Envision Healthcare Corporation (EVHC) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $445.20 million, or $ 3.84 a share in the quarter, against a net profit of $30.90 million, or $0.53 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $80.40 million, or $0.66 a share compared with $46.60 million or $0.82 a share, a year ago. Revenue during the quarter surged 159.22 percent to $1,878.60 million from $724.70 million in the previous year period. Total expenses were 91.70 percent of quarterly revenues, up from 81.19 percent for the same period last year. That has resulted in a contraction of 1051 basis points in operating margin to 8.30 percent.
Operating income for the quarter was $155.90 million, compared with $136.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $210.30 million compared with $120.10 million in the prior year period. At the same time, adjusted EBITDA margin contracted 538 basis points in the quarter to 11.19 percent from 16.57 percent in the last year period.
“Our organization has made considerable progress since our merger late last year, focusing on operational execution while re-positioning our offerings within a constantly evolving healthcare services space,” said Christopher A. Holden, President and Chief Executive Officer of Envision. “We’re taking necessary steps to align our services with a strategic vision that builds on our leadership as a physician centric organization. Decisions we’ve made to pursue strategic options for our medical transportation services and population health management services will enable us to more effectively focus and deploy our financial and management resources in ways that will enhance our role as a trusted partner to providers, health systems, patients and payors.”
On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.78 to $0.84 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.38 to $3.52 on adjusted basis.
Operating cash flow improves
Envision Healthcare Corporation has generated cash of $98.10 million from operating activities during the quarter, up 20.07 percent or $16.40 million, when compared with the last year period. The company has spent $109.60 million cash to meet investing activities during the quarter as against cash outgo of $18 million in the last year period.
The company has spent $77.10 million cash to carry out financing activities during the quarter as against cash outgo of $84.60 million in the last year period.
Cash and cash equivalents stood at $225.30 million as on Mar. 31, 2017, up 162.59 percent or $139.50 million from $85.80 million on Mar. 31, 2016.
Working capital increases sharply
Envision Healthcare Corporation has recorded an increase in the working capital over the last year. It stood at $3,278.70 million as at Mar. 31, 2017, up 256.96 percent or $2,360.18 million from $918.52 million on Mar. 31, 2016. Current ratio was at 3.12 as on Mar. 31, 2017, up from 2.17 on Mar. 31, 2016.
Days sales outstanding went down to 64 days for the quarter compared with 160 days for the same period last year.
Debt increases substantially
Envision Healthcare Corporation has witnessed an increase in total debt over the last one year. It stood at $5,832.70 million as on Mar. 31, 2017, up 95.78 percent or $2,853.42 million from $2,979.28 million on Mar. 31, 2016. Total debt was 34.94 percent of total assets as on Mar. 31, 2017, compared with 46.06 percent on Mar. 31, 2016. Debt to equity ratio was at 0.84 as on Mar. 31, 2017, down from 1.46 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.98 for the quarter from 4.43 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: [email protected]
