TeamHealth Holdings (TMH) Tops Q4 EPS by 4c; Issues Strong Guidance

TeamHealth Holdings (NYSE: TMH) reported Q4 EPS of $0.56, $0.04 better than the analyst estimate of $0.52. Revenue for the quarter came in at $790.7 million versus the consensus estimate of $745.19 million.

TeamHealth Holdings sees FY2015 revenue of $3.33-3.38 billion, versus the consensus of $3.14 billion.

"Overall, 2014 was a fantastic year for TeamHealth. We finished the year with 18.3% growth in net revenue, 29.4% growth in Adjusted EPS and 25.7% growth in Adjusted EBITDA, while delivering robust operating cash flows," said TeamHealth President and Chief Executive Officer, Mike Snow.

"During the fourth quarter, all three of our primary drivers contributed to our financial performance. Our consolidated growth was driven largely by acquisitions, with strong same contract results, and the return to historical growth rates in our net new contracts providing meaningful contributions. These results reflect our balanced and integrated approach to achieving our targets moving forward. Over the year, we saw a number of positive trends continue to develop. Healthcare reform, specifically the expansion of Medicaid coverage, allowed us to realize improvements in our payor mix, and we believe that healthcare reform and an improving economic environment, coupled with a more active flu season, provided support to volume growth in 2014. In addition, 2014 was a record year for acquisitions and our pipeline remains robust as we continue to evaluate and pursue a number of high quality groups to partner with TeamHealth."

"As a result of our financial performance in 2014 and our current expectations about operating trends in 2015, including the momentum from our recent acquisitions, we expect to generate net revenue in 2015 of between $3.33 billion and $3.38 billion, reflecting an annual growth rate of 18.0% to 20.0%. We are also targeting an Adjusted EBITDA margin for fiscal 2015 of between 10.5% and 11.0%. Our guidance assumes some incremental benefit from new contract sales and acquisitions and the continued expansion of coverage, but contemplates no benefit from the federal Medicaid Parity program in 2015, which contributed approximately 80 basis points towards our Adjusted EBITDA margin in 2014. Our projected Adjusted EBITDA margin reflects an opportunity for the continuation of a modest margin improvement in 2015 on our core operations excluding parity. TeamHealth remains an attractive solution for hospitals and physician groups that want to enhance their service offerings in today's dynamic healthcare environment and we look forward to continuing to deliver the highest quality patient care while executing on our operational and financial goals in 2015," concluded Mr. Snow.

For earnings history and earnings-related data on TeamHealth Holdings (TMH) click here.

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