Performant Financial Corporation (PFMT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $12.30 million, or $ 0.24 a share in the quarter, against a net profit of $2.20 million, or $0.04 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $1.52 million, or $0.03 a share compared with a net profit of $3.99 million, or $0.08 a share in the last year period. Revenue during the quarter dropped 17.64 percent to $33.81 million from $41.05 million in the previous year period. Operating margin for the quarter stood at negative 44.26 percent as compared to a positive 11.64 percent for the previous year period.
Operating loss for the quarter was $14.97 million, compared with an operating income of $4.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.94 million compared with $9.81 million in the prior year period. At the same time, adjusted EBITDA margin contracted 928 basis points in the quarter to 14.61 percent from 23.90 percent in the last year period.
“Although 2016 was another transitional period, as we awaited contracting decisions, we made aggressive expense management decisions and managed our business with the intent of maintaining a sustainable financial platform,” said Lisa Im, Performant's Chief Executive Officer.
Performant Financial Corporation expects revenue to be in the range of $125 million to $145 million.
Operating cash flow improves
Performant Financial Corporation has generated cash of $17.78 million from operating activities during the year, up 9.97 percent or $1.61 million, when compared with the last year. The company has spent $7.87 million cash to meet investing activities during the year as against cash outgo of $6.63 million in the last year.
The company has spent $48.14 million cash to carry out financing activities during the year as against cash outgo of $18.69 million in the last year period.
Cash and cash equivalents stood at $32.98 million as on Dec. 31, 2016, down 53.67 percent or $38.20 million from $71.18 million on Dec. 31, 2015.
Working capital drops significantly
Performant Financial Corporation has witnessed a decline in the working capital over the last year. It stood at $20.54 million as at Dec. 31, 2016, down 63.01 percent or $34.99 million from $55.53 million on Dec. 31, 2015. Current ratio was at 1.40 as on Dec. 31, 2016, down from 2.01 on Dec. 31, 2015.
Days sales outstanding went down to 16 days for the quarter compared with 20 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 $53.62 million as on Dec. 31, 2016, down 41.81 percent or $38.53 million from $92.14 million on Dec. 31, 2015. Total debt was 28.97 percent of total assets as on Dec. 31, 2016, compared with 37.66 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, down from 0.98 as on Dec. 31, 2015. 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
