Envision Healthcare Corporation (EVHC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $135.50 million, or $ 1.84 a share in the quarter, against a net profit of $65.60 million, or $1.24 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $92 million, or $1.15 a share compared with $56.70 million or $1.07 a share, a year ago.
Revenue during the quarter surged 97.44 percent to $1,390.60 million from $704.30 million in the previous year period. Operating margin for the quarter stood at negative 6.22 percent as compared to a positive 27.28 percent for the previous year period.
Operating loss for the quarter was $86.50 million, compared with an operating income of $192.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $208.70 million compared with $137.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 450 basis points in the quarter to 15.01 percent from 19.51 percent in the last year period.
"We are making great strides in integrating the operations of AMSURG and Envision following our transformative merger of equals, and we are on track to achieve our target cost synergies," said Christopher A. Holden, President and Chief Executive Officer of Envision. "Since completing the merger, we are executing on an ambitious plan that includes a strategic review of our core strengths, and we will explore strategic options that may lead to a redeployment of our resources in order to increase stockholder value.
For financial year 2017, Envision Healthcare Holdings projects revenue to be in the range of $10,400 million to $10,700 million and the company forecasts diluted earnings per share to be in the range of $4.06 to $4.31 on adjusted basis.
On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.75 to $0.81 for the first-quarter.
Operating cash flow declines
Envision Healthcare Corporation has generated cash of $419.80 million from operating activities during the year, down 21.97 percent or $118.20 million, when compared with the last year.
The company has spent $303.70 million cash to meet investing activities during the year as against cash outgo of $1,016.80 million in the last year.
Cash flow from financing activities was $108.80 million for the year, down 71.17 percent or $268.60 million, when compared with the last year.
Cash and cash equivalents stood at $331.60 million as on Dec. 31, 2016, up 210.78 percent or $224.90 million from $106.70 million on Dec. 31, 2015.
Debt increases substantially
Envision Healthcare Corporation has witnessed an increase in total debt over the last one year. It stood at $5,838.60 million as on Dec. 31, 2016, up 145.48 percent or $3,460.20 million from $2,378.40 million on Dec. 31, 2015. Total debt was 34.94 percent of total assets as on Dec. 31, 2016, compared with 37.23 percent on Dec. 31, 2015. Debt to equity ratio was at 0.79 as on Dec. 31, 2016, down from 1.19 as on Dec. 31, 2015.
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