CONVALO HEALTH INTERNATIONAL CORP (CVE:CXV) a major firm in the United States addiction recovery segment, released its financial statements for the quarter and nine months closed November 2016 on SEDAR. The firm is a leader in the market of addiction rehabilitation. It has operated since 2014, when it bought a small outpatient facility in California. In present time, Convalo operates 9 facilities on the west coast of the U.S. spanning from Portland, San Diego to Oregon, California.
Capacity of more than 300 beds and seats are online, branded and introduced. Additional centers are fully launched and well operating. These comprise San Diego outpatient facility, Greater LA detox facilities, Portland outpatient facility, Central LA detox facility, and an internal lab. Net current assets came at $17.292 million in the recent quarter compared to $17.447 million in the quarter closed August 2016.
Convalo enhanced enterprise profitability lessening net loss to $960,000 from a loss of $1.917 million in the preceding quarter as upfront outlay and investments linked with launching 5 facilities has drawn to a decision. Chris Heath, thee Executive Vice President, announced that it has been a long 9-month course, but they have finally closed their heavy upfront investments in increasing capacity.
The company is now laser focused on closing beds and seats and growing their business. It has been an extended wait. While the company has been disappointed with a full year of flat revenues, typically hindered by limited capacity, they have been anticipating this moment where they can finally work on closing new increased capacity. A couple of years ago, when the company tripled capacity, the sales surged nearly fivefold. The management look forward to the coming year of filling up new centers.
Heath added that since being promoted, he has been developing increasingly effective methods to upsurge census quickly while recording higher margins.