Alliance HealthCare Services, Inc. (AIQ) saw its loss widen to $2.13 million, or $0.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.25 million, or $0.02 a share. On an adjusted basis, earnings per share were at $0.11 for the quarter compared with $0.31 in the same period last year.
Revenue during the quarter grew 4.06 percent to $129.39 million from $124.34 million in the previous year period. Gross margin for the quarter expanded 144 basis points over the previous year period to 42.99 percent. Total expenses were 92.16 percent of quarterly revenues, up from 91.45 percent for the same period last year. That has resulted in a contraction of 71 basis points in operating margin to 7.84 percent.
Operating income for the quarter was $10.14 million, compared with $10.63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $31.54 million compared with $33.27 million in the prior year period. At the same time, adjusted EBITDA margin contracted 238 basis points in the quarter to 24.38 percent from 26.76 percent in the last year period.
"During 2016 we successfully executed a number of initiatives to position the Company for future accelerated growth. We continued to see positive same-store volume growth in our business segments in full year 2016. The heavy year-over-year price impact in our Radiology segment is largely behind us, having successfully renewed the majority of our contracts with customers over the last few years," stated Tom Tomlinson, chief executive officer and president of Alliance HealthCare Services. "Results for the fourth quarter trailed our internal expectations somewhat, driven primarily by continued physician capacity challenges in our Interventional business and some same-store volume softness across MRI and Stereotactic Radiosurgery. In addition, we began to absorb some impact from staff and resources we have added as we explore opportunities in China. Looking ahead, we expect our growth investments and improving execution to deliver strong growth in both revenue and earnings in 2017," continued Mr. Tomlinson.
For fiscal year 2017, Alliance HealthCare Services, Inc. projects revenue to be in the range of $529 million to $540 million. It expects net income to be in the range of $1 million to $2 million for the same period.
Operating cash flow improves
Alliance HealthCare Services, Inc. has generated cash of $108.78 million from operating activities during the year, up 17.65 percent or $16.32 million, when compared with the last year.
The company has spent $92.25 million cash to meet investing activities during the year as against cash outgo of $118.46 million in the last year. It has incurred net capital expenditure of $54.57 million on net basis during the year, up 1.87 percent or $1 million from year ago.
The company has spent $32.36 million cash to carry out financing activities during the year as against cash inflow of $31.04 million in the last year period.
Cash and cash equivalents stood at $22.24 million as on Dec. 31, 2016, down 41.58 percent or $15.83 million from $38.07 million on Dec. 31, 2015.
Debt comes down marginally
Alliance HealthCare Services, Inc. has recorded a decline in total debt over the last one year. It stood at $548.74 million as on Dec. 31, 2016, down 3.91 percent or $22.35 million from $571.09 million on Dec. 31, 2015. Total debt was 83.16 percent of total assets as on Dec. 31, 2016, compared with 89.95 percent on Dec. 31, 2015.
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