Vanguard Reports Fourth Quarter and Year-End 2011 Results
Q4 2011 Same Hospital Total Revenues Increase 3.9 Percent
(firmenpresse) - NASHVILLE, TN -- (Marketwire) -- 08/25/11 -- Vanguard Health Systems, Inc. (NYSE: VHS) today announced financial and operating results for the fourth quarter and fiscal year ended June 30, 2011.
(all percentage changes compare Q4 2011 to Q4 2010):
Consolidated:
Total revenues increased 75.0 percent
Net loss attributable to Vanguard Health Systems, Inc. stockholders was $9.9 million, or $0.21 loss per diluted share, which included a pre-tax charge of $27.6 million, or $0.45 per diluted share net of taxes, primarily related to the termination of Vanguard's transaction and monitoring fee agreement with its equity sponsors in conjunction with Vanguard's initial public offering and monitoring and financial advisory fees paid to its equity sponsors for fiscal year 2011 transactions
Adjusted EBITDA increased 57.2 percent to $130.3 million
Same Hospital:
Total revenues (including health plan revenues) increased 3.9 percent
Adjusted discharges increased 0.7 percent
Discharges declined 2.5 percent
(all percentage changes compare fiscal year 2011 to fiscal year 2010):
Consolidated:
Total revenues increased 45.0 percent
Net loss attributable to Vanguard Health Systems, Inc. stockholders was $10.9 million, or $0.24 loss per diluted share, which included a pre-tax charge of $31.3 million, or $0.52 per diluted share net of taxes, primarily related to the termination of Vanguard's transaction and monitoring fee agreement with its equity sponsors in conjunction with Vanguard's initial public offering and monitoring and financial advisory fees paid to its equity sponsors for fiscal year 2011 transactions
Adjusted EBITDA increased 29.5 percent to $423.0 million
Same Hospital:
Total revenues (including health plan revenues) increased 4.5 percent
Adjusted discharges increased 2.4 percent
Discharges declined 0.3 percent
The increases in consolidated total revenues during the fourth quarter of 2011 and during fiscal year 2011 were primarily attributable to the acquisition of The Detroit Medical Center in January 2011 and other hospitals acquired earlier in fiscal year 2011. The increase in same hospital total revenues (including health plan revenues) during the fourth quarter of 2011 was primarily comprised of a 3.0 percent increase in patient revenue per adjusted discharge and a 0.7 percent increase in adjusted discharges. The increase in same hospital total revenues (including health plan revenues) during fiscal year 2011 was primarily comprised of a 2.5 percent increase in patient revenue per adjusted discharge and a 2.4 percent increase in adjusted discharges. Revenues from Vanguard's health plan operating segment increased 5.4 percent and 3.5 percent during the fourth quarter of 2011 and during fiscal year 2011, respectively.
Net loss attributable to Vanguard Health Systems, Inc. stockholders was $9.9 million, or $0.21 loss per diluted share, during the fourth quarter of 2011 and $10.9 million, or $0.24 loss per diluted share, during fiscal year 2011. Monitoring fees and expenses increased by $26.4 million and $26.2 million, respectively, during the fourth quarter of 2011 and during fiscal year 2011 as a result of advisory fees paid to Vanguard's equity sponsors for fiscal year 2011 transactions and the acceleration of monitoring fees resulting from the termination of Vanguard's transaction and monitoring fee agreement with its equity sponsors in connection with its initial public offering. Adjusted EBITDA increased 57.2 percent to $130.3 million and 29.5 percent to $423.0 million, respectively, during the fourth quarter of 2011 and during fiscal year 2011. A reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income (loss) attributable to Vanguard Health Systems, Inc. stockholders for the quarters and fiscal years ended June 30, 2010 and 2011 is included in this release.
Due to the significant acquisitions by Vanguard during fiscal year 2011, most cost and expense line items are not comparable on a period over period basis. Same hospital uncompensated care as a percentage of acute care services segment revenues (prior to charity and uninsured discounts) increased from 16.0 percent to 18.1 percent during the fourth quarter of 2011 as a result of an increase in uninsured discharges as a percentage of total discharges and period over period price increases.
Cash flows from operating activities decreased 12.2 percent to $276.6 million during fiscal year 2011, primarily due to a $71.9 million increase in interest and income tax payments. Capital expenditures increased 32.5 percent to $206.5 million during fiscal year 2011 and included $61.2 million related to costs to construct and equip our new Mission Trail Baptist Hospital replacement facility in San Antonio, Texas that opened in June 2011. Our June 30, 2011 cash balance was $936.6 million, which included $417.6 million of initial public offering net proceeds (see discussion below) that were used to redeem a large portion of the outstanding 10.375% senior discount notes (the "Discount Notes") in July 2011.
On June 22, 2011, Vanguard completed the initial public offering of 25,000,000 shares of its common stock at a price of $18.00 per share. Net proceeds from the offering were approximately $417.6 million, after underwriter discounts, commissions and other related offering costs, which Vanguard used to redeem Discount Notes in July 2011. Vanguard's common stock is now traded on the New York Stock Exchange (symbol: "VHS"). Vanguard also closed the sale of an additional 3,750,000 shares of its common stock in July 2011 after exercise by the underwriters of their over-allotment option resulting in net proceeds to Vanguard of $63.6 million, all of which were used to redeem additional Discount Notes in August 2011. After both redemptions, the remaining accreted value of the Discount Notes was approximately $14.7 million. Vanguard incurred approximately $38.8 million of debt extinguishment costs related to these redemptions in July and August 2011.
