HMA earnings up 8.6% in 2010
by February 16, 2011 4:05 pm 42 views
Health Management Associates missed a fourth-quarter earnings estimate, but did post an 8.6% gain in 2010 net income.
Naples, Fla.-based HMA, the parent company of Sparks Regional Medical Center in Fort Smith and Summit Medical in Van Buren, posted fourth quarter earnings of $28.179 million, or 11 cents per share — 17.4% below the fourth quarter of 2009. The average earnings estimate was 16 cents per share among the 23 analysts covering the company.
The company on Wednesday (Feb. 16) reported that fourth quarter earnings were down because of a $13.121 million loss — or 5 cents a share loss — from discontinued operations, primarily related to the sale of a 140-bed hospital in Meridian, Miss.
Fourth-quarter revenue totaled $1.352 billion, up 14.1% compared to the same period in 2009.
For the year, the company that owns and operates 59 hospitals posted net income of $150.069 million, up 8.6% compared to 2009. Total 2010 revenue was $5.114 billion, up 12.24% compared to 2009.
The company cited a “relentless focus” on controlling costs, physician recruitment and “market service development” helped boost income and revenue in 2010.
“We are very pleased to report another great quarter which exceeded our expectations and contributed to a record setting year for Health Management in 2010,” Gary Newsome, HMA president and CEO, said in the earnings statement. “Heading into 2011, we plan to continue our disciplined approach to hospital acquisitions and joint ventures, and remain what we believe to be the only pure player in the non-urban sector.”
Newsome said the company maintains a 2011 earnings target of up to 76 cents per diluted share, higher than the 65 cents per share earned in 2010.
OTHER EARNINGS REPORT ITEMS
• The company’s bad debt expense was $164.6 million, or 12.2% of net revenue, for the fourth quarter compared to $145.4 million, or 12.3% of net revenue, for the same quarter a year ago.
• Admissions increased 8.3%, and same hospital net revenue increased 2.1% to $1.209 billion.
• Same hospital surgeries increased 5.2%, and same hospital admissions declined 3.1%.
• The sum of uninsured discounts, charity/indigent write-offs and bad debt expense, as a percent of the sum of net revenue, uninsured discounts and charity/indigent write-offs was 25.1% for the fourth quarter compared to 24% for the fourth quarter a year ago. “Health Management believes that its Uncompensated Patient Care Percentage provides key information regarding the aggregate level of patient care for which it does not receive remuneration.”
• The highly leveraged company was able to reduce its long-term debt from $3.004 billion at the end of 2009 to $2.983 billion at the end of 2010.
HMA shares (NYSE: HMA) closed Wednesday at $9.66. The earnings were released after the markets closed. During the past 52 weeks, the share price has ranged from a $10 high to a $6.13 low.