United Surgical Partners International Announces First Quarter Results.Business Editors/Health/Medical Writers DALLAS--(BUSINESS WIRE)--April 28, 2003 United Surgical Partners International, Inc. (NASDAQ/NM:USPI USPI United Surgical Partners International USPI US Protection and Investigations USPI Unidentified Skin Parasite Infection USPI United States Package Inserts USPI United States Private Investigators ) First Quarter Highlights: -- Net income increased 51% to $7.1 million -- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become less minority interest increased 40% to $25.4 million -- EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. increased to $0.26 as compared with $0.19 in 2002 -- 11% domestic same-facility volume growth -- Completed 50-50 joint venture in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. , with Catholic Healthcare West Catholic Healthcare West (CHW) is a California not-for-profit public benefit corporation that operates hospitals in California, Arizona, and Nevada[1]. As such, it is exempt from federal and state income taxes. United Surgical Partners International, Inc. (NASDAQ/NM:USPI) today announced results for the first quarter ended March 31, 2003. For the first quarter ended March 31, 2003, net revenues were $102.1 million, up 36% from $75.1 million in the prior year first quarter. Net income for the first quarter of 2003 increased 51% to $7.1 million from $4.7 million in the prior year period, and earnings per share increased 37% to $0.26 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share from $0.19 per diluted share in the prior year first quarter. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). over the prior year first quarter. Commenting on the first quarter results, Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. E. Steen Steen , Jan 1626?-1679. Dutch genre painter known for his humorous and moralistic depictions of domestic life and revelry, including Village Wedding (1635) and Flemish Feast in an Inn (1674). Noun 1. , United Surgical Partners International's chairman and chief executive officer, said, "We are very pleased that we achieved a company-wide same-facility volume growth of 10%. This solid volume growth combined with a 9% same-facility net revenue per case growth resulted in same-facility net revenue growth of 19%, or 12% after excluding the effect of exchange rates." During the first quarter, United Surgical Partners International expanded in both domestic and international markets. The Company completed a 50-50 joint venture agreement, its second with Catholic Healthcare West (CHW CHW Chicago White Sox CHW Catholic Healthcare West CHW Children's Hospital at Westmead (Australia) CHW Children's Hospital of Wisconsin CHW Community Health Worker CHW ChileHardware (Spanish website) ), to develop, own and operate surgery centers and surgical hospitals in Phoenix, Arizona. The joint venture will initially own and operate two surgery centers and will have one surgical hospital in development. Subsequent to the end of the first quarter, the Company completed a joint venture agreement with CHW in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . This most recent agreement represents the third geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. market where the Company will operate surgical facilities in partnership with CHW. The Company also completed the acquisition of its ninth facility in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , a 96-bed surgical facility located in Marbella Marbella (märbā`lyä), city (1990 pop. 81,876), Málaga prov., S Spain, in Andalusia, on the Mediterranean Sea. The city is a noted resort for wealthy tourists. Many of its permanent residents are foreigners. , Spain. Subsequent to the end of the first quarter, the Company completed the acquisition of its third hospital in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. , Highgate Highgate, residential area within Camden, Islington, and Haringey boroughs, London, England. The house where Francis Bacon died is in Highgate, and Herbert Spencer, George Eliot, and Karl Marx are buried in Highgate cemetery in Camden. Hospital, a 33-bed surgical facility. In closing, Mr. Steen added, "As the Company continues to expand its relationships with existing hospital partners and to develop relationships with new hospital systems, we believe the Company will be well-positioned to develop or acquire a number of new facilities in both existing and new markets in 2003 and the years to come. While it is difficult to predict when a hospital joint venture will be completed and how many centers will be developed with these hospital systems, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that, as the market leader, we will continue to develop exceptionally strong franchises in many markets." Given the first quarter results, the Company is updating its guidance for 2003, as follows:
($ in millions, except per share data) Fiscal 2003
----------------------------
Previous Current
----------------------------
Revenues $365 - $375 $390 - $405
EBITDA $110 - $112 $115 - $120
EBITDA less minority interest $93 - $95 $95 - $99
Earnings per share - diluted $0.92 - $0.94 $0.95 - $0.98
Company-wide same-facility case growth 7% - 9% 7% - 9%
Company-wide same-facility revenue growth 9% - 12% 12% - 14%
Depreciation and amortization $26 - $28 $28 - $30
Interest expense $25 - $26 $25 - $26
Effective tax rate 36% 37%
The guidance for fiscal year 2003 only includes acquisitions completed through April 28, 2003, and de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. developments under construction. The Company will update guidance if and when significant future acquisitions are completed. The Company's full year guidance on adding facilities in 2003 is as follows:
Fiscal 2003
---------------------------------------
Previous Current Completed
---------- ---------- -----------------
De novo developments 6 - 8 6 - 8 4 in development
Acquisitions 3 - 5 5 - 7 2
Hospital joint ventures 3 - 4 3 - 4 2
