The Ensign Group, Inc (ENSG) has reported a 17.20 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $11.16 million, or $0.21 a share in the quarter, compared with $13.47 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $16.55 million, or $0.32 a share compared with $15.85 million or $0.30 a share, a year ago. Revenue during the quarter grew 21.93 percent to $428.06 million from $351.09 million in the previous year period. Gross margin for the quarter contracted 243 basis points over the previous year period to 10.69 percent. Total expenses were 95.32 percent of quarterly revenues, up from 93.85 percent for the same period last year. That has resulted in a contraction of 147 basis points in operating margin to 4.68 percent.
Operating income for the quarter was $20.04 million, compared with $21.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $38.47 million compared with $33.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 43 basis points in the quarter to 8.99 percent from 9.42 percent in the last year period.
Ensign’s president and chief executive officer Christopher Christensen indicated that the results for the quarter were in line with management’s expectations. Mr. Christensen reiterated that management anticipated the challenges that Ensign experienced and identified in the latter-half of the second quarter to continue into the third quarter. He also affirmed that management expects Ensign to meet management’s annual guidance for 2016.
For financial year 2016, The Ensign Group, Inc expects revenue to be in the range of $1,625 million to $1,660 million. The company projects diluted earnings per share to be in the range of $1.35 to $1.42.
For financial year 2017, The Ensign Group, Inc expects revenue to be in the range of $1,818 million to $1,842 million. The company projects diluted earnings per share to be in the range of $1.62 to $1.70.
Operating cash flow improves significantly
The Ensign Group, Inc has generated cash of $71.18 million from operating activities during the nine month period, up 435.22 percent or $57.88 million, when compared with the last year period. The company has spent $112.42 million cash to meet investing activities during the nine month period as against cash outgo of $120.58 million in the last year period.
Cash flow from financing activities was $40.08 million for the nine month period, down 58.65 percent or $56.85 million, when compared with the last year period.
Cash and cash equivalents stood at $40.41 million as on Sep. 30, 2016, up 0.86 percent or $0.34 million from $40.07 million on Sep. 30, 2015.
Working capital increases marginally
The Ensign Group, Inc has recorded an increase in the working capital over the last year. It stood at $109.69 million as at Sep. 30, 2016, up 1.39 percent or $1.51 million from $108.18 million on Sep. 30, 2015. Current ratio was at 1.55 as on Sep. 30, 2016, down from 1.67 on Sep. 30, 2015.
Days sales outstanding went down to 43 days for the quarter compared with 48 days for the same period last year.
At the same time, days payable outstanding went down to 9 days for the quarter from 10 for the same period last year.
Debt increases substantially
The Ensign Group, Inc has witnessed an increase in total debt over the last one year. It stood at $170.62 million as on Sep. 30, 2016, up 144.36 percent or $100.79 million from $69.82 million on Sep. 30, 2015. Total debt was 19.99 percent of total assets as on Sep. 30, 2016, compared with 10.23 percent on Sep. 30, 2015. Debt to equity ratio was at 0.39 as on Sep. 30, 2016, up from 0.17 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 9.39 for the quarter from 26.92 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: editor@irisindia.net
