LONDON, UK / ACCESSWIRE / January 11, 2018 / Active-Investors.com has just released a free earnings report on Civitas Solutions, Inc (NYSE: CIVI) ("Civitas"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=CIVI. Civitas reported its fourth quarter and fiscal 2017 operating results on December 12, 2017. The provider of group homes and home-based care for the developmentally disabled saw its earnings surpassed estimates, and the Company provided guidance for fiscal 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Civitas Solutions most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Civitas' net revenue for the fourth quarter fiscal 2017 was $380.37 million, reflecting growth of 5.0% over net revenue of $362.19 million for Q4 FY16. The Company's net revenue increased $7.0 million from organic growth and $11.2 million from acquisitions that closed during and after Q4 FY16. Civitas' reported numbers fell short of analysts' estimates by $6.34 million.
Civitas' net revenue for FY17 was $1.47 billion, reflecting an increase of 4.8%, over net revenue of $1.41 billion in FY16.
During Q4 FY17, Civitas' loss from operations was $11.1 million, or 2.9% of net revenue, compared to income from operations of $11.3 million, or 3.1% of net revenue, for Q4 FY16. The drop in the Company's operating margin was primarily due to $31.0 million of goodwill and intangible asset impairment charges related to its ADH business unit compared to a $10.3 million goodwill impairment charge for the same business unit in Q4 FY16.
Civitas' net loss was $10.7 million for Q4 FY17 compared to net income of $2.7 million for Q4 FY16. The Company's basic and diluted net loss per common share from continuing operations were 0.29 for the reported quarter compared to basic and diluted net income per common share from continuing operations of $0.07 for the year ago same period. Civitas' earnings, adjusted for asset impairment costs, were $0.25 per share, ahead of Wall Street's estimates of $0.22.
Civitas' adjusted EBITDA was $42.4 million, or 11.2% of net revenue, for Q4 FY17 compared to adjusted EBITDA of $42.6 million, or 11.8% of net revenue, for Q4 FY16. The decrease in the Company's adjusted EBITDA margin was primarily attributable to the increase in net sales adjustments, direct wage expense, and occupancy costs.
Civitas' net income for FY17 was $6.3 million compared to $9.2 million in FY16. The Company's basic and diluted net income per common share from continuing operations was $0.17 for FY17 compared to $0.25 for FY16.
Civitas Solutions' Segment Results
For Q4 FY17, the Intellectual and Developmental Disabilities (I/DD) services net revenue grew 2.6% to $247.8 million on a y-o-y basis. The Company's Post-Acute Specialty Rehabilitation Services (SRS) services net revenue advanced 6.2% to $80.2 million on a y-o-y basis in the reported quarter.
During Q4 FY17, the At-risk youth (ARY) services net revenue of $35.0 million grew 2.9% compared to the year ago period, while Adult Day Health (ADH) services net revenue soared 56% on a y-o-y basis to $17.4 million.
Cash Matters
For FY17, Civitas generated free cash flows of $50.3 million compared to $63.8 million in FY16, with the decline primarily attributed to an increase in days sales outstanding on the Company's accounts receivable to 45.2 days, which represented a 2.2-day increase from the year ago period. At the end of FY17, Civitas' net leverage was 3.6x.
Outlook
For fiscal year 2018, Civitas is forecasting net revenue to be in the range of $1.57 billion and $1.62 billion and adjusted EBITDA to be between $172 million and $177 million. The Company is estimating FY18 capital expenditures to be 3.3% of net revenue and annual tax rate of 40%.
Stock Performance Snapshot
January 10, 2018 - At Wednesday's closing bell, Civitas Solutions' stock declined 1.43%, ending the trading session at $17.25.
Volume traded for the day: 59.36 thousand shares, which was above the 3-month average volume of 55.61 thousand shares.
Stock performance for year-to-date - up 0.88%
After yesterday's close, Civitas Solutions' market cap was at $644.12 million.
Price to Earnings (P/E) ratio was at 102.07.
The stock is part of the Healthcare sector, categorized under the Long-Term Care Facilities industry.
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