Envision board ponders ways to boost value — Company sale on the table

Nashville, Tenn.-based Envision Healthcare reported net revenues of $2.08 billion for the first quarter of 2018, driven largely by its physician services segment.

Here's what you should know.

Ambulatory
1. Net revenues for ambulatory services were $307.6 million, a 2.6 percent year-over-year decrease. Envision attributed the decline to weather- and flu-related cancellations.

2. Same-center revenue declined 0.7 percent for the quarter. Centers Envision deconsolidated and disposed of contributed incremental revenues of $9.7 million last year.

3. Adjusted EBITDA for the quarter was $57.5 million, a 4.7 percent year-over-year decrease.

Physician services
4. Net revenues for physician services were $1.77 billion for the quarter, a 13.2 percent year-over-year increase.

5. Approximately 8.2 percent of the growth was from acquisitions, 2.3 percent from new contracts and 2.7 percent from the same contracts.

6. Adjusted EBITDA for the quarter was $150.1 million, which was the same year over year.

Outlook
7. Envision modified its yearlong outlook. The company expects revenues between $8.35 billion and $8.53 billion for 2018.

8. Envision anticipates posting an adjusted EBITDA of $965 million to $1 billion, and adjusted earnings per share of $3.49 to $3.70 for the year.

9. For the second quarter, the company projects posting an adjusted EBITDA of $234 million to $246 million.

10. Envision's board is conducting a full review of options to enhance shareholder value. Among those options are executing the company's strategic plan, rationalizing its portfolio or selling the company. There is no assurance the review will result in action being taken.

Envision President and CEO Christopher Holden said: "Our results for the first quarter of 2018 build on the momentum we established at the end of 2017, with our focus on operational improvements beginning to bear fruit toward our goal of realizing $50 million in operational efficiencies in 2018 and anticipated run-rate savings of $100 million. … Our operational focus will be key to our ability to optimize shareholder value as our clinical providers and operations professionals are continuously working to improve patient safety, quality and efficiency to deliver value to health systems and the patients we serve. We continue to successfully execute on a clearly defined strategy that supports our clinical providers as they participate in high-performing healthcare networks in communities across the country. Our Physician Services' growth validates this strategy."

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