Accretive Health, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Provides Financial Guidance for the Fourth Quarter of 2016 and Full Year of 2016 and 2017
November 02, 2016 at 04:05 pm EDT
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Accretive Health, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company's net services revenue was $125,535,000 compared to $15,842,000 a year ago. Income from operations was $61,422,000 compared to loss from operations of $54,843,000 a year ago. Income before income tax provision was $61,479,000 compared to loss before income tax provision of $54,770,000 a year ago. Net income was $37,333,000 compared to net loss of $32,970,000 a year ago. Diluted net income per common share was $0.18 compared to loss per common share of $0.34 a year ago. Adjusted EBITDA was $69,391,000 compared to EBITDA loss of $35,826,000 a year ago. Gross cash generated from customer contracting activities was $59.7 million, up 7.8% from $55.4 million in the third quarter of 2015 and from $38.3 million last quarter. The improvement in the third quarter was driven by a number of factors. Net cash generated from customer contracting activities was $3.6 million in the quarter compared/to $3.7 million/a year ago, and a negative $17.4 million last quarter. The total cash decline due to capital expenditures of $3.3 million and approximately $20 million reduction in working capital, of which $40 million was due to the reduction in customer liabilities.
For the nine months, the company's net services revenue was $486,400,000 compared to $48,898,000 a year ago. Income from operations was $270,392,000 compared to loss from operations of $146,962,000 a year ago. Income before income tax provision was $270,579,000 compared to loss before income tax provision of $146,815,000 a year ago. Net income was $163,945,000 compared to net loss of $89,703,000 a year ago. Diluted net income per common share was $0.62 compared to loss per common share of $0.93 a year ago. Net cash provided by operating activities was $69,242,000 compared to net cash used in operating activities of $6,471,000 a year ago. Purchases of property, equipment and software was $10,395,000 compared to $18,304,000 a year ago. Adjusted EBITDA was $321,133,000 compared to EBITDA loss of $109,238,000 a year ago.
The company is comfortable with guidance provided earlier this year and expect to be at the midpoint of the $200 million to $220 million range for gross cash generated for the full year. This implies fourth quarter growth cash generated of approximately $71 million, up $11 million sequentially.
As it look to 2017, the company expects the profitability profile of the business to improve.
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 Third Quarter and Nine Months Ended September 30, 2016; Provides Financial Guidance for the Fourth Quarter of 2016 and Full Year of 2016 and 2017