Team Health Holdings Inc. Announces Second Quarter 2011 Financial Results

-- Net Revenue less provision for uncollectibles increased 13.8% to $427.2 million over the prior year second quarter

-- Net Earnings were $18.2 million; $21.8 million after excluding the loss on refinancing of debt

-- Diluted Net Earnings per share of $0.27; $0.33 excluding the loss on refinancing of debt

-- Adjusted EBITDA of $48.0 million

-- Outstanding indebtedness refinanced with a new $575 million senior credit facility

Aug 02, 2011, 16:01 ET from Team Health Holdings Inc.

KNOXVILLE, Tenn., Aug. 2, 2011 /PRNewswire/ -- 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 of 2011.

"We are pleased with our strong second quarter results, highlighted by solid growth in revenues, net earnings, and Adjusted EBITDA," said TeamHealth President and Chief Executive Officer, Greg Roth.

"Similar to last quarter, our financial growth was balanced and broad based, with strong contributions to revenue from all of our growth drivers, including same contract, acquisitions and net contract growth.  Net contract growth was the largest component of consolidated revenue growth, and represented our best performance since going public, as we are seeing benefits from the recent investments to enhance our sales and marketing process.  Same contract revenue contributed solid growth, driven primarily by increases in estimated collections per visit and a slight increase in same contract volumes. We are pleased with the financial performance of our recent acquisitions and we continue to work through a robust M&A pipeline.  In addition, during the quarter we completed a comprehensive refinancing of our outstanding debt, which significantly extended our debt maturities and provides our Company with additional financial flexibility and a solid capital structure to support our plans for future growth."

2011 Second Quarter Results

Net revenue less provision for uncollectibles ("revenue less provision") increased 13.8% to $427.2 million from $375.5 million in the second quarter of 2010.  On an overall basis, our non-military operations contributed a 14.2% increase in net revenue less provision, while the military division reduced quarter-over-quarter revenue growth by 0.4%.  Same contract revenue (excluding the military division) contributed 4.9% of the growth.  Same contract revenue associated with the military division reduced growth by 0.5%.  Acquisitions contributed 4.3% of the growth in revenue less provision.  New contracts, net of terminations, contributed 5.1% of the growth.  Same contract revenue less provision increased 4.8% to $364.2 million from $347.6 million in the second quarter of 2011.  Increases in estimated collections on fee-for-service visits of 5.6% provided a 4.1% increase in same contract revenue growth between quarters. Fee for service volume growth provided a 1.3% increase in same contract revenue growth as the number of visits increased 1.8% from the same contract volume reported in the second quarter of 2010. Declines in contract and other revenue, primarily associated with our military and locum tenens divisions, constrained same contract revenue growth by 0.6%.  Acquisitions contributed $16.1 million of growth and net new contract revenue increased by $19.0 million between quarters.

Reported net earnings were $18.2 million, or $0.27 diluted net earnings per share.  Excluding the impact of the reported loss on refinancing of debt recognized during the quarter, net earnings were $21.8 million and diluted net earnings per share were $0.33.  This compares to reported net earnings of $18.6 million in the second quarter of 2010, or $0.29 diluted earnings per share.  Excluding the impact of the second quarter 2010 impairment charge, net earnings were $20.2 million, and diluted net earnings per share were $0.31 in the same quarter of 2010.

Cash flow provided by operations was $3.6 million compared to $25.2 million in the same quarter in 2010.  The $21.6 million decrease was principally the result of an increase in the funding of accounts receivable in part associated with an increase in net new contract revenue, an increased funding of current liabilities as well as an increase in the cash paid for taxes, offset by lower interest payments between quarters.

On June 29, 2011, the Company completed the refinancing of its existing outstanding indebtedness with a new $575 million senior credit facility.  The new senior credit facility consists of a five-year revolving line of credit of $175 million, a five-year Term Loan A of $150 million, and a seven-year Term Loan B of $250 million. The Company used these new financing sources and existing cash to repay $402.7 million of term loans outstanding that were due in 2012 and to replace and upsize the existing $125 million revolving line of credit and pay customary fees and expenses associated with the refinancing of approximately $7.8 million.  In conjunction with the refinancing, the Company recognized a pre-tax loss on refinancing of debt of $6.0 million ($3.6 million after tax) associated with the write-off of unamortized deferred financing costs from the previous term loan as well as certain fees and expenses associated with the refinancing.

