AAC Holdings, Inc (AAC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $2.52 million, or $ 0.11 a share in the quarter, against a net profit of $2.45 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $4.32 million, or $0.19 a share compared with $6.03 million or $0.27 a share, a year ago. Revenue during the quarter grew 22.93 percent to $70.53 million from $57.37 million in the previous year period. Operating margin for the quarter stood at negative 3.85 percent as compared to a positive 6.31 percent for the previous year period.
Operating loss for the quarter was $2.71 million, compared with an operating income of $3.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.07 million compared with $11.67 million in the prior year period. At the same time, adjusted EBITDA margin contracted 323 basis points in the quarter to 17.11 percent from 20.34 percent in the last year period.
"While many of our core operating metrics continued to demonstrate year-over-year and sequential growth resulting in increasing revenues from our residential and outpatient facilities, lower-than-expected toxicology revenues, a slower than expected ramp up of outpatient visits and census at Laguna, and increased operating expenses had a greater impact on the third quarter results than previously anticipated," noted Michael Cartwright, chairman and chief executive officer of AAC Holdings, Inc. "With the recent resolution of our subsidiaries’ case in California and a robust de novo and M&A pipeline, we remain bullish about our growth opportunities for 2017."
For financial year 2016, AAC Holdings, Inc expects revenue to be in the range of $275 million to $280 million. The company projects diluted earnings per share to be in the range of $0.69 to $0.77 on adjusted basis.
Operating cash flow drops significantly
AAC Holdings, Inc has generated cash of $1.32 million from operating activities during the nine month period, down 77.40 percent or $4.51 million, when compared with the last year period. The company has spent $49.14 million cash to meet investing activities during the nine month period as against cash outgo of $127.84 million in the last year period.
Cash flow from financing activities was $42.34 million for the nine month period, down 49.73 percent or $41.89 million, when compared with the last year period.
Cash and cash equivalents stood at $13.28 million as on Sep. 30, 2016, up 23.34 percent or $2.51 million from $10.76 million on Sep. 30, 2015.
Working capital increases sharply
AAC Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $56.70 million as at Sep. 30, 2016, up 27.11 percent or $12.09 million from $44.60 million on Sep. 30, 2015. Current ratio was at 2.41 as on Sep. 30, 2016, up from 2.39 on Sep. 30, 2015.
Days sales outstanding went down to 83 days for the quarter compared with 85 days for the same period last year.
Debt increases substantially
AAC Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $189.43 million as on Sep. 30, 2016, up 57.37 percent or $69.05 million from $120.37 million on Sep. 30, 2015. Total debt was 49.80 percent of total assets as on Sep. 30, 2016, compared with 41.38 percent on Sep. 30, 2015. Debt to equity ratio was at 1.22 as on Sep. 30, 2016, up from 0.89 as on Sep. 30, 2015. 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
