Civitas Solutions, Inc (CIVI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $4.18 million, or $ 0.11 a share in the quarter, against a net loss of $5.60 million, or $0.15 a share in the last year period. Revenue during the quarter grew 3.95 percent to $359.39 million from $345.75 million in the previous year period. Gross margin for the quarter contracted 63 basis points over the previous year period to 20.98 percent. Total expenses were 95.70 percent of quarterly revenues, down from 97.92 percent for the same period last year. This has led to an improvement of 222 basis points in operating margin to 4.30 percent.
Operating income for the quarter was $15.47 million, compared with $7.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $37.51 million compared with $36.32 million in the prior year period. At the same time, adjusted EBITDA margin contracted 7 basis points in the quarter to 10.44 percent from 10.50 percent in the last year period.
Civitas Solutions forecasts revenue to be in the range of $1,480 million to $1,520 million for fiscal year 2017. For financial year 2017, Civitas Solutions projects net income to be in the range of $26.70 million to $29.10 million.
Operating cash flow improves significantly
Civitas Solutions, Inc has generated cash of $15.80 million from operating activities during the quarter, up 138.73 percent or $9.18 million, when compared with the last year period. The company has spent $10.57 million cash to meet investing activities during the quarter as against cash outgo of $13.07 million in the last year period.
The company has spent $2.18 million cash to carry out financing activities during the quarter as against cash outgo of $1.04 million in the last year period.
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