Cotiviti Holdings Inc (COTV) has reported 233.68 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $26.98 million, or $0.28 a share in the quarter, compared with $8.08 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $31.95 million, or $0.34 a share compared with $22.25 million or $0.29 a share, a year ago. Revenue during the quarter grew 12.20 percent to $160.13 million from $142.72 million in the previous year period. Gross margin for the quarter expanded 192 basis points over the previous year period to 60.67 percent. Total expenses were 78.72 percent of quarterly revenues, down from 79.51 percent for the same period last year. This has led to an improvement of 80 basis points in operating margin to 21.28 percent.
Operating income for the quarter was $34.08 million, compared with $29.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $57.67 million compared with $50.59 million in the prior year period. At the same time, adjusted EBITDA margin improved 56 basis points in the quarter to 36.01 percent from 35.45 percent in the last year period.
“Our team’s continued focus on delivering value to our clients translated into solid 2017 first quarter results for Cotiviti,” said Doug Williams, Chief Executive Officer. “Our financial model is tightly aligned with client value creation, resulting in first quarter overall revenue growth of 12% from the prior year to $160.1 million and adjusted EBITDA growth of 14% to $57.7 million.”
For fiscal year 2017, Cotiviti Holdings Inc forecasts revenue to be in the range of $688 million to $700 million for fiscal year 2017. For financial year 2017, Cotiviti projects net income to be in the range of $89 million to $95 million.
Operating cash flow drops significantly
Cotiviti Holdings Inc has generated cash of $24.57 million from operating activities during the quarter, down 32.41 percent or $ 11.78 million, when compared with the last year period. The company has spent $9.66 million cash to meet investing activities during the quarter as against cash outgo of $9.46 million in the last year period.
Cash flow from financing activities was $2.86 million for the quarter as against cash outgo of $2.01 million in the last year period.
Cash and cash equivalents stood at $128.46 million as on Mar. 31, 2017, down 26.28 percent or $45.79 million from $174.25 million on Mar. 31, 2016.
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