AMSURG Corp (AMSG) has reported 6.35 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $39.95 million, or $0.69 a share in the quarter, compared with $42.66 million, or $0.83 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $64.94 million, or $1.13 a share compared with $53.05 million or $1.13 a share, a year ago.

Revenue during the quarter grew 26.45 percent to $822.22 million from $650.23 million in the previous year period. Gross margin for the quarter expanded 119 basis points over the previous year period to 94.17 percent. Total expenses were 80.77 percent of quarterly revenues, up from 74.46 percent for the same period last year. That has resulted in a contraction of 630 basis points in operating margin to 19.23 percent.

Operating income for the quarter was $158.15 million, compared with $166.04 million in the previous year period.

“AMSURG produced strong revenue growth for the third quarter of 2016, increasing more than 20% before the impact of consolidating a Physician Services joint venture,” commented Christopher A. Holden, President and Chief Executive Officer of AMSURG. “This revenue growth primarily resulted from the substantial success of our acquisition strategy, which, over the 12 months prior to the end of the third quarter, included the deployment of more than $1 billion of acquisition capital. In addition, third-quarter revenues benefitted from same contract revenue growth of 7.5% in our Physician Services division and 2.3% in our Ambulatory Services division.

Amsurg Corp expects revenue to be in the range of $3,150 million to $3,170 million for financial year 2016. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.23 to $1.28 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $4.28 to $4.33 on adjusted basis.

The company has spent $388.33 million cash to meet investing activities during the nine month period as against cash outgo of $281.98 million in the last year period.

Cash flow from financing activities was $36.64 million for the nine month period as against cash outgo of $165.88 million in the last year period.

Cash and cash equivalents stood at $106.06 million as on Sep. 30, 2016, down 43.41 percent or $81.36 million from $187.42 million on Sep. 30, 2015.

Working capital increases
AMSURG Corp has recorded an increase in the working capital over the last year. It stood at $248 million as at Sep. 30, 2016, up 22.82 percent or $46.07 million from $201.92 million on Sep. 30, 2015. Current ratio was at 1.65 as on Sep. 30, 2016, up from 1.52 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 20 days for the last year period. Days sales outstanding were almost stable at 38 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 22 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 60 for the same period last year.