Adjusted EBITDA increased to $48.0 million from $46.9 million in the second quarter of 2010. Adjusted EBITDA margin declined to 11.2% compared to 12.5% for the same quarter in 2010 due to increases in professional services and general and administrative expense margins. 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.

2011 First Half Results

Revenue less provision in the six months ended June 30, 2011 increased 13.5% to $839.7 million from $740.0 million for the same period of 2010.  On an overall basis, our non-military operations contributed a 14.8% increase in net revenue less provision, while the military division reduced period-over-period revenue growth by 1.3%.  Same contract revenue (excluding the military division) contributed 6.3% of the growth.  Same contract revenue associated with the military division reduced growth by 0.5%.  Acquisitions contributed 4.4% of the growth in revenue less provision.  New contracts, net of terminations (excluding the military division), contributed 4.1% of the growth.  Net contract changes within the military division reduced period-over-period net revenue growth by 0.8%.  Same contract revenue less provision for the six months ended June 30, 2011 increased 6.5% to $708.4 million from $665.5 million in the same period a year ago.  Fee for service volume growth provided a 3.4% increase in same contract revenue growth as the number of visits increased 4.5% from the same contract volume reported in the six months ended June 30, 2010. Increases in estimated collections on fee-for-service visits of 5.0% provided a 3.6% increase in same contract revenue growth between periods.  Declines in contract revenue and other revenue, primarily associated with our military and locum tenens divisions, constrained same contract revenue growth by 0.5%.  Acquisitions contributed $32.6 million of growth between periods.  Excluding the impact of contracting changes within the military division, net new contract revenue increased by $30.5 million, while changes within military staffing contracts resulted in a decline of $6.3 million between periods.

Reported net earnings were $39.8 million in the six months ended June 30, 2011, or $0.60 diluted net earnings per share, compared to net earnings of $29.5 million, or $0.46 diluted net earnings per share, in the same period of 2010.  Excluding the impact of the loss on refinancing of debt recognized in 2011, net earnings were $43.5 million and diluted net earnings per share were $0.66. Financial results for the same period of 2010 reflected a reduction of professional liability reserves related to prior years of $7.2 million and an impairment charge of $2.5 million.  Also included in the six months ended June 30, 2010 results were costs associated with the Company's bond redemption of $16.2 million.  Following these adjustments, diluted net earnings per share were $0.56 for the six months ended June 30, 2010.  

Cash flow provided by operations for the six months ended June 30, 2011 was $31.4 million compared to $14.5 million in 2010.  The $16.9 million increase was principally the result of improved profitability, absence of cash costs associated with the bond redemption in 2010, and an improvement in the level of funding of current liabilities, including prior year incentive plan liabilities, reduced interest payments during 2011 compared to the same period in 2010, offset by an increase in tax payments between periods.  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.

Adjusted EBITDA for the six months ended June 30, 2011 increased to $96.0 million from $85.5 million in 2010, and Adjusted EBITDA margin was 11.4% compared to 11.5% for the same period in 2010. 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.

As of June 30, 2011, the Company had cash and cash equivalents of approximately $48.9 million and $175.0 million of available borrowings under its revolving credit facility (without giving effect to $6.6 million of undrawn letters of credit). The Company's total outstanding debt was $400.0 million, and there were no amounts outstanding under its revolving credit facility as of June 30, 2011.

Lynn Massingale, M.D., Executive Chairman of TeamHealth, added, "We are pleased with our momentum heading into the second half of 2011, with strong operational and financial performance across all of our core service lines.  We remain fully committed to delivering the highest quality of patient care and to invest in the business to drive improvements in terms of patient safety, risk management, operational efficiency and customer satisfaction.  This focus is reflected in our strong acquisition pipeline and positive net contract sales trends, which exhibit our reputation as an attractive partner for both strong physician groups and hospitals."  

