AdCare Health Systems, Inc. (ADK) saw its loss narrow to $0.95 million, or $0.14 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.95 million, or $0.19 a share. Revenue during the quarter dropped 13.37 percent to $6.14 million from $7.08 million in the previous year period. Total expenses were 89.37 percent of quarterly revenues, down from 93.72 percent for the same period last year. This has led to an improvement of 434 basis points in operating margin to 10.63 percent.
Operating income for the quarter was $0.65 million, compared with $0.44 million in the previous year period.
“With our transition to a property holding and leasing company increasingly behind us, we are focused more on growing our portfolio and increasing shareholder value,” commented Allan Rimland, AdCares president, chief executive officer and chief financial officer. “The purchase of the Meadowood facility in Alabama is our first acquisition under the new business model. We believe the facility has attractive economics with modest operational risk because affiliates of C. Ross Management lease both the new Meadowood facility and the adjacent Coosa Valley skilled nursing facility. At the same time, we believe our pipeline of additional, potential acquisitions is robust with a primary focus on properties in the skilled nursing sector that can provide attractive, risk-adjusted returns on capital."
Working capital remains negativeWorking capital of AdCare Health Systems, Inc. was negative $7.49 million on Mar. 31, 2017 compared with negative $36.35 million on Mar. 31, 2016. Current ratio was at 0.59 as on Mar. 31, 2017, up from 0.36 on Mar. 31, 2016. Days sales outstanding went down to 81 days for the quarter compared with 112 days for the same period last year.
Debt comes down significantly
AdCare Health Systems, Inc. has recorded a decline in total debt over the last one year. It stood at $71.83 million as on Mar. 31, 2017, down 38.83 percent or $45.61 million from $117.44 million on Mar. 31, 2016. Total debt was 66.83 percent of total assets as on Mar. 31, 2017, compared with 71.94 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.63 for the quarter from 0.24 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]
