Cotiviti Holdings, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net revenue of $219,034,000 against $160,133,000 a year ago. The increase was primarily driven by a $46.6 million refunds and appeals liability release reflected in the RCA line of business. Operating income was $78,671,000 against $34,082,000 a year ago. Income before income taxes was $69,829,000 against $26,114,000 a year ago. Net income was $53,927,000 or $0.57 per diluted share against $26,975,000 or $0.28 per diluted share a year ago. Net cash provided by operating activities was $34,716,000 against $24,572,000 a year ago. Expenditures for property and equipment were $12,385,000 against $9,660,000 a year ago. Adjusted EBITDA was $63,818,000 against $57,670,000 a year ago. Adjusted net income was $39,096,000 or $0.41 per diluted share against $31,951,000 or $0.34 per diluted share a year ago. The increase was primarily driven by year-over-year revenue growth and a lower tax rate.

The company updated full year 2018 guidance includes: total net revenue (including $46.6 million for Medicare RAC appeals release) in a range of $787 million to $807 million; adjusted net revenue (excluding the Medicare RAC appeals release) is in a range of $740 million to $760 million, net income is in a range of $140 million to $155 million; adjusted EBITDA is in a range of $295 million to $310 million; and estimated effective tax rate of approximately 25%, excluding the impact of stock option exercises, restricted stock units and non-deductible stock-based. The company now expects full year 2018 interest expense to be in a range of $40 million to $45 million, CapEx in the range of $40 million to $45 million and depreciation and amortization of $90 million.