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How Has Civitas Solutions Performed Financially?

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Top line

In 1Q18, Civitas Solutions (CIVI) generated net revenues of $395.4 million compared with $359.3 million in 1Q17. The company’s cost of revenues grew from $283.9 million in 1Q17 to $316.2 million in 1Q18.

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Operating expenses

Civitas Solutions incurred general and administrative expenses of $44.5 million in 1Q18 compared with $41.7 million in 1Q17. The depreciation and amortization expenses of the company increased from $18.1 million in 1Q17 to $21.7 million in 1Q18. The company’s total operating expenses increased from $59.9 million in 1Q17 to $66.3 million in 1Q18.

Bottom line

Civitas Solutions incurred interest expenses of $9 million in 1Q18 compared with $8.4 million in 1Q17. While the company had incurred income tax expenses of $2.8 million in 1Q17, in 1Q18, it received a tax benefit of $5.1 million.

As a result, the net income of the company jumped from $4.1 million in 1Q17 to $9.3 million in 1Q18. This translated into the company’s net income per share more than doubling from $0.11 in 1Q17 to $0.25 in 1Q18.

Cash flows

Despite the jump in net income and depreciation expenses, Civitas Solutions’ cash flow generated from operating activities decreased from $15.7 million in 1Q17 to $8.8 million n 1Q18. This decrease was mainly attributable to a significant increase in other assets and a decrease in accrued payroll and related costs of the company during this period.

In 1Q17, Civitas Solutions had spent $10.5 million in investing activities. In 1Q18, this figure jumped to $92.2 million. This substantial increase was mainly attributable to $81.9 million spent by the company in business acquisitions in 1Q18.

While Civitas Solutions had spent $2.1 million in financing activities in 1Q17, in 1Q18, the company generated $76.1 million from financing activities. This increase was attributable to $74.4 million from the company’s issuance of long-term debt in 1Q18.

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