LEWISVILLE, Texas, May 31, 2016 /PRNewswire/ -- Adeptus Health Inc. (NYSE: ADPT), the largest operator of freestanding emergency rooms in the U.S., today announced an update to its previously issued guidance for full year 2016. Adeptus Health expects full year 2016 systemwide net patient services revenue, which includes revenue from Adeptus Health's unconsolidated joint ventures, in a range of $640 million to $670 million, Adjusted EBITDA in a range of $110 million to $115 million and Adjusted earnings per share in a range of $2.55 to $2.65. In addition, Adeptus Health expects second quarter 2016 systemwide net patient services revenue, which includes revenue from Adeptus Health's unconsolidated joint ventures, of $140 million to $145 million, Adjusted EBITDA of $22 million to $24 million and Adjusted earnings per share of $0.48 to $0.52.
Full year 2016 guidance was increased as Adeptus Health's Houston hospital is expected to open before December 2016 rather than in early 2017. The Houston hospital will enable 23 of Adeptus Health's freestanding emergency rooms in the greater Houston-area to operate as outpatient departments of the hospital and accept both government and commercial insurance. Adeptus Health expects to open its hospital in Broomfield, CO during third quarter 2016 and hospitals in Colorado Springs and New Orleans during fourth quarter 2016. For the second quarter and full year 2016, same store volumes and same store revenues are expected to be positive. Results for the second quarter are expected to be impacted by planned operating losses from the First Texas Hospital located in the Dallas-Fort Worth area, as well as added costs to augment the corporate operational infrastructure necessary to open and operate the First Texas Hospital located in the Houston area, the two hospitals in Colorado and the hospital in New Orleans, all of which are expected to open in the third and fourth quarters of 2016. The added corporate operational infrastructure is necessary to ensure a smooth transition to higher volumes anticipated in the third and fourth quarters associated with being able to accept both government and commercial insurance at these hospitals and their freestanding outpatient department emergency rooms.
The foregoing preliminary estimates of the financial results of Adeptus Health have been prepared by management on the basis of currently available information. Management believes such preliminary estimates have been prepared on a reasonable basis. However, because currently available information is preliminary, such estimates should not be relied on as necessarily indicative of Adeptus Health's actual financial results. Financial results are subject to finalization of financial and accounting procedures. Adeptus Health expects to report its complete financial results for the second quarter of 2016 on, or about, July 20, 2016.
Non-GAAP Financial Measures
This press release includes references to Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization, further adjusted to eliminate the impact of certain additional items, including, facility preopening expenses, stock compensation expense and other non-recurring costs, losses or gains, and to Adjusted earnings per share, which is defined as earnings per share related to Adeptus Health's overall operation, including controlling and non-controlling interests, as adjusted to exclude certain additional items, including, facility preopening expenses, stock compensation expense and other non-recurring costs, losses or gains and an adjustment for taxes in order to establish a normalized tax rate of 35% for comparability purposes, divided by the aggregate number of shares of Class A and Class B common stock expected to be outstanding as of the end of the period.
These non-GAAP financial measures are commonly used by management and investors as performance measures. Adeptus Health's non-GAAP financial measures are not considered measures of financial performance under U.S. generally accepted accounting principles (GAAP), and the items excluded therefrom are significant components in understanding and assessing our financial performance. These non-GAAP financial measures should not be considered in isolation or as an alternative to GAAP measures such as net income, cash flows provided by or used in operating, investing or financing activities or other financial statement data presented in our consolidated financial statements as an indicator of financial performance. Since these non-GAAP financial measures are not measures determined in accordance with GAAP and are susceptible to varying calculations, these measures, as presented, may not be comparable to other similarly titled measures of other companies. A reconciliation of these forward-looking non-GAAP measures to the most directly comparable GAAP measure has not been provided in reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such reconciliation is not available without unreasonable efforts as a result of certain of the adjustments utilized, including taxes.
About Adeptus Health Inc.
Adeptus Health (NYSE: ADPT) is a leading patient-centered healthcare organization expanding access to the highest quality emergency medical care through its network of freestanding emergency rooms and partnerships with premier healthcare providers. In Texas, Adeptus Health owns and operates First Choice Emergency Room, the nation's largest and oldest network of independent freestanding emergency rooms, and, in partnership with Texas Health Resources, operates First Texas Hospital and its network of freestanding emergency rooms in Dallas-Fort Worth. In Colorado, in partnership with UCHealth, Adeptus Health operates UCHealth Emergency Rooms. In Arizona, with Dignity Health, the company operates Dignity Health Arizona General Hospital and freestanding emergency rooms. In Louisiana, Adeptus Health has a partnership with Ochsner Health System, the state's largest healthcare system, to improve access to emergency medical care. In Ohio, Adeptus Health has a partnership with Mount Carmel Health System. All Adeptus Health freestanding facilities are fully equipped emergency rooms with a complete radiology suite of diagnostic technology (CT scanner, ultrasound, and digital X-ray), on-site laboratory, and staffed with board-certified physicians and emergency trained registered nurses. According to patient feedback collected by Press Ganey Associates Inc., Adeptus Health provides the highest quality emergency medical care and received the 2013, 2014 and 2015 Press Ganey Guardian of Excellence Award for exceeding the 95th percentile in patient satisfaction nationwide. Adeptus Health also was named a 2016 Best Workplaces in Healthcare by Great Place to Work® and Fortune Magazine. For more information please visit us on the web at adhc.com.
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Certain statements and information herein may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our guidance, objectives, plans and strategies, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. Any forward-looking statements herein are made as of the date of this press release, and Adeptus Health undertakes no duty to update or revise any such statements except as required by the federal securities laws. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in Adeptus Health 's filings with the U.S. Securities and Exchange Commission ("SEC") from time to time and which are accessible on the SEC's website at www.sec.gov, including in the section entitled "Risk Factors" in the Company's Form 10-K for the fiscal year ended December 31, 2015. Among the factors that could cause future results to differ materially from those provided in this press release are: our ability to implement our growth strategy; our ability to maintain sufficient levels of cash flow to meet growth expectations; our ability to protect our brand; federal and state laws and regulations relating to our facilities, which could lead to the incurrence of significant penalties by us or require us to make significant changes to our operations; our ability to locate available facility sites on terms acceptable to us; competition from hospitals, clinics and other emergency care providers; our dependence on payments from third-party payors; our ability to source and procure new products and equipment to meet patient preferences; our reliance on Medical Properties Trust ("MPT") and the MPT Master Funding and Development Agreements; disruptions in the global financial markets leading to difficulty in borrowing sufficient amounts of capital to finance the carrying costs of inventory to pay for capital expenditures and operating costs; our ability or the ability of our healthcare system partners to negotiate favorable contracts or renew existing contracts with third-party payors on favorable terms; significant changes in our payor mix or case mix resulting from fluctuations in the types of cases treated at our facilities; significant changes in the rules, regulations and systems governing Medicare and Medicaid reimbursements; material changes in IRS revenue rulings, case law or the interpretation of such rulings; shortages of, or quality control issues with, emergency care-related products, equipment and medical supplies that could result in a disruption of our operations; the intense competition we face for patients, physician use of our facilities, strategic relationships and commercial payor contracts; the fact that we are subject to significant malpractice and related legal claims; the growth of patient receivables or the deterioration in the ability to collect on those accounts; the impact on us of PPACA, which represents a significant change to the healthcare industry; and ensuring our continued compliance with HIPAA, which could require us to expend significant resources and capital; and the factors discussed in the section entitled "Risk Factors" in the Company's Form 10-K for the fiscal year ended December 31, 2015.
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SOURCE Adeptus Health Inc.