Surgical Care Affiliates, Inc (SCAI) has reported 88.79 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $13.30 million, or $0.32 a share in the quarter, compared with $118.60 million, or $2.90 a share for the same period last year. On an adjusted basis, net profit for the quarter was $16.70 million, when compared with $18.50 million in the last year period. Revenue during the quarter grew 25.21 percent to $322.80 million from $257.80 million in the previous year period. Total expenses were 82.74 percent of quarterly revenues, up from 77.23 percent for the same period last year. That has resulted in a contraction of 551 basis points in operating margin to 17.26 percent.
Operating income for the quarter was $55.70 million, compared with $58.70 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $47.90 million compared with $42.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 153 basis points in the quarter to 14.84 percent from 16.37 percent in the last year period.
“We are pleased with our clinical, strategic and financial performance. Patient care is our first priority, and our success is driven by our outstanding physicians and teammates, who continue to achieve strong clinical quality and patient satisfaction results,” said Andrew Hayek, Chairman and Chief Executive Officer. “From a strategic standpoint, we continue to partner with health plans, medical groups and health systems, and our development pipeline remains strong. We are grateful to our physicians and teammates across the country who are dedicated to outstanding patient care and to building our SCA community.”
Operating cash flow improves
Surgical Care Affiliates, Inc has generated cash of $217.10 million from operating activities during the nine month period, up 11.85 percent or $23 million, when compared with the last year period. The company has spent $178.30 million cash to meet investing activities during the nine month period as against cash outgo of $99.40 million in the last year period.
The company has spent $77 million cash to carry out financing activities during the nine month period as against cash outgo of $9.40 million in the last year period.
Cash and cash equivalents stood at $41.10 million as on Sep. 30, 2016, down 56.34 percent or $53.04 million from $94.14 million on Sep. 30, 2015.
Working capital drops significantly
Surgical Care Affiliates, Inc has witnessed a decline in the working capital over the last year. It stood at $19.90 million as at Sep. 30, 2016, down 59.39 percent or $29.11 million from $49.01 million on Sep. 30, 2015. Current ratio was at 1.07 as on Sep. 30, 2016, down from 1.21 on Sep. 30, 2015.
Days sales outstanding went down to 20 days for the quarter compared with 50 days for the same period last year.
Debt moves up
Surgical Care Affiliates, Inc has witnessed an increase in total debt over the last one year. It stood at $973.20 million as on Sep. 30, 2016, up 20.54 percent or $165.84 million from $807.36 million on Sep. 30, 2015. Total debt was 40.10 percent of total assets as on Sep. 30, 2016, compared with 43.63 percent on Sep. 30, 2015. Debt to equity ratio was at 0.88 as on Sep. 30, 2016, down from 1.06 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.76 for the quarter from 5.44 for the same period last year. 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
