Healthways (HWAY) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $55.94 million, or $ 1.45 a share in the quarter, against a net loss of $9.03 million, or $0.25 a share in the last year period. Revenue during the quarter grew 10.14 percent to $125.05 million from $113.54 million in the previous year period. Gross margin for the quarter contracted 175 basis points over the previous year period to 28.71 percent. Total expenses were 81.80 percent of quarterly revenues, up from 76.84 percent for the same period last year. That has resulted in a contraction of 496 basis points in operating margin to 18.20 percent.
Operating income for the quarter was $22.76 million, compared with $26.30 million in the previous year period.
Operating cash flow drops significantlyHealthways has generated cash of $13.12 million from operating activities during the nine month period, down 66.22 percent or $25.71 million, when compared with the last year period. The company has spent $37.26 million cash to meet investing activities during the nine month period as against cash outgo of $33.32 million in the last year period.
Cash flow from financing activities was $22.18 million for the nine month period as against cash outgo of $3.63 million in the last year period.
Cash and cash equivalents stood at $0.73 million as on Sep. 30, 2016, up 39.01 percent or $0.20 million from $0.52 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Healthways was negative $76.94 million on Sep. 30, 2016 compared with negative $10.70 million on Sep. 30, 2015. Current ratio was at 0.45 as on Sep. 30, 2016, down from 0.93 on Sep. 30, 2015.
Days sales outstanding went down to 64 days for the quarter compared with 98 days for the same period last year.
At the same time, days payable outstanding went down to 34 days for the quarter from 46 for the same period last year.
Debt remains almost stable
Healthways has recorded a decline in total debt over the last one year. It stood at $250.43 million as on Sep. 30, 2016, down 0.58 percent or $1.47 million from $251.90 million on Sep. 30, 2015. Total debt was 42.31 percent of total assets as on Sep. 30, 2016, compared with 33.93 percent on Sep. 30, 2015. Debt to equity ratio was at 1.52 as on Sep. 30, 2016, up from 0.85 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 4.71 for the quarter from 5.35 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: [email protected]
