Nobilis Health Corp. (HLTH) has reported 79.07 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $9.37 million, or $0.12 a share in the quarter, compared with $44.74 million, or $0.58 a share for the same period last year.
Revenue during the quarter grew 13.22 percent to $101.92 million from $90.02 million in the previous year period. Total expenses were 79.61 percent of quarterly revenues, up from 73.80 percent for the same period last year. That has resulted in a contraction of 581 basis points in operating margin to 20.39 percent.
Operating income for the quarter was $20.78 million, compared with $23.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $20.79 million compared with $23.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 594 basis points in the quarter to 20.40 percent from 26.33 percent in the last year period.
"Although we are pleased to report strong total revenue growth of 25% for full year 2016, we are disappointed that we did not meet the profitability goals we set out to achieve for the year," said Harry Fleming, chief executive officer of Nobilis. "Full year Adjusted EBITDA1 was impacted by higher than expected marketing expenses and overall operating expenses."
For financial year 2017, Nobilis Health Corp expects revenue to be in the range of $310 million to $325 million.
Working capital increases sharply
Nobilis Health Corp. has recorded an increase in the working capital over the last year. It stood at $97.98 million as at Dec. 31, 2016, up 53.82 percent or $34.28 million from $63.69 million on Dec. 31, 2015. Current ratio was at 2.48 as on Dec. 31, 2016, up from 2.23 on Dec. 31, 2015.
Days sales outstanding went up to 56 days for the quarter compared with 47 days for the same period last year.
Debt increases substantially
Nobilis Health Corp. has witnessed an increase in total debt over the last one year. It stood at $84.16 million as on Dec. 31, 2016, up 88.88 percent or $39.61 million from $44.56 million on Dec. 31, 2015. Total debt was 27.56 percent of total assets as on Dec. 31, 2016, compared with 18.41 percent on Dec. 31, 2015. Debt to equity ratio was at 0.59 as on Dec. 31, 2016, up from 0.33 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 11.03 for the quarter from 48.02 for the same period 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
