FRANKLIN, Tenn.--(BUSINESS WIRE)-- IASIS Healthcare® LLC (“IASIS”) today announced financial and operating results for the fiscal second quarter and six months ended March 31, 2010.
Net revenue for the second quarter totaled $624.5 million, an increase of 7.9%, compared to $578.7 million in the prior year quarter. Adjusted EBITDA for the second quarter totaled $79.6 million, compared to $86.3 million in the prior year quarter. A table describing adjusted EBITDA and reconciling net earnings from continuing operations to adjusted EBITDA is included in this press release in the attached Supplemental Consolidated Statements of Operations Information. Net earnings from continuing operations for the second quarter totaled $22.1 million, compared to $28.4 million in the prior year quarter.
Adjusted EBITDA was negatively affected by a $3.7 million decline at Health Choice, the Company’s Medicaid and Medicare managed health plan in Arizona. In addition, the prior year quarter included a reduction in other operating expenses of $4.0 million as a result of changes in prior period estimates for professional and general liability and workers’ compensation reserves, compared to only $1.0 million in the current year quarter. Adjusted EBITDA at Health Choice has been impacted by a slight decline in overall premium revenue on a per member per month basis, resulting in large part from changes in Medicaid funding by the state of Arizona, and rising medical costs, compared to the prior year quarter.
Admissions increased 0.8% and adjusted admissions decreased 0.4%, respectively, in the second quarter, compared to the prior year quarter. Net patient revenue per adjusted admission increased 4.7% in the second quarter, compared to the prior year quarter.
In commenting on quarterly results, David R. White, chairman and chief executive officer of IASIS Healthcare, said, “While we recognize the second quarter included certain challenges, we continue to believe we are well positioned for the future. In the midst of economic headwinds, including high unemployment and state budgetary issues, our solid track record of effective cost management has helped to maintain strong operating cash flows and strengthen our financial position. We believe these characteristics, along with the strategic use of capital over the recent past, will help us to navigate the uncertainty of a challenging economic environment.”
Net revenue for the six months ended March 31, 2010, totaled $1.3 billion, an increase of 9.9%, compared to $1.1 billion in the prior year period. Adjusted EBITDA for the six months ended March 31, 2010, totaled $151.4 million, compared to $153.1 million in the prior year period. Net earnings from continuing operations for the six months ended March 31, 2010, totaled $41.5 million, compared to $42.3 million in the prior year period.
Admissions and adjusted admissions increased 2.6% and 1.4%, respectively, in the six months ended March 31, 2010, compared to the prior year period. Net patient revenue per adjusted admission increased 4.2% in the six months ended March 31, 2010, compared to the prior year period.
A listen-only simulcast and 30-day replay of IASIS’ second quarter conference call will be available by clicking the “For Investors” link on the Company’s Web site at www.iasishealthcare.com beginning at 11:00 a.m. Eastern Time on May 6, 2010. A copy of this press release will also be available on the Company’s Web site.
IASIS, located in Franklin, Tennessee, is a leading owner and operator of medium-sized acute care hospitals in high-growth urban and suburban markets. The Company operates its hospitals with a strong community focus by offering and developing healthcare services targeted to the needs of the markets it serves, promoting strong relationships with physicians and working with local managed care plans. IASIS owns or leases 15 acute care hospital facilities and one behavioral health hospital facility with a total of 2,884 beds in service and has total annual net revenue of approximately $2.5 billion. These hospital facilities are located in six regions: Salt Lake City, Utah; Phoenix, Arizona; Tampa-St. Petersburg, Florida; three cities in Texas, including San Antonio; Las Vegas, Nevada; and West Monroe, Louisiana. IASIS also owns and operates a Medicaid and Medicare managed health plan in Phoenix that serves more than 199,000 members. For more information on IASIS, please visit the Company’s Web site at www.iasishealthcare.com.
Some of the statements we make in this press release are forward-looking within the meaning of the federal securities laws, which are intended to be covered by the safe harbors created thereby. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations including, but not limited to, future financial and operating results, the Company’s plans, objectives, expectations and other statements that are not historical facts. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results in future periods to differ materially from those anticipated in the forward-looking statements. These risk factors and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2009 and other filings with the Securities and Exchange Commission.
