American Renal Associates Holdings, Inc (ARA) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.25 million, or $ 0.40 a share in the quarter, against a net profit of $3.76 million, or $0.16 a share in the last year period. Revenue during the quarter went up marginally by 2.84 percent to $177.02 million from $172.13 million in the previous year period. Total expenses were 92.96 percent of quarterly revenues, up from 78.23 percent for the same period last year. That has resulted in a contraction of 1473 basis points in operating margin to 7.04 percent.
Operating income for the quarter was $12.47 million, compared with $37.48 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $35.57 million compared with $46.02 million in the prior year period. At the same time, adjusted EBITDA margin contracted 664 basis points in the quarter to 20.09 percent from 26.74 percent in the last year period.
Joseph (Joe) Carlucci, Chairman and Chief Executive Officer, said, “We made considerable progress with our operational initiatives during the first quarter of 2017, and this progress is a testament to the collective effort within our organization and the strength of our operating model. I believe the actions we’ve taken should put our Company in a stronger position during the remainder of 2017 to manage against the headwinds associated with the previously-disclosed ACA impact. First quarter 2017 financial results were largely consistent with our internal plan. As discussed below, we are establishing financial guidance for 2017, and our 2017 Outlook assumes that our quarterly results should improve sequentially as our operational initiatives take further hold.”
Operating cash flow drops significantly
American Renal Associates Holdings, Inc has generated cash of $16.52 million from operating activities during the quarter, down 54.83 percent or $ 20.05 million, when compared with the last year period. The company has spent $6.41 million cash to meet investing activities during the quarter as against cash outgo of $16.40 million in the last year period.
The company has spent $26.93 million cash to carry out financing activities during the quarter as against cash outgo of $15.20 million in the last year period.
Cash and cash equivalents stood at $84 million as on Mar. 31, 2017, down 12.46 percent or $11.96 million from $95.96 million on Mar. 31, 2016.
Working capital drops significantly
American Renal Associates Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $52.45 million as at Mar. 31, 2017, down 45.28 percent or $43.40 million from $95.85 million on Mar. 31, 2016. Current ratio was at 1.37 as on Mar. 31, 2017, down from 1.92 on Mar. 31, 2016.
Days sales outstanding went up to 22 days for the quarter compared with 21 days for the same period last year.
Debt comes down
American Renal Associates Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $565.92 million as on Mar. 31, 2017, down 17.81 percent or $122.62 million from $688.54 million on Mar. 31, 2016. Total debt was 58.50 percent of total assets as on Mar. 31, 2017, compared with 72.29 percent on Mar. 31, 2016. Debt to equity ratio was at 3.98 as on Mar. 31, 2017, down from 12.52 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.64 for the quarter from 3.06 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
