Foundation Healthcare patient services revenue up 7%: 5 2Q financial result notes
1. The company reported $22.1 million in revenue for the quarter, a 2 percent increase from $21.6 million in the second quarter of 2013. Foundation Healthcare had an adjusted EBITDA of $1.5 million for the second quarter, compared to $3 million in the same period last year.
2. Patient services revenue increased 7 percent from the second quarter of 2013 to $19.9 million. The increase can be traced back to an increase in average reimbursement at Foundation Healthcare's East El Paso Physician Medical Center and an increase in case volume at Foundation Surgical Hospital of San Antonio.
3. Operating expenses rose 6.8 percent from $21.7 million in the prior year period to $23.1 million. The increase was due to stock compensation, salary and benefits expenses.
4. "We are pleased with our results as we recorded an 8% increase in revenue at our majority owned hospitals for the second quarter of 2014 as compared to the second quarter 2013. In addition, we successful refinanced our debt at the end of the quarter reducing our average cost of funds from 6.5 percent to 4.25 percent and extending debt amortization to reduce costs by $2 million annually," said CEO Stanton Nelson.
5. Foundation Healthcare operations resulted in a net loss, attributable to the company's stock, of $1.5 million in the second quarter, compared to $0.6 million in the second quarter of 2013. As of June 30, the company had cash and cash equivalents totaling $1.9 million, compared to $4 million in the year prior.
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