Vanguard Health Systems Reports First Quarter Fiscal 2013 Results
Fiscal Year 2013 Outlook Confirmed
NASHVILLE, Tenn. - October 30, 2012 - Vanguard Health Systems, Inc. (NYSE: VHS) today announced financial and operating results for its first fiscal quarter of 2013 and confirmed its outlook for fiscal year 2013.
First Quarter Fiscal 2013 Key Metrics (all percentage changes compare Q1 FY2013 to Q1 FY2012):
Net income attributable to Vanguard Health Systems, Inc. stockholders was $13.9 million, or $0.17 per diluted share, compared to a net loss of $21.7 million, or $(0.29) per diluted share, during the prior year period
Adjusted EBITDA increased 12.2 percent to $133.2 million
Patient revenue per adjusted discharge increased 2.0 percent
Discharges decreased 1.9 percent
Adjusted discharges decreased 0.8 percent
A reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income (loss) attributable to Vanguard Health Systems, Inc. stockholders for the quarters ended September 30, 2011 and 2012 is included in this release.
First Quarter Analysis
Consolidated total revenues increased $34.4 million during the first quarter of fiscal 2013 compared to the prior year period, primarily due to the acquisition of Valley Baptist Health System in September 2011. Same store net patient service revenues increased 0.6 percent during the first quarter of fiscal 2013 resulting from a 2.0 percent increase in patient revenue per adjusted discharge combined with a 0.8 percent decrease in adjusted discharges. Health plan premium revenues, on a same store basis, decreased 21.5 percent during the first quarter of fiscal 2013 due to the impact on Phoenix Health Plan of a combination of capitation rate decreases, program eligibility cuts and health plan profitability limitations for certain groups of covered members adopted by the Arizona Health Care Cost Containment System ("AHCCCS") during fiscal 2012.
Same store uncompensated care as a percentage of net patient revenues (prior to the uncompensated care deductions) increased from 17.9 percent during the first quarter of fiscal 2012 to 20.8 percent during the first quarter of fiscal 2013 primarily due to an increase in uninsured discharges as a percentage of total discharges.
Balance Sheet and Cash Flows
As of September 30, 2012, we had cash of $330.2 million and total debt of $2,704.6 million.
Cash flows from operating activities improved by $31.4 million during the first quarter of fiscal 2013 compared to the prior year period. Changes in net operating assets and liabilities negatively impacted operating cash flows by $144.6 million during the first quarter of fiscal 2013 compared to a negative impact of $166.5 million during the prior year period. We made $89.0 million of interest and income tax payments during the first quarter of fiscal 2013, which was $17.9 million higher than these payments during the prior year period. Cash flows from operations during the first quarter of fiscal 2013 were negatively impacted by the timing of payments of accounts payable and certain accrued expenses and significant employer contributions to The Detroit Medical Center ("DMC") defined benefit pension plan, but were positively impacted by improved cash collections of accounts receivable and the receipt of certain settlement receivables from the federal government.
Capital expenditures increased 30.4 percent to $82.7 million during the first quarter of fiscal 2013 compared to the prior year period due to increased spending related to the DMC specified capital project commitments and the start of construction of a new hospital in New Braunfels, Texas.
The following information was filed by Vanguard Health Systems Inc (VHS) on Wednesday, October 31, 2012 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.