Change Healthcare Holdings, Inc. (EM) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $2.48 million in the quarter, against a net loss of $32.91 million in the last year period. Revenue during the quarter went up marginally by 0.97 percent to $381.47 million from $377.78 million in the previous year period. Gross margin for the quarter expanded 231 basis points over the previous year period to 44.28 percent. Operating margin for the quarter period stood at positive 4 percent as compared to a negative 0.61 percent for the previous year period.
Operating income for the quarter was $15.25 million, compared with an operating loss of $2.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $106.32 million compared with $101.78 million in the prior year period. At the same time, adjusted EBITDA margin improved 93 basis points in the quarter to 27.87 percent from 26.94 percent in the last year period.
"During the third quarter, we made additional progress on our long-term strategic objectives by continuing to focus on helping our customers increase revenue as well as improve cost, quality and outcomes across the healthcare industry," commented Neil de Crescenzo, president and chief executive officer for Change Healthcare. "We’re also focused on planning for our pending transaction with McKesson Technology Solutions and remain excited about the opportunity this transaction presents to form a new entity well-positioned to address the healthcare industry’s emerging and most pressing administrative challenges."
Operating cash flow falls marginally
Change Healthcare Holdings, Inc. has generated cash of $145.01 million from operating activities during the nine month period, down 4.81 percent or $7.33 million, when compared with the last year period. The company has spent $95.82 million cash to meet investing activities during the nine month period as against cash outgo of $760.52 million in the last year period.
The company has spent $23.40 million cash to carry out financing activities during the nine month period as against cash inflow of $610.83 million in the last year period.
Cash and cash equivalents stood at $92.45 million as on Sep. 30, 2016, up 8.82 percent or $7.49 million from $84.96 million on Sep. 30, 2015.
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