InfuSystem Holdings, Inc (INFU) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.47 million, or $ 0.02 a share in the quarter, against a net profit of $1.52 million, or $0.07 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $0.22 million, or $0.01 a share compared with a net profit of $1.55 million, or $0.07 a share in the last year period. Revenue during the quarter dropped 10.07 percent to $16.85 million from $18.74 million in the previous year period. Gross margin for the quarter contracted 717 basis points over the previous year period to 63.20 percent. Operating margin for the quarter stood at negative 2.69 percent as compared to a positive 13.27 percent for the previous year period.
Operating loss for the quarter was $0.45 million, compared with an operating income of $2.49 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.92 million compared with $5.17 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1027 basis points in the quarter to 17.30 percent from 27.57 percent in the last year period.
Eric K. Steen, chief executive officer of InfuSystem, said, “In 2016 we were faced with a number of significant challenges that impacted our top- and bottom-lines for the full year. In late April 2016, CMS issued ruling SE1609, announcing that ambulatory infusion pumps would no longer be reimbursed for Medicare patients leaving an outpatient clinic or physician office. Due to this material change, we quickly reengineered our entire business process with Medicare patients and we successfully transitioned 1,700 of our outpatient infusion clinic customers to a new fee schedule, our direct pay method for their Medicare patients. We accomplished this transition while rolling out our new EXPRESS IT computer system. As a result of our actions, we believe we are strategically positioned to gain market share going forward.”
Operating cash flow improves
InfuSystem Holdings, Inc has generated cash of $7.91 million from operating activities during the year, up 12.12 percent or $0.85 million, when compared with the last year. The company has spent $5.34 million cash to meet investing activities during the year as against cash outgo of $11.91 million in the last year. It has incurred net capital expenditure of $1.45 million on net basis during the year, up 7,944.44 percent or $1.43 million from year ago.
Cash flow from financing activities was $0.02 million for the year, down 99.71 percent or $5.14 million, when compared with the last year.
Cash and cash equivalents stood at $3.40 million as on Dec. 31, 2016, up 315.40 percent or $2.58 million from $0.82 million on Dec. 31, 2015.
Working capital declines
InfuSystem Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $4.33 million as at Dec. 31, 2016, down 17.63 percent or $0.93 million from $5.26 million on Dec. 31, 2015. Current ratio was at 1.26 as on Dec. 31, 2016, down from 1.34 on Dec. 31, 2015.
Debt moves up
InfuSystem Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $31.89 million as on Dec. 31, 2016, up 12.33 percent or $3.50 million from $28.39 million on Dec. 31, 2015. Total debt was 33.10 percent of total assets as on Dec. 31, 2016, compared with 29.44 percent on Dec. 31, 2015. Debt to equity ratio was at 0.63 as on Dec. 31, 2016, up from 0.55 as on Dec. 31, 2015.
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