R1 RCM (NASDAQ: RCM) reported Q4 EPS of $0.01, $0.03 worse than the analyst estimate of $0.04. Revenue for the quarter came in at $314 million versus the consensus estimate of $318.1 million.

Fourth Quarter 2019 Results:

• Revenue of $314.0 million, up $51.1 million and 19.4% compared to the same period last year
• GAAP net income of $7.8 million, compared to GAAP net loss of $5.7 million in the same period last year
• Adjusted EBITDA of $45.1 million, up $18.0 million compared to the same period last year

“2019 was an excellent year for R1. We added $4.1 billion in new net patient revenue under management from a diverse customer base, and our continued focus on operational execution drove meaningful bottom-line growth. At the same time, we made significant investments in technology and mobilized our physician offering to capture the market opportunity ahead of us,” said Joe Flanagan, President and Chief Executive Officer of R1. “We enter 2020 with good momentum across the business. Market demand for our offerings continues to grow, and the investments we are making in expanding our functionality and capabilities continue to improve our competitive position and extend our lead in the market.”

“We generated significant earnings growth in 2019, driven by solid execution across our contracted book of business,” added Rick Evans, Interim Chief Financial Officer and Chief Accounting Officer. “We remain focused on operational execution to deliver on our financial goals for 2020, while making investments to drive growth beyond 2020.”

GUIDANCE:

R1 RCM sees FY2020 revenue of $1.3-1.4 billion, versus the consensus of $1.36 billion.

For 2020, R1 expects to generate:

• Revenue of between $1,300 million and $1,400 million
• GAAP operating income of $145 million to $165 million
• Adjusted EBITDA of $260 million to $275 million

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