Net income from continuing operations attributable to NovaMed in the third quarter of 2010 was 23 cents per diluted share, beating analyst estimates of 22 cents, according to analysts polled by Thomson Reuters.
NovaMed reported total net revenue of $38.6 million for the quarter compared to $38.2 million for the same period last year. Same-facility net revenue declined 1 percent for the quarter.
“Although the economy continues to negatively impact our business, we did experience some improvement in our product sales segment in the third quarter,” said Thomas S. Hall, chairman, president and CEO of NovaMed, according to the news release. “We believe low consumer confidence and the employment outlook still continue to negatively impact our surgical procedure volumes.
“Our acquisition of an underperforming ASC in the Orlando market at the end of the third quarter is an example of our strategy of finding ways to achieve growth and create value with a relatively low capital commitment,” Mr. Hall said in the release. “The operations of the acquired ASC have been merged into our Downtown Surgery Center in Orlando. As a result of this transaction, we now have three new physician-partners and a hospital partner. Through other syndications we have also added three additional physician-partners to this ASC. We are excited about the growth potential for our Orlando ASC and continue to look for similar opportunities in other markets.”
NovaMed’s 37 facilities in 19 states performed 37,505 procedures during the third quarter, a decline from the 39,545 performed during the same period last year. EBITDA also declined, from $7.5 million during the third quarter of last year to $6.9 million during the third quarter of this year.
“We continue to believe that the demographic trends clearly support long term growth for surgical procedures and ASCs, as the lowest cost setting with the highest quality outcomes, will benefit from these trends in the future,” said Mr. Hall in the news release. “With a solid platform and improving balance sheet, NovaMed is well positioned for the long term.”
Read the news release about the third quarter earnings for NovaMed.
Learn more about NovaMed.
