WGL Holdings, Inc. (WGL) has reported a 15.73 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $123.39 million, or $2.39 a share in the quarter, compared with $106.62 million, or $2.11 a share for the same period last year.
Revenue during the quarter went up marginally by 0.73 percent to $841.75 million from $835.69 million in the previous year period. Gross margin for the quarter expanded 475 basis points over the previous year period to 48.17 percent. Total expenses were 76.53 percent of quarterly revenues, down from 79.13 percent for the same period last year. This has led to an improvement of 260 basis points in operating margin to 23.47 percent.
Operating income for the quarter was $197.60 million, compared with $174.41 million in the previous year period.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.10 to $3.30 on adjusted basis.
Working capital remains negative
Working capital of WGL Holdings, Inc. was negative $427.76 million on Mar. 31, 2017 compared with negative $61.69 million on Mar. 31, 2016. Current ratio was at 0.70 as on Mar. 31, 2017, down from 0.94 on Mar. 31, 2016.
Days sales outstanding went up to 61 days for the quarter compared with 55 days for the same period last year.
Debt increases substantially
WGL Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,017.75 million as on Mar. 31, 2017, up 32.44 percent or $494.19 million from $1,523.56 million on Mar. 31, 2016. Total debt was 31.48 percent of total assets as on Mar. 31, 2017, compared with 26.92 percent on Mar. 31, 2016. Debt to equity ratio was at 1.29 as on Mar. 31, 2017, up from 1.07 as on Mar. 31, 2016. Interest coverage ratio improved to 13.86 for the quarter from 13.42 for the same period last year.
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