash outgo of $2.59 million in the last year period.
The company has spent $37.85 million cash to carry out financing activities during the nine month period as against cash outgo of $22.42 million in the last year period.
Cash and cash equivalents stood at $9.84 million as on Sep. 30, 2016, down 76.05 percent or $31.23 million from $41.07 million on Sep. 30, 2015.
Working capital turns negative
Working capital of USD Partners LP has turned negative to $1.44 million on Sep. 30, 2016 from positive $28.96 million on Sep. 30, 2015. Current ratio was at 0.96 as on Sep. 30, 2016, down from 1.81 on Sep. 30, 2015.
Days sales outstanding went down to 19 days for the quarter compared with 31 days for the same period last year.
Debt increases substantially
USD Partners LP has witnessed an increase in total debt over the last one year. It stood at $226.80 million as on Sep. 30, 2016, up 238.91 percent or $159.88 million from $66.92 million on Sep. 30, 2015. USD Partners LP has witnessed an increase in long-term debt over the last one year. It stood at $226.80 million as on Sep. 30, 2016, up 238.91 percent or $159.88 million from $66.92 million on Sep. 30, 2015. Total debt was 71.53 percent of total assets as on Sep. 30, 2016, compared with 47.33 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.69 for the quarter from 7.64 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
