PRA Health Sciences (PRAH) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $25.22 million, or $ 0.39 a share in the quarter, against a net loss of $15.97 million, or $0.27 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $40.44 million, or $0.62 a share compared with $34.89 million or $0.55 a share, a year ago.
Revenue during the quarter grew 13.37 percent to $487.76 million from $430.22 million in the previous year period. Gross margin for the quarter contracted 133 basis points over the previous year period to 28.61 percent. Total expenses were 89.74 percent of quarterly revenues, down from 95.60 percent for the same period last year. This has led to an improvement of 585 basis points in operating margin to 10.26 percent.
Operating income for the quarter was $50.03 million, compared with $18.95 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $69.29 million compared with $67.36 million in the prior year period. At the same time, adjusted EBITDA margin contracted 145 basis points in the quarter to 14.20 percent from 15.66 percent in the last year period.
"2017 is off to a solid start, and I am pleased with our first quarter financial results, which demonstrate a continuation of our momentum from 2016,” said Colin Shannon, PRA’s Chief Executive Officer. “We continue to execute consistently across our business, as evidenced by our double-digit revenue growth and a very strong book-to-bill ratio. We continue to stay focused on our key strategic objectives and our client deliverables, and we look forward to continuing to deliver strong results for the remainder of 2017."
For fiscal year 2017, PRA Health Sciences projects revenue to be in the range of $1,795 million to $1,835 million. It expects net income to be in the range of $162 million to $168 million. It forecasts adjusted net income to be in the range of $203 million to $209 million.The company forecasts diluted earnings per share to be in the range of $2.46 to $2.56, the company forecasts diluted earnings per share to be in the range of $3.08 to $3.18 on adjusted basis.
Operating cash flow turns negativePRA Health Sciences has spent $10.80 million cash to meet operating activities during the quarter as against cash inflow of $20.40 million in the last year period. The company has spent $8.29 million cash to meet investing activities during the quarter as against cash outgo of $12.59 million in the last year period.
The company has spent $6.76 million cash to carry out financing activities during the quarter as against cash outgo of $31.34 million in the last year period.
Cash and cash equivalents stood at $123.46 million as on Mar. 31, 2017, down 14.63 percent or $21.16 million from $144.62 million on Mar. 31, 2016.
Working capital increases sharply
PRA Health Sciences has recorded an increase in the working capital over the last year. It stood at $90.73 million as at Mar. 31, 2017, up 125.71 percent or $50.53 million from $40.20 million on Mar. 31, 2016. Current ratio was at 1.16 as on Mar. 31, 2017, up from 1.08 on Mar. 31, 2016.
Days sales outstanding went down to 84 days for the quarter compared with 91 days for the same period last year.
At the same time, days payable outstanding went down to 14 days for the quarter from 16 for the same period last year.
Debt remains almost stablePRA Health Sciences has recorded a decline in total debt over the last one year. It stood at $820.88 million as on Mar. 31, 2017, down 0.90 percent or $7.42 million from $828.30 million on Mar. 31, 2016. Total debt was 36.82 percent of total assets as on Mar. 31, 2017, compared with 37.55 percent on Mar. 31, 2016. Debt to equity ratio was at 1.06 as on Mar. 31, 2017, down from 1.17 as on Mar. 31, 2016. 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]