Surgical Care Affiliates has announced its financial results for the third quarter of 2014. Here are five key points to know.
1. SCA's total net operating revenue, excluding facilities in which the company owns a non-controlling interest, increased 13.1 percent, from $194.4 million in the third quarter of 2013 to $219.9 million. The increase in revenue was driven by factors including higher acuity case mix, acquisitions and increased rates under certain payer contracts. Net operating revenue including all facilities in which the company owns an interest rose 10.5 percent from the same period last year.
2. The company's net income was $7.8 million, compared to a $12.7 million net loss in the third quarter of 2013. SCAs adjusted net income was $18.4 million, up 53.9 percent from $11.9 million in prior year. Cash flow was up 38.4 percent.
3. "Patient care is our first priority, and we continued to achieve strong patient satisfaction and clinical results in the third quarter. From a financial perspective, we are pleased with our third-quarter results and remain on track to achieve our original full year 2014 adjusted EBITDA less NCI guidance, which translates to annual adjusted EBITDA less NCI growth of eight to eleven percent," said president and CEO Andrew Hayek.
4. The company's system-wide net patient revenue increased 4.5 percent from the third quarter of 2013. SCA's system-wide case volume grew 2.1 percent. The growth was attributed to higher acuity case mix and investments in the company's facilities.
5. SCA invested in 11 facilities during the third quarter of 2014, seven of which were consolidated. The company also exited six facilities, three of which the company managed only. As of Sept. 30, SCA operated 182 facilities, up from 178 at June 30, 2014. The company invested in two additional facilities after the close of the third quarter and added one managed-only facility, bringing total facility count as of the date of this press release to 185.
6. The company reiterated its previous guidance of adjusted EBITDA less NCI to $154 million to $158 million. SCA expects strong growth in its fourth quarter.