Nobilis Health (HLTH) Misses Q2 EPS by 11c, Miss on Revenues; Offers FY18 Revenue Outlook

Nobilis Health (NYSE: HLTH) reported Q2 EPS of $0.01, $0.11 worse than the analyst estimate of $0.12. Revenue for the quarter came in at $69.2 million versus the consensus estimate of $111 million.

"In the second quarter of 2018, we continued to see a positive, yet familiar, trend in our key operating metrics. Gross margin remained strong in the second quarter measuring 15.9% of total revenues; total operating expense per case dropped by 35.0% year-over-year, and Net Income to Nobilis totaled $0.9 million in the second quarter, despite a year-over-year $10.8 million reduction in top line revenues. The year-over-year change in top line revenues in the second quarter can be attributed to the discontinuation of our lab testing ancillary, representing about $8.3 million of non-recurring revenue in the second quarter. Net income was impacted by an additional $1.3 million of amortization related to the Elite acquisition. Excluding that impact, net income for the second quarter 2018 would have increased to $2.2 million.

Total Adjusted EBITDA1 for the second quarter of 2018 was $11.4 million, representing an increase of $1.4 million, or 13.7%, from the prior corresponding period. As a percent of revenues, Adjusted EBITDA1 increased from 12.6% in Q2 of 2017, to 16.5% of revenues in Q2 of 2018, gaining 390 basis points. Adjusted EBITDA1 for the first six months of 2018 increased to $16.5 million, or 36.9%, from $12.1 million in the prior corresponding period. Adjusted EBITDA1 for the trailing twelve months ended June 30th, 2018 totaled $45.8 million, versus $37.2 million for the trailing twelve month period ended June 30th, 2017," said Harry Fleming, CEO.

Revised Full Year 2018 Guidance

• Revenue in the range of $315.0 million to $330.0 million
• Adjusted EBITDA in the range of $56.0 million to $59.0 million

GUIDANCE:

Nobilis Health sees FY2018 revenue of $315-330 million, versus the consensus of $321.96 million.

For earnings history and earnings-related data on Nobilis Health (HLTH) click here.

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