Kindred Healthcare (KND) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $15.41 million, or $ 0.18 a share in the quarter, against a net profit of $45.67 million, or $0.52 a share in the last year period.

Revenue during the quarter went down marginally by 1.97 percent to $1,745.95 million from $1,780.95 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 94.86 percent. Total expenses were 97.41 percent of quarterly revenues, down from 97.92 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 2.59 percent.

Operating income for the quarter was $45.18 million, compared with $37.02 million in the previous year period.

Benjamin A. Breier, president and chief executive officer of the Company, commented, "We are pleased to report fourth quarter and full year 2016 operating results in line with our expectations. We made significant progress growing our home health, hospice and inpatient rehabilitation businesses, and stabilized our nursing center and RehabCare volumes. We are further encouraged by the performance of our Hospital Division in its first full quarter under long-term acute care "LTAC" patient criteria. Our solid volume and cash flow performance, coupled with enterprise-wide cost realignment initiatives, position us to continue building on our success as the post-acute provider of choice among patients, families, healthcare systems and payors."

For fiscal year 2017, Kindred Healthcare forecasts revenue to be in the range of $7,100 million to $7,300 million. The company expects diluted earnings per share to be in the range of $0.40 to $0.70 on adjusted basis.

The company has spent $199.64 million cash to meet investing activities during the year as against cash inflow of $752.21 million in the last year. It has incurred net capital expenditure of $61.23 million on net basis during the year, down 39.97 percent or $40.77 million from year ago.

Cash flow from financing activities was $52.98 million for the year as against cash outgo of $980.90 million in the last year period.

Cash and cash equivalents stood at $137.06 million as on Dec. 31, 2016, up 38.78 percent or $38.30 million from $98.76 million on Dec. 31, 2015.

Working capital increases sharply
Kindred Healthcare has recorded an increase in the working capital over the last year. It stood at $510.81 million as at Dec. 31, 2016, up 31.08 percent or $121.12 million from $389.69 million on Dec. 31, 2015. Current ratio was at 1.51 as on Dec. 31, 2016, up from 1.35 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 61 days for the quarter from 45 days for the last year period. Days sales outstanding were almost stable at 31 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 13 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 104 days for the quarter from 89 for the same period last year.