University General Health System, Inc. Revenue Increases 29% to $72.5 Million in 2011
Shareholders' Equity Improves by $38 Million in Year Ended December 31, 2011
(firmenpresse) - HOUSTON, TX -- (Marketwire) -- 04/17/12 -- University General Health System, Inc. (OTCQB: UGHS) (PINKSHEETS: UGHS), a diversified, integrated multi-specialty health delivery system, today announced its 2011 operating results, including a 29% improvement in total revenue, an increase in shareholders' equity of $38 million, and an increase in assets of $48.1 million.
Net patient revenue increased 22% to approximately $68.3 million, compared with approximately $55.9 million in the year ended December 31, 2010. Average daily inpatient census at the Company's flagship University General Hospital in Houston increased by 38.5% in 2011 relative to prior-year levels.
Resident revenue for the senior living business segment approximated $3.6 million, support services revenue totaled $465,639, and other revenue totaled $174,211 in 2011. The senior living properties reported an overall occupancy of 92.2% in the year ended December 31, 2011. This was higher than the senior living industry's national average occupancy of 87.8% for combined properties as reported by the National Investment Center for the Senior Housing and Care Center for the fourth quarter 2011.
Total revenue rose approximately 29% to $72.5 million, compared with $56.1 million in 2010. Total revenue in 2011 included partial-year revenue from senior living and support services business segments that were acquired during the second half of 2011.
Net patient revenue from Medicare and Medicaid accounted for approximately 34.5% and 31.7% of total net patient revenue, and revenue from managed care contracts and other third party payors accounted for approximately 54.3% and 56.0% of net patient revenue in 2011 and 2010, respectively.
Total assets increased 72% to $114.7 million as of December 31, 2011, compared with $66.5 million at December 31, 2010.
Shareholders' equity improved by $38 million, from a negative ($38.1 million) at December 31, 2010 to a negative ($0.4 million) at December 31, 2011.
EBITDA declined slightly to $9.6 million in 2011, versus $10.3 million in 2010. (EBITDA is a non-GAAP measure that is reconciled with GAAP results in a table at the end of this press release.).
Operating income decreased to approximately $2.5 million in 2011, versus approximately $3.4 million in the previous year, primarily due to increased staffing and other costs associated with the implementation of an aggressive internal and external growth strategy, along with one-time costs associated with going public and an increase in management fees that were attributable to certain acquisitions.
The Company recorded a net loss attributable to common shareholders of ($2.6 million), or ($0.01) per share, in the most recent year, compared with a net loss attributable to common shareholders of ($1.7 million), or ($0.01) per share, in 2010.
"Our 29% increase in total revenue during 2011 was primarily attributable to a 38.5% increase in the average daily census at University General Hospital, higher net patient collections, the opening of a Hyperbaric Wound Care Center, and the mid-year acquisitions of TrinityCare Senior Living and Autimis," commented Dr. Hassan Chahadeh, M.D., Chairman and Chief Executive Officer of University General Health System, Inc. "While operating income decreased 26% for the year, partially due to higher staffing and other costs associated with the implementation of an aggressive organic growth and acquisition strategy, we were very pleased that EBITDA declined only 6%, in spite of the costs associated with going public."
"University General Health System enters 2012 as a much stronger company that is well-positioned to execute its growth strategy. Supported by a stronger balance sheet, our objectives for 2012 include the pursuit of additional acquisitions to build out our regional health care system in the Houston area, and we may expand into one or more new markets, as well. Longer-term, we plan to capitalize on opportunities created by the current regulatory and reimbursement environment, through acquisitions and expansions, to develop diversified, integrated, multi-specialty health care delivery networks comprised of flagship acute care hospitals that are supported by complementary free-standing hospital outpatient departments (HOPDs) in each market. One of our primary goals for 2012 is to advance a physician-centric operating model that bonds independent physicians and medical groups to our hospital and facilities through value-added partnering, management and service arrangements. We expect these efforts, among other factors, to result in substantial improvements in the Company's financial performance in 2012."
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, and 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 ambulatory surgical centers and a Hyperbaric Wound Care Center (HBOT) 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. University General also owns a Support Services company that includes a revenue cycle and luxury facilities management company.
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.
(Financial Highlights Follow)
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
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Datum: 17.04.2012 - 06:28 Uhr
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News-ID 1103699
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