CHICAGO - R1 RCM (NASDAQ:RCM) Inc., a leading provider of technology-enabled revenue cycle management services for healthcare providers, announced today that it will restate its financial statements for the fiscal years 2021, 2022, and the first half of 2023. This decision comes after the company identified inaccuracies in accounting for compensation costs related to acquisitions.
The adjustment pertains specifically to how acquiree compensation costs were accounted for, which was uncovered through an internal review. Following this discovery, R1 RCM worked closely with Ernst & Young auditors to evaluate the extent of the missteps. While the restatement is significant in acknowledging past accounting errors, R1 RCM has provided reassurance regarding its recent performance.
Despite these historical accounting issues, the company's financial outlook for 2023 remains unchanged. R1 RCM has affirmed that its projections for the current year and its performance in the first three quarters are not expected to be materially affected by this restatement. This suggests that while past financial reports will undergo corrections, the overall health and trajectory of the company's operations remain on course as previously projected.
The announcement underscores R1 RCM's commitment to maintaining accurate financial reporting and transparency with its stakeholders. The company is taking steps to rectify the identified issues and prevent future discrepancies in its financial documentation. As of now, further details regarding the impact on previously reported figures have not been disclosed. Stakeholders can anticipate more comprehensive information once the restatement process is completed.
InvestingPro Insights
Turning to real-time data from InvestingPro, R1 RCM's market capitalization stands at $4140.0M with a negative P/E ratio of -122.86. The company's revenue growth over the last twelve months as of Q3 2023 was 32.25%, and it saw a quarterly revenue growth of 15.48% in Q3 2023. The price has taken a significant hit, falling by 38.39% over the last three months.
InvestingPro Tips highlights that R1 RCM's management has been buying back shares aggressively, which can be a sign of confidence in the company's future. However, the stock has not performed well over the last month, and the company was not profitable over the last twelve months. On the bright side, net income is expected to grow this year, and analysts predict the company will turn profitable.
These insights provide a glimpse into R1 RCM's financial health and future prospects. For a more comprehensive understanding and additional tips, consider exploring the InvestingPro platform, which currently features seven more tips for R1 RCM.
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