AdCare Health Systems, Inc (ADK) saw its loss narrow to $1.99 million, or $0.19 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.81 million, or $0.32 a share. Revenue during the quarter grew 16.88 percent to $7.16 million from $6.13 million in the previous year period. Total expenses were 71.72 percent of quarterly revenues, down from 99.02 percent for the same period last year. This has led to an improvement of 2730 basis points in operating margin to 28.28 percent.
Operating income for the quarter was $2.03 million, compared with $0.06 million in the previous year period.
Working capital remains negative
Working capital of AdCare Health Systems, Inc was negative $2.80 million on Sep. 30, 2016 compared with negative $28.56 million on Sep. 30, 2015. Current ratio was at 0.95 as on Sep. 30, 2016, up from 0.59 on Sep. 30, 2015. Days sales outstanding went down to 128 days for the quarter compared with 207 days for the same period last year.
Debt comes down significantly
AdCare Health Systems, Inc has recorded a decline in total debt over the last one year. It stood at $83.47 million as on Sep. 30, 2016, down 33 percent or $41.11 million from $124.58 million on Sep. 30, 2015. Total debt was 54.09 percent of total assets as on Sep. 30, 2016, compared with 65.51 percent on Sep. 30, 2015. Interest coverage ratio improved to 1.12 for the quarter from 0.03 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
