Quorum Health (QHC) Tops Q3 EPS by 6c, Revenues Miss; Offers FY18 Revenue Outlook

Quorum Health (NYSE: QHC) reported Q3 EPS of ($0.21), $0.06 better than the analyst estimate of ($0.27). Revenue for the quarter came in at $460.51 million versus the consensus estimate of $463.37 million.

• Same-facility net operating revenues increased $25.2 million to $463.8 million, compared to $438.6 million for the same period in 2017, representing a 5.8% increase for the quarter.
  • The $25.2 million increase in same-facility net operating revenues for the quarter was the result of three factors; improved payor mix and higher acuity, an $8.7 million increase related to revenues from the California Hospital Quality Assurance Fee (“HQAF”) program, and a $7.3 million increase in revenues from the monetization of Illinois property tax credits.
  • When normalized for the impact of the HQAF program and the monetization of Illinois property tax credits, same-facility net operating revenues increased 2.1% or $9.2 million relative to the same period in 2017.
• On a same-facility basis, admissions decreased 4.5%, adjusted admissions decreased 2.1% and net patient revenues per adjusted admission increased 9.2% compared to the same period in 2017.
• Net loss attributable to Quorum Health Corporation was $(53.9) million, or $(1.85) per share, compared to $(29.2) million, or $(1.03) per share, for the same period in 2017. The net loss for the third quarter was impacted by $32.4 million of impairment of long-lived assets and $1.1 million of costs related to the closure of one hospital.
• Adjusted EBITDA was $34.1 million compared to $32.3 million for the same period in 2017.
• Adjusted EBITDA, Adjusted for Divestitures, which is further adjusted to exclude the EBITDA of hospitals either sold or closed as of September 30, 2018, was $42.8 million compared to $38.3 million for the same period in 2017.

GUIDANCE:

Quorum Health sees FY2018 revenue of $1.875-1.925 billion, versus the consensus of $1.9 billion.

For earnings history and earnings-related data on Quorum Health (QHC) click here.

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