Cotiviti Holdings, Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides Earnings Guidance for the Year 2018
Cotiviti Holdings, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net revenue of $219,034,000 against $160,133,000 a year ago. The increase was primarily driven by a $46.6 million refunds and appeals liability release reflected in the RCA line of business. Operating income was $78,671,000 against $34,082,000 a year ago. Income before income taxes was $69,829,000 against $26,114,000 a year ago. Net income was $53,927,000 or $0.57 per diluted share against $26,975,000 or $0.28 per diluted share a year ago. Net cash provided by operating activities was $34,716,000 against $24,572,000 a year ago. Expenditures for property and equipment were $12,385,000 against $9,660,000 a year ago. Adjusted EBITDA was $63,818,000 against $57,670,000 a year ago. Adjusted net income was $39,096,000 or $0.41 per diluted share against $31,951,000 or $0.34 per diluted share a year ago. The increase was primarily driven by year-over-year revenue growth and a lower tax rate.
The company updated full year 2018 guidance includes: total net revenue (including $46.6 million for Medicare RAC appeals release) in a range of $787 million to $807 million; adjusted net revenue (excluding the Medicare RAC appeals release) is in a range of $740 million to $760 million, net income is in a range of $140 million to $155 million; adjusted EBITDA is in a range of $295 million to $310 million; and estimated effective tax rate of approximately 25%, excluding the impact of stock option exercises, restricted stock units and non-deductible stock-based. The company now expects full year 2018 interest expense to be in a range of $40 million to $45 million, CapEx in the range of $40 million to $45 million and depreciation and amortization of $90 million.