University General Health System Reports Quarterly Net Income of $5.1 Million on 63% Revenue Increase
(firmenpresse) - HOUSTON, TX -- (Marketwire) -- 08/15/12 -- University General Health System, Inc. (OTCQB: UGHS) (PINKSHEETS: UGHS), a diversified, integrated multi-specialty health delivery system, today announced significantly improved operating results for the second quarter and first half of 2012. The Company will host an investor conference call at 11:15 a.m. Eastern Time today to discuss its operating results and other topics of interest (see details below).
The Company recorded net income attributable to common shareholders of $5.1 million, or $0.02 per share, in the most recent quarter, compared with a net loss attributable to common shareholders of ($227,736), or ($0.00) per share, in the comparable quarter of 2011.
Net patient revenue increased 48.3% to approximately $26.5 million, compared with approximately $17.9 million in the quarter ended June 30, 2011. Average daily inpatient census at University General Hospital increased by 12.2% relative to prior-year levels, reflecting an average occupancy rate of 53.6%. The increase in net patient revenue was primarily attributable to the ongoing execution of the Company's physician-centric, integrated health delivery system strategy.
Resident revenue for the senior living business segment approximated $1.9 million, support services revenue totaled $0.4 million, and other revenue totaled $0.25 million in the most recent quarter. The senior living properties reported continued stable utilization, with an overall occupancy rate in excess of 93% in the second quarter of 2012.
Total revenue rose 63% to $29.1 million, compared with $17.9 million in the second quarter of 2011. Total revenue in the 2011 quarter did not include revenue from senior living and support services, as these business segments were acquired during the second half of last year.
Net patient revenue (less provision for bad debt) from Medicare and Medicaid accounted for approximately 32.9% of total net patient revenue, compared with approximately 34.5% in the prior-year quarter. Net patient revenue from commercial and managed care providers accounted for approximately 66.6% of total net patient revenue for the quarter ended June 30, 2012, versus 62.1% in the second quarter of 2011. Self-pay revenue increased from 5.3% of total net patient revenue in the quarter ended June 30, 2011 to 11.0% in the quarter ended June 30, 2012. The provision for doubtful accounts approximated 10.5% in the most recent quarter, versus 1.9% in the comparable 2011 period.
Operating income improved 996% to approximately $9.8 million in the three months ended June 30, 2012, versus approximately $0.9 million in the prior-year quarter, primarily due to the increase in revenue, along with cost containment measures implemented in the fourth quarter of 2011. Operating income in the second quarter of 2012 included approximately $2.8 million in gains related to the extinguishment of liabilities, compared with similar gains of $0.2 million in the prior-year period.
Adjusted EBITDA for the six months ended June 30, 2012 increased 193% to approximately $15.4 million, versus approximately $5.2 million in the first half of 2011 (EBITDA is a non-GAAP measure that is reconciled with GAAP results in a table at the end of this press release).
Total equity improved to $14.1 million at June 30, 2012, compared with a negative shareholders' equity of ($0.6 million) at December 31, 2011.
"University General Health System continues to execute on its physician-centric growth strategy by providing best-in-class medical care," stated Hassan Chahadeh, M.D., the Company's Chairman and Chief Executive Officer. "During the second quarter, the strong financial results of our integrated health delivery model demonstrated exceptional returns for our shareholders. Importantly, we reported significant net income for the quarter, as profitability continues to benefit from acquisitions, along with increased patient revenue at our flagship hospital."
"In addition to our organic growth, we have also been successful in the execution of our expansion plans through opportunistic, accretive acquisitions that have enhanced our position in the Houston market," added Donald Sapaugh, President of University General Health System. "Our long-term objective is to replicate our regional health delivery model in additional geographical markets, and we are currently reviewing a number of opportunities that are consistent with this goal."
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, two diagnostic imaging centers, two physical therapy clinics, a sleep clinic, and a Hyperbaric Wound Care Center in the Houston area. Also, University General owns three senior living facilities, manages six senior living facilities, and owns a Support Services company that provides revenue cycle and luxury facilities management services.
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 Form 10-K, Form 10-Q and other periodic filings with the Securities and Exchange Commission.
(Financial Highlights Follow)
Donald Sapaugh
President
(713) 375-7557
Craig Allison
Investor Relations
(914) 630-7429
R. Jerry Falkner, CFA
RJ Falkner & Company, Inc.
Investor Relations Counsel
(830) 693-4400
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Datum: 15.08.2012 - 06:28 Uhr
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