Medical Facilities Corporation Q1 2014 Financial Results: 5 Key Insights
1. MFC reported $72.9 million in revenue, which is consistent with revenue reported in the first quarter of 2013. "Our Black Hills facility recorded an increase in revenue and income from operations as a result of growth in surgical cases and pain management procedures, as well as urgent care revenue," said Donald Schellpfeffer, MD, CEO of MFC, in the report.
2. Income from operations was $18.1 million, down 11.5 percent from $20.4 million in the first quarter of 2013. Total net loss and comprehensive loss was $2 million, or a loss of $0.273 per share.
3. As of March 31, MFC had consolidated net working capital of $38.8 million, including cash and cash equivalents. The company had $45.1 million in long-term investments and $40.8 million in accounts receivable. Comparatively, the company had net working capital of $48.4 million in 2013, as well as $48.7 million in long-term investments and $50.3 million in accounts receivable.
4. The company earned approval for a normal course issuer bid. MFC will repurchase its common shares on the open market. The repurchase and canceling of common shares will reduce the amount of dividends payable, which will translate into cash savings. As of March 31, the company had 31,366,750 common shares outstanding.
5. Consolidated operating expenses were 75.2 percent of revenue at $54.8 million. In 2013, consolidated operating expenses were 72 percent of revenue at $52.5 million. The increase in expenses is due to case volume increase at Black Hill Surgical Hospital and changes in case and payer mix at MFC's other facilities, according to the report. As of March 31, MFC owned controlling interests in five specialty surgical hospitals and an ambulatory surgery center.
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