Medical Facilities Corporation 2Q revenue up 0.9%: 5 financial report notes
reported is second quarter 2014 financial results. Here are five key notes from the report.
1. Revenue for the second quarter was $74.4 million, a slight increase of 0.9 percent from $73.7 million in the second quarter of 2013. Income from operations was down 2.5 percent from $20.8 million last year to $20.3 million.
2. "The company's second quarter 2014 revenue continued to be consistent with that from one year ago. While our margins were impacted by higher operating costs, which were mostly due to changes in case volumes and case mix at your centers, and selected reimbursement reductions emanating from new contracts at two of our centers, we continue to generate sustainable cash flows and distributions to our shareholders as evidenced by our cash available for distribution and payout ratio for the quarter," said CEO Donald Schellpfeffer, MD.
3. MFC generated Cdn$9.7 million in cash available for distribution, or Cdn$0.31 per common share. The company declared dividends of Cdn$8.8 million, or Cdn$0.281 per common share. This represents a payout ratio of 90.6 percent, compared to a ratio of 93.8 percent in the second quarter of last year.
4. The company's operating expenses were $54.1 million, or 72.7 percent of revenue. Operating expenses were up slightly from the same period last year – $52.9 million or 71.7 percent of revenue in 2013.
5. Total net income and comprehensive income was $23.1 million, compared to $14.8 million in 2013. The $8.4 million increase was largely due to the positive impact of the changes in values of exchangeable interest liability and convertible debentures, decrease in interest gained and gain on foreign currency.
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