Adeptus Health (ADPT) Misses Q3 EPS by 50c
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Adeptus Health (NYSE: ADPT) reported Q3 EPS of $0.06, $0.50 worse than the analyst estimate of $0.56. Revenue for the quarter came in at $85.4 million versus the consensus estimate of $89.99 million.
In a separate press release issued today, Adeptus Health's Board of Directors appointed Gregory W. Scott as the company's Chairman.
Thomas S. Hall, CEO, stated, "Third quarter results were disappointing due to weaker than expected volumes in non-HOPD markets, collection issues associated with our third party billing agent and higher costs associated with the opening of three hospitals in the second half of the year, in Denver, Houston and Colorado Springs. We believe we have a solid grasp on the issues and are implementing necessary actions to improve the business and enhance liquidity. The Board and management team are executing a strategy to return the business to cash flow positive and believe the steps we are taking today will build a pathway toward stabilizing our cash flow from operations, enhancing our financial flexibility, regaining profitability and ensuring the Company realizes the full potential of the Adeptus business model."
"Operationally, the quarter was a pivotal building period as the Dallas/Fort Worth facilities were rebranded to Texas Health Resources in early September, our Denver hospital received accreditation from the Joint Commission on September 20, allowing our 12 freestanding ERs to be converted to HOPDs, and First Texas Hospital in Houston received accreditation by the Joint Commission and opened earlier than expected on October 11, allowing conversion of 23 of our 29 freestanding emergency rooms in that market to HOPDs and thereby enabling reimbursement from Medicare, Medicaid, and Tricare in addition to commercial payors."
Gregory W. Scott, Chairman, stated, "To increase flexibility during this interim period, we have secured $30.0 million of additional committed financing under our credit facility and obtained a commitment from Sterling Partners, Tom Hall, and our co-founders, Rick Covert and Dr. Jack Novak to invest $27.5 million in newly authorized non-convertible preferred stock. Looking ahead, we have engaged Goldman Sachs to explore various financing alternatives to achieve a comprehensive refinancing that provides us with additional financial flexibility. Given the support we have heard from our lenders, and the continued support we are receiving from our founders, we are very focused on managing our liquidity position through this period."
For earnings history and earnings-related data on Adeptus Health (ADPT) click here.
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