Surgery Partners, Inc (SGRY) saw its loss narrow to $2.34 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.12 million, or $0.10 a share. On the other hand, adjusted net income for the quarter stood at $10.25 million, or $0.21 a share compared with $0.76 million or $0.02 a share, a year ago. Revenue during the quarter grew 17.98 percent to $282.68 million from $239.60 million in the previous year period. Gross margin for the quarter contracted 78 basis points over the previous year period to 28.76 percent. Total expenses were 84.84 percent of quarterly revenues, up from 81.52 percent for the same period last year. That has resulted in a contraction of 332 basis points in operating margin to 15.16 percent.
Operating income for the quarter was $42.85 million, compared with $44.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $44.75 million compared with $39.86 million in the prior year period. At the same time, adjusted EBITDA margin contracted 81 basis points in the quarter to 15.83 percent from 16.63 percent in the last year period.
“Surgery Partners produced strong revenue growth for the third quarter with an 18.0% increase over prior year driven by solid same-facility revenue growth of 10.3%,” said Mike Doyle, Chief Executive Officer. “We continue to demonstrate strong volume growth as we add higher acuity cases to our surgical facilities and expand services in our existing markets.”
Surgery Partners expects revenue to be in the range of $1,120 million to $1,140 million for financial year 2016.
Operating cash flow improves significantly
Surgery Partners, Inc has generated cash of $92.86 million from operating activities during the nine month period, up 54.02 percent or $32.57 million, when compared with the last year period. The company has spent $154.40 million cash to meet investing activities during the nine month period as against cash outgo of $39.48 million in the last year period.
Cash flow from financing activities was $58.81 million for the nine month period as against cash outgo of $38.88 million in the last year period.
Cash and cash equivalents stood at $55.21 million as on Sep. 30, 2016, down 2.88 percent or $1.64 million from $56.85 million on Sep. 30, 2015.
Working capital increases sharply
Surgery Partners, Inc has recorded an increase in the working capital over the last year. It stood at $150.07 million as at Sep. 30, 2016, up 34.20 percent or $38.25 million from $111.83 million on Sep. 30, 2015. Current ratio was at 1.84 as on Sep. 30, 2016, up from 1.63 on Sep. 30, 2015.
Debt remains almost stable
Surgery Partners, Inc has recorded a decline in total debt over the last one year. It stood at $1,386.93 million as on Sep. 30, 2016, down 0.84 percent or $11.74 million from $1,398.67 million on Sep. 30, 2015. Total debt was 61.68 percent of total assets as on Sep. 30, 2016, compared with 73.94 percent on Sep. 30, 2015. Debt to equity ratio was at 4.37 as on Sep. 30, 2016, down from 81.10 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 1.42 for the quarter from 1.67 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
