eHealth, Inc. (EHTH) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $5.74 million, or $ 0.31 a share in the quarter, against a net profit of $3.64 million, or $0.20 a share in the last year period. On adjusted basis, net loss for the quarter stood at $4.27 million, or $0.23 a share compared with a net profit of $5.47 million, or $0.30 a share in the last year period.
Revenue during the quarter dropped 16.08 percent to $32.08 million from $38.22 million in the previous year period.
Total expenses move up
Operating loss for the quarter was $6.92 million, compared with an operating income of $2.92 million in the previous year period. However, the adjusted operating loss for the quarter stood at $5.45 million compared to operating profit of $4.76 million in prior year period.
Meanwhile, income from fees and commission for the quarter declined 14.31 percent or $5 million to $29.94 million.
Scott Flanders, chief executive officer of eHealth stated, "During the third quarter, we completed our 100-day strategic review and, as announced separately today, have charted a course that offers eHealth opportunity for substantial future growth and value creation. In conjunction with our plan, we are announcing today a new operating structure and executive management appointments to better effect the growth opportunities we see for the company. In addition, our board of directors has authorized management to engage an investment bank to consider strategic alternatives that may be available to the company to enhance value and accelerate our growth objectives."
Operating cash flow drops significantly
eHealth, Inc. has generated cash of $8.78 million from operating activities during the nine month period, down 29.58 percent or $3.69 million, when compared with the last year period. The company has spent $3.16 million cash to meet investing activities during the nine month period as against cash outgo of $2.34 million in the last year period.
The company has spent $1.05 million cash to carry out financing activities during the nine month period as against cash inflow of $0.44 million in the last year period.
Cash and cash equivalents stood at $67.27 million as on Sep. 30, 2016, up 8.47 percent or $5.25 million from $62.02 million on Sep. 30, 2015.
Assets, liabilities fall
Total assets decreased 0.65 percent or $0.75 million to $114.23 million on Sep. 30, 2016. On the other hand, total liabilities were at $21.63 million as on Sep. 30, 2016, down 23.33 percent or $6.58 million from year-ago.
Return on assets was negative at 5.02 percent in the quarter against a positive 3.16 percent in the last year period. Return on equity was negative at 6.19 percent in the quarter against a positive 4.19 percent in the last year period.
Shareholders equity stood at $92.60 million as on Sep. 30, 2016, up 6.72 percent or $5.83 million from year-ago.
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