Although we believe 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 the Company or any other person that our objectives and plans will be achieved. We undertake 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.
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IASIS HEALTHCARE LLC Consolidated Statements of Operations (Unaudited) (in thousands) |
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| Quarter Ended
March 31, |
Six Months Ended
March 31, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net revenue: | ||||||||||||||||
| Acute care revenue | $ | 437,574 | $ | 421,179 | $ | 862,234 | $ | 819,626 | ||||||||
| Premium revenue | 186,948 | 157,495 | 391,245 | 320,672 | ||||||||||||
| Total net revenue | 624,522 | 578,674 | 1,253,479 | 1,140,298 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Salaries and benefits (includes stock compensation of $2,128, $138, $2,249 and $279, respectively) | 174,171 | 168,372 | 344,653 | 330,508 | ||||||||||||
| Supplies | 68,425 | 63,753 | 133,834 | 123,579 | ||||||||||||
| Medical claims | 160,094 | 126,598 | 338,661 | 263,600 | ||||||||||||
| Other operating expenses | 88,683 | 77,953 | 173,275 | 157,303 | ||||||||||||
| Provision for bad debts | 45,536 | 45,167 | 93,485 | 92,298 | ||||||||||||
| Rentals and leases | 10,145 | 9,734 | 20,420 | 19,213 | ||||||||||||
| Interest expense, net | 16,622 | 15,817 | 33,354 | 34,795 | ||||||||||||
| Depreciation and amortization | 24,025 | 24,296 | 47,902 | 49,292 | ||||||||||||
| Management fees | 1,250 | 1,250 | 2,500 | 2,500 | ||||||||||||
| Hurricane-related property damage | - | 938 | - | 938 | ||||||||||||
| Total costs and expenses | 588,951 | 533,878 | 1,188,084 | 1,074,026 | ||||||||||||
|
Earnings from continuing operations before gain (loss) on disposal of assets and income taxes
|
35,571 | 44,796 | 65,395 | 66,272 | ||||||||||||
| Gain (loss) on disposal of assets, net | (161 | ) | 20 | (57 | ) | 1,313 | ||||||||||
|
Earnings from continuing operations before income taxes
|
35,410 | 44,816 | 65,338 | 67,585 | ||||||||||||
| Income tax expense | 13,270 | 16,449 | 23,861 | 25,260 | ||||||||||||
| Net earnings from continuing operations | 22,140 | 28,367 | 41,477 | 42,325 | ||||||||||||
|
Earnings (loss) from discontinued operations, net of income taxes
|
(25 | ) | 211 | 21 | (500 | ) | ||||||||||
| Net earnings | 22,115 | 28,578 | 41,498 | 41,825 | ||||||||||||
|
Net earnings attributable to non-controlling interests |
(2,033 | ) | (2,977 | ) | (4,061 | ) | (4,574 | ) | ||||||||
| Net earnings attributable to IASIS Healthcare LLC | $ | 20,082 | $ | 25,601 | $ | 37,437 | $ | 37,251 | ||||||||
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IASIS HEALTHCARE LLC Consolidated Balance Sheets (Unaudited) (in thousands) |
||||||
| March 31,
2010 |
Sept. 30,
2009 |
|||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 158,511 | $ | 206,528 | ||
| Accounts receivable, net | 228,907 | 230,198 | ||||
| Inventories | 52,601 | 50,492 | ||||
| Deferred income taxes | 20,872 | 39,038 | ||||
| Prepaid expenses and other current assets | 53,510 | 49,453 | ||||
| Total current assets | 514,401 | 575,709 | ||||
| Property and equipment, net | 980,916 | 997,353 | ||||
| Goodwill | 717,920 | 717,920 | ||||
| Other intangible assets, net | 28,500 | 30,000 | ||||
| Other assets, net | 36,621 | 36,222 | ||||
| Total assets | $ | 2,278,358 | $ | 2,357,204 | ||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 70,234 | $ | 68,552 | ||
| Salaries and benefits payable | 37,421 | 42,548 | ||||
| Accrued interest payable | 12,503 | 12,511 | ||||
| Medical claims payable | 122,606 | 113,519 | ||||
| Other accrued expenses and other current liabilities | 68,210 | 65,701 | ||||
| Current portion of long-term debt and capital lease obligations | 6,672 | 8,366 | ||||
