How did ASC companies fare in 3Q? 50 things to know

Ambulatory surgery center companies reported strong performances in the third quarter of 2014. Here are 50 things to know about the financial results of seven publically traded ASC companies.

AmSurg

1. AmSurg reported $503.2 million in net revenues for the quarter, up 91.3 percent from the third quarter of 2013.

2. The company's adjusted EBITDA grew 110.4 percent to $95.9 million.

3. Net loss from continuing operations was $12.1 million.

4. AmSurg's adjusted net earnings grew 92.4 percent to $34.6 million.

5. "We are pleased with AmSurg's performance for the third quarter, which produced better than expected financial results. In addition, the work to integrate the acquisition of Sheridan, which was completed July 16, 2014, has gone very well," said AmSurg President and CEO Christopher Holden

6. The company's ambulatory services net revenues increased 5.4 percent from $263 million in the prior year's period to $277.3 million.

7. AmSurg's same-center revenue increased 1.7 percent.

8. During the third quarter, the company acquired four new ASCs, had eight ASCs under letter of intent and one center under development.

9. The company's physician services division had net revenues of $225.9 million, up 15.8 percent. The physician services division figures include results from the date of the Sheridan acquisition.

10. At the end of the third quarter, AmSurg had cash and cash equivalents of $194.1 million and availability of $300 million under its revolving credit facility. Net cash flows from operations were $113.4 million.

11. AmSurg revised its financial and operating guidance for the fourth quarter. The company expects revenues from $1.6 billion to $1.61 billion, as well as 1 percent growth in ambulatory services and 6 percent to 8 percent revenue growth in physician services.

Hospital Corporation of America

12. HCA reported revenues of $9.22 billion in the third quarter of 2014, up 9 percent from $8.46 billion in the prior year's period.

13. HCA had $518 million in net income from the quarter, up from $365 million in the third quarter of 2013.

14. The company's adjusted EBITDA was $1.83 billion, in comparison to $1.6 billion in the third quarter of 2013.

15. HCA reported a 4.1 percent increase in same facility equivalent admission. Revenue per admission increased 3.8 percent.
16. "Results for the company's third quarter reflect a continuation of solid volume trends and improving payer and service mix," said R. Milton Johnson, president and CEO of HCA.
17. The company revised its financial guidance and predicts 2014 revenues will be between $36.5 billion and $37 billion.

Foundation HealthCare

18. Foundation HealthCare reported $27.4 million in revenue for the quarter, up 16 percent from the third quarter of 2013.

19. The company's adjusted EBITDA was $3.5 million, up 26 percent from $2.8 million in the prior year's period.

20. "Looking forward, the fourth quarter is typically one of the best quarters of the year for Foundation, and given the third quarter results, we are optimistic about the continued growth in revenue and EBITDA for our majority-owned facilities," said CEO Stanton Nelson.

21. Foundation's patient services revenue rose 17 percent to $24.6 million.

22. The company's operating expenses were $44.4 million for the quarter, including a charge of $20.8 million resulting from the Graymark Healthcare transaction. For the third quarter of this year, the company's operating expenses were $26.1 million.

23. As of Sept. 30, the company had cash and cash equivalents totaling $3.6 million, compared to $1.9 million as of June 30.

Medical Facilities Corporation

24. MFC's consolidated facility service revenue was $77 million, up 5.5 percent from $73 million in the third quarter of 2013.

25. The company's consolidated income from operations was up 6.2 percent from $20.1 million in 2013 to $21.3 million in the third quarter of this year.

26. "We are pleased to report that in the third quarter of 2014 our centers performed higher levels of surgical cases and pain management procedures, which along with increased ancillary revenues drove consolidated revenue up 5.5 percent over last year," said CEO Donald Schellpfeffer, MD.

27. MFC's consolidated operating expenses were a total of $55.6 million, 72.3 percent of revenue, compared to $52.9 million or 72.5 percent of revenue in the prior year period.

28. The company generated Cdn$10.8 million, or Cdn$0.355 per common share, in cash available for distribution. MFC declared dividends of Cdn$8.8 million, or Cdn$0.281 per common share.

29. As of Sept. 30, the company had consolidated net working capital of $43. 9 million, compared to $48.4 million in net working capital as of Dec. 31, 2013.

Northstar Healthcare

30. Northstar Healthcare posted $17.2 million in net patient service revenue, up 125 percent from $7.6 million in the third quarter of 2013.

31. Northstar reported 1,649 cases for the quarter, up 22.7 percent from the 1,344 cases performed in the prior year's period.

32. "Northstar continues to see rapid growth and record revenue of $17.2 million in the third quarter. With the acquisition of a majority interest in a hospital and surgery center in the Houston market, the company is growing its operational platform and driving new revenue," said board of directors chairman Donald Kramer, MD.

33. Northstar reported EBITDA of $1.5 million, up from $0.1 million in the third quarter of 2013.

34. The company's cash flow for the third quarter was $2.2 million, up $0.1 million from the prior year's period.

Surgical Care Affiliates

35. SCA's 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.

36. The increase in revenue was driven by factors including higher acuity case mix, acquisitions and increased rates under certain payer contracts.

37. Net operating revenue including all facilities in which the company owns an interest rose 10.5 percent from the same period last year.

38. The company's net income was $7.8 million, compared to a $12.7 million net loss in the third quarter of 2013.

39. 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.

40. "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.

41. The company's system-wide net patient revenue increased 4.5 percent from the third quarter of 2013.

42. 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.

43. 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.

44. The company invested in two additional facilities after the close of the third quarter and added one managed-only facility.

45. 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.

United Surgical Partners International

46. USPI reported $159.2 million in net revenues for the third quarter, up 5 percent from $151 million in the previous year's period.

47. The company's operating income was $64.4 million, up 2 percent from $63.1 million. The company's cash flow from operating activities was $53.9 million, up from $50.7 million in the third quarter of 2013.

48. USPI invested $3.5 million in maintenance capital expenditures and $300,000 in existing facility infrastructure.

49. For the nine months ended Sept. 30, USPI reported consolidated net revenues of $466.1 million compared to $451.4 million in the prior year period. Operating income increased from $181.9 million to $183.7 million.

50. USPI acquired an interest in three facilities during the third quarter. The company intends to acquire two to four additional facilities before the end of the year.

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