Five Star Quality Care, Inc. (FVE) saw its loss narrow to $5.90 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $27.49 million, or $0.57 a share. Revenue during the quarter went up marginally by 0.04 percent to $344.71 million from $344.57 million in the previous year period. Operating margin for the quarter stood at negative 1.77 percent as compared to a negative 7.43 percent for the previous year period.
Operating loss for the quarter was $6.10 million, compared with an operating loss of $25.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.25 million compared with $9.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 145 basis points in the quarter to 1.23 percent from 2.68 percent in the last year period.
Operating cash flow turns negative
Five Star Quality Care, Inc. has spent $6.98 million cash to meet operating activities during the nine month period as against cash inflow of $35.70 million in the last year period. Cash flow from investing activities was $86.60 million for the nine month period as against cash outgo of $29.30 million in the last year period. It has incurred net capital expenditure of $25.65 million on net basis during the nine month period, up 4.11 percent or $1.01 million from year ago period.
The company has spent $51.23 million cash to carry out financing activities during the nine month period as against cash outgo of $6.03 million in the last year period.
Cash and cash equivalents stood at $43.17 million as on Sep. 30, 2016, up 117.76 percent or $23.35 million from $19.83 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Five Star Quality Care, Inc. was negative $39.06 million on Sep. 30, 2016 compared with negative $111.38 million on Sep. 30, 2015. Current ratio was at 0.79 as on Sep. 30, 2016, up from 0.52 on Sep. 30, 2015.
Days sales outstanding were almost stable at 13 days for the quarter, when compared with the last year period.
Debt comes down significantly
Five Star Quality Care, Inc. has recorded a decline in total debt over the last one year. It stood at $58.98 million as on Sep. 30, 2016, down 25.65 percent or $20.35 million from $79.32 million on Sep. 30, 2015. Total debt was 11.11 percent of total assets as on Sep. 30, 2016, compared with 15.64 percent on Sep. 30, 2015. Debt to equity ratio was at 0.35 as on Sep. 30, 2016, down from 0.42 as on Sep. 30, 2015.
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