CARTI’s financial checkup seems to have gone well.
For its fiscal year that ended June 30, the Little Rock cancer treatment provider reported a $3.5 million operating income before depreciation.
That’s a $9.3 million swing since June 30, 2017, when it reported an operating loss of $5.8 million before depreciation.
During that two-year period, its total net revenue jumped 31% to $217.9 million.
Adam Head became CARTI’s president and CEO about two years ago. At that point, he said it was time for the nonprofit to reinvent itself, both financially and as a health care provider, in order to make sure it endures.
And it has. It opened the CARTI Cancer Center in Conway in November. And it will open CARTI Center Russellville next month and in the spring, CARTI Cancer Center North Little Rock is expected to open.
The bond-rating service Fitch Ratings said last week that CARTI’s rating outlook is stable.
It also affirmed the rating of BB+ on CARTI’s $48.2 million revenue bonds. Fitch on its website said a ‘BB’ rating indicates “an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments.”
Fitch noted in its report that “fiscal 2018 was the first in several years in which CARTI met budgeted expectations.
“Initiatives in place since fiscal 2018 have resulted in financial improvement,” the report said.
