WGL Holdings, Inc (WGL) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $9.11 million, or $ 0.17 a share in the quarter, against a net profit of $1.94 million, or $0.03 a share in the last year period.
Revenue during the quarter went down marginally by 1.67 percent to $459.90 million from $467.69 million in the previous year period. Gross margin for the quarter contracted 176 basis points over the previous year period to 34.91 percent. Operating margin for the quarter stood at negative 1.15 percent as compared to a positive 2.91 percent for the previous year period.
Operating loss for the quarter was $5.31 million, compared with an operating income of $13.61 million in the previous year period.
For financial year 2017, the company projects diluted earnings per share to be in the range of $3.30 to $3.50 on adjusted basis.
Working capital remains negative
Working capital of WGL Holdings, Inc was negative $183.45 million on Sep. 30, 2016 compared with negative $201.53 million on Sep. 30, 2015. Current ratio was at 0.82 as on Sep. 30, 2016, up from 0.79 on Sep. 30, 2015.
Debt increases substantially
WGL Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $1,775.68 million as on Sep. 30, 2016, up 36.47 percent or $474.48 million from $1,301.20 million on Sep. 30, 2015. Total debt was 29.31 percent of total assets as on Sep. 30, 2016, compared with 24.58 percent on Sep. 30, 2015. Debt to equity ratio was at 0.62 as on Sep. 30, 2016, down from 1.02 as on Sep. 30, 2015.
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