Adeptus Health Inc (ADPT) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $8.09 million, or $ 0.49 a share in the quarter, against a net profit of $0.67 million, or $0.05 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1.31 million, or $0.06 a share compared with $6.49 million or $0.31 a share, a year ago.
Revenue during the quarter dropped 3.22 percent to $85.37 million from $88.21 million in the previous year period. Operating margin for the quarter stood at negative 16.95 percent as compared to a positive 6.87 percent for the previous year period.
Operating loss for the quarter was $14.47 million, compared with an operating income of $6.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.67 million compared with $18.64 million in the prior year period. At the same time, adjusted EBITDA margin contracted 981 basis points in the quarter to 11.33 percent from 21.13 percent in the last year period.
Thomas S. Hall, chief executive officer, stated, "Third quarter results were disappointing due to weaker than expected volumes in non-HOPD markets, collection issues associated with our third party billing agent and higher costs associated with the opening of three hospitals in the second half of the year, in Denver, Houston and Colorado Springs. We believe we have a solid grasp on the issues and are implementing necessary actions to improve the business and enhance liquidity. The Board and management team are executing a strategy to return the business to cash flow positive and believe the steps we are taking today will build a pathway toward stabilizing our cash flow from operations, enhancing our financial flexibility, regaining profitability and ensuring the Company realizes the full potential of the Adeptus business model."
Operating cash flow turns negative
Adeptus Health Inc has spent $37.28 million cash to meet operating activities during the nine month period as against cash inflow of $5.12 million in the last year period.
The company has spent $6.44 million cash to meet investing activities during the nine month period as against cash outgo of $2.47 million in the last year period. It has incurred net capital expenditure of $4.80 million on net basis during the nine month period, up 41.69 percent or $1.41 million from year ago period.
Cash flow from financing activities was $33.76 million for the nine month period, down 18.95 percent or $7.89 million, when compared with the last year period.
Cash and cash equivalents stood at $6.08 million as on Sep. 30, 2016, down 86.88 percent or $40.23 million from $46.31 million on Sep. 30, 2015.
Working capital increases sharply
Adeptus Health Inc has recorded an increase in the working capital over the last year. It stood at $110.02 million as at Sep. 30, 2016, up 27.79 percent or $23.93 million from $86.10 million on Sep. 30, 2015. Current ratio was at 2.86 as on Sep. 30, 2016, up from 2.82 on Sep. 30, 2015.
Days sales outstanding went up to 121 days for the quarter compared with 73 days 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
