Genesis HealthCare (GEN) saw its loss narrow to $20.46 million, or $0.23 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $28.95 million, or $0.32 a share. Revenue during the quarter went up marginally by 0.21 percent to $1,418.99 million from $1,416.03 million in the previous year period. Total expenses were 34.11 percent of quarterly revenues, down from 34.93 percent for the same period last year. This has led to an improvement of 82 basis points in operating margin to 65.89 percent.
However, the adjusted EBITDA for the quarter stood at $47.76 million compared with $67.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 138 basis points in the quarter to 3.37 percent from 4.75 percent in the last year period.
"We delivered another solid quarter despite near-term headwinds and continued to position Genesis for success," said George V. Hager, Jr., chief executive officer. "The planned and completed divestiture of geographically non-strategic facilities and the recently announced new leases build on the actions we have taken to improve our asset quality, capital structure and performance. Over the past year, we have integrated acquisitions, brought down our cost base, paid down debt and divested non-strategic assets, creating a strong foundation for profitable growth in 2017 and beyond."
Operating cash flow turns positiveGenesis HealthCare has generated cash of $35.30 million from operating activities during the nine month period as against cash outgo of $4.95 million in the last year period. Cash flow from investing activities was $0.96 million for the nine month period as against cash outgo of $67.93 million in the last year period.
The company has spent $43.97 million cash to carry out financing activities during the nine month period as against cash inflow of $45 million in the last year period.
Cash and cash equivalents stood at $53.84 million as on Sep. 30, 2016, down 9.77 percent or $5.83 million from $59.67 million on Sep. 30, 2015.
Working capital increases
Genesis HealthCare has recorded an increase in the working capital over the last year. It stood at $237.37 million as at Sep. 30, 2016, up 6.06 percent or $13.57 million from $223.80 million on Sep. 30, 2015. Current ratio was at 1.29 as on Sep. 30, 2016, up from 1.29 on Sep. 30, 2015.
Days sales outstanding went up to 51 days for the quarter compared with 49 days for the same period last year.
Debt comes down significantly
Genesis HealthCare has recorded a decline in total debt over the last one year. It stood at $2,169.07 million as on Sep. 30, 2016, down 57.46 percent or $2,929.33 million from $5,098.40 million on Sep. 30, 2015. Total debt was 36.85 percent of total assets as on Sep. 30, 2016, compared with 83.29 percent on Sep. 30, 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
