HCP (HCP) has reported a 31.11 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $151.25 million, or $0.32 a share in the quarter, compared with $115.36 million, or $0.25 a share for the same period last year.
Revenue during the quarter went down marginally by 0.49 percent to $654.27 million from $657.50 million in the previous year period.
Total expenses were $383.98 million for the quarter, down 3.99 percent or $15.95 million from year-ago period. Operating margin for the quarter expanded 214 basis points over the previous year period to 41.31 percent.
Operating income for the quarter was $270.29 million, compared with $257.57 million in the previous year period.
Mike McKee, chairman of the Board, president and chief executive officer of HCP, stated, "Today is a significant milestone in HCP's history, marking the end of an extensive process to address our portfolio concentration related to HCR ManorCare. We firmly believe the Spin-Off is the best outcome to maximize value for both HCP and QCP stockholders. As two independent companies, HCP and QCP will be able to focus on their inherent strengths and will have increased flexibility to pursue their distinct growth strategies. HCP expects to benefit from its improved portfolio quality and enhanced ability to accelerate growth within its core businesses of Senior Housing, Life Science and Medical Office properties."
Operating cash flow improves
Hcp has generated cash of $998.63 million from operating activities during the nine month period, up 15.09 percent or $130.97 million, when compared with the last year period.
The company has spent $314.16 million cash to meet investing activities during the nine month period as against cash outgo of $1,685.58 million in the last year period.
The company has spent $897.33 million cash to carry out financing activities during the nine month period as against cash inflow of $755.88 million in the last year period.
Cash and cash equivalents stood at $132.89 million as on Sep. 30, 2016, up 10.28 percent or $12.39 million from $120.50 million on Sep. 30, 2015.
Net receivables were at $724.36 million as on Sep. 30, 2016, down 11.18 percent or $91.22 million from year-ago.
Investments stood at $5,860.40 million as on Sep. 30, 2016, down 14.96 percent or $1,030.63 million from year-ago.
Total assets declined 4.53 percent or $1,004.43 million to $21,188.54 million on Sep. 30, 2016. On the other hand, total liabilities were at $11,613.11 million as on Sep. 30, 2016, down 1.02 percent or $119.40 million from year-ago.
Return on assets moved up 25 basis points to 1.29 percent in the quarter. At the same time, return on equity moved up 48 basis points to 1.58 percent in the quarter.
Debt comes down marginally
Total debt was at $10,920.54 million as on Sep. 30, 2016, down 2.01 percent or $224.34 million from year-ago. Shareholders equity stood at $9,575.43 million as on Sep. 30, 2016, down 8.46 percent or $885.02 million from year-ago. As a result, debt to equity ratio went up 8 basis points to 1.14 percent in the quarter.
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