Civitas Solutions (CIVI) Misses Q4 EPS by 12c
Civitas Solutions (NYSE: CIVI) reported Q4 EPS of $0.07, $0.12 worse than the analyst estimate of $0.19. Revenue for the quarter came in at $362.2 million versus the consensus estimate of $361.92 million.
“I am pleased to report a strong finish to the fiscal year, with solid growth in net revenues, excluding the ARY divested operations, and a 12.5% increase in adjusted EBITDA in the fiscal fourth quarter,” stated Bruce Nardella, president and chief executive officer. “While growth in fiscal year 2016 was affected by the redesign of the West Virginia Waiver program and higher health care costs, as previously disclosed, we increased our level of investment in new start initiatives by nearly 30%, acquired 12 companies with total annual revenues of more than $48 million, and expanded our new adult day health service line into a second state growing its revenue by nearly 80%."
“Looking forward, we are well positioned to execute our long term growth strategy and fulfill our mission,” Nardella added. “We have developed a robust acquisition pipeline, and expect fiscal 2017 to be another strong year of new start investment. In addition, given the headwinds we face in the coming year, we are also focused on accelerating efforts to identify and implement cost efficiencies. This effort is expected to produce savings of approximately $2 million in fiscal year 2017, and by the end of fiscal year 2018 we anticipate annual cost savings of more than $4 million.”
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