Addus HomeCare Corporation (ADUS) has reported a 41.15 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.70 million, or $0.15 a share in the quarter, compared with $2.89 million, or $0.26 a share for the same period last year. On an adjusted basis, earnings per share were at $0.39 for the quarter compared with $0.29 in the same period last year.
Revenue during the quarter grew 22.73 percent to $103.50 million from $84.33 million in the previous year period. Gross margin for the quarter contracted 140 basis points over the previous year period to 26.50 percent. Total expenses were 97.59 percent of quarterly revenues, up from 94.92 percent for the same period last year. That has resulted in a contraction of 267 basis points in operating margin to 2.41 percent.
Operating income for the quarter was $2.50 million, compared with $4.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.65 million compared with $5.95 million in the prior year period. At the same time, adjusted EBITDA margin improved 130 basis points in the quarter to 8.36 percent from 7.06 percent in the last year period.
Dirk Allison, president and chief executive officer of Addus, remarked, "We are pleased to report an outstanding third quarter for Addus. We achieved substantial growth in revenues - including same store growth of 4.1% - and in adjusted EPS. We produced strong cash flow from operations and significantly strengthened our balance sheet, due both to our increased adjusted earnings and to the pay down of the past-due Illinois non-Medicaid accounts receivable."
Operating cash flow improves significantly
Addus HomeCare Corporation has generated cash of $30.99 million from operating activities during the nine month period, up 252.73 percent or $22.20 million, when compared with the last year period.
The company has spent $21.62 million cash to meet investing activities during the nine month period as against cash outgo of $5.71 million in the last year period.
Cash flow from financing activities was $25.97 million for the nine month period as against cash outgo of $1.56 million in the last year period.
Cash and cash equivalents stood at $39.45 million as on Sep. 30, 2016, up 165.15 percent or $24.57 million from $14.88 million on Sep. 30, 2015.
Working capital increases sharply
Addus HomeCare Corporation has recorded an increase in the working capital over the last year. It stood at $82.58 million as at Sep. 30, 2016, up 37.44 percent or $22.50 million from $60.09 million on Sep. 30, 2015. Current ratio was at 2.64 as on Sep. 30, 2016, up from 2.22 on Sep. 30, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 68 days for the same period last year.
At the same time, days payable outstanding went down to 5 days for the quarter from 6 for the same period last year.
Debt increases substantially
Addus HomeCare Corporation has witnessed an increase in total debt over the last one year. It stood at $24.97 million as on Sep. 30, 2016, up 665.39 percent or $21.70 million from $3.26 million on Sep. 30, 2015. Total debt was 10.83 percent of total assets as on Sep. 30, 2016, compared with 1.67 percent on Sep. 30, 2015. Debt to equity ratio was at 0.17 as on Sep. 30, 2016, up from 0.02 as on Sep. 30, 2015.
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