R1 RCM Inc. Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Financial Guidance for 2017
March 01, 2017 at 04:15 pm EST
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R1 RCM Inc. announced unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2016. GAAP net services revenue was $106.2 million, compared to $68.3 million for the fourth quarter of 2015. GAAP net income was $13.1 million or $0.05 per diluted share compared to $5.4 million or $0.06 per diluted share for the fourth quarter of 2015. Non-GAAP gross cash generated from customer contracting activities was $69.8 million, compared to $72.7 million for the fourth quarter of 2015. Non-GAAP net cash generated from customer contracting activities of negative $0.4 million, compared to $27.0 million for the fourth quarter of 2015. Income from operations was $27,509,000 against $10,918,000 for the same period of last year. Income before income tax provision was $27,619,000 against $11,002,000 for the same period of last year.
For the year, GAAP net services revenue was $592.6 million, compared to $117.2 million for 2015. GAAP net income was $177.1 million or $0.65 per diluted share compared to a net loss of $84.3 million or $0.87 per diluted share for 2015. Non-GAAP gross cash generated from customer contracting activities was $208.7 million, compared to $230.2 million for 2015. Non-GAAP net cash generated from customer contracting activities was negative $26.8 million, compared to $26.4 million for 2015. Net cash used in operating activities was $86,860,000 against $23,812,000 for the same period of last year. Purchases of property, equipment and software was $12,635,000 against $21,275,000 for the same period of last year. Income from operations was $297,901,000 against loss of $136,044,000 for the same period of last year. Income before income tax provision was $298,198,000 against loss of $135,813,000 for the same period of last year.
The company remain focused on driving the performance to achieve financial and strategic objectives. 2017 guidance marks significant anticipated improvement over 2016, and is reflective of the actions it took in 2016 to improve the execution. For 2017, the company currently expects to generate: revenue of between $400 million and $425 million; GAAP operating loss of $25 million to $30 million; and Adjusted EBITDA $0 to positive $5 million.
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.
R1 RCM Inc. Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Financial Guidance for 2017