Vertex Energy, Inc. (VTNR) saw its loss narrow to $2.40 million in the quarter ended compared with $3.04 million, a year ago. Revenue during the quarter surged 48.77 percent to $31.06 million from $20.88 million in the previous year period. Gross margin for the quarter expanded 1525 basis points over the previous year period to 17.06 percent. Operating margin for the quarter stood at negative 3.67 percent as compared to a negative 11.82 percent for the previous year period.
Operating loss for the quarter was $1.14 million, compared with an operating loss of $2.47 million in the previous year period.
Benjamin P. Cowart, chairman and chief executive officer of Vertex Energy, Inc., commented, "During 2016, we took steps to stabilize our business and create a business model with the ability to manage spreads in any crude oil environment. Some of those steps included selling our Nevada facility, using some of the cash proceeds to reduce debt, and leading the initiative in charging for oil ��" a positive for the company and industry. With the improvements made at our facilities during 2016, we anticipate increased volume through our facilities during 2017."
Operating cash flow remains negative
Vertex Energy, Inc. has spent $14.15 million cash to meet operating activities during the year as against cash outgo of $12.97 million in the last year. Cash flow from investing activities was $15.88 million from investing activities during the year as against cash outgo of $0.48 million in the last year. It has incurred net capital expenditure of $12.40 million on net basis during the year, up 621.21 percent or $10.68 million from year ago.
The company has spent $0.80 million cash to carry out financing activities during the year as against cash inflow of $8.20 million in the last year period.
Cash and cash equivalents stood at $1.70 million as on Dec. 31, 2016, up 122.30 percent or $0.94 million from $0.77 million on Dec. 31, 2015.
Debt comes down significantly
Vertex Energy, Inc. has recorded a decline in total debt over the last one year. It stood at $14.36 million as on Dec. 31, 2016, down 43.17 percent or $10.90 million from $25.26 million on Dec. 31, 2015. Total debt was 16.50 percent of total assets as on Dec. 31, 2016, compared with 26.50 percent on Dec. 31, 2015. Debt to equity ratio was at 0.35 as on Dec. 31, 2016, down from 0.48 as on Dec. 31, 2015.
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