The Providence Service Corporation (PRSC) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.65 million, or $ 0.05 a share in the quarter, against a net loss of $5.57 million, or $0.41 a share in the last year period. On an adjusted basis, earnings per share were at $0.35 for the quarter compared with $0.16 in the same period last year. Revenue during the quarter grew 8.68 percent to $412.51 million from $379.57 million in the previous year period. Total expenses were 97.63 percent of quarterly revenues, down from 99.32 percent for the same period last year. This has led to an improvement of 169 basis points in operating margin to 2.37 percent.
Operating income for the quarter was $9.79 million, compared with $2.58 million in the previous year period.
Operating cash flow improves significantly
The Providence Service Corporation has generated cash of $44.98 million from operating activities during the nine month period, up 74.31 percent or $19.18 million, when compared with the last year period. The company has spent $35.15 million cash to meet investing activities during the nine month period as against cash outgo of $42.52 million in the last year period.
The company has spent $31.94 million cash to carry out financing activities during the nine month period as against cash outgo of $16.75 million in the last year period.
Working capital turns negative
Working capital of The Providence Service Corporation has turned negative to $270.77 million on Sep. 30, 2016 from positive $99.20 million on Sep. 30, 2015. Current ratio was at 0.54 as on Sep. 30, 2016, down from 1.31 on Sep. 30, 2015.
Days sales outstanding went down to 44 days for the quarter compared with 51 days for the same period last year.
Debt comes down significantly
The Providence Service Corporation has recorded a decline in total debt over the last one year. It stood at $322.90 million as on Sep. 30, 2016, down 33.01 percent or $159.14 million from $482.04 million on Sep. 30, 2015. Total debt was 31.53 percent of total assets as on Sep. 30, 2016, compared with 40.29 percent on Sep. 30, 2015. Debt to equity ratio was at 1.37 as on Sep. 30, 2016, down from 2.05 as on Sep. 30, 2015. Interest coverage ratio improved to 13.95 for the quarter from 5.01 for the same period last year.
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