Accretive Health, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Reaffirms Cash Flow Guidance for the Second Half and Full Year 2015
August 05, 2015 at 04:30 pm EDT
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Accretive Health, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company's net services revenue was $22,085,000 compared to $58,975,000 a year ago. Loss from operations was $42,257,000 compared to $27,192,000 a year ago. Loss before income tax provision was $42,188,000 compared to $27,140,000 a year ago. Net loss was $26,288,000 or $0.27 basic and diluted share, compared to $16,799,000 or $0.18 basic and diluted share, a year ago. Gross cash generated in the second quarter was $47.2 million, a decline of 16.4% year-over-year. Net cash generated was negative $6.6 million or $2.8 million below the prior year, driven mainly by the decline in gross cash generated and partially offset by lower cost of services and SG&A expenses. The company had capital expenditures of $5 million related to investments in technology and the new shared service center in Michigan.
For the year to date, the company's net services revenue was $33,056,000 compared to $71,939,000 a year ago. Loss from operations was $92,119,000 compared to $111,827,000 a year ago. Loss before income tax provision was $92,045,000 compared to $111,675,000 a year ago. Net loss was $56,733,000 or $0.59 basic and diluted share, compared to $71,522,000 or $0.75 basic and diluted share, a year ago. Net cash used in operating activities was $19,183,000 compared to $73,285,000 a year ago. Purchases of property, equipment and software were $8,348,000 compared to $1,650,000 a year ago.
The company's guidance remains unchanged at $230 million, $240 million for gross cash generated, and the company continues to expect net cash generated to be at the lower end of $30 million to $40 million guidance range.
The company expects gross and net cash generated to be higher in the second half of 2015 due to the seasonality of incentive fee collections and improvements in net operating fees.
R1 RCM Inc. is a provider of technology-driven solutions that transform the financial performance and patient experience for health systems, hospitals, and physician groups. The Companyâs scalable operating models seamlessly complement a healthcare organizationâs infrastructure, driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. The Company delivers solutions to customers through technology, intellectual property (IP), global scale, and operational excellence. Its Intelligent Automation modernizes processes, removes friction, and simplifies revenue cycle management (RCM). Its use of artificial intelligence (AI) in its platform depends on the availability and pricing of equipment and technical infrastructure from third parties, including Microsoft Azure. It serves over 3,700 hospitals, including 93 of the top 100 health systems, and over 30,000 physicians.
Accretive Health, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Reaffirms Cash Flow Guidance for the Second Half and Full Year 2015