The live broadcast of United Surgical Partners' conference call will begin at 11:00 a.m. Eastern Time on April 29, 2003. A 30-day online replay will be available approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. two hours following the conclusion of the live broadcast. A link to these events can be found on the Company's website at www.unitedsurgical.com or at www.companyboardroom.com. United Surgical Partners International, headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , has ownership interests in or operates 66 surgical facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Spain and the United Kingdom. Of these, 26 domestic facilities are jointly owned with 12 not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. healthcare systems. The above statements include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on current management expectations. Numerous factors exist which may cause results to differ from these expectations. Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company, including without limitation, (i) possible changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. from payors to healthcare providers that may reduce payments; (ii) the Company's ability to attract physicians and retain qualified management and personnel; (iii) the geographic concentration of the Company's operations; (iv) risks associated with the Company's acquisition and development strategies; (v) the regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. nature of the healthcare industry; (vi) the highly competitive nature of the healthcare business; and (vii) those risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. Therefore, the Company's actual results may differ materially. The Company undertakes no obligation to update any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
UNITED SURGICAL PARTNERS
INTERNATIONAL, INC.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended
March 31,
-------------------
2003 2002
-------- --------
Revenues $102,059 $75,078
Operating expenses:
Salaries, benefits and
other employee costs 25,496 19,116
Medical services and supplies 19,903 14,396
Other operating expenses 18,016 13,701
General and administrative expenses 6,714 5,896
Provision for doubtful accounts 1,548 1,129
Depreciation and amortization 7,437 5,656
-------- --------
Total operating expenses 79,114 59,894
-------- --------
Operating income 22,945 15,184
Interest expense, net (6,558) (5,620)
Other 7 (47)
-------- --------
Income before minority interests 16,394 9,517
Minority interests in income
of consolidated subsidiaries (5,011) (2,688)
-------- --------
Income before income taxes 11,383 6,829
Income tax expense (4,261) (2,126)
-------- --------
Net income $7,122 $4,703
======== ========
Net income per diluted share $0.26 $0.19
Shares used in computing diluted
earnings per share 27,757 25,124
Supplemental Data:
EBITDA less minority interests $25,371 $18,152
Facilities operated at period end 65 54
UNITED SURGICAL PARTNERS
INTERNATIONAL, INC.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
March 31, Dec. 31,
2003 2002
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $44,390 $47,571
Accounts receivable, net of allowance
for doubtful accounts of $7,393 and
$7,154, respectively 45,222 39,176
Other receivables 33,716 34,735
Inventories 7,613 7,756
Other 14,198 12,658
-------- --------
Total current assets 145,139 141,896
Property and equipment, net 290,414 270,387
Investments in affiliates 19,776 18,696
Intangible assets, net 288,596 287,584
Other 14,678 8,722
-------- --------
Total assets $758,603 $727,285
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $26,701 $25,989
Accrued expenses and other 59,797 51,363
Current portion of long-term debt 13,592 13,132
-------- --------
Total current liabilities 100,090 90,484
Long-term debt 269,274 263,571
Other liabilities 28,024 24,109
-------- --------
Total liabilities 397,388 378,164
-------- --------
Minority interests 29,047 26,860
Common stockholders' equity 332,168 322,261
-------- --------
Total liabilities and stockholders' equity $758,603 $727,285
======== ========
UNITED SURGICAL PARTNERS
INTERNATIONAL, INC.
Supplemental Financial Information
(in thousands, except number of facilities)
Three Months Ended
March 31,
-------------------
2003 2002
-------- --------
Revenue:
Net patient service revenue $90,471 $65,028
Management and administrative services revenue 8,037 7,323
Equity in earnings of unconsolidated affiliates 2,541 2,096
Other income 1,010 631
-------- --------
Total revenues $102,059 $75,078
======== ========
EBITDA (1) Less Minority Interests
Operating income $22,945 $15,184
Depreciation and amortization 7,437 5,656
Minority interests in income
of consolidated subsidiaries (5,011) (2,688)
-------- --------
EBITDA Less Minority Interests $25,371 $18,152
======== ========
Unconsolidated Facilities (2):
Net patient service revenue $46,537 $28,700
Number of facilities 26 21
(1) EBITDA is calculated as operating income plus depreciation and
amortization. United Surgical Partners International uses EBITDA
and EBITDA less minority interests as analytical indicators for
purposes of allocating resources and assessing performance.
EBITDA is commonly used as an analytical indicator within the
health care industry and also serves as a measure of leverage
capacity and debt service ability. EBITDA should not be
considered as a measure of financial performance under generally
accepted accounting principles, and the items excluded from
EBITDA are significant components in understanding and assessing
financial performance. Because EBITDA is not a measurement
determined in accordance with generally accepted accounting
principles and is thus susceptible to varying calculation
methods, EBITDA as presented by United Surgical Partners
International may not be comparable to similarly titled measures
of other companies.
(2) Because these facilities are not consolidated by the Company for
financial reporting purposes, their revenues and expenses are not
included in the revenues and expenses of United Surgical Partners
International. The Company accounts for these facilities under
the equity method of accounting; accordingly, the Company
reflects its share of the net income of these facilities as
equity in earnings of unconsolidated affiliates.
UNITED SURGICAL PARTNERS
INTERNATIONAL, INC.
Key Operating Statistics
Three Months Ended
March 31,
----------------------------
%
2003 2002 Change
------ ------ ------
Same-facility statistics:
Cases - United States 52,018 46,846 11.0%
Net revenue/case - United States $1,453 $1,411 3.0%
Facility EBITDA
margin - United States 33.1% 32.9% 20bps
Adjusted admissions - Western Europe 27,038 25,261 7.0%
Net revenue/adjusted
admission - Western Europe $1,553 $1,286 20.7%
Net revenue/adjusted
admission - Western Europe
(at constant currency
translation rates) $1,553 $1,530 1.5%
Facility EBITDA
margin - Western Europe 27.1% 25.7% 140bps
Consolidated facility statistics:
Total cases - United States 35,081 25,729 36.3%
Same facility cases
(without acquisitions)(3) 28,115 25,729 9.3%
Total adjusted
admissions - Western Europe 27,038 24,440 10.6%
Same facility adjusted admissions
(without acquisitions)(3) 26,121 24,440 6.9%
Total consolidated facilities 36 31
(3) Excludes cases from acquired centers during the first year of
ownership.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion