HMS Holdings Corp. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Capital Expenditures and Tax Rate Guidance for the Year 2016
For the full year ended December 31, 2015, net income was $24.5 million or $0.28 per diluted share, compared to $13.9 million or $0.16 per diluted share in the prior year. Adjusted EPS for the full-year 2015 increased to $0.57 per diluted share, compared to $0.41 per diluted share in full-year 2014. For the full year 2015 total revenue increased 7.0% to $474.2 million, including $20.5 million of Medicare RAC revenue, compared to total revenue for the full year 2014 of $443.2 million, which included $22.0 million of Medicare RAC revenue. Operating income was $47.6 million against $34.2 million reported last year. Income before income taxes was $39.8 million against $26.3 million reported last year. Net cash provided by operating activities was $70.7 million against $98.8 million reported last year. Purchases of land, property and equipment were $8.6 million against $22.7 million reported last year. EBITDA was $98.2 million against $87.8 million reported last year. Adjusted EBITDA was $112.5 million against $101.2 million reported last year.
The company anticipates continued strong operating cash flow on the order of $20 million to $25 million per quarter and capital expenditures for the full year of approximately $20 million. Those capital investments will be primarily focused on IT infrastructure and product development. The company anticipates an effective tax rate of approximately 40% for the year 2016.