R1 RCM (RCM) Reports In-Line Q1 EPS, Revenues Beat; Suspends FY20 Guidance

R1 RCM (NASDAQ: RCM) reported Q1 EPS of $0.05, in-line with the analyst estimate of $0.05. Revenue for the quarter came in at $320.5 million versus the consensus estimate of $318.76 million.

First Quarter 2020 Results:

• Revenue of $320.5 million, up $44.6 million and 16.2% compared to the same period last year
• GAAP net income of $18.2 million, compared to net income of $0.2 million in the same period last year
• Adjusted EBITDA of $61.6 million, up $28.2 million compared to the same period last year

“I am grateful to all of our employees for their positive attitude and efforts to help our healthcare provider customers in the current environment. The R1 team has mobilized quickly, demonstrating a steadfast commitment to the success of our customers and the patients they serve,” said Joe Flanagan, President and Chief Executive Officer of R1. “While COVID-19 has resulted in a near-term decline in patient volumes, we are prepared to successfully navigate a variety of scenarios while simultaneously ensuring R1 is positioned for sustained long-term growth.”

“I am pleased with our team's continued focus on execution which helped drive solid first quarter results,” added Richard Evans, Interim Chief Financial Officer and Chief Accounting Officer. “Our strong business model, balance sheet, and the actions we are taking give us the confidence to be able to weather the ongoing crisis and emerge as a leaner and more efficient company that is well positioned to drive continued strong performance for our customers as well as our shareholders.”

Outlook

As a result of the uncertainty created by COVID-19 on the healthcare industry and broader US economy, the company is suspending prior financial guidance provided on February 20, 2020. The company will continue to share near-term updates and expects to provide updated 2020 guidance when there is improved visibility into revenues for the second half of the year.

For earnings history and earnings-related data on R1 RCM (RCM) click here.

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