Kindred Healthcare, Inc. (KND) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $5.75 million, or $ 0.07 a share in the quarter, against a net profit of $13 million, or $0.15 a share in the last year period. Revenue during the quarter dropped 3.79 percent to $1,768.40 million from $1,837.97 million in the previous year period. Gross margin for the quarter expanded 31 basis points over the previous year period to 94.90 percent. Total expenses were 96.71 percent of quarterly revenues, up from 95.58 percent for the same period last year. That has resulted in a contraction of 113 basis points in operating margin to 3.29 percent.
Operating income for the quarter was $58.26 million, compared with $81.29 million in the previous year period.
Benjamin A. Breier, president and chief executive officer of the Company, commented, "We are pleased to report progress in the first quarter of 2017, as evidenced by strong growth in our home health, hospice and inpatient rehabilitation businesses and continued advancement by our Hospital Division in its second full quarter under long-term acute care (“LTAC”) patient criteria. Furthermore, we are reaffirming our expectations for 2017 and 2018."
Kindred Healthcare, Inc. projects revenue to be in the range of $7.10 million to $7.30 million for financial year 2017.
Operating cash flow remains negativeKindred Healthcare, Inc. has spent $92.64 million cash to meet operating activities during the quarter as against cash outgo of $130.34 million in the last year period. The company has spent $17.54 million cash to meet investing activities during the quarter as against cash outgo of $62.79 million in the last year period. It has incurred net capital expenditure of $6.50 million on net basis during the quarter, down 19.60 percent or $1.59 million from year ago period.
Cash flow from financing activities was $90.03 million for the quarter, down 54.86 percent or $109.42 million, when compared with the last year period.
Cash and cash equivalents stood at $116.91 million as on Mar. 31, 2017, up 11.26 percent or $11.83 million from $105.08 million on Mar. 31, 2016.
Working capital increases
Kindred Healthcare, Inc. has recorded an increase in the working capital over the last year. It stood at $649.29 million as at Mar. 31, 2017, up 5.86 percent or $35.97 million from $613.32 million on Mar. 31, 2016. Current ratio was at 1.70 as on Mar. 31, 2017, up from 1.63 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 108 days for the quarter from 80 days for the last year period. Days sales outstanding went up to 63 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 12 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding went up to 183 days for the quarter from 166 for the same period last year.
Debt remains almost stable
Total debt of Kindred Healthcare, Inc. remained almost stable for the quarter at $3,369.34 million, when compared with the last year period. Total debt was 54.83 percent of total assets as on Mar. 31, 2017, compared with 51.18 percent on Mar. 31, 2016. Debt to equity ratio was at 3.31 as on Mar. 31, 2017, up from 1.98 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.98 for the quarter from 1.41 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]
