The Providence Service Corporation (PRSC) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $4.32 million, or $ 0.40 a share in the quarter, against a net profit of $2.24 million, or $0.07 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $6.61 million, or $0.35 a share compared with $7.07 million or $0.35 a share, a year ago.
Revenue during the quarter grew 4.57 percent to $399.49 million from $382.04 million in the previous year period. Total expenses were 98.30 percent of quarterly revenues, up from 97.83 percent for the same period last year. That has resulted in a contraction of 47 basis points in operating margin to 1.70 percent.
Operating income for the quarter was $6.79 million, compared with $8.30 million in the previous year period.
James Lindstrom, chief executive officer, stated, "For the first quarter, we are pleased to report significant progress across our businesses. Within our U.S. Healthcare Service businesses, our 2016 value enhancement initiatives contributed to strong revenue growth at Matrix, while our Member Experience initiatives have started to yield both financial and operational benefits at LogistiCare. Finally, within our WD Services Segment, we have started to experience the benefits of multiple 2016 value enhancement initiatives, with continued progress on the business development front and improved operating metrics in key markets."
Operating cash flow improves marginally
Providence Service Corp has generated cash of $36.20 million from operating activities during the quarter, up 4.39 percent or $1.52 million, when compared with the last year period. The company has spent $5.71 million cash to meet investing activities during the quarter as against cash outgo of $10.53 million in the last year period.
The company has spent $20.41 million cash to carry out financing activities during the quarter as against cash outgo of $13.25 million in the last year period.
Cash and cash equivalents stood at $82.88 million as on Mar. 31, 2017, down 12.95 percent or $12.33 million from $95.22 million on Mar. 31, 2016.
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