Air Methods Corporation (AIRM) has reported a 34.38 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $30.61 million, or $0.82 a share in the quarter, compared with $46.65 million, or $1.16 a share for the same period last year.
Revenue during the quarter went down marginally by 0.11 percent to $311.01 million from $311.34 million in the previous year period. Total expenses were 81.59 percent of quarterly revenues, up from 73.57 percent for the same period last year. That has resulted in a contraction of 802 basis points in operating margin to 18.41 percent.
Operating income for the quarter was $57.25 million, compared with $82.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $81.81 million compared with $105.16 million in the prior year period. At the same time, adjusted EBITDA margin contracted 747 basis points in the quarter to 26.30 percent from 33.78 percent in the last year period.
Aaron Todd, chief executive officer of Air Methods, stated, “Patient transports were below expectations in the quarter which impacted earnings. The Company has worked to improve its base transport utilization and to optimize its cost structure by closing and consolidating bases and adding sales resources. These changes have had the desired effect in October as preliminary same-base transports increased approximately 1.2%. We will consider other measures as appropriate.”
Operating cash flow improves significantly
Air Methods Corporation has generated cash of $173.30 million from operating activities during the nine month period, up 37.42 percent or $47.19 million, when compared with the last year period.
The company has spent $309.65 million cash to meet investing activities during the nine month period as against cash outgo of $156.42 million in the last year period.
Cash flow from financing activities was $137.96 million for the nine month period, up 329.63 percent or $105.85 million, when compared with the last year period.
Cash and cash equivalents stood at $7.42 million as on Sep. 30, 2016, down 50.43 percent or $7.55 million from $14.96 million on Sep. 30, 2015.
Working capital increases
Air Methods Corporation has recorded an increase in the working capital over the last year. It stood at $318.83 million as at Sep. 30, 2016, up 17.21 percent or $46.82 million from $272 million on Sep. 30, 2015. Current ratio was at 2.75 as on Sep. 30, 2016, up from 2.39 on Sep. 30, 2015.
Days sales outstanding went up to 103 days for the quarter compared with 99 days for the same period last year.
Debt increases substantially
Air Methods Corporation has witnessed an increase in total debt over the last one year. It stood at $928.43 million as on Sep. 30, 2016, up 36.37 percent or $247.63 million from $680.79 million on Sep. 30, 2015. Total debt was 51.50 percent of total assets as on Sep. 30, 2016, compared with 45.10 percent on Sep. 30, 2015. Debt to equity ratio was at 1.69 as on Sep. 30, 2016, up from 1.21 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 7.03 for the quarter from 16.82 for the same period last year.
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