Performant Financial Corporation Announces Financial Results For Third Quarter 2016

LIVERMORE, Calif., Nov. 03, 2016 (GLOBE NEWSWIRE) -- Performant Financial Corporation (Nasdaq:PFMT), a leading provider of technology-enabled recovery and related analytics services in the United States, today reported the following financial results for its third quarter ended September 30, 2016:

Third Quarter Financial Highlights
  • Total revenues of $31.2 million, compared to revenues of $38.5 million in the prior year period, down 19.0%
  • Net loss of $0.7 million, or $(0.01) per diluted share, compared to a net loss of $0.3 million, or $(0.01) per diluted share, in the prior year period
  • Adjusted EBITDA of $4.7 million, compared to adjusted EBITDA of $6.5 million in the prior year period
  • Adjusted net income of $0.8 million, or $0.02 per diluted share, compared to an adjusted net income of $0.8 million or $0.02 per diluted share in the prior year period

Third Quarter 2016 Results

"We reported another solid quarter of adjusted EBITDA results, despite the headwinds generated from the absence of placements from the Department of Education during its transition to a new contract and the decision by the Centers for Medicare and Medicaid to pause its RAC program while it closes out the old contract.  As it relates to the outstanding contract awards with the Department of Education, we have maintained an ongoing dialog and remain confident that we are well positioned to be among the companies receiving a new contract award," said Lisa Im, Performant Financial's Chief Executive Officer.

Student lending revenues in the third quarter were $23.8 million, a decrease of 16.6% from $28.5 million in the prior year period. The U.S. Department of Education and Guaranty Agencies accounted for revenues of $3.9 million and $19.9 million, respectively, in the third quarter of 2016, compared to $6.0 million and $22.5 million in the prior year period.  Student loan placement volume (defined below) during the quarter totaled $0.7 billion, compared to $0.5 billion in the prior year period. This figure reflects a 28% uptick in placements from Guaranty Agencies.

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