American Renal Associates Holdings, Inc. Announces Second Quarter 2018 Results
BEVERLY, MA (August 7, 2018) - American Renal Associates Holdings, Inc. (NYSE: ARA) (the “Company”), a leading provider of outpatient dialysis services, today announced financial and operating results for the second quarter ended June 30, 2018.
Certain metrics, including those expressed on an adjusted basis, are Non-GAAP financial measures (See “Use of Non-GAAP Financial Measures” and the reconciliation tables further below).
Second Quarter 2018 Highlights (all percentage changes compare Q2 2018 to Q2 2017 unless noted):
Net patient service operating revenues increased 16.8% to $217.2 million;
Net loss attributable to American Renal Associates Holdings, Inc. was $18.0 million as compared to a net loss of $2.1 million in Q2 2017;
Adjusted EBITDA less noncontrolling interests (“Adjusted EBITDA-NCI”) was $31.5 million as compared to $27.4 million in Q2 2017;
Adjusted net income attributable to American Renal Associates Holdings, Inc. was $6.9 million, or $0.20 per share, for Q2 2018;
Total dialysis treatments increased 5.6%, of which 4.5% was non-acquired growth. Normalized total treatment growth was 6.3% and normalized non-acquired growth was 5.3%; and
As of June 30, 2018, the Company operated 233 outpatient dialysis clinics serving approximately 16,000 patients.
Joseph (Joe) Carlucci, Chairman and Chief Executive Officer, said, “We are very pleased with the Company’s second quarter 2018 performance. We executed well with our business development program by opening five de novo clinics and signing three additional new deals during the second quarter of 2018. Our opening schedule continues to be weighted to the second half of 2018, and we continue to have strong visibility into these future openings due to our signed pipeline of 26 clinics as of June 30, 2018. Our normalized treatment growth was 6.3% during the second quarter of 2018, and this rate of growth was essentially in-line with our expectations. As a result of our second half 2018 openings, we continue to expect normalized treatment growth to improve in subsequent quarters of 2018. Our second quarter 2018 revenue growth was favorably impacted by the new CMS coverage policy for Calcimimetics, as well as broader adoption of coverage policies by other payors for these pharmaceuticals. Importantly, on a volume basis, our commercial payor mix remained stable with that of the first quarter of 2018.”
“During the second quarter of 2018, we were able to sustain the more efficient cost structure that was established through our 2017 operating initiatives, while building on that success sequentially from the first quarter of 2018 due to greater progress with the lower-cost erythropoietin stimulating agent (ESA), Mircera, which we introduced as a new alternative for prescribing physicians last year. As we look forward, we continue to believe that our success will be driven by our differentiated physician partnership model, which remains underpinned by our Core Values
The following information was filed by American Renal Associates Holdings, Inc. (ARA) on Tuesday, August 7, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: ARA CIK: 1498068 Form Type:10-Q Quarterly Report Accession Number: 0001498068-18-000097 Submitted to the SEC: Tue Aug 07 2018 4:13:22 PM EST Accepted by the SEC: Tue Aug 07 2018 Period: Saturday, June 30, 2018 Industry: Health And Allied