Performant Financial Corporation (PFMT) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $2.96 million in the quarter, against a net profit of $0.08 million in the last year period. On an adjusted basis, net loss for the quarter stood at $1.92 million, or $0.04 a share compared with a net profit of $1.95 million, or $0.04 a share in the last year period.
Revenue during the quarter dropped 13.51 percent to $33.11 million from $38.28 million in the previous year period. Operating margin for the quarter stood at negative 3.10 percent as compared to a positive 6.75 percent for the previous year period.
Operating loss for the quarter was $1.03 million, compared with an operating income of $2.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.85 million compared with $7.41 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1076 basis points in the quarter to 8.60 percent from 19.36 percent in the last year period.
"Despite ongoing challenges with the Department of Education and the old CMS recovery audit contracts, we made solid progress during the quarter by expanding our technology and services into new markets," said Lisa Im, Performant Financial's chief executive officer. "Additionally, although we were encouraged by the GAO's decision to sustain both of our protests related to the Department of Education contract award, even if were we to receive contract award in the very near term, we do not anticipate that it would have a material impact on our 2017 results."
Operating cash flow drops significantly
Performant Financial Corporation has generated cash of $0.40 million from operating activities during the quarter, down 96.45 percent or $ 10.88 million, when compared with the last year period.
The company has spent $2.82 million cash to meet investing activities during the quarter as against cash outgo of $1.80 million in the last year period.
The company has spent $3.60 million cash to carry out financing activities during the quarter as against cash outgo of $32.62 million in the last year period.
Cash and cash equivalents stood at $26.96 million as on Mar. 31, 2017, down 43.91 percent or $21.10 million from $48.06 million on Mar. 31, 2016.
Working capital drops significantly
Performant Financial Corporation has witnessed a decline in the working capital over the last year. It stood at $6.48 million as at Mar. 31, 2017, down 74.02 percent or $18.46 million from $24.94 million on Mar. 31, 2016. Current ratio was at 1.11 as on Mar. 31, 2017, down from 1.39 on Mar. 31, 2016.
Days sales outstanding went up to 42 days for the quarter compared with 38 days for the same period last year.
Debt comes down significantly
Performant Financial Corporation has recorded a decline in total debt over the last one year. It stood at $50.63 million as on Mar. 31, 2017, down 25.22 percent or $17.08 million from $67.71 million on Mar. 31, 2016. Total debt was 27.94 percent of total assets as on Mar. 31, 2017, compared with 30.67 percent on Mar. 31, 2016. Debt to equity ratio was at 0.60 as on Mar. 31, 2017, down from 0.71 as on Mar. 31, 2016.
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