HMS Holdings Corp. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2015. Net income for the quarter ended December 31, 2015 was $8.7 million or $0.10 per diluted share, compared to net loss of $2.4 million or $0.03 per diluted share in the prior year fourth quarter. Adjusted EPS was $0.19 per diluted share in the fourth quarter, compared to $0.03 in the prior year fourth quarter. Total revenue in the fourth quarter was $128.5 million, compared to total revenue of $112.2 million in the prior year fourth quarter. EBITDA was $27 million against $13.5 million reported last year. Adjusted EBITDA was $31.1 million against $17.7 million reported last year. Operating cash flow was $30.3 million in the fourth quarter.

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.