R1 RCM Inc. (ACHI) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $37.33 million, or $ 0.18 a share in the quarter, against a net loss of $32.97 million, or $0.34 a share in the last year period.
Revenue during the quarter surged 692.42 percent to $125.54 million from $15.84 million in the previous year period.
Operating income for the quarter was $61.42 million, compared with an operating loss of $54.84 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $69.39 million compared to negative $35.83 million in the prior year second quarter.
"Accretive Health’s third quarter results reflect the progress we are making in executing against our near-term objectives," said Joe Flanagan, president and chief executive officer of Accretive Health. "We successfully initiated the transition of the first tranche of new Ascension ministries onto our platform, renewed our relationship with our second-largest customer for a multi-year term, and continued to make investments in personnel, technology and infrastructure to enable the company to succeed over the long term."
Operating cash flow turns negative
R1 RCM Inc. has spent $69.24 million cash to meet operating activities during the nine month period as against cash inflow of $6.47 million in the last year period.
The company has spent $9.37 million cash to meet investing activities during the nine month period as against cash outgo of $18.30 million in the last year period.
Cash flow from financing activities was $176.74 million for the nine month period, up 3,471.33 percent or $171.80 million, when compared with the last year period.
Cash and cash equivalents stood at $201.95 million as on Sep. 30, 2016, up 46.64 percent or $64.23 million from $137.72 million on Sep. 30, 2015.
Working capital remains negative
Working capital of R1 RCM Inc. was negative $6.33 million on Sep. 30, 2016 compared with negative $126.66 million on Sep. 30, 2015. Current ratio was at 0.97 as on Sep. 30, 2016, up from 0.67 on Sep. 30, 2015.
Days sales outstanding went down to 5 days for the quarter compared with 25 days for the same period last year.
At the same time, days payable outstanding went down to 14 days for the quarter from 17 for the same period last year.
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: editor@irisindia.net
