USPI 1Q Financial Results & Development Activity: 5 Key Points
1. Consolidated net revenues of $145.3 million for the first quarter of 2014, compared to $145.1 million during the same period in 2013. "This was a challenging start to 2014 for USPI, with a combination of severe weather in certain markets and continuing change in insurance plan design impacting first quarter volumes," said USPI CEO William Wilcox, in the report.
2. The company's operating income slid 18 percent from $58.2 million the first quarter of 2013 to $47.6 million. The company attributed its flat revenues to a 3.1 percent decline in same-store cases and the drop in operating income to significant investments in its infrastructure.
3. Cash flow from operating activities was $61 million this quarter, compared to $38.6 million in the prior year period. Though the company had a relatively slow start to the year, it did exhibit active development plans.
4. USPI acquired two facilities in the first quarter of 2014 and acquired another after the end of the quarter. USPI owns and operates 216 facilities, 148 of which are joint ventures with not-for-profit healthcare systems.
5. The company intends to acquire five to 10 additional facilities during the rest of the year. The company closed one facility in the first quarter. "We remain comfortable with our long-term strategy, optimistic about our development pipeline and believe the capabilities we are building will be beneficial long term to our partnerships with prominent health systems and physicians," said Mr. Wilcox.
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