PRA Health Sciences, Inc. (PRAH) has reported a 32.93 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $31.45 million, or $0.49 a share in the quarter, compared with $23.66 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $41.03 million, or $0.64 a share compared with $33.21 million or $0.52 a share, a year ago.
Revenue during the quarter grew 12.33 percent to $453.26 million from $403.51 million in the previous year period. Gross margin for the quarter contracted 191 basis points over the previous year period to 30.87 percent. Total expenses were 87.91 percent of quarterly revenues, up from 87.81 percent for the same period last year. That has resulted in a contraction of 9 basis points in operating margin to 12.09 percent.
Operating income for the quarter was $54.81 million, compared with $49.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $74.71 million compared with $66.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2 basis points in the quarter to 16.48 percent from 16.50 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. "Our strong financial performance is a reflection of the exceptional service we provide and the continued commitment of our employees to our customers. We are well-positioned to finish 2016 strong and to create sustained value for all of our stakeholders."
For financial year 2016, PRA Health Sciences, Inc. forecasts revenue to be in the range of $1,568 million to $1,573 million. The company projects net income to be in the range of $84.10 million to $86 million. It expects adjusted net income to be in the range of $158 million to $159.90 million. The company expects diluted earnings per share to be in the range of $1.30 to $1.33. The company expects diluted earnings per share to be in the range of $2.45 to $2.48 on adjusted basis.
Operating cash flow drops significantly
PRA Health Sciences, Inc. has generated cash of $49.21 million from operating activities during the nine month period, down 31.84 percent or $22.99 million, when compared with the last year period.
The company has spent $27.64 million cash to meet investing activities during the nine month period as against cash outgo of $84.13 million in the last year period.
The company has spent $12.92 million cash to carry out financing activities during the nine month period as against cash outgo of $22.50 million in the last year period.
Cash and cash equivalents stood at $130.34 million as on Sep. 30, 2016, up 169.09 percent or $81.90 million from $48.44 million on Sep. 30, 2015.
Working capital increases sharply
PRA Health Sciences, Inc. has recorded an increase in the working capital over the last year. It stood at $124.88 million as at Sep. 30, 2016, up 371.38 percent or $98.39 million from $26.49 million on Sep. 30, 2015. Current ratio was at 1.25 as on Sep. 30, 2016, up from 1.05 on Sep. 30, 2015.
Days sales outstanding went down to 86 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 19 for the same period last year.
Debt comes down
PRA Health Sciences, Inc. has recorded a decline in total debt over the last one year. It stood at $882.45 million as on Sep. 30, 2016, down 5.05 percent or $46.98 million from $929.43 million on Sep. 30, 2015. Total debt was 39.74 percent of total assets as on Sep. 30, 2016, compared with 41.46 percent on Sep. 30, 2015. Debt to equity ratio was at 1.20 as on Sep. 30, 2016, down from 1.34 as on Sep. 30, 2015.
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