Accretive Health, the Chicago-based revenue-cycle management company that had been operating under a cloud of financial uncertainty this year, Tuesday reported strong results in its long-delayed 2013 earnings report.
The market had been waiting for Accretive's financial results since February. In March, the company was delisted from the New York Stock Exchange for failing to file its annual report.
Accretive's new management team Tuesday presented a new business model for the company and stated its goals for 2015.
Accretive reported net income of $130.1 million on revenue of $504.8 million for the year ended Dec. 31, 2013, compared with a net loss of $119.7 million on $72.3 million in revenue for 2012.
The company said its 2013 results included $34 million in restatement and other one-time costs.
Accretive restated its financial results to correct the timing of when it recognizes revenue from its customer contracts. Revenue now is recognized when a contract is renewed or terminated. It also has adopted another term, “net operating fees,” to reflect the cash it collects from its monthly or quarterly bills.
Accretive has had a new CEO in Dr. Emad Rizk since July and a new chief financial officer in Peter Csapo since August.
On an investor call Tuesday, Rizk said his goals for 2015 include delivering greater value to clients, generating additional revenue and growing the business, and investing in new infrastructure.
The company is at the tail end of a restructuring plan that has included initiatives such as moving certain functions that were previously housed at its corporate headquarters to locations closer to its clients or to its shared-services center in Michigan.
Restructuring costs totaled $5.2 million in 2013 and $7.7 million in the first nine months of 2014.
The company also incurred other expenses in 2013 related to the management transition, upgrading its information technology and investing in its Physicians Advisory Services business.
Accretive has 83 hospital clients. The company's shares, now listed on the over-the-counter market, were trading up 7.3% to reach $9.10 in after-hours trading Tuesday.
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