Conference Call

As previously announced, TeamHealth will hold a conference call tomorrow, August 3, to discuss its 2011 fiscal second quarter results at 8:30 a.m. (Eastern Time).  The conference call can be accessed live over the phone by dialing 1-877-941-8416, or for international callers, 1-480-629-9808. 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 4458386. The replay will be available until August 10, 2011.

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 six principal service lines located in 13 regional sites, TeamHealth's more than 6,600 affiliated healthcare professionals provide emergency medicine, hospital medicine, anesthesia, and pediatric staffing and management services to more than 700 civilian and military hospitals, clinics, and physician groups in 45 states. For more information about TeamHealth, visit www.teamhealth.com.

Forward Looking Statements

Statements and information 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" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission.  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 is defined as net earnings before interest expense, taxes, depreciation and amortization, as further adjusted to exclude the non-cash items and the other adjustments shown in the table below.  Adjusted EBITDA margin represents Adjusted EBITDA divided by net revenues less provision for uncollectibles.  We believe that the disclosure of the calculation of Adjusted EBITDA and Adjusted EBITDA margin provide information that is useful to an investor's understanding of our financial flexibility and performance.  Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance or liquidity under generally accepted accounting principles.  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 generally accepted accounting principles.

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.

Consolidated Balance Sheets

December 31,

2010

June 30, 2011

(Unaudited)

(In thousands)

ASSETS

Current assets:

    Cash and cash equivalents

$  30,337

$  48,904

    Accounts receivable, less allowance for uncollectibles of $194,833 and $246,517 in 2010 and 2011, respectively

241,238

272,351

    Prepaid expenses and other current assets

21,211

29,148

    Receivables under insured programs

15,492

14,321

    Income tax receivable

2,179

687

Total current assets

310,457

365,411

Investments of insurance subsidiary

87,781

88,753

Property and equipment, net

35,159

32,803

Other intangibles, net

63,739

56,042

Goodwill

207,782

208,432

Deferred income taxes

35,474

27,930

Receivables under insured programs

28,639

32,259

Other

38,706

41,013

$  807,737

$  852,643

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current liabilities:

    Accounts payable

$  18,556

$  6,500

    Accrued compensation and physician payable

131,043

135,142

    Other accrued liabilities

100,318

101,816

    Current maturities of long-term debt

4,250

10,000

    Deferred income taxes

38,438

39,520

Total current liabilities

292,605

292,978

Long-term debt, less current maturities

399,500

390,000

Other non-current liabilities

166,985

168,353

Shareholders' equity (deficit):

    Common stock, ($0.01 par value; 100,000 shares authorized, 64,489 and 65,280 shares issued and outstanding at December 31, 2010 and June 30, 2011, respectively)

645

653

    Additional paid-in capital

516,468

528,139

    Accumulated deficit

(569,371)

(529,527)

    Accumulated other comprehensive gain

905

2,047

Shareholders' equity (deficit)

(51,353)

1,312

$  807,737

$  852,643

Team Health Holdings Inc.

Consolidated Statements of Operations

Three Months Ended

June 30,

2010

2011

(Unaudited)

(In thousands, except per share data)

Net revenue

$  655,971

$  763,983

Provision for uncollectibles

280,445

336,746

    Net revenue less provision for uncollectibles

375,526

427,237

Cost of services rendered (exclusive of depreciation and amortization shown separately below)

    Professional service expenses

283,601

327,084

    Professional liability costs

13,282

15,144

General and administrative expenses

32,942

38,455

Other expenses (income)

777

(113)

Depreciation and amortization

6,423

7,112

Interest expense, net

4,922

2,513

Transaction costs

393

1,041

Impairment of intangibles

2,523

-

Loss on refinancing of debt

-

6,022

    Earnings before income taxes

30,663

29,979

Provision for income taxes

12,043

11,771

    Net earnings

$  18,620

$  18,208

Net earnings per share

    Basic

$  0.29

$  0.28

    Diluted

$  0.29

$  0.27

Weighted average shares outstanding

    Basic

64,166

64,921

    Diluted

64,711

66,951

Team Health Holdings Inc.