| Total current liabilities | 317,646 | 311,197 | ||||
| Long-term debt and capital lease obligations | 1,048,146 | 1,051,471 | ||||
| Deferred income taxes | 108,240 | 106,425 | ||||
| Other long-term liabilities | 54,443 | 54,222 | ||||
| Non-controlling interests with redemption rights | 72,527 | 72,527 | ||||
| Equity: | ||||||
| Member’s equity | 666,954 | 750,932 | ||||
| Non-controlling interests | 10,402 | 10,430 | ||||
| Total equity | 677,356 | 761,362 | ||||
| Total liabilities and equity | $ | 2,278,358 | $ | 2,357,204 | ||
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IASIS HEALTHCARE LLC Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
||||||||
| Six Months Ended
March 31, |
||||||||
| 2010 | 2009 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 41,498 | $ | 41,825 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 47,902 | 49,292 | ||||||
| Amortization of loan costs | 1,564 | 1,498 | ||||||
| Stock compensation costs | 2,249 | 279 | ||||||
| Deferred income taxes | 19,589 | 9,530 | ||||||
| Income tax benefit from stock compensation | (1,770 | ) | - | |||||
| Income tax benefit from parent company interest | 3,275 | - | ||||||
| Loss (gain) on disposal of assets, net | 57 | (1,313 | ) | |||||
| Loss (earnings) from discontinued operations | (21 | ) | 500 | |||||
| Hurricane-related property damage | - | 938 | ||||||
| Changes in operating assets and liabilities, net of the effect of dispositions: | ||||||||
| Accounts receivable, net | 1,578 | (29,695 | ) | |||||
| Inventories, prepaid expenses and other current assets | (6,165 | ) | 6,383 | |||||
| Accounts payable, other accrued expenses and other accrued liabilities | 7,010 | 14,170 | ||||||
| Net cash provided by operating activities – continuing operations | 116,766 | 93,407 | ||||||
| Net cash provided by (used in) operating activities – discontinued operations | (199 | ) | 1,124 | |||||
| Net cash provided by operating activities | 116,567 | 94,531 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment, net | (30,187 | ) | (49,272 | ) | ||||
| Proceeds from sale of assets | 36 | 4,973 | ||||||
| Change in other assets, net | 1,013 | 1,595 | ||||||
| Net cash used in investing activities – continuing operations | (29,138 | ) | (42,704 | ) | ||||
| Net cash provided by investing activities – discontinued operations | - | 10 | ||||||
| Net cash used in investing activities | (29,138 | ) | (42,694 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payment of debt and capital lease obligations | (5,138 | ) | (6,379 | ) | ||||
| Distribution to parent company in connection with the repurchase of equity, net | (124,962 | ) | - | |||||
| Distributions to non-controlling interests | (5,277 | ) | (2,919 | ) | ||||
| Costs paid for the repurchase of partnership interests, net | (69 | ) | (1,341 | ) | ||||
| Net cash used in financing activities | (135,446 | ) | (10,639 | ) | ||||
| Change in cash and cash equivalents | (48,017 | ) | 41,198 | |||||
| Cash and cash equivalents at beginning of period | 206,528 | 80,738 | ||||||
| Cash and cash equivalents at end of period | $ | 158,511 | $ | 121,936 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 31,837 | $ | 33,969 | ||||
| Cash paid (received) for income taxes, net | $ | 6,188 | $ | (566 | ) | |||
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IASIS HEALTHCARE LLC Segment Information (Unaudited) (in thousands) |
|||||||||||||||
| For the Quarter Ended March 31, 2010 | |||||||||||||||
| Acute Care | Health Choice | Eliminations | Consolidated | ||||||||||||
| Acute care revenue | $ | 437,574 | $ | - | $ | - | $ | 437,574 | |||||||
| Premium revenue | - | 186,948 | - | 186,948 | |||||||||||
| Revenue between segments | 3,336 | - | (3,336 | ) | - | ||||||||||
| Net revenue | 440,910 | 186,948 | (3,336 | ) | 624,522 | ||||||||||
