Select Medical Holdings Corporation (SEM) has reported a 31.22 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $20.17 million, or $0.15 a share in the quarter, compared with $29.33 million, or $0.22 a share for the same period last year. On an adjusted basis, earnings per share were at $0.12 for the quarter compared with $0.22 in the same period last year. Revenue during the quarter went up marginally by 0.68 percent to $1,046.26 million from $1,039.20 million in the previous year period. Gross margin for the quarter contracted 14 basis points over the previous year period to 13.03 percent. Total expenses were 94.67 percent of quarterly revenues, up from 94.01 percent for the same period last year. That has resulted in a contraction of 67 basis points in operating margin to 5.33 percent.
Operating income for the quarter was $55.74 million, compared with $62.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $97.66 million compared with $100.82 million in the prior year period. At the same time, adjusted EBITDA margin contracted 37 basis points in the quarter to 9.33 percent from 9.70 percent in the last year period.
Select Medical Holdings Corp forecasts revenue to be in the range of $4,400 million to $4,600 million for fiscal year 2017. For financial year 2017, Select Medical Holdings Corp projects net income to be in the range of $135 million to $159 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.73 to $0.91.
Operating cash flow improves significantly
Select Medical Holdings Corporation has generated cash of $346.60 million from operating activities during the year, up 66.30 percent or $138.19 million, when compared with the last year. The company has spent $554.32 million cash to meet investing activities during the year as against cash outgo of $1,211.75 million in the last year. It has incurred net capital expenditure of $77.39 million on net basis during the year, down 47.63 percent or $70.39 million from year ago.
Cash flow from financing activities was $292.31 million for the year, down 71.18 percent or $722.11 million, when compared with the last year.
Cash and cash equivalents stood at $99.03 million as on Dec. 31, 2016, up 586.03 percent or $84.59 million from $14.44 million on Dec. 31, 2015.
Debt moves up
Select Medical Holdings Corporation has witnessed an increase in total debt over the last one year. It stood at $2,698.99 million as on Dec. 31, 2016, up 13.12 percent or $313.09 million from $2,385.90 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.31 for the quarter from 1.88 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