Consolidated Statements of Operations

Six Months Ended

June 30,  

2010

2011

(Unaudited)

(In thousands, except per share data)

Net revenue

$  1,287,937

$  1,483,116

Provision for uncollectibles

547,945

643,385

    Net revenue less provision for uncollectibles

739,992

839,731

Cost of services rendered (exclusive of depreciation and amortization shown separately below)

    Professional service expenses

566,426

640,734

    Professional liability costs

19,219

29,883

General and administrative expenses

63,743

76,591

Other expenses (income)

716

(660)

Depreciation and amortization

12,838

14,011

Interest expense, net

10,685

5,790

Transaction costs

458

1,195

Impairment of intangibles

2,523

-

Loss on extinguishment and refinancing of debt

14,862

6,022

    Earnings before income taxes

48,522

66,165

Provision for income taxes

19,004

26,321

    Net earnings

$  29,518

$  39,844

Net earnings per share

    Basic

$  0.46

$  0.62

    Diluted

$  0.46

$  0.60

Weighted average shares outstanding

    Basic

64,056

64,709

    Diluted

64,618

66,192

Team Health Holdings Inc.

Consolidated Statements of Cash Flows

Three Months Ended

June 30,  

2010

2011

(Unaudited)

(In thousands)

Operating Activities

    Net earnings

$  18,620

$  18,208

    Adjustments to reconcile net earnings:

        Depreciation and amortization

6,423

7,112

        Amortization of deferred financing costs

492

447

        Employee equity-based compensation expense

406

781

        Provision for uncollectibles

280,445

336,746

        Impairment of intangibles

2,523

-

        Deferred income taxes

(1,242)

1,729

        Loss on refinancing of debt

-

1,654

        Loss on sale of equipment

5

3

        Equity in joint venture income

(612)

(980)

        Changes in operating assets and liabilities, net of acquisitions:

            Accounts receivable

(285,428)

(350,606)

            Prepaids and other assets

(8,834)

(5,556)

            Income tax accounts

4,634

(5,737)

            Accounts payable

(375)

(8,397)

            Accrued compensation and physician payable

3,829

5,397

            Other accrued liabilities

(838)

1,297

            Professional liability reserves

5,157

1,480

    Net cash provided by operating activities

25,205

3,578

Investing Activities

    Purchases of property and equipment

(2,685)

(1,892)

    Sale of property and equipment

-

-

    Cash paid for acquisitions, net

-

(645  )

    Purchases of investments by insurance subsidiary

(17,995)

(24,179)

    Proceeds from investments by insurance subsidiary

13,765

26,138

    Other investing activities

4

-

    Net cash used in investing activities

(6,911)

(578)

Financing Activities

    Payments on notes payable

(1,063)

(402,688)

    Proceeds from notes payable

-

400,000

    Proceeds from revolving credit facility

800

-

    Payments on revolving credit facility

(800  )

-

    Payments of financing costs

-

(7,759)

    Proceeds from the issuance of common stock under stock purchase plans

-

872

    Proceeds from exercise of stock options

379

6,351

    Stock issuance costs

-

(25)

    Net cash used in financing activities

(684)

(3,249)

    Net increase (decrease) in cash

17,610

(249)

    Cash and cash equivalents, beginning of period

15,680

49,153

    Cash and cash equivalents, end of period

$  33,290

$  48,904

    Interest paid

$  6,369

$  2,669

    Taxes paid

$  8,640

$  15,394

Team Health Holdings Inc.

Consolidated Statements of Cash Flows

Six Months Ended

June 30,

2010

2011

(Unaudited)

(In thousands)

Operating Activities

    Net earnings

$  29,518

$  39,844

    Adjustments to reconcile net earnings:

        Depreciation and amortization

12,838

14,011

        Amortization of deferred financing costs

1,029

903

        Employee equity-based compensation expense

610

1,388

        Provision for uncollectibles

547,945

643,385

        Impairment of intangibles

2,523

-

        Deferred income taxes

5,207

7,954

        Loss on extinguishment and refinancing of debt

3,837

1,654

        Loss on sale of equipment

9

41

        Equity in joint venture income

(1,137)

(1,520)

        Changes in operating assets and liabilities, net of acquisitions:

            Accounts receivable

(565,545)

(674,498)

            Prepaids and other assets

(10,605)

(3,658)

            Income tax accounts

4,609

1,665

            Accounts payable

(5,018)

(11,914)

