HMA, BancorpSouth positive on quarterly earnings

Health Management Associates and BancorpSouth, two companies with substantial operations in the Fort Smith region, reported positive quarterly earnings Monday (Oct. 24).

HMA
A boost in admissions and surgeries helped Naples, Fla.-based Health Management Associates post almost $44 million in third quarter income, up more than 23% compared to the 2010 period.

The 17 cents earnings per share pegged the consensus of analyst estimates.

HMA, the parent company of Sparks Health System in Fort Smith, reported that total revenue during the quarter was $1.4 billion, up over the $1.25 billion during the 2010 quarter.

For the first nine months of 2011, the hospital management company had $167.404 million in net income, well above the $139.012 million during the same period in 2010. Total revenue for the first nine months was $4.222 billion, up 12.7% compared to the 2010 period.

“Continued adherence to our proven operating initiatives and disciplined cost controls generated another solid quarter of EPS growth in excess of 20%,” Gary Newsome, Health Management’s president and CEO, said in the earnings report released after the markets closed. “We are pleased with the progress we are making in our emergency room operations, physician recruitment and market service development at both our same-hospital and recently acquired facilities, and we continue to attract considerable interest from hospitals seeking a partner to help navigate a turbulent operating environment while adhering to a patient-centered culture.”

Surgeries, a key revenue generator for hospitals, totaled 246,992 for the first nine months of 2011, up from 233,695 in the 2010 period. Comparing the same hospitals owned in 2010, the surgery total was only slightly higher at 234,796.

HMA also reiterated that on Sept. 30 it closed the about $525 million deal to purchase Knoxville, Tenn.-based Mercy Health Partners — now renamed Tennova Healthcare. The 7-hospital system in eastern Tennessee includes 1,323 licensed beds and a network that generates about $600 million in annual revenue.

The acquisitions, including the late 2009 purchase of Sparks Health System in a $138 million deal, have increased long-term debt. The long-term debt level at Sept. 30 was $3.338 billion, up considerably from the $2.662 billion as of Sept. 30, 2010.

Shares of HMA (NYSE: HMA) closed Monday at $8.74, up 21 cents. During the past 52 weeks, the share price has ranged from a $11.74 high to a $6.06 low.

BANCORPSOUTH
The Tupelo, Miss.-based bank holding company, which continues to work through a weak lending environment and non-performing loans, reported third-quarter net income of $11.934 million, up from $11.26 million in the 2010 quarter. Revenue for the third quarter was $170.13 million, down from the $179.43 million in the 2010 period.

Benefiting the bottom line was a reduction in the bank’s provision for credit losses.

"BancorpSouth’s earnings for the third quarter of 2011 benefited from a reduction in our provision for credit losses to $25.1 million for the quarter compared with $54.9 million for the third quarter of 2010 and $32.2 million for the second quarter of 2011,” said Aubrey Patterson, BancorpSouth chairman and CEO, said in a statement. “While this reduction reflected continued improvement in our credit quality, we remain focused on working through our problem credits and reducing our non-performing loans ("NPLs").

However, the 14 cents per share earnings were off the consensus of analyst estimates of 16 cents per share.

For the first nine months of 2011 the company, posted net income of $24.266 million, a sharp increase compared to the $7.096 million in the 2010 period. Revenue (non-interest and interest revenue) for the first nine months of 2011 totaled $532.934 million, up compared to $521.059 million for the 2010 period.

The NPLs were $362.8 million, or 4.01% of net loans and leases, at Sept. 30, compared with $409.4 million, or 4.3% of net loans and leases, at Sept. 30, 2010. Non performing assets totaled $525.485 million at Sept. 30, up from $492.063 million in the 2010 period.

As of Sept. 30, the bank had $13.198 billion in assets, down from $13.583 billion at Sept. 30, 2010.

Shares of BancorpSouth (NYSE: BXS) closed Monday at $10.99, up 34 cents. The bank reported earnings after the markets closed. During the past 52 weeks, the share price has ranged from a $16.75 high to a $8.23 low.