Select Medical Holdings Corporation (SEM) has reported a 77.99 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $6.47 million, or $0.05 a share in the quarter, compared with $29.41 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.31 million, or $0.06 a share compared with $10.83 million or $0.08 a share, a year ago.
Revenue during the quarter grew 3.20 percent to $1,053.80 million from $1,021.12 million in the previous year period. Gross margin for the quarter expanded 134 basis points over the previous year period to 13.10 percent. Total expenses were 94.67 percent of quarterly revenues, down from 95.28 percent for the same period last year. This has led to an improvement of 61 basis points in operating margin to 5.33 percent.
Operating income for the quarter was $56.16 million, compared with $48.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $98.08 million compared with $84.51 million in the prior year period. At the same time, adjusted EBITDA margin improved 103 basis points in the quarter to 9.31 percent from 8.28 percent in the last year period.
Select Medical Holdings Corp projects revenue to be in the range of $4,250 million to $4,300 million for financial year 2016. For fiscal year 2016, Select Medical Holdings Corp expects net income to be in the range of $115 million to $128 million. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.80 to $0.90.
Operating cash flow improves significantly
Select Medical Holdings Corporation has generated cash of $280.25 million from operating activities during the nine month period, up 37.76 percent or $76.82 million, when compared with the last year period.
The company has spent $463 million cash to meet investing activities during the nine month period as against cash outgo of $1,130.93 million in the last year period.
Cash flow from financing activities was $236.54 million for the nine month period, down 75.02 percent or $710.24 million, when compared with the last year period.
Cash and cash equivalents stood at $68.22 million as on Sep. 30, 2016, up 201.40 percent or $45.59 million from $22.64 million on Sep. 30, 2015.
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