Healthways Inc. HWAY reported first-quarter 2016 adjusted loss of 11 cents per share, wider than an adjusted loss of a nickel reported in the year-ago quarter.Including stock-based compensation, loss was 11 cents, much wider than the Zacks Consensus Estimate of a loss of 2 cents. Healthways Inc. - Earnings Surprise | FindTheBest Revenues declined 0.3% year over year to $189.2 million primarily due to the absence of revenues from the divested Navvis subsidiary and the company’s amended relationship with the Hawai'i Medical Service Association (HMSA).Adjusted EBITDA decreased 20.1% year over year to $11.8 million in the reported quarter. Management expects EBITDA to increase gradually through the year, as most of the performance-based fee is recognised in the second half of the year. Moreover, revenues from new business, growth in membership and higher enrolment numbers in the company’s program will boost profits.Healthways also noted that net cost savings from the Reorganization & Cost Rationalization Plan, which is expected to grow each quarter in full-year 2016, will boost EBITDA growth.Healthways stated that the Plan, which was initiated in third-quarter 2015, is progressing as per schedule. The company expects to complete the Plan by the end of the third quarter of 2016.Upon completion, Healthways expects annual gross cost savings in the range of $40 million to $45 million for full-year 2017. In the reported quarter, the company incurred $5.7 million as restructuring cost related to the Plan.Selling, general & administrative expenses (SG&A), as a percentage of revenues, increased 20 basis points from the year-ago quarter to 8.6%.GuidanceHealthways reiterated its full-year 2016 revenue growth forecast at the range of low to mid single digits.Adjusted EBITDA (excluding restructuring charges and non-cash share based compensation) is projected in the band of $85–$90 million.By the end of this year, Healthways expects to reduce its debt by $30 million by using its free cash flow. Zacks Rank & Key PicksHealthways carries a Zacks Rank #3 (Hold).Better-ranked stocks in the broader medical sector are BioTelemetry BEAT, PRA Healthsciences PRAH and Intrexon Corporation XON. All the three companies sport a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BIOTELEMETRY (BEAT): Free Stock Analysis Report HEALTHWAYS INC (HWAY): Free Stock Analysis Report PRA HEALTH SCI (PRAH): Free Stock Analysis Report INTREXON CORP (XON): Free Stock Analysis Report To read this article on Zacks.com click here.