Magellan Health, Inc (MGLN) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $25.51 million, or $ 1.06 a share in the quarter, against a net loss of $7.81 million, or $0.31 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $33.32 million, or $1.39 a share compared with $18.90 million or $0.76 a share, a year ago. Revenue during the quarter grew 8.58 percent to $1,292.13 million from $1,190.08 million in the previous year period. Gross margin for the quarter expanded 459 basis points over the previous year period to 5.66 percent. Operating margin for the quarter period stood at positive 3.58 percent as compared to a negative 1.18 percent for the previous year period.
Operating income for the quarter was $46.24 million, compared with an operating loss of $13.99 million in the previous year period.
"I am very pleased with this quarter’s results. Over the last several years we’ve built an exceptionally capable senior leadership team, and our results reflect strong execution across all of our business units. We remain focused on delivering strong shareholder value, today and in the future, through both the results we deliver and the positive impact we have on the lives of the individuals we serve," said Barry M. Smith, chairman and chief executive officer of Magellan Health.
Operating cash flow drops significantly
Magellan Health, Inc has generated cash of $70.87 million from operating activities during the nine month period, down 60.21 percent or $107.26 million, when compared with the last year period. The company has spent $163.68 million cash to meet investing activities during the nine month period as against cash outgo of $218.59 million in the last year period.
Cash flow from financing activities was $141.80 million for the nine month period as against cash outgo of $117.99 million in the last year period.
Cash and cash equivalents stood at $164.43 million as on Sep. 30, 2016, up 69.78 percent or $67.58 million from $96.85 million on Sep. 30, 2015.
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