University General Health System, Inc. Reports 40% Increase in Third Quarter Total Revenue
EBITDA Increases 58%, Operating Income Improves 117%, Company Attains Profitability
(firmenpresse) - HOUSTON, TX -- (Marketwire) -- 11/15/11 -- University General Health System, Inc. (OTCQB: UGHS) (PINKSHEETS: UGHS), a diversified, integrated multi-specialty health delivery system, today announced improved financial results for the third quarter of 2011, during which total revenue increased 40% to $21.0 million, net patient revenue rose 26% to $19.0 million, operating income improved 117% to $2.5 million and EBITDA totaled $4.6 million, an improvement of 58%.
University General Health System, Inc. attributes its success to the strong organic growth generated by the Company's vertically integrated health systems business model, combined with contributions from the Company's strategic acquisitions. During the first nine months of 2011, the Company has aggressively expanded its portfolio of health care facilities to include freestanding emergency rooms, senior living communities, an ambulatory surgery center, and a revenue-cycle management company. Implementation of this strategy, when coupled with a physician-centric operating philosophy, creates an integrated referral system that enhances and complements the Company's flagship University General Hospital in Houston.
Net patient revenue increased 26% to $19.0 million, compared with $15.0 million in the year-earlier quarter, while average daily inpatient census at the Company's general acute care hospital increased by 32% relative to the third quarter of 2010.
Resident revenue for the senior living business segment totaled $1.7 million, and revenue from the Autimis revenue-cycle management system approximated $168,000. As both of these segments were acquired during the third quarter of 2011, there are no comparable figures for the 2010 third quarter.
Total revenue rose approximately 40% to $21.0 million, compared with $15.0 million in the third quarter of 2010. Total revenue in the most recent quarter includes revenue from the senior living and revenue-cycle management operations, which the Company did not own during the third quarter of 2010.
Net patient revenue from Medicare and Medicaid accounted for approximately 38% and 31% of total net patient revenue, and revenue from managed care contracts and other third party payors accounted for approximately 57% and 62% of net patient revenue in the third quarters of 2011 and 2010, respectively.
Assets increased to $118.1 million, representing a $48.1 million, or 69%, increase since December 31, 2010.
Operating income more than doubled (a 117% increase) to $2.5 million in the third quarter of 2011, compared with $1.2 million in the year-ago quarter.
Net income for the quarter increased to $1.1 million, or $0.00 per diluted share, compared with a net loss of approximately $81,000, or $0.00 per share during last year's third quarter.
EBITDA for the quarter totaled $4.6 million, versus $2.9 million in the third quarter of 2010, reflecting a 58% increase.
Net patient service revenue increased 31% to $52.9 million, compared with $40.3 million in the corresponding period of the previous year.
Total revenue rose approximately 36% to $55.0 million, compared with $40.3 million in the first nine months of 2010. Year-to-date total revenue in 2011 includes revenue from the senior living and revenue-cycle management operations, which were not owned by the Company during the first nine months of 2010.
Net patient revenue from Medicare and Medicaid accounted for approximately 36% and 31% of total net patient revenue, while net patient revenue from managed care contracts and other third party payors approximated 58% and 62% of net patient revenue, during the 2011 and 2010 nine-month periods, respectively.
Operating income improved 192% to $4.3 million, compared with $1.5 million in the 2011 nine-month period.
Net income for the first nine months of 2011 totaled $377,946, or $0.00 per diluted share, compared with a net loss of $2.6 million, or $0.03 per share, in the year-earlier nine-month period.
EBITDA improved to $9.8 million in the nine months ended September 30, 2011, compared with $6.7 million in the prior-year period.
"Our 40% increase in total revenue represented the sixth out of the previous seven quarters during which we recorded year-over-year revenue growth, and we are very pleased by the improvements in EBITDA and operating income, along with the attainment of profitability," said Dr. Hassan Chahadeh, M.D., Chairman and Chief Executive Officer of University General Health System, Inc. "Revenue growth during the most recent quarter was primarily driven by improved inpatient volumes, including a record average daily census at our flagship University General Hospital in Houston. The average daily census increased approximately 23% when compared with the second quarter of 2011 and was 32% higher than the same quarter in 2010. The opening of our new emergency centers, our recently acquired senior living communities and the acquisition of our revenue-cycle management business also contributed to revenue growth in the third quarter. Our physician-owned model has been extremely well-received and is proving to be an integral component of the Company's success, resulting in an increased number of admitting physicians and patient referrals at University General Hospital."
"During the most recent quarter, we continued to focus on our multi-pronged growth strategy, which includes the prospective acquisition of hospitals that were unsuccessful in completing the requirements necessary to qualify for the Whole Hospital Exemption that modified the Stark Law under the Affordable Health Care for America Act," continued Dr. Chahadeh. "We have identified several hospitals that meet our acquisition criteria and can benefit from our multi-specialty integration strategy. I am also pleased to note that we are moving ahead with plans to expand into new markets, in order to build additional vertically integrated regional healthcare networks that provide diversified health care centered around a general acute care host hospital."
"We remain optimistic about the strength of our business model and expect to report continued favorable trends in revenue, EBITDA and profitability during the fourth quarter and beyond," Dr. Chahadeh concluded.
Adjusted EBITDA
Adjusted EBITDA is a measure of operating performance that is not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), income from operations or cash flows provided by or used in operations, as determined in accordance with GAAP. Adjusted EBITDA is a key measure of the Company's operating performance used by management to focus on operating performance and management without mixing in items of income and expense that relate to the financing and capitalization of the business. The Company defines Adjusted EBITDA as net income (loss) before provision (benefit) for income taxes, non-operating (income) expense items, (gain) loss on sale of assets, depreciation and amortization (including non-cash impairment charges), amortization of deferred gain, non-cash stock-based compensation expense.
The Company believes Adjusted EBITDA is useful to investors in evaluating our performance, results of operations and financial position for the following reasons:
It is helpful in identifying trends in day-to-day performance because the items excluded have little or no significance to day-to-day operations;
It provides an assessment of controllable expenses and affords management the ability to make decisions that are expected to facilitate meeting current financial goals and achieve optimal financial performance; and
It is an indication of whether adjustments to current spending decisions are necessary.
University General Health System, Inc. ("University General") is a diversified, integrated multi-specialty health care provider that delivers concierge physician- and patient-oriented services by providing timely, innovative health solutions that are uniquely competitive, efficient, and adaptive in today's health care delivery environment. The Company currently operates one hospital, two freestanding emergency rooms, and one ambulatory surgical center in the Houston area. Also, University General owns three senior living facilities and manages six senior living facilities, and it plans to complete multiple additional developments in the near future in Houston and other strategic markets.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.
For Additional Information, Please Contact:
Donald Sapaugh
President
(713) 375-7557
R. Jerry Falkner, CFA
RJ Falkner & Company, Inc.
Investor Relations Counsel
(830) 693-4400
Michael Porter
President, Porter, LeVay & Rose
Investor Relations
212-564-4700
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 15.11.2011 - 05:04 Uhr
Sprache: Deutsch
News-ID 1057083
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
HOUSTON, TX
Phone:
Kategorie:
Alternative
Anmerkungen:
Diese Pressemitteilung wurde bisher 150 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"University General Health System, Inc. Reports 40% Increase in Third Quarter Total Revenue
"
steht unter der journalistisch-redaktionellen Verantwortung von
University General Health System, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
