Quorum Health Corporation (QHC) saw its loss widen to $6.96 million, or $0.24 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $5.71 million, or $0.20 a share.
Revenue during the quarter went up marginally by 0.15 percent to $543.94 million from $543.14 million in the previous year period. Gross margin for the quarter contracted 12 basis points over the previous year period to 88.23 percent. Total expenses were 96.78 percent of quarterly revenues, up from 96.36 percent for the same period last year. That has resulted in a contraction of 42 basis points in operating margin to 3.22 percent.
Operating income for the quarter was $17.50 million, compared with $19.75 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $46.75 million compared with $60.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 251 basis points in the quarter to 8.59 percent from 11.10 percent in the last year period.
Thomas D. Miller, president and chief executive officer of Quorum Health Corporation, said, "Our results for this quarter demonstrate that we are committed to improving our operating and financial performance. Additionally, we are focused on restructuring our portfolio and positioning Quorum Health for long-term success. We have agreements for the sale of two facilities and expect to close on these transactions by year end."
Quorum Health forecasts revenue to be in the range of $2,170 million to $2,180 million for fiscal year 2016.
Operating cash flow improves significantly
Quorum Health Corporation has generated cash of $60.77 million from operating activities during the nine month period, up 1,018.05 percent or $55.33 million, when compared with the last year period.
The company has spent $60.68 million cash to meet investing activities during the nine month period as against cash outgo of $46.44 million in the last year period. It has incurred net capital expenditure of $60.63 million on net basis during the nine month period, up 67.44 percent or $24.42 million from year ago period.
Cash flow from financing activities was $23.88 million for the nine month period, down 39.30 percent or $15.46 million, when compared with the last year period.
Cash and cash equivalents stood at $25.08 million as on Sep. 30, 2016, up 2,674.12 percent or $24.17 million from $0.90 million on Sep. 30, 2015.
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