Select Medical Holdings Corporation (SEM) has reported 71.06 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $15.87 million, or $0.12 a share in the quarter, compared with $54.83 million, or $0.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $26.95 million, or $0.21 a share compared with $27.51 million or $0.22 a share, a year ago.
Revenue during the quarter went up marginally by 2.12 percent to $1,111.36 million from $1,088.33 million in the previous year period. Gross margin for the quarter expanded 121 basis points over the previous year period to 16.47 percent. Total expenses were 91.74 percent of quarterly revenues, down from 92.02 percent for the same period last year. This has led to an improvement of 27 basis points in operating margin to 8.26 percent.
Operating income for the quarter was $91.76 million, compared with $86.89 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $138.89 million compared with $128.62 million in the prior year period. At the same time, adjusted EBITDA margin improved 68 basis points in the quarter to 12.50 percent from 11.82 percent in the last year period.
For financial year 2017, Select Medical Holdings Corp forecasts revenue to be in the range of $4,400 million to $4,600 million. The company projects net income to be in the range of $121 million to $145 million. The company forecasts operating income to be in the range of $368 million to $408 million. The company expects diluted earnings per share to be in the range of $0.69 to $0.87. The company expects diluted earnings per share to be in the range of $0.78 to $0.96 on adjusted basis.
Operating cash flow turns negative
Select Medical Holdings Corporation has spent $55.86 million cash to meet operating activities during the quarter as against cash inflow of $111.17 million in the last year period.
The company has spent $41.21 million cash to meet investing activities during the quarter as against cash outgo of $397.67 million in the last year period.
Cash flow from financing activities was $63.25 million for the quarter, down 82.31 percent or $294.23 million, when compared with the last year period.
Cash and cash equivalents stood at $65.21 million as on Mar. 31, 2017, down 23.65 percent or $20.20 million from $85.41 million on Mar. 31, 2016.
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