Vanguard will host a conference call at 11:00 am EDT on August 25, 2011. All interested parties are invited to access a live webcast of the conference call on Vanguard's website at or at . If you are unable to participate during the live webcast, the webcast will be available on a replay basis at for 90 days.
Vanguard owns and operates 26 acute care and specialty hospitals and complementary facilities and services in Chicago, Illinois; Detroit, Michigan; Phoenix, Arizona; San Antonio, Texas; and Massachusetts. Vanguard's strategy is to develop locally branded, comprehensive healthcare delivery networks in urban markets.
Cautionary Statement about Preliminary Results and Other Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to be covered by the safe harbors created thereby. Forward-looking statements are those statements that are based upon management's current plans and expectations as opposed to historical and current facts and are often identified in this release by use of words including but not limited to "may," "believe," "will," "project," "expect," "estimate," "anticipate," and "plan." These statements are based upon estimates and assumptions made by Vanguard's management that, although believed to be reasonable, are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those expressed in any forward-looking statements.
These factors, risks and uncertainties include, but are not limited to, Vanguard's high degree of leverage and interest rate risk; Vanguard's ability to incur substantially more debt; operating and financial restrictions in Vanguard's debt agreements; Vanguard's ability to generate cash necessary to service its debt; weakened economic conditions and volatile capital markets; potential liability related to disclosures of relationships between physicians and Vanguard's hospitals; post-payment claims reviews by governmental agencies that could result in additional costs to Vanguard; Vanguard's ability to grow its business and successfully implement its business strategies; Vanguard's ability to successfully integrate the acquisition of substantially all of the assets of The Detroit Medical Center, Westlake Hospital and West Suburban Medical Center and future acquisitions or to recognize expected synergies from such acquisitions; potential acquisitions could be costly, unsuccessful or subject Vanguard to unexpected liabilities; conflicts of interest that may arise as a result of Vanguard's control by a small number of stockholders; the highly competitive nature of the healthcare industry; governmental regulation of the industry, including potential reductions to Medicare and Medicaid reimbursement levels in general and with respect to the impact of the Budget Control Act of 2011 and other future deficit reduction plans; pressures to contain costs by managed care organizations and other insurers and Vanguard's ability to negotiate acceptable terms with these third party payers; Vanguard's ability to attract and retain qualified management and healthcare professionals, including physicians and nurses; the currently unknown effect on Vanguard of the major federal healthcare reforms enacted by Congress in March 2010 or other potential additional federal or state healthcare reforms; future governmental investigations; Vanguard's inability to adequately enhance its facilities with technologically advanced equipment could adversely affect Vanguard's revenues and market position; the availability of capital to fund Vanguard's corporate growth strategy and improvements to Vanguard's existing facilities; potential lawsuits or other claims asserted against Vanguard; Vanguard's ability to maintain or increase patient membership and control costs of its managed healthcare plans; changes in general economic conditions nationally and regionally in the markets served by Vanguard; Vanguard's exposure to the increased amounts of and collection risks associated with uninsured accounts and the co-pay and deductible portions of insured accounts; dependence on Vanguard's senior management team and local management personnel; volatility of professional and general liability insurance for Vanguard and the physicians who practice at its hospitals and increases in the quantity and severity of professional liability claims; Vanguard's ability to achieve operating and financial targets and to maintain and increase patient volumes and control the costs of providing services, including salaries and benefits, supplies and bad debts; increased compliance costs from further government regulation of healthcare and Vanguard's failure to comply, or allegations of Vanguard's failure to comply, with applicable laws and regulations; the geographic concentration of Vanguard's operations; technological and pharmaceutical improvements that increase the cost of providing, or reduce the demand for, healthcare services and shift demand for inpatient services to outpatient settings; a failure of Vanguard's information systems would adversely impact its ability to manage its operations; costs and compliance risks associated with Section 404 of the Sarbanes-Oxley Act of 2002; material non-cash charges to earnings from impairment of goodwill associated with declines in the fair market values of Vanguard's reporting units; volatility of materials and labor costs for, or state efforts to regulate, potential construction projects that may be necessary for future growth; changes in accounting practices; Vanguard's ability to demonstrate meaningful use of certified electronic health record technology and to recognize revenues for the related Medicare or Medicaid incentive payments; and those factors, risks and uncertainties detailed in Vanguard's filings from time to time with the Securities and Exchange Commission, including, among others, Vanguard's Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
Although Vanguard believes that the assumptions underlying the forward-looking statements contained in this press release are reasonable, any of these assumptions could prove to be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, you should not regard the inclusion of such information as a representation by Vanguard that its objectives and plans anticipated by the forward-looking statements will occur or be achieved, or if any of them do, what impact they will have on Vanguard's results of operations and financial condition. Vanguard undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
Vanguard uses its company web site to provide important information to investors about the company including the posting of important announcements regarding financial performance and corporate developments.
Contact:
Vanguard Health Systems, Inc.
Gary Willis
Senior Vice President and Chief Accounting Officer
(615) 665-6098
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Datum: 25.08.2011 - 04:00 Uhr
Sprache: Deutsch
News-ID 1033721
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