American Renal Associates Holdings, Inc. (ARA) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $7.12 million, or $ 0.02 a share in the quarter, against a net profit of $6.84 million, or $0.30 a share in the last year period.
Revenue during the quarter grew 14.29 percent to $199.11 million from $174.21 million in the previous year period. Total expenses were 87.34 percent of quarterly revenues, up from 75.87 percent for the same period last year. That has resulted in a contraction of 1147 basis points in operating margin to 12.66 percent.
Operating income for the quarter was $25.20 million, compared with $42.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $55.88 million compared with $52.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 179 basis points in the quarter to 28.06 percent from 29.86 percent in the last year period.
Joseph (Joe) Carlucci, chairman and chief executive officer, said, "I am proud of the collective efforts of the ARA team during 2016. ARA’s dedicated staff remained focused on our Company's first priority - delivering the highest quality patient care. We ended 2016 with very low dialysis clinic staff turnover of 6.9%, physician satisfaction rates that put ARA in the 99th percentile of health care organizations according to Press Ganey data, and very strong performance in the Centers for Medicare & Medicaid Services (CMS) end stage renal disease (ESRD) Quality Incentive Program (QIP)."
Operating cash flow improves significantly
American Renal Associates Holdings has generated cash of $172.21 million from operating activities during the year, up 28.91 percent or $38.62 million, when compared with the last year.
The company has spent $65.94 million cash to meet investing activities during the year as against cash outgo of $48.92 million in the last year.
The company has spent $96.34 million cash to carry out financing activities during the year as against cash outgo of $55.17 million in the last year period.
Cash and cash equivalents stood at $100.92 million as on Dec. 31, 2016, up 10.91 percent or $9.93 million from $90.99 million on Dec. 31, 2015.
Debt comes down
American Renal Associates Holdings has recorded a decline in total debt over the last one year. It stood at $570.33 million as on Dec. 31, 2016, down 16.49 percent or $112.65 million from $682.98 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.42 for the quarter from 3.91 for the same period last year.
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