University General Health System, Inc. 2012 Revenue Increases 59% to $113.2 Million
Shareholders' Equity Improves by $11.3 Million in Year Ended December 31, 2012; Company Reschedules Investor Conference Call to October 22, 2013
(firmenpresse) - HOUSTON, TX -- (Marketwired) -- 10/16/13 -- University General Health System, Inc. (OTCQB: UGHS), a diversified, integrated multi-specialty health delivery system, today announced its 2012 operating results, including a 59% improvement in total revenue, an increase in shareholders' equity of $11.3 million, and an increase in assets of $60.3 million. The Company will file its annual report on Form 10-K with the SEC on Monday, October 21, 2013.
The Company has rescheduled its investor conference call, which will now be held at 11:15 EDT on Tuesday, October 22, 2013, in order to allow shareholders ample time to review the Form 10-K prior to the call. Details for accessing the conference call are provided below.
Net patient revenue increased 52% to approximately $101.8 million, compared with approximately $67 million in the year ended December 31, 2011. The improvement in revenue was driven by increases in admissions, surgeries and adjusted patient days of 6.0%, 7.9% and 9.5%, respectively, relative to prior-year levels.
Resident revenue for the senior living business segment approximated $7.7 million, and support services revenue totaled $2.5 million. The Company's senior living properties achieved an overall occupancy rate of 93.1% in the year ended December 31, 2012. This was higher than the senior living industry's national average occupancy of approximately 89% for combined properties, as reported by the National Investment Center for the Senior Housing and Care Center for the fourth quarter 2012.
Total revenue rose 59% to approximately $113.2 million, compared with approximately $71.2 million in 2011. Total revenue in 2012 included partial-year revenue contributions from the Company's UGH-Dallas hospital, which was acquired on December 14, 2012, and other hospital outpatient departments ("HOPDs") that were acquired during the course of the year.
Patient revenue from Medicare and Medicaid, after contractual adjustments, accounted for approximately 33.0% and 37.4% of total patient revenue, and patient revenue from managed care contracts and other third-party payors accounted for approximately 75.0% and 58.9% of patient revenue, before provision for doubtful accounts, in 2012 and 2011, respectively.
Total assets increased 53% to approximately $174.8 million as of December 31, 2012, compared with approximately $114.5 million at December 31, 2011.
Shareholders' equity improved by $11.3 million, from a negative ($0.6 million) at December 31, 2011 to approximately $10.7 million as of December 31, 2012.
Adjusted EBITDA improved 188% to approximately $28.3 million in 2012, versus approximately $9.8 million in 2011. (Adjusted EBITDA is a non-GAAP measure that is reconciled with GAAP results in a table at the end of this press release.).
Operating income increased 664% to approximately $19.1 million in 2012, versus approximately $2.5 million in the previous year, primarily due to the implementation of an aggressive internal and external growth strategies that had a significant positive impact upon revenues, along with successful cost-control initiatives.
The Company recorded a net loss attributable to common shareholders of ($3.9 million), or ($0.01) per share, in the most recent year, compared with a net loss attributable to common shareholders of ($2.6 million), or ($0.01) per share, in 2011.
"Our 59% increase in total revenue during 2012 was primarily attributable to a 9.5% increase in adjusted patient days and an increase in the number of surgeries performed at University General Hospital in Houston, combined with acquisitions that furthered the development and expansion of our health delivery system," commented Dr. Hassan Chahadeh, M.D., Chairman and Chief Executive Officer of University General Health System, Inc. "Our Adjusted EBITDA of $28.3 million was equivalent to approximately 25% of revenue, which substantially exceeded the EBITDA margins for our publicly traded competitors. We believe this is a direct reflection of our business model, which seeks to provide the highest quality of care within the most cost-effective and least restrictive environment."
"University General Health System entered 2013 as a much stronger company, well-positioned to execute its strategic growth strategy. Supported by a stronger balance sheet, our objectives for 2013 include the pursuit of additional acquisitions to build out our regional health care system in the Houston and Dallas markets. We are actively seeking to expand into additional new markets, as well. Longer-term, we plan to capitalize on opportunities created by the current regulatory and reimbursement environment, through acquisitions and facilities expansion and development. Our goal is to build diversified, integrated, multi-specialty health care delivery networks comprised of flagship acute care hospitals supported by complementary free-standing HOPDs and senior living facilities in an expanding number of markets. Utilizing our Support Services segment for revenue cycle management and concierge hospitality services, we believe the Company can capitalize on accretive acquisition opportunities. Based upon currently available information, we expect the Company's financial performance to improve substantially in 2013," concluded Dr. Chahadeh.
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 physician-centric, high quality 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 two hospitals, three ambulatory surgical centers, a number of diagnostic imaging, physical therapy and sleep clinics, and a hyperbaric wound care center in the Houston and Dallas metropolitan areas. 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 Company is headquartered in Houston, Texas, and its common stock trades on the OTCQB under the symbol "UGHS".
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 x 105
or
R. Jerry Falkner, CFA
RJ Falkner & Company, Inc.
Investor Relations Counsel
(830) 693-4400
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Datum: 16.10.2013 - 13:29 Uhr
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