Revenue during the quarter grew 10.13 percent to $472.39 million from $428.95 million in the previous year period. Gross margin for the quarter contracted 22 basis points over the previous year period to 29.48 percent. Total expenses were 91.90 percent of quarterly revenues, up from 89.77 percent for the same period last year. That has resulted in a contraction of 213 basis points in operating margin to 8.10 percent.

Operating income for the quarter was $38.24 million, compared with $43.86 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $73.91 million compared with $67.93 million in the prior year period. At the same time, adjusted EBITDA margin contracted 19 basis points in the quarter to 15.65 percent from 15.84 percent in the last year period.

"We are pleased to have delivered another quarter with double-digit revenue, earnings and net new business growth year-over-year," said Colin Shannon, PRA’s chief executive officer. "We are well-positioned to deliver at least mid-teens growth during the coming year, as evidenced by our record level of new business awards and backlog. We continue to stay focused on our key strategic objectives, our client deliverables and developing our people, and we look forward to delivering strong results in 2017."

For financial year 2017, PRA Health Sciences, Inc. expects revenue to be in the range of $1,795 million to $1,835 million. The company forecasts net income to be in the range of $162 million to $168 million and adjusted net income to be in the range of $203 million to $209 million. It company projects diluted earnings per share to be in the range of $2.46 to $2.56. The company projects diluted earnings per share to be in the range of $3.08 to $3.18 on adjusted basis.

For the first-quarter 2017, PRA Health Sciences, Inc. expects revenue to be in the range of $415 million to $425 million. The company forecasts net income to be in the range of $27 million to $30 million and adjusted net income to be in the range of $37 million to $40 million. It company projects diluted earnings per share to be in the range of $0.41 to $0.46. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.57 to $0.62.

Operating cash flow improves marginally
PRA Health Sciences, Inc. has generated cash of $160.05 million from operating activities during the year, up 5 percent or $7.62 million, when compared with the last year.

The company has spent $34.61 million cash to meet investing activities during the year as against cash outgo of $71.69 million in the last year. It has incurred net capital expenditure of $33.13 million on net basis during the year, up 1.11 percent or $0.36 million from year ago.

The company has spent $101.60 million cash to carry out financing activities during the year as against cash outgo of $42.44 million in the last year period.

Cash and cash equivalents stood at $144.62 million as on Dec. 31, 2016, up 19.46 percent or $23.56 million from $121.06 million on Dec. 31, 2015.

Working capital increases sharply
PRA Health Sciences, Inc. has recorded an increase in the working capital over the last year. It stood at $60.54 million as at Dec. 31, 2016, up 38.23 percent or $16.74 million from $43.80 million on Dec. 31, 2015. Current ratio was at 1.11 as on Dec. 31, 2016, up from 1.08 on Dec. 31, 2015.

Days sales outstanding went down to 43 days for the quarter compared with 45 days for the same period last year.

At the same time, days payable outstanding went down to 7 days for the quarter from 9 for the same period last year.