Inovalon Holdings, Inc (INOV) has reported a 95.76 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.68 million in the quarter, compared with $16.05 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.42 million, or $0.05 a share compared with $19.74 million or $0.13 a share, a year ago. Revenue during the quarter dropped 20.30 percent to $96.09 million from $120.56 million in the previous year period. Gross margin for the quarter contracted 509 basis points over the previous year period to 59.83 percent. Operating margin for the quarter stood at negative 1.58 percent as compared to a positive 21.76 percent for the previous year period.
Operating loss for the quarter was $1.52 million, compared with an operating income of $26.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.32 million compared with $37.84 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1648 basis points in the quarter to 14.91 percent from 31.38 percent in the last year period.
“With 2016 behind us, we look forward to the positive forces in our business becoming more visible as we move through 2017,” said Keith Dunleavy, M.D., Inovalon’s chief executive officer and chairman of the board. “While we did not accomplish our original financial goals for 2016, behind the scenes our efforts and investments drove strong and important progress expanding our capabilities and industry leadership. This progress is evident in many ways, including our introduction of multiple new offerings, expansion of our client base and statements of work in both core and adjacent markets, and significant increases in our proprietary datasets and interconnectivity. These successes demonstrate the increasing applicability and differentiation of our platform as the healthcare industry continues its transformation from volume-based to value-based models, and support the growth and increased profitability we see in 2017 and beyond.”
Inovalon Holdings forecasts revenue to be in the range of $440.50 million to $455 million for fiscal year 2017. For financial year 2017, Inovalon Holdings projects net income to be in the range of $19.50 million to $24 million. For the financial year 2017, Inovalon Holdings expects adjusted net income to be in the range of $42.20 million to $46.60 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.13 to $0.16. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.28 to $0.31 on adjusted basis.
Operating cash flow improves significantly
Inovalon Holdings, Inc has generated cash of $92.83 million from operating activities during the year, up 37.42 percent or $25.28 million, when compared with the last year. Cash flow from investing activities was $39.80 million from investing activities during the year as against cash outgo of $768.32 million in the last year.
The company has spent $118.98 million cash to carry out financing activities during the year as against cash inflow of $652.23 million in the last year period.
Cash and cash equivalents stood at $127.68 million as on Dec. 31, 2016, up 11.97 percent or $13.65 million from $114.03 million on Dec. 31, 2015.
Working capital declines
Inovalon Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $601.72 million as at Dec. 31, 2016, down 22.51 percent or $174.76 million from $776.48 million on Dec. 31, 2015. Current ratio was at 8.15 as on Dec. 31, 2016, down from 12.50 on Dec. 31, 2015.
Debt comes down
Inovalon Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $266.58 million as on Dec. 31, 2016, down 5.35 percent or $15.07 million from $281.66 million on Dec. 31, 2015. Total debt was 25.31 percent of total assets as on Dec. 31, 2016, compared with 25.31 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.39 as on Dec. 31, 2016, when compared with the 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
