Westar Energy, Inc. (WR) has reported a 37.46 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $53.93 million, or $0.38 a share in the quarter, compared with $39.24 million, or $0.28 a share for the same period last year.
Revenue during the quarter grew 11.09 percent to $606.54 million from $545.96 million in the previous year period. Gross margin for the quarter contracted 287 basis points over the previous year period to 68.02 percent. Total expenses were 80.89 percent of quarterly revenues, up from 80.15 percent for the same period last year. That has resulted in a contraction of 74 basis points in operating margin to 19.11 percent.
Operating income for the quarter was $115.88 million, compared with $108.36 million in the previous year period.
"As we work to combine with KCP&L, we've managed expenses by keeping numerous positions vacant as people have retired while still delivering safe, reliable energy for our customers. We've also slowed other projects as we evaluate those plans in a combined electric company," said Mark Ruelle, president and chief executive officer. "The merger is integral to maintaining these savings."
Operating cash flow improves
Westar Energy, Inc. has generated cash of $822.42 million from operating activities during the year, up 14.89 percent or $106.57 million, when compared with the last year.
The company has spent $1,012.76 million cash to meet investing activities during the year as against cash outgo of $649.70 million in the last year.
Cash flow from financing activities was $190.18 million for the year as against cash outgo of $67.47 million in the last year period.
Cash and cash equivalents stood at $3.07 million as on Dec. 31, 2016, down 5.11 percent or $0.17 million from $3.23 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Westar Energy, Inc. was negative $278.81 million on Dec. 31, 2016 compared with negative $119.79 million on Dec. 31, 2015. Current ratio was at 0.73 as on Dec. 31, 2016, down from 0.86 on Dec. 31, 2015.
Debt moves up
Westar Energy, Inc. has witnessed an increase in total debt over the last one year. It stood at $4,018.42 million as on Dec. 31, 2016, up 12.23 percent or $437.76 million from $3,580.66 million on Dec. 31, 2015. Total debt was 34.98 percent of total assets as on Dec. 31, 2016, compared with 33.45 percent on Dec. 31, 2015. Debt to equity ratio was at 1.05 as on Dec. 31, 2016, up from 0.98 as on Dec. 31, 2015. Interest coverage ratio improved to 2.85 for the quarter from 2.54 for the same period last year.
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