Accretive Health Reports Third Quarter 2016 Results

CHICAGO, Nov. 02, 2016 (GLOBE NEWSWIRE) -- Accretive Health, Inc. (the "Company")  (OTC Pink:ACHI), a leading provider of revenue cycle services and physician advisory services to healthcare providers, today announced results for the quarter ended September 30, 2016.

Third Quarter 2016 Results:
  • GAAP net services revenue of $125.5 million, compared to $15.8 million for the third quarter of 2015
  • GAAP net income of $37.3 million, compared to a net loss of $33.0 million for the third quarter of 2015
  • Non-GAAP gross cash generated from customer contracting activities of $59.7 million, compared to $55.4 million for the third quarter of 2015
  • Non-GAAP net cash generated from customer contracting activities of $3.6 million, compared to $3.7 million for the third quarter of 2015

"Accretive Health's third quarter results reflect the progress we are making in executing against our near-term objectives," said Joe Flanagan, President and Chief Executive Officer of Accretive Health. "We successfully initiated the transition of the first tranche of new Ascension ministries onto our platform, renewed our relationship with our second-largest customer for a multi-year term, and continued to make investments in personnel, technology and infrastructure to enable the company to succeed over the long term."

"We have a number of initiatives underway designed to improve our financial results and position the company to effectively grow at scale. Our third quarter results reflect the results of the actions we have taken, including the realignment of our cost structure conducted at the end of the second quarter.  We are focused on driving our performance to achieve our financial and strategic objectives," added Chris Ricaurte, Chief Financial Officer and Treasurer.

Conference Call and Webcast DetailsAccretive Health's management team will host a conference call today at 4:30 p.m. Eastern Time to discuss the results and business outlook. To participate, please dial 877-880-5884 (631-601-2894 outside the U.S. and Canada) using conference code number 1300961. A live webcast and replay of the call will be available at the Investor Relations section of the Company's web site at www.accretivehealth.com.

Non-GAAP Financial MeasuresIn order to provide a more comprehensive understanding of the information used by Accretive Health's management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain non-GAAP financial measures, which are included in this press release. These include gross and net cash generated from customer contracting activities and adjusted EBITDA. Our Board and management team use these non-GAAP measures as (i) one of the primary methods for planning and forecasting overall expectations and for evaluating actual results against such expectations; and (ii) a performance evaluation metric in determining achievement of certain executive incentive compensation programs, as well as for incentive compensation programs for employees.

Gross cash generated from customer contracting activities is defined as GAAP net services revenue, plus the change in deferred customer billings. Accordingly, gross cash generated from customer contracting activities is the sum of (i) invoiced or accrued net operating fees, (ii) cash collections on incentive fees and (iii) other services fees.  Net cash generated from customer contracting activities reflects non-GAAP adjusted EBITDA and the change in deferred customer billings.