What a difference a year makes.
CARTI reported operating income of $529,000 before depreciation for the fiscal year that ended June 30.
That compares with an operating loss before depreciation of $5.8 million for the previous fiscal year. The Little Rock cancer treatment organization also saw a 14 percent increase in net revenue to $189.1 million for the most recent fiscal year.
If you recall, CARTI was struggling financially before Adam Head started as CARTI’s president and CEO last September. “We needed to change,” Head told Arkansas Business in April.
“It was not on a sustainable trajectory.”
And while Head cut expenses, one line item that increased was oncology drugs. That cost rose nearly 16 percent to $111 million during the fiscal year, according to its audited financial statement.
In September 2017, Fitch Ratings Inc. of Chicago downgraded CARTI’s bond rating from BBB-, which was the lowest investment-grade rating, to BB+.
A BB rating indicates an “elevated vulnerability to default risk … however, business or financial flexibility exists that supports the servicing of financial commitments.”
That’s according to Fitch’s website.
In July, Fitch revised its rating outlook to stable from negative and kept the BB+ rating.
The revision “reflects recent operating improvements achieved through expense controls and continued revenue growth in fiscal years 2017 and 2018,” the Fitch report said.
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