Nobilis Health Corp. (USA) (NYSEMKT: HLTH) Upsets The Market With Late 1Q Filing


Nobilis Health Corp. (USA) (NYSEMKT: HLTH)’s announcement that it was delaying regulatory filing for its 1Q2016 didn’t generate applause from investors despite encouraging revenue growth in the quarter. What the management described as two narrow and non-cash entries are behind the delays in quarterly filings.

In a press release, Nobilis Health Corp. (USA) (NYSEMKT: HLTH) said it was waiting for more details regarding the treatment of two accounting entries before it could file 1Q2016 results as required by the U.S. Securities and Exchange Commission (SEC). Nobilis tried to somewhat trivialize the matter of the two entries that are holding it back on the issue of filing and said it was working to resolve the issue expeditiously.

Nevertheless, anything that causes uncertainty doesn’t always go down well with investors and that explains the sharp pullback in the stock in the last session.

Informing the SEC about delayed filing

Nobilis said it had filed Form 12b-25 to notify the regulator of its plans to make late submission of its 1Q2016 filings. The Form 12b-25 filing grants the company ample time until March 16 to fix whatever issues are holding it back before it could file Form 10-Q for its 1Q2016.

What transpired during 1Q2016 for Nobilis Health Corp. (USA) (NYSEMKT: HLTH)?

Nobilis Health Corp. (USA) (NYSEMKT: HLTH) posted EPS loss of $0.07 for 1Q2016, yet analysts following the stock expected EPS profit of $0.01 for the quarter. The company logged a loss and missed consensus expectations despite posting topline growth of 35% to $51.3 million. The management blamed the tepid 1Q2016 earnings on adverse impact resulting from legal and accounting expenses relating to a short attack that occurred in October 2015. But the explanation of the loss only added to the worries that investors already had about the stock.

It appears investors in Nobilis Health Corp. (USA) (NYSEMKT: HLTH) are heading for the exit door, perhaps until the issue of late regulatory filing is resolved and the cloud of uncertainty is cleared.


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