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.