AdCare Health Systems, Inc. (ADK) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1.46 million, or $ 0.02 a share in the quarter, against a net loss of $8.59 million, or $0.50 a share in the last year period. Revenue during the quarter dropped 5.20 percent to $5.93 million from $6.25 million in the previous year period. Operating margin for the quarter period stood at positive 20.77 percent as compared to a negative 38.95 percent for the previous year period.
Operating income for the quarter was $1.23 million, compared with an operating loss of $2.44 million in the previous year period.
"We made noteworthy progress against each of the initiatives the board put in place to create sustainable shareholder value," stated Bill McBride, AdCare's chairman and chief executive Officer. "Specifically, during the fourth quarter, we continued our efforts to identify and pursue attractive acquisitions, optimize our balance sheet and reduce operating costs as we saw improvements in the underlying operating performance of our property portfolio."
Working capital remains negative
Working capital of AdCare Health Systems, Inc. was negative $4.80 million on Dec. 31, 2016 compared with negative $38.63 million on Dec. 31, 2015. Current ratio was at 0.81 as on Dec. 31, 2016, up from 0.39 on Dec. 31, 2015.
Debt comes down significantly
AdCare Health Systems, Inc. has recorded a decline in total debt over the last one year. It stood at $79.97 million as on Dec. 31, 2016, down 34.34 percent or $41.83 million from $121.80 million on Dec. 31, 2015. Total debt was 66.93 percent of total assets as on Dec. 31, 2016, compared with 70.82 percent on Dec. 31, 2015. Debt to equity ratio was at 3.40 as on Dec. 31, 2016, down from 3.94 as on Dec. 31, 2015. 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: editor@irisindia.net
