Air Methods Corporation (AIRM) has reported 11.92 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $19.86 million, or $0.54 a share in the quarter, compared with $22.54 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 9.19 percent to $297.47 million from $272.44 million in the previous year period. Total expenses were 86.23 percent of quarterly revenues, up from 84.20 percent for the same period last year. That has resulted in a contraction of 203 basis points in operating margin to 13.77 percent.
Operating income for the quarter was $40.97 million, compared with $43.06 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $66.35 million compared with $65.57 million in the prior year period. At the same time, adjusted EBITDA margin contracted 176 basis points in the quarter to 22.31 percent from 24.07 percent in the last year period.
Aaron Todd, chief executive officer of Air Methods, stated, "Patient transports rebounded in the fourth quarter, increasing 11.1% in total and 1.5% on a same-base basis as the Company benefited from changes implemented towards the end of the third quarter and early in the fourth quarter and from more normal weather. We remain focused on driving shareholder value by improving the utilization of the Company's assets, increasing its net revenue per transport through improvements in the Company's revenue cycle operations and increasing the percent of commercial claims that are in network, growing the Company's air medical footprint, and increasing the revenue and profitability of the Tourism operations."
Operating cash flow improves significantly
Air Methods Corporation has generated cash of $227.09 million from operating activities during the year, up 31.79 percent or $54.77 million, when compared with the last year.
The company has spent $327.66 million cash to meet investing activities during the year as against cash outgo of $228.19 million in the last year. It has incurred net capital expenditure of $98.85 million on net basis during the year, down 55.42 percent or $122.89 million from year ago.
Cash flow from financing activities was $100.67 million for the year, up 107.49 percent or $52.15 million, when compared with the last year.
Cash and cash equivalents stood at $5.90 million as on Dec. 31, 2016, up 1.64 percent or $0.09 million from $5.81 million on Dec. 31, 2015.
Working capital declines
Air Methods Corporation has witnessed a decline in the working capital over the last year. It stood at $300.48 million as at Dec. 31, 2016, down 7.17 percent or $23.21 million from $323.70 million on Dec. 31, 2015. Current ratio was at 2.62 as on Dec. 31, 2016, down from 3.16 on Dec. 31, 2015.
Debt increases substantially
Air Methods Corporation has witnessed an increase in total debt over the last one year. It stood at $891.53 million as on Dec. 31, 2016, up 28.48 percent or $197.61 million from $693.92 million on Dec. 31, 2015. Total debt was 49.83 percent of total assets as on Dec. 31, 2016, compared with 44.56 percent on Dec. 31, 2015. Debt to equity ratio was at 1.56 as on Dec. 31, 2016, up from 1.21 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.04 for the quarter from 6.19 for the same period last year.
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