| Salaries and benefits (excludes stock compensation) | 167,096 | 4,947 | - | 172,043 | |||||||||||
| Supplies | 68,375 | 50 | - | 68,425 | |||||||||||
| Medical claims | - | 163,430 | (3,336 | ) | 160,094 | ||||||||||
| Other operating expenses | 82,604 | 6,079 | - | 88,683 | |||||||||||
| Provision for bad debts | 45,536 | - | - | 45,536 | |||||||||||
| Rentals and leases | 9,780 | 365 | - | 10,145 | |||||||||||
| Adjusted EBITDA (1) | 67,519 | 12,077 | - | 79,596 | |||||||||||
| Interest expense, net | 16,622 | - | - | 16,622 | |||||||||||
| Depreciation and amortization | 23,137 | 888 | - | 24,025 | |||||||||||
| Stock compensation | 2,128 | - | - | 2,128 | |||||||||||
| Management fees | 1,250 | - | - | 1,250 | |||||||||||
|
Earnings from continuing operations before loss on disposal of assets and income taxes
|
24,382 | 11,189 | - | 35,571 | |||||||||||
| Loss on disposal of assets, net | (161 | ) | - | - | (161 | ) | |||||||||
| Earnings from continuing operations before income taxes | $ | 24,221 | $ | 11,189 | $ | - | $ | 35,410 | |||||||
| For the Quarter Ended March 31, 2009 | |||||||||||||||
| Acute Care | Health Choice | Eliminations | Consolidated | ||||||||||||
| Acute care revenue | $ | 421,179 | $ | - | $ | - | $ | 421,179 | |||||||
| Premium revenue | - | 157,495 | - | 157,495 | |||||||||||
| Revenue between segments | 2,312 | - | (2,312 | ) | - | ||||||||||
| Net revenue | 423,491 | 157,495 | (2,312 | ) | 578,674 | ||||||||||
| Salaries and benefits (excludes stock compensation) | 163,285 | 4,949 | - | 168,234 | |||||||||||
| Supplies | 63,670 | 83 | - | 63,753 | |||||||||||
| Medical claims | - | 128,910 | (2,312 | ) | 126,598 | ||||||||||
| Other operating expenses | 70,611 | 7,342 | - | 77,953 | |||||||||||
| Provision for bad debts | 45,167 | - | - | 45,167 | |||||||||||
| Rentals and leases | 9,302 | 432 | - | 9,734 | |||||||||||
| Hurricane-related property damage | 938 | - | - | 938 | |||||||||||
| Adjusted EBITDA (1) | 70,518 | 15,779 | - | 86,297 | |||||||||||
| Interest expense, net | 15,817 | - | - | 15,817 | |||||||||||
| Depreciation and amortization | 23,415 | 881 | - | 24,296 | |||||||||||
| Stock compensation | 138 | - | - | 138 | |||||||||||
|
Management fees |
1,250 | - | - | 1,250 | |||||||||||
|
Earnings from continuing operations before gain on disposal of assets and income taxes
|
29,898 | 14,898 | - | 44,796 | |||||||||||
| Gain on disposal of assets, net | 20 | - | - | 20 | |||||||||||
| Earnings from continuing operations before income taxes | $ | 29,918 | $ | 14,898 | $ | - | $ | 44,816 | |||||||
(1) Adjusted EBITDA represents net earnings from continuing operations before interest expense, income tax expense, depreciation and amortization, stock compensation, gain (loss) on disposal of assets and management fees. Management fees represent monitoring and advisory fees paid to TPG, the Company’s majority financial sponsor, and certain other members of IASIS Investment LLC. Management routinely calculates and communicates adjusted EBITDA and believes that it is useful to investors because it is commonly used as an analytical indicator within the healthcare industry to evaluate hospital performance, allocate resources and measure leverage capacity and debt service ability. In addition, the Company uses adjusted EBITDA as a measure of performance for its business segments and for incentive compensation purposes. Adjusted EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles (“GAAP”), and the items excluded from adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to net earnings, cash flows generated by operating, investing, or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Adjusted EBITDA, as presented, differs from what is defined under the Company’s senior secured credit facilities and may not be comparable to similarly titled measures of other companies.
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IASIS HEALTHCARE LLC Segment Information (Unaudited) (in thousands) |
|||||||||||||||
| For the Six Months Ended March 31, 2010 | |||||||||||||||
| Acute Care | Health Choice | Eliminations | Consolidated | ||||||||||||
| Acute care revenue | $ | 862,234 | $ | - | $ | - | $ | 862,234 | |||||||
| Premium revenue | - | 391,245 | - | 391,245 | |||||||||||
| Revenue between segments | 6,012 | - | (6,012 | ) | - | ||||||||||
| Net revenue | 868,246 | 391,245 | (6,012 | ) | 1,253,479 | ||||||||||
| Salaries and benefits (excludes stock compensation) | 332,865 | 9,539 | - | 342,404 | |||||||||||
| Supplies | 133,737 | 97 | - | 133,834 | |||||||||||
| Medical claims | - | 344,673 | (6,012 | ) | 338,661 | ||||||||||
| Other operating expenses | 160,929 | 12,346 | - | 173,275 | |||||||||||
| Provision for bad debts | 93,485 | - | - | 93,485 | |||||||||||
| Rentals and leases | 19,684 | 736 | - | 20,420 | |||||||||||
| Adjusted EBITDA (1) | 127,546 | 23,854 | - | 151,400 | |||||||||||
| Interest expense, net | 33,354 | - | - | 33,354 | |||||||||||
| Depreciation and amortization | 46,125 | 1,777 | - | 47,902 | |||||||||||
| Stock compensation | 2,249 | - | - | 2,249 | |||||||||||
| Management fees | 2,500 | - | - | 2,500 | |||||||||||
| Earnings from continuing operations before loss on disposal of assets and income taxes | 43,318 | 22,077 | - | 65,395 | |||||||||||
| Loss on disposal of assets, net | (57 | ) | - | - | (57 | ) | |||||||||
| Earnings from continuing operations before income taxes | $ | 43,261 | $ | 22,077 | $ | - | $ | 65,338 | |||||||
| For the Six Months Ended March 31, 2009 | |||||||||||||
| Acute Care | Health Choice | Eliminations | Consolidated | ||||||||||
| Acute care revenue | $ | 819,626 | $ | - | $ | - | $ | 819,626 | |||||
| Premium revenue | - | 320,672 | - | 320,672 | |||||||||
| Revenue between segments | 4,009 | - | (4,009 | ) | - | ||||||||
| Net revenue | 823,635 | 320,672 | (4,009 | ) | 1,140,298 | ||||||||
| Salaries and benefits (excludes stock compensation) | 320,376 | 9,853 | - | 330,229 | |||||||||
| Supplies | 123,411 | 168 | - | 123,579 | |||||||||
| Medical claims | - | 267,609 | (4,009 | ) | 263,600 | ||||||||
| Other operating expenses | 144,396 | 12,907 | - | 157,303 | |||||||||
| Provision for bad debts | 92,298 | - | - | 92,298 | |||||||||
| Rentals and leases | 18,403 | 810 | - | 19,213 | |||||||||
| Hurricane-related property damage | 938 | - | - | 938 | |||||||||
| Adjusted EBITDA (1) | 123,813 | 29,325 | - | 153,138 | |||||||||
| Interest expense, net | 34,795 | - | - | 34,795 | |||||||||
| Depreciation and amortization | 47,540 | 1,752 | - | 49,292 | |||||||||
| Stock compensation | 279 | - | - | 279 | |||||||||
| Management fees | 2,500 | - | - | 2,500 | |||||||||
| Earnings from continuing operations before gain on disposal of assets and income taxes | 38,699 | 27,573 | - | 66,272 | |||||||||
| Gain on disposal of assets, net | 1,313 | - | - | 1,313 | |||||||||
| Earnings from continuing operations before income taxes | $ | 40,012 | $ | 27,573 | $ | - | $ | 67,585 | |||||
(1) Adjusted EBITDA represents net earnings from continuing operations before interest expense, income tax expense, depreciation and amortization, stock compensation, gain (loss) on disposal of assets and management fees. Management fees represent monitoring and advisory fees paid to TPG, the Company’s majority financial sponsor, and certain other members of IASIS Investment LLC. Management routinely calculates and communicates adjusted EBITDA and believes that it is useful to investors because it is commonly used as an analytical indicator within the healthcare industry to evaluate hospital performance, allocate resources and measure leverage capacity and debt service ability. In addition, the Company uses adjusted EBITDA as a measure of performance for its business segments and for incentive compensation purposes. Adjusted EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to net earnings, cash flows generated by operating, investing, or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Adjusted EBITDA, as presented, differs from what is defined under the Company’s senior secured credit facilities and may not be comparable to similarly titled measures of other companies.
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IASIS HEALTHCARE LLC Consolidated Financial and Operating Data (Unaudited) |
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|
Quarter Ended |
Six Months Ended |
|||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
| Consolidated Hospital Facilities | ||||||||||||
| Number of acute care hospital facilities at end of period | 15 | 15 | 15 | 15 | ||||||||
| Beds in service at end of period | 2,884 | 2,796 | 2,884 | 2,796 | ||||||||
| Average length of stay (days) | 4.9 | 4.7 | 4.8 | 4.7 | ||||||||
| Occupancy rates (average beds in service) | 49.0 | % | 49.7 | % | 48.0 | % | 48.2 | % | ||||
| Admissions | 26,458 | 26,249 | 51,711 | 50,399 | ||||||||
| Percentage change | 0.8 | % | 2.6 | % | ||||||||
| Adjusted admissions | 42,932 | 43,101 | 84,999 | 83,835 | ||||||||
| Percentage change | (0.4 | )% | 1.4 | % | ||||||||
| Patient days | 128,336 | 123,257 | 248,887 | 236,954 | ||||||||
| Adjusted patient days | 201,615 | 194,311 | 394,838 | 378,142 | ||||||||
| Outpatient revenue as a % of gross patient revenue | 37.8 | % | 37.6 | % | 38.4 | % | 38.4 | % | ||||
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IASIS HEALTHCARE LLC Supplemental Consolidated Statements of Operations Information (Unaudited) (in thousands) |
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|
Quarter Ended
|
Six Months |
|||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||
| Consolidated Results | ||||||||||||||
| Net earnings from continuing operations | $ | 22,140 | $ | 28,367 | $ | 41,477 | $ | 42,325 | ||||||
| Add: | ||||||||||||||
| Interest expense, net | 16,622 | 15,817 | 33,354 | 34,795 | ||||||||||
| Income tax expense | 13,270 | 16,449 | 23,861 | 25,260 | ||||||||||
| Depreciation and amortization | 24,025 | 24,296 | 47,902 | 49,292 | ||||||||||
| Stock compensation | 2,128 | 138 | 2,249 | 279 | ||||||||||
| Loss (gain) on disposal of assets, net | 161 | (20 | ) | 57 | (1,313 | ) | ||||||||
| Management fees | 1,250 | 1,250 | 2,500 | 2,500 | ||||||||||
|
Adjusted EBITDA (1) |
$ | 79,596 | $ | 86,297 | $ | 151,400 | $ | 153,138 | ||||||
(1) Adjusted EBITDA represents net earnings from continuing operations before interest expense, income tax expense, depreciation and amortization, stock compensation, loss (gain) on disposal of assets and management fees. Management fees represent monitoring and advisory fees paid to TPG, the Company’s majority financial sponsor, and certain other members of IASIS Investment LLC. Management routinely calculates and communicates adjusted EBITDA and believes that it is useful to investors because it is commonly used as an analytical indicator within the healthcare industry to evaluate hospital performance, allocate resources and measure leverage capacity and debt service ability. In addition, the Company uses adjusted EBITDA as a measure of performance for its business segments and for incentive compensation purposes. Adjusted EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to net earnings, cash flows generated by operating, investing, or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Adjusted EBITDA, as presented, differs from what is defined under the Company’s senior secured credit facilities and may not be comparable to similarly titled measures of other companies.
CONTACT:
IASIS Healthcare LLC
Investor Contact:
W. Carl Whitmer
President
or
John M. Doyle
Chief Financial Officer
615-844-2747
or
Media Contact:
Michele M. Peden
VP, Corporate Communications
615-467-1255
KEYWORDS: United States North America Tennessee
INDUSTRY KEYWORDS: Health Hospitals Nursing
MEDIA:
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