Cotiviti Holdings Inc. (COTV) has reported an 175.42 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $25.29 million, or $0.27 a share in the quarter, compared with $9.18 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $37.16 million, or $0.39 a share compared with $24.65 million or $0.32 a share, a year ago.
Revenue during the quarter grew 10.86 percent to $167.91 million from $151.46 million in the previous year period. Gross margin for the quarter contracted 233 basis points over the previous year period to 59.99 percent. Total expenses were 75.21 percent of quarterly revenues, down from 76.95 percent for the same period last year. This has led to an improvement of 174 basis points in operating margin to 24.79 percent.
Operating income for the quarter was $41.62 million, compared with $34.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $64.40 million compared with $56.44 million in the prior year period. At the same time, adjusted EBITDA margin improved 109 basis points in the quarter to 38.35 percent from 37.26 percent in the last year period.
"2016 was a milestone year for Cotiviti and we are extremely pleased with our continued demonstrated ability to deliver significant value to our clients and generate strong financial results," said Doug Williams, Chief Executive Officer. "Specifically this year, we delivered a record $3.7 billion in savings to our commercial healthcare and retail clients. In turn, we grew our total revenue 15% to $625.2 million and adjusted EBITDA 18% to $239.7 million."
For financial year 2017, Cotiviti forecasts revenue to be in the range of $688 million to $700 million. The company projects net income to be in the range of $89 million to $95 million and expects adjusted net income to be in the range of $177 million to $177 million.
Operating cash flow improves significantly
Cotiviti Holdings Inc. has generated cash of $189.17 million from operating activities during the year, up 199.54 percent or $126.02 million, when compared with the last year.
The company has spent $34.03 million cash to meet investing activities during the year as against cash outgo of $22.58 million in the last year.
The company has spent $193.28 million cash to carry out financing activities during the year as against cash outgo of $8.98 million in the last year period.
Cash and cash equivalents stood at $110.64 million as on Dec. 31, 2016, down 25.93 percent or $38.73 million from $149.36 million on Dec. 31, 2015.
Debt comes down
Cotiviti Holdings Inc. has recorded a decline in total debt over the last one year. It stood at $780.20 million as on Dec. 31, 2016, down 24.55 percent or $253.87 million from $1,034.07 million on Dec. 31, 2015. Interest coverage ratio improved to 5.01 for the quarter from 2.22 for the same period last year.
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