Surgery Partners, Inc. (SGRY) saw its loss narrow to $2.75 million, or $0.06 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $7.19 million, or $0.15 a share. On the other hand, adjusted net income for the quarter stood at $1.70 million, or $0.04 a share compared with $4.94 million or $0.10 a share, a year ago.
Revenue during the quarter grew 7.15 percent to $286.18 million from $267.07 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 25.94 percent. Total expenses were 85.42 percent of quarterly revenues, down from 87.16 percent for the same period last year. This has led to an improvement of 174 basis points in operating margin to 14.58 percent.
Operating income for the quarter was $41.72 million, compared with $34.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $40.11 million compared with $38.43 million in the prior year period. At the same time, adjusted EBITDA margin contracted 37 basis points in the quarter to 14.01 percent from 14.39 percent in the last year period.
"Surgery Partners recorded solid revenue growth again for the first quarter of 2017," said Mike Doyle, chief executive officer. "During the quarter, we were pleased to see more high-acuity cases at many established facilities and the initial contributions from acquisitions closed during 2016."
For the fiscal year 2017, Surgery Partners, Inc. forecasts revenue to grow in the range of 9 percent to 11 percent.
Operating cash flow improves significantly
Surgery Partners, Inc. has generated cash of $34.87 million from operating activities during the quarter, up 38.13 percent or $9.63 million, when compared with the last year period.
The company has spent $6.62 million cash to meet investing activities during the quarter as against cash outgo of $18.85 million in the last year period.
The company has spent $41.98 million cash to carry out financing activities during the quarter as against cash inflow of $70.72 million in the last year period.
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