With its fourth-quarter 2013 operating earnings of 17 cents
per share exceeding the Zacks Consensus Estimate by 3 cents,
Performant Financial Corporation
) has now delivered three consecutive quarters of positive
surprises. Results in the quarter also improved 31% year over
PERFORMANT FINL (PFMT): Free Stock Analysis
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Shares of Performant Financial gained nearly 5.4% to close at
$7.62 on Mar 3 following the company's announcement of impressive
fourth-quarter results on Feb 27.
Net income in the reported quarter came in at 16 cents per share,
improving 33% year over year.
An improved top line drove the outperformance in the quarter.
Performant Financial delivered earnings per share of 83 cents for
full year 2013 on revenues of $255.3 million. While the top line
rose 21.5% year over year, the bottom line increased 33.9%. Net
income of 74 cents per share surged 68% year over year.
Behind the Headlines
Total revenue at Performant Financial grossed nearly $60 million
in the quarter, improving 7.1% year over year. Results figured
ahead of the Zacks Consensus Estimate by $1 million.
While Student Lending revenues improved 22.8%, Healthcare
revenues fell 30.3% (due to contract and patient constraints).
Other revenues increased 15% year over year.
Total operating expense scaled up 5.6% year over year to $44.2
million, attributable to higher salaries and benefits as well as
other operating expenses.
Adjusted earnings before income taxes, interest expenses,
interest income, depreciation and amortization (EBITDA) improved
11.7% year over year to $19.4 million.
Interest expense decreased 8.8% year over year to $2.8 million.
Performant Financial exited 2013 with cash and cash equivalents
of $81.9 million, increasing substantially from $37.8 million as
of Dec 31, 2012.
Cash flow from operating activities came in at $61.2 million in
2013, surging almost 65% over 2012.
Notes payable at the company were $122.5 million at the end of
2013, down 10.4% year over year.
Performant Financial expects 2014 operational results to be
weighed on by the new CMS Recovery Audit Contractor award and
limitations pertaining to the recovery activities pending the new
Performant Financial expects to generate $200 to $240 million in
revenues in 2014. It envisions adjusted EBITDA for the year to
range between $47 million and $55 million.
Performant Financial presently holds a Zacks Rank #4 (Sell).
Performance of Other Business Service Providers
SouFun Holdings Ltd.
) reported fourth-quarter operating earnings of $1.41 per share,
which outpaced the Zacks Consensus Estimate by 34.5%. Results
surged 86% year over year.
) delivered fourth-quarter 2013 operating loss of 3 cents per
share, narrower than the Zacks Consensus Estimate loss of 13
cents and the year-ago loss of 15 cents per share.
) posted fourth-quarter loss per share of 20 cents, wider than
the Zacks Consensus Estimate loss of 17 cents but narrower than
the loss of 34 cents per share incurred in the year-ago