Team Health Holdings, Inc. Announces Second Quarter 2010 Financial Results
-- Net Revenue less provision for uncollectibles grew 3.7% to $375.5 million over the prior year second quarter
-- Net Earnings of $18.6 million; $20.2 million after adjustment for a contract intangible impairment charge
-- Diluted Net Earnings per share of $0.29; $0.31 excluding the contract intangible impairment charge
-- Adjusted EBITDA of $46.9 million
KNOXVILLE, Tenn., Aug. 10 /PRNewswire-FirstCall/ -- Team Health Holdings, Inc. ("TeamHealth") (NYSE: TMH), one of the largest providers of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States, today announced results for its second quarter 2010.
"We are very pleased with our second quarter results that are highlighted by our strong quality of earnings. Our top line growth was led by our M&A platform, and the flexibility of our business model enabled us to effectively manage our cost structure in response to a softer volume growth environment," said TeamHealth President and Chief Executive Officer Greg Roth. "Despite a difficult same contract volume comparison from the second quarter of 2009, we reported solid Adjusted EBITDA growth and margin improvement and believe the company is well-positioned for continued success in the second half of the year."
2010 Second Quarter Results
In the second quarter of 2010, net revenue less provision for uncollectibles ("revenue less provision") increased 3.7% to $375.5 million from $362.1 million in the second quarter of 2009. Acquisitions and same contract revenue contributed 5.5% and 2.5%, respectively, of the growth in net revenue less provision between the quarters. New contracts, net of terminations (excluding the military division) contributed 0.4% of the growth. Net contract changes within the military division reduced quarter-over-quarter net revenue growth by 4.6%.
Same contract revenue less provision for the second quarter of 2010, increased 2.8% to $332.4 million from $323.4 million in the same quarter a year ago. Increases in estimated collections on fee-for-service visits of 5.6% contributed approximately 4.0% of same contract revenue growth between quarters. In light of the very strong same contract volume growth reported in the second quarter of 2009, during the second quarter of 2010, fee-for-service visits realized a modest increase of 0.9%, which contributed a 0.6% increase in same contract revenue growth between quarters. Declines in contract and other revenue, primarily associated with our locum tenens and military divisions, constrained same contract revenue growth by 1.8%. Acquisitions contributed $19.8 million of growth between quarters. Excluding the impact of contracting changes within the military division, net new contract revenue increased by $1.5 million, while changes within military staffing contracts resulted in a decline of $16.8 million between quarters.
Included in the second quarter 2010 financial results was an impairment charge of $2.5 million ($1.5 million after tax) to write off the remaining contract intangible value associated with a contractual relationship acquired in prior years whose expected term is now anticipated to be less than initially estimated.
Reported net earnings were $18.6 million in the second quarter of 2010, or $0.29 diluted net earnings per share, compared to net earnings of $15.8 million, or $0.32 pro forma diluted net earnings per share in the same quarter of 2009. Excluding the impact of the impairment charge, net earnings for the second quarter of 2010 were $20.2 million, and diluted net earnings per share were $0.31.
Adjusted EBITDA for the second quarter of 2010 was $46.9 million compared to $40.8 million in the same quarter of 2009. Adjusted EBITDA margin increased to 12.5% in the second quarter of 2010 from 11.3% in 2009. See "Non-GAAP Financial Measures Reconciliation" and "Adjusted EBITDA" below for the definitions of Adjusted EBITDA Margin and Adjusted EBITDA and its reconciliation to net earnings.
During the second quarter of 2010, cash flow provided by operations was $25.2 million compared to $19.1 million for the same quarter in 2009. Contributing to the $6.1 million increase in operating cash flow were reductions in interest payments between quarters.
2010 First Half Results
Revenue less provision in the six months ended June 30, 2010, increased 4.0% to $740.0 million from $711.7 million in the six months ended June 30, 2009. Revenue less provision from acquisitions and same contract revenue contributed 5.8% and 1.3%, respectively, of the growth between periods. New contracts, net of terminations (excluding the military division) contributed 1.0% of the growth. Net contract changes within the military division reduced period-over-period net revenue growth by 4.1%.
Same contract revenue less provision for the six months ended June 30, 2010, increased 1.5% to $633.0 million from $623.9 million in the same period a year ago. Increases in estimated collections on fee-for-service visits of 4.0% contributed approximately 2.9% of same contract revenue growth between periods. Fee-for-service visits were flat between periods, while declines in contract and other revenue associated with the locum tenens and military divisions constrained same contract revenue growth by 1.4%. Acquisitions contributed $41.3 million of growth between periods. Excluding the impact of contracting changes within the military division, net new contract revenue increased by $7.5 million. Changes within military staffing contracts resulted in a decline in revenue of $29.5 million between periods.
Reported net earnings were $29.5 million in the six months ended June 30, 2010, or $0.46 diluted net earnings per share, compared to net earnings of $41.7 million, or $0.85 pro forma diluted net earnings per share in the same period of 2009. Included in the six months ended June 30, 2010, results were costs associated with the Company's bond redemption of $16.2 million and the impairment charge of $2.5 million. Financial results for the six months ended June 30, 2010, also reflected a reduction of professional liability reserves related to prior years of $7.2 million compared to a prior year professional liability reserve adjustment of $18.8 million in the six months ended June 30, 2009, resulting from favorable changes in actuarial loss estimates during each period. Following these adjustments, diluted net earnings per share were $0.56 for the six months ended June 30, 2010, compared to $0.62 for the six months ended June 30, 2009.
Adjusted EBITDA for the six months ended June 30, 2010, was $92.7 million compared to $100.3 million in the same period of 2009. Excluding the impact of the prior year professional liability reserve adjustments, Adjusted EBITDA was $85.5 million and $81.5 million, respectively, in each period. See "Non-GAAP Financial Measures Reconciliation" and "Adjusted EBITDA" below for the definition of Adjusted EBITDA and its reconciliation to net earnings.
Cash flow provided by operations for the six months ended June 30, 2010, was $14.5 million compared to cash provided by operations of $49.4 million for the same period of 2009. Included within operating cash flow in 2010 were $13.8 million of cash costs associated with the bond redemption, including $2.8 million of accrued interest payments on bonds that were redeemed.
As of June 30, 2010, the Company had cash and cash equivalents of $33.3 million and a revolving credit facility of $125.0 million (without giving effect to $7.3 million of undrawn letters of credit). During the six months ended June 30, 2010, the Company redeemed $157.5 million of its 11.25% Senior Subordinated Notes, which resulted in a charge of $14.9 million consisting of the payment of bond premiums in the amount of $11.0 million and the write off of $3.9 million of previously deferred financing costs. In addition, interest expense of $1.3 million was recognized on the bonds that were redeemed during the six months ended June 30, 2010. The Company also made scheduled debt payments of $2.1 million during the first six months of 2010. As a result, the Company's total outstanding debt as of June 30, 2010, was $451.4 million, and there were no amounts outstanding under the revolving credit facility.
"Our M&A pipeline remains strong, and the current environment continues to yield some very attractive growth opportunities," continued Mr. Roth. "We previously announced the acquisition of Morningstar Emergency Physicians, an ED group headquartered in Oklahoma City with approximately 500,000 annual patient visits. We are very excited by this opportunity to add such an established, high-quality ED platform to significantly expand our presence in Oklahoma, Kansas and surrounding states. We expect this business to have a favorable impact to revenue for the remainder of 2010, while being immediately accretive to earnings," concluded Mr. Roth.
Lynn Massingale, M.D., Executive Chairman of TeamHealth, added, "Our organization remains focused on providing the highest quality of care to our patients. Our recent agreement with the Morningstar Emergency Physicians provides further evidence that our model is attractive to strong physician groups serving hospital clients with high expectations. Our proprietary information technology systems and infrastructure investments enable hospitals to drive patient safety, operational efficiency and customer satisfaction goals. With the recent passage of healthcare reform legislation, we continue to believe TeamHealth's services and infrastructure will be in increasingly greater demand."
Conference Call
As previously announced, TeamHealth will hold a conference call tomorrow, August 11, to discuss its second quarter 2010 results at 10:00 a.m. (Eastern Daylight Time). The conference call can be accessed live over the phone by dialing 1-877-941-2322, or for international callers, 1-480-629-9715. A replay will be available one hour after the call and can be accessed by dialing 1-877-870-5176, or for international callers, 1-858-384-5517. The passcode for the live call and the replay is 4333029. The replay will be available until August 18, 2010.
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging on to the Investor Relations section of the Company's website at www.teamhealth.com. The on-line replay will remain available for a limited time beginning immediately following the call in the Investor Relations section of the Company's website at www.teamhealth.com.
To learn more about TeamHealth, please visit the company's website at www.teamhealth.com. TeamHealth uses its website as a channel of distribution for material Company information. Financial and other material information regarding TeamHealth is routinely posted on the Company's website and is readily accessible.
About TeamHealth
TeamHealth (Knoxville, Tenn.) (NYSE: TMH) was founded in 1979 and has become one of the largest suppliers of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. Through its seven principal service lines located in 14 regional sites, TeamHealth's approximately 5,600 affiliated healthcare professionals provide emergency medicine, hospital medicine, anesthesia, teleradiology, and pediatric staffing and management services to approximately 525 civilian and military hospitals, clinics, and physician groups in 46 states. For more information about TeamHealth, visit www.teamhealth.com.
Forward Looking Statements
Statements contained herein that are not historical facts and that reflect the current view of Team Health Holdings, Inc. (the "Company") about future events and financial performance are hereby identified as "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some of these statements can be identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "could," "should," "may," "plan," "project," "predict" and similar expressions. The Company cautions that such "forward looking statements," including without limitation, those relating to the Company's future business prospects, revenue, working capital, professional liability expense, liquidity, capital needs, interest costs and income, wherever they occur in this or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company's senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the "forward looking statements." Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include but are not limited to current or future government regulation of the healthcare industry, exposure to professional liability lawsuits and governmental agency investigations, the adequacy of insurance coverage and insurance reserves, as well as those factors detailed under the caption "Risk Factors" in the Company's most recent annual report on Form 10-K filed with the Securities and Exchange Commission and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent quarterly report on Form 10-Q and the Company's most recent annual report on Form 10-K. The Company's "forward looking statements" speak only as of the date hereof and the Company disclaims any intent or obligation to update "forward looking statements" herein to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results over time.
Non-GAAP Financial Measures Reconciliation
This release includes a table that sets forth a reconciliation of net earnings to Adjusted EBITDA. Adjusted EBITDA under the indenture governing the 11.25% Senior Subordinated Notes is defined as net earnings before interest expense, taxes, depreciation and amortization, as further adjusted to exclude unusual items, non-cash items and the other adjustments shown in the table below. Adjusted EBITDA margin represents Adjusted EBITDA divided by net revenue less provision for uncollectibles. We believe that the disclosure of the calculation of Adjusted EBITDA and Adjusted EBITDA margin provides information that is useful to an investor's understanding of our covenant compliance (in the case of Adjusted EBITDA) and financial flexibility. Adjusted EBITDA and Adjusted EBITDA Margin are not measurements of financial performance or liquidity under generally accepted accounting principles ("GAAP"). They should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with GAAP.
Since Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and are susceptible to varying calculations, Adjusted EBITDA and Adjusted EBITDA Margin, as presented, may not be comparable to other similarly titled measures of other companies.
Team Health Holdings, Inc. |
|||
As of |
As of |
||
(Unaudited) |
|||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 170,331 |
$ 33,290 |
|
Accounts receivable, less allowance for uncollectibles of $178,712 and $203,086 in 2009 and 2010, respectively |
237,703 |
255,302 |
|
Prepaid expenses and other current assets |
17,040 |
25,236 |
|
Receivables under insured programs |
17,615 |
12,304 |
|
Total current assets |
442,689 |
326,132 |
|
Investments of insurance subsidiary |
86,975 |
93,805 |
|
Property and equipment, net |
28,850 |
29,589 |
|
Other intangibles, net |
59,505 |
52,519 |
|
Goodwill |
213,978 |
217,682 |
|
Deferred income taxes |
44,880 |
39,722 |
|
Receivables under insured programs |
24,708 |
30,230 |
|
Other |
39,361 |
38,549 |
|
$ 940,946 |
$ 828,228 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) |
|||
Current liabilities: |
|||
Accounts payable |
$ 17,472 |
$ 12,236 |
|
Accrued compensation and physician payable |
124,380 |
110,223 |
|
Other accrued liabilities |
83,955 |
76,132 |
|
Income tax payable |
2,979 |
7,533 |
|
Current maturities of long-term debt |
161,752 |
4,250 |
|
Deferred income taxes |
34,764 |
35,783 |
|
Total current liabilities |
425,302 |
246,157 |
|
Long-term debt, less current maturities |
449,273 |
447,148 |
|
Other non-current liabilities |
158,703 |
172,750 |
|
Shareholders' equity (deficit): |
|||
Common stock, 100,000 shares authorized, 62,401 and 64,437 shares issued and outstanding at December 31, 2009 and June 30, 2010, respectively |
624 |
644 |
|
Additional paid-in capital |
490,989 |
514,359 |
|
Accumulated deficit |
(582,708) |
(553,189) |
|
Accumulated other comprehensive (loss) earnings |
(1,237) |
359 |
|
Total shareholders' deficit |
(92,332) |
(37,827) |
|
$ 940,946 |
$ 828,228 |
||
Team Health Holdings, Inc. |
|||
Three Months Ended |
|||
2009 |
2010 |
||
(Unaudited) |
|||
(In thousands, except per share data) |
|||
Net revenue |
$ 635,729 |
$ 655,971 |
|
Provision for uncollectibles |
273,640 |
280,445 |
|
Net revenue less provision for uncollectibles |
362,089 |
375,526 |
|
Cost of services rendered (exclusive of depreciation and amortization shown separately below) |
|||
Professional service expenses |
278,151 |
283,601 |
|
Professional liability costs |
12,399 |
13,282 |
|
General and administrative expenses |
31,614 |
32,942 |
|
Other expenses |
580 |
777 |
|
Depreciation and amortization |
4,707 |
6,423 |
|
Interest expense, net |
9,026 |
4,922 |
|
Transaction costs |
79 |
393 |
|
Impairment of intangibles |
— |
2,523 |
|
Earnings before income taxes |
25,533 |
30,663 |
|
Provision for income taxes |
9,700 |
12,043 |
|
Net earnings |
$ 15,833 |
$ 18,620 |
|
Three Months Ended |
|||
2009 |
2010 |
||
Net earnings per share |
|||
Basic |
$ 0.32 |
$ 0.29 |
|
Diluted |
$ 0.32 |
$ 0.29 |
|
Weighted average shares outstanding |
|||
Basic |
48,788 |
64,166 |
|
Diluted |
48,994 |
64,711 |
|
Team Health Holdings, Inc. |
|||
Six Months Ended |
|||
2009 |
2010 |
||
(Unaudited) |
|||
(In thousands, except per share data) |
|||
Net revenue |
$ 1,230,521 |
$ 1,287,937 |
|
Provision for uncollectibles |
518,846 |
547,945 |
|
Net revenue less provision for uncollectibles |
711,675 |
739,992 |
|
Cost of services rendered (exclusive of depreciation and amortization shown separately below) |
|||
Professional service expenses |
547,083 |
566,426 |
|
Professional liability costs |
5,666 |
19,219 |
|
General and administrative expenses |
60,834 |
63,743 |
|
Other expenses |
1,519 |
716 |
|
Depreciation and amortization |
9,332 |
12,838 |
|
Interest expense, net |
19,122 |
10,685 |
|
Transaction costs |
159 |
458 |
|
Impairment of intangibles |
— |
2,523 |
|
Loss on extinguishment of debt |
— |
14,862 |
|
Earnings before income taxes |
67,960 |
48,522 |
|
Provision for income taxes |
26,229 |
19,004 |
|
Net earnings |
$ 41,731 |
$ 29,518 |
|
Six Months Ended |
|||
2009 |
2010 |
||
Net earnings per share |
|||
Basic |
$ 0.85 |
$ 0.46 |
|
Diluted |
$ 0.85 |
$ 0.46 |
|
Weighted average shares outstanding |
|||
Basic |
48,874 |
64,056 |
|
Diluted |
49,030 |
64,618 |
|
Team Health Holdings, Inc. |
|||
Three Months Ended |
|||
2009 |
2010 |
||
(Unaudited) |
|||
(In thousands) |
|||
Operating Activities |
|||
Net earnings |
$ 15,833 |
$ 18,620 |
|
Adjustments to reconcile net earnings: |
|||
Depreciation and amortization |
4,707 |
6,423 |
|
Amortization of deferred financing costs |
518 |
492 |
|
Employee equity based compensation expense |
185 |
406 |
|
Provision for uncollectibles |
273,640 |
280,445 |
|
Impairment of intangibles |
— |
2,523 |
|
Deferred income taxes |
803 |
(1,242) |
|
Loss on disposal of equipment |
9 |
5 |
|
Equity in joint venture income |
(610) |
(612) |
|
Changes in operating assets and liabilities, net of acquisitions: |
|||
Accounts receivable |
(270,477) |
(285,428) |
|
Prepaids and other assets |
(14,168) |
(8,834) |
|
Income tax accounts |
1,035 |
4,634 |
|
Accounts payable |
461 |
(375) |
|
Accrued compensation and physician payable |
7,890 |
3,829 |
|
Other accrued liabilities |
(5,278) |
(838) |
|
Professional liability reserves |
4,548 |
5,157 |
|
Net cash provided by operating activities |
19,096 |
25,205 |
|
Investing Activities |
|||
Purchases of property and equipment |
(2,560) |
(2,685) |
|
Purchases of investments by insurance subsidiary |
(55,253) |
(17,995) |
|
Proceeds from investments by insurance subsidiary |
55,030 |
13,765 |
|
Other investing activities |
3 |
4 |
|
Net cash used in investing activities |
(2,780) |
(6,911) |
|
Financing Activities |
|||
Payments on notes payable |
(1,063) |
(1,063) |
|
Proceeds from revolving credit facility |
— |
800 |
|
Payments on revolving credit facility |
— |
(800) |
|
Proceeds from the exercise of stock options |
— |
379 |
|
Redemption of common units |
(1,710) |
— |
|
Net cash used in financing activities |
(2,773) |
(684) |
|
Net increase in cash |
13,543 |
17,610 |
|
Cash and cash equivalents, beginning of period |
66,324 |
15,680 |
|
Cash and cash equivalents, end of period |
$ 79,867 |
$ 33,290 |
|
Interest paid |
$ 14,898 |
$ 6,369 |
|
Taxes paid |
$ 7,863 |
$ 8,640 |
|
Team Health Holdings, Inc. |
|||
Six Months Ended |
|||
2009 |
2010 |
||
(Unaudited) |
|||
(In thousands) |
|||
Operating Activities |
|||
Net earnings |
$ 41,731 |
$ 29,518 |
|
Adjustments to reconcile net earnings: |
|||
Depreciation and amortization |
9,332 |
12,838 |
|
Amortization of deferred financing costs |
1,036 |
1,029 |
|
Employee equity based compensation expense |
371 |
610 |
|
Provision for uncollectibles |
518,846 |
547,945 |
|
Impairment of intangibles |
— |
2,523 |
|
Deferred income taxes |
5,520 |
5,207 |
|
Loss on extinguishment of debt |
— |
3,837 |
|
Loss on disposal of equipment |
39 |
9 |
|
Equity in joint venture income |
(993) |
(1,137) |
|
Changes in operating assets and liabilities, net of acquisitions: |
|||
Accounts receivable |
(514,190) |
(565,545) |
|
Prepaids and other assets |
(16,898) |
(10,605) |
|
Income tax accounts |
12,480 |
4,609 |
|
Accounts payable |
(2,713) |
(5,018) |
|
Accrued compensation and physician payable |
1,281 |
(14,477) |
|
Other accrued liabilities |
198 |
697 |
|
Professional liability reserves |
(6,677) |
2,481 |
|
Net cash provided by operating activities |
49,363 |
14,521 |
|
Investing Activities |
|||
Purchases of property and equipment |
(4,036) |
(3,874) |
|
Cash paid for acquisitions, net |
(2,699) |
(4,159) |
|
Purchases of investments by insurance subsidiary |
(73,151) |
(27,871) |
|
Proceeds from investments by insurance subsidiary |
67,830 |
21,817 |
|
Other investing activities |
3 |
4 |
|
Net cash used in investing activities |
(12,053) |
(14,083) |
|
Financing Activities |
|||
Payments on notes payable |
(2,125) |
(2,125) |
|
Payments on 11.25% senior subordinated notes |
— |
(157,502) |
|
Proceeds from revolving credit facility |
— |
56,800 |
|
Payments on revolving credit facility |
— |
(56,800) |
|
Proceeds from sale of common shares |
— |
21,769 |
|
Proceeds from the exercise of stock options |
— |
379 |
|
Redemption of common units |
(1,716) |
— |
|
Net cash used in financing activities |
(3,841) |
(137,479) |
|
Net increase (decrease) in cash |
33,469 |
(137,041) |
|
Cash and cash equivalents, beginning of period |
46,398 |
170,331 |
|
Cash and cash equivalents, end of period |
$ 79,867 |
$ 33,290 |
|
Interest paid |
$ 19,388 |
$ 12,920 |
|
Taxes paid |
$ 8,195 |
$ 9,233 |
|
Team Health Holdings, Inc. The following table sets forth a reconciliation of net earnings to Adjusted EBITDA. Adjusted EBITDA under the indenture governing the senior subordinated notes is defined as net earnings before interest expense, taxes, depreciation and amortization, as further adjusted to exclude unusual items, non-cash items and the other adjustments shown in the table below. We believe that the disclosure of the calculation of Adjusted EBITDA provides information that is useful to an investor's understanding of our financial flexibility under our indenture covenants. Adjusted EBITDA is not a measurement of financial performance or liquidity under GAAP. It should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with GAAP. |
|||||
Three Months Ended |
Six Months Ended |
||||
2009 |
2010 |
2009 |
2010 |
||
(in thousands) |
|||||
Net earnings |
$ 15,833 |
$ 18,620 |
$ 41,731 |
$ 29,518 |
|
Interest expense, net |
9,026 |
4,922 |
19,122 |
10,685 |
|
Provision for income taxes |
9,700 |
12,043 |
26,229 |
19,004 |
|
Depreciation and amortization |
4,707 |
6,423 |
9,332 |
12,838 |
|
Other expenses(a) |
580 |
777 |
1,519 |
716 |
|
Loss on extinguishment of debt(b) |
— |
— |
— |
14,862 |
|
Impairment of intangibles |
— |
2,523 |
— |
2,523 |
|
Transaction costs(c) |
79 |
393 |
159 |
458 |
|
Stock based compensation expense(d) |
185 |
406 |
371 |
610 |
|
Insurance subsidiary interest income |
638 |
685 |
1,497 |
1,369 |
|
Severance and other charges |
10 |
83 |
322 |
96 |
|
Adjusted EBITDA* |
$ 40,758 |
$ 46,875 |
$ 100,282 |
$ 92,679 |
|
* Adjusted EBITDA totals are not adjusted for the favorable effects of professional liability loss reserve adjustments associated with prior years of $18,824 and $7,219 for the six months ended June 30, 2009 and 2010, respectively. Adjusting for the effects of professional liability loss reserve adjustments associated with prior years, Adjusted EBITDA would have been reduced to $81,458 and $85,460 for the six months ended June 30, 2009 and 2010, respectively. (a) Reflects sponsor management fee and loss on disposal of assets in 2009 and loss on disposal of assets and unrealized loss on investments in 2010. (b) Reflects the loss on the redemption of a portion of the 11.25% Senior Subordinated Notes, including the write-off of deferred financing costs of $3,837. (c) Reflects expenses associated with acquisition transaction fees. (d) Reflects, for 2009, costs related to the recognition of expense in connection with the issuance of restricted units under the Team Health, Inc. 2005 Unit Plan and, for 2010, reflects costs related to options and restricted shares granted under the Team Health Holdings, Inc. 2009 Stock Incentive Plan. |
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Team Health Holdings, Inc. The components of net revenue less provision for uncollectibles includes revenue from contracts that have been in effect for prior periods (same contracts) and from new and acquired contracts during the periods, as set forth in the table below: |
|||
Three Months Ended |
|||
2009 |
2010 |
||
(in thousands) |
|||
Same contracts: |
|||
Fee-for-service revenue |
$ 226,820 |
$ 241,578 |
|
Contract and other revenue |
96,611 |
90,815 |
|
Total same contracts |
323,431 |
332,393 |
|
New contracts, net of terminations: |
|||
Fee-for-service revenue |
14,067 |
12,131 |
|
Contract and other revenue |
24,591 |
11,225 |
|
Total new contracts, net of terminations |
38,658 |
23,356 |
|
Acquired contracts: |
|||
Fee-for-service revenue |
— |
11,338 |
|
Contract and other revenue |
— |
8,439 |
|
Total acquired contracts |
— |
19,777 |
|
Consolidated: |
|||
Fee-for-service revenue |
240,887 |
265,047 |
|
Contract and other revenue |
121,202 |
110,479 |
|
Total net revenue less provision for uncollectibles |
$ 362,089 |
$ 375,526 |
|
The following table reflects the visits and procedures included within fee-for-service revenues described in the table above: |
|||
Three Months Ended |
|||
2009 |
2010 |
||
(in thousands) |
|||
Fee-for-service visits and procedures: |
|||
Same contract |
1,869 |
1,885 |
|
New and acquired contracts, net of terminations |
132 |
152 |
|
Total fee-for-service visits and procedures |
2,001 |
2,037 |
|
Team Health Holdings, Inc. The components of net revenue less provision for uncollectibles includes revenue from contracts that have been in effect for prior periods (same contracts) and from new and acquired contracts during the periods, as set forth in the table below: |
|||
Six Months Ended |
|||
2009 |
2010 |
||
(in thousands) |
|||
Same contracts: |
|||
Fee-for-service revenue |
$ 435,039 |
$ 452,360 |
|
Contract and other revenue |
188,821 |
180,604 |
|
Total same contracts |
623,860 |
632,964 |
|
New contracts, net of terminations: |
|||
Fee-for-service revenue |
33,733 |
35,561 |
|
Contract and other revenue |
51,164 |
27,271 |
|
Total new contracts, net of terminations |
84,897 |
62,832 |
|
Acquired contracts: |
|||
Fee-for-service revenue |
2,918 |
27,432 |
|
Contract and other revenue |
— |
16,764 |
|
Total acquired contracts |
2,918 |
44,196 |
|
Consolidated: |
|||
Fee-for-service revenue |
471,690 |
515,353 |
|
Contract and other revenue |
239,985 |
224,639 |
|
Total net revenue less provision for uncollectibles |
$ 711,675 |
$ 739,992 |
|
The following table reflects the visits and procedures included within fee-for-service revenues described in the table above: |
|||
Six Months Ended |
|||
2009 |
2010 |
||
(in thousands) |
|||
Fee-for-service visits and procedures: |
|||
Same contract |
3,533 |
3,531 |
|
New and acquired contracts, net of terminations |
341 |
422 |
|
Total fee-for-service visits and procedures |
3,874 |
3,953 |
|
SOURCE Team Health Holdings, Inc.
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