Civitas Solutions, Inc. (CIVI) has reported a 37.62 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $2.66 million, or $0.07 a share in the quarter, compared with $4.26 million, or $0.11 a share for the same period last year.
Revenue during the quarter grew 3.14 percent to $362.19 million from $351.18 million in the previous year period. Gross margin for the quarter expanded 31 basis points over the previous year period to 22.47 percent. Total expenses were 96.89 percent of quarterly revenues, up from 95.28 percent for the same period last year. That has resulted in a contraction of 161 basis points in operating margin to 3.11 percent.
Operating income for the quarter was $11.25 million, compared with $16.56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $42.64 million compared with $37.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 98 basis points in the quarter to 11.77 percent from 10.79 percent in the last year period.
"I am pleased to report a strong finish to the fiscal year, with solid growth in net revenues, excluding the ARY divested operations, and a 12.5% increase in adjusted EBITDA in the fiscal fourth quarter," stated Bruce Nardella, president and chief executive officer. "While growth in fiscal year 2016 was affected by the redesign of the West Virginia Waiver program and higher health care costs, as previously disclosed, we increased our level of investment in new start initiatives by nearly 30%, acquired 12 companies with total annual revenues of more than $48 million, and expanded our new adult day health service line into a second state growing its revenue by nearly 80%."
For financial year 2017, Civitas Solutions, Inc. projects revenue to be in the range of $1,480 million to $1,520 million.
Operating cash flow improves
Civitas Solutions, Inc. has generated cash of $107.12 million from operating activities during the year, up 18.40 percent or $16.64 million, when compared with the last year.
The company has spent $87.43 million cash to meet investing activities during the year as against cash outgo of $79 million in the last year.
The company has spent $10.70 million cash to carry out financing activities during the year as against cash outgo of $165.93 million in the last year period.
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