FRANKLIN, Tennessee (August 5, 2009) - IASIS Healthcare® LLC ("IASIS") today announced financial and operating results for the fiscal third quarter and nine months ended June 30, 2009.
Net revenue for the third quarter totaled $601.6 million, an increase of 13.0%, compared to $532.6 million in the prior year quarter. Adjusted EBITDA for the third quarter totaled $78.6 million, an increase of 13.3%, compared to $69.3 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 third quarter totaled $20.6 million, an increase of 40.6%, compared to $14.6 million in the prior year quarter.
Admissions and adjusted admissions increased 0.9% and 3.4%, respectively, in the third quarter, compared to the prior year quarter. Net patient revenue per adjusted admission increased 3.8% in the third quarter, compared to the prior year quarter.
Net revenue for the nine months ended June 30, 2009, totaled $1.7 billion, an increase of 12.4%, compared to $1.6 billion in the prior year period. Adjusted EBITDA for the nine months ended June 30, 2009, totaled $231.4 million, an increase of 11.9%, compared to $206.9 million in the prior year period. Net earnings from continuing operations for the nine months ended June 30, 2009, totaled $58.3 million, compared to $42.1 million in the prior year period, an increase of 38.4%.
For the nine months ended June 30, 2009, admissions decreased 1.6% and adjusted admissions increased 1.6%, compared to the prior year period. Net patient revenue per adjusted admission increased 6.1% for the nine months ended June 30, 2009, compared to the prior year period.
In commenting on quarterly results, David R. White, chairman and chief executive officer of IASIS Healthcare, said, "We are pleased with our third quarter results, which include solid revenue and EBITDA growth as well as improvements in volume and cash flows. We believe these results are largely driven by our ability to successfully maintain operational excellence while also employing a disciplined approach to capital investment and effective cash management."
White added, "We will continue to focus on strengthening our operational and financial position in preparation for the future as we continue to experience the ongoing uncertainties regarding the economy and healthcare reform."
A listen-only simulcast and 30-day replay of IASIS' third 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 a.m. Eastern Time on August 5, 2009. A copy of this press release will also be available on the Company's Web site.
IASIS Healthcare Announces Third Quarter 2009 Results Page 2 August 5, 2009 -MORE-
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 2,789 beds in service and has total annual net revenue of approximately $2.3 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 over 181,000 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. Those risks and uncertainties include, among others, the risks and uncertainties related to our ability to generate sufficient cash to service our existing indebtedness, our substantial level of indebtedness that could adversely affect our financial condition, the possibility of an increase in interest rates, which would increase the cost of servicing our debt and could reduce profitability, our ability to retain and negotiate favorable contracts with managed care plans, changes in legislation and regulations that may significantly reduce government healthcare spending and our revenue and may require us to make changes to our operations, our hospitals' competition for patients from other hospitals and healthcare providers, our hospitals facing a growth in volume and revenue related to uncompensated care, our ability to recruit and retain quality physicians, our hospitals' competition for staffing which may increase our labor costs and reduce profitability, our failure to continually enhance our hospitals with the most recent technological advances in diagnostic and surgical equipment that may adversely affect our ability to maintain and expand our markets, our failure to comply with extensive laws and government regulations, the possible enactment of legislation that would impose significant restrictions on hospitals that have physician owners, the potential of exposure to liability from some of our hospitals being required to submit to the Department of Health and Human Services information on their relationships with physicians, expenses incurred in connection with an appeal of the court order dismissing with prejudice the qui tam litigation, the possibility that we may become subject to federal and state investigations in the future, our ability to satisfy regulatory requirements with respect to our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, a failure of our information systems that would adversely affect our ability to properly manage our operations, an economic downturn or other material change in any one of the regions in which we operate, potential liabilities because of claims brought against our facilities, increasing insurance costs that may reduce our cash flows and net earnings, the impact of certain factors, including severe weather conditions and natural disasters, on operations at our hospitals, our ability to control costs at Health Choice Arizona, Inc. ("Health Choice"), the impact of any significant alteration to the Arizona Health Care Cost Containment System's ("AHCCCS") payment structure of its contracts, the possibility of Health Choice's contract with the AHCCCS being discontinued, significant competition from other healthcare companies and state efforts to regulate the sale of not-for-profit hospitals that may affect our ability to acquire hospitals, difficulties with the integration of acquisitions that may disrupt our ongoing operations, the significant capital expenditures that would be involved in the construction of current projects or other new hospitals that could have an adverse effect on our liquidity, state efforts to regulate the construction or expansion of hospitals that could impair our ability to operate and expand our operations, our dependence on key personnel, the loss of one or more of which could have a material adverse effect on our business, potential responsibilities and costs under environmental laws that could lead to material expenditures or liability, the possibility of a decline in the fair value of our reporting units that could result in a material non-cash charge to earnings and those risks, uncertainties and other matters detailed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2008, 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.