Diversicare Healthcare Services, Inc. (DVCR) has reported a 51.11 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $1.42 million, or $0.22 a share in the quarter, compared with $0.94 million, or $0.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $0.56 million, or $0.09 a share compared with $1.33 million or $0.21 a share, a year ago.
Revenue during the quarter surged 37.79 percent to $135 million from $97.98 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 21.12 percent. Total expenses were 98.39 percent of quarterly revenues, up from 97.77 percent for the same period last year. That has resulted in a contraction of 63 basis points in operating margin to 1.61 percent.
Operating income for the quarter was $2.17 million, compared with $2.19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.98 million compared with $4.23 million in the prior year period. At the same time, adjusted EBITDA margin improved 11 basis points in the quarter to 4.43 percent from 4.32 percent in the last year period.
Commenting on the results, Kelly Gill, Diversicare's CEO, stated, "I am pleased with the progress we’ve made in the integration of our 22 acquired centers from Golden Living. The success we are seeing is a direct reflection of the capabilities we have developed as an organization and the scalability of our operating platform. While there is more work to be done on an acquisition of this size, we have already achieved a significant degree of normalcy of operations. I want to thank our team of dedicated Diversicare professionals for their tireless effort to make this integration process so successful."
Working capital increases sharply
Diversicare Healthcare Services, Inc. has recorded an increase in the working capital over the last year. It stood at $21.17 million as at Dec. 31, 2016, up 62.16 percent or $8.11 million from $13.05 million on Dec. 31, 2015. Current ratio was at 1.36 as on Dec. 31, 2016, up from 1.28 on Dec. 31, 2015.
Days sales outstanding were almost stable at 21 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 6 days for the quarter, when compared with the previous year period.
Debt increases substantially
Diversicare Healthcare Services, Inc. has witnessed an increase in total debt over the last one year. It stood at $79.86 million as on Dec. 31, 2016, up 33.32 percent or $19.96 million from $59.90 million on Dec. 31, 2015. Total debt was 48.98 percent of total assets as on Dec. 31, 2016, compared with 43.39 percent on Dec. 31, 2015. Debt to equity ratio was at 6.99 as on Dec. 31, 2016, up from 4.51 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.58 for the quarter from 1.98 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