            Accrued compensation and physician payable

(14,477)

5,480

            Other accrued liabilities

697

2,470

            Professional liability reserves

2,481

4,178

Net cash provided by operating activities

14,521

31,383

Investing Activities

    Purchases of property and equipment

(3,874)

(4,094)

    Sale of property and equipment

-

90

    Cash paid for acquisitions, net

(4,159)

(7,515)

    Purchases of investments by insurance subsidiary

(27,871)

(40,394)

    Proceeds from investments by insurance subsidiary

21,817

40,315

    Other investing activities

4

-

    Net cash used in investing activities

(14,083)

(11,598)

Financing Activities

    Payments on notes payable

(2,125)

(403,750)

    Proceeds from notes payable

-

400,000

    Payments on 11.25% senior subordinated notes

(157,502)

-

    Proceeds from revolving credit facility

56,800

-

    Payments on revolving credit facility

(56,800)

-

    Payments of financing costs

-

(7,759)

    Proceeds from sale of common shares

21,769

-

    Proceeds from the issuance of common stock under stock purchase plans

-

872

    Proceeds from exercise of stock options

379

9,910

    Stock issuance costs

-

(491)

    Net cash used in financing activities

(137,479)

(1,218)

    Net (decrease) increase in cash

(137,041)

18,567

    Cash and cash equivalents, beginning of period

170,331

30,337

    Cash and cash equivalents, end of period

$  33,290

$  48,904

    Interest paid

$  12,920

$  7,003

    Taxes paid

$  9,233

$  16,362

Team Health Holdings Inc.

Adjusted EBITDA

The following table sets forth a reconciliation of net earnings to Adjusted EBITDA. Adjusted EBITDA is defined as net earnings before interest expense, taxes, depreciation and amortization, as further adjusted to exclude the 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 and performance. Adjusted EBITDA is not a measurement of financial performance or liquidity under generally accepted accounting principles. 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 generally accepted accounting principles.

Three Months Ended

June 30,  

Six Months Ended

June 30,

2010

2011

2010

2011

(in thousands)

Net earnings

$  18,620

$  18,208

$  29,518

$  39,844

Interest expense, net

4,922

2,513

10,685

5,790

Provision for income taxes

12,043

11,771

19,004

26,321

Depreciation and amortization

6,423

7,112

12,838

14,011

Other expenses (income)(a)

777

(113)

716

(660)

Loss on extinguishment and refinancing of debt(b)

-

6,022

14,862

6,022

Impairment of intangibles

2,523

-

2,523

-

Transaction costs(c)

393

1,041

458

1,195

Stock based compensation expense(d)

406

782

610

1,388

Insurance subsidiary interest income

685

567

1,369

1,165

Professional liability loss reserve adjustments associated with prior years

-

-

(7,219)

-

Severance and other charges

83

136

96

927

Adjusted EBITDA

$  46,875

$  48,039

$  85,460

$  96,003

(a) Reflects gain or loss on sale of assets, realized gains on investments, and changes in fair value of investments associated with the Company's non-qualified retirement plan.

(b) Reflects the  loss on the redemption of a portion of the Company's 11.25% Senior Subordinated Notes, including the write-off of unamortized deferred financing costs of $3,837 in 2010 and the write-off of deferred financing costs of $1,654 from the previous term loan as well as certain fees and expenses associated with the debt refinancing in 2011.

(c) Reflects expenses associated with acquisition transaction fees.

(d) Reflects costs related to options and restricted shares granted under the Team Health Holdings Inc. 2009 Stock Incentive Plan.

Team Health Holdings Inc.

Revenue Analysis

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 net, new and acquired contracts during the periods, as set forth in the table below:

Three Months Ended

June 30,  

2010

2011

(in thousands)

Same contracts:

    Fee-for-service revenue

$  248,840

$  267,642

    Contract and other revenue

98,800

96,542

        Total same contracts

347,640

364,184

New contracts, net of terminations:

    Fee-for-service revenue

16,207

30,011

    Contract and other revenue

11,679

16,951

        Total new contracts, net of terminations

27,886

46,962

Acquired contracts:

    Fee-for-service revenue

-

13,353

    Contract and other revenue

-

2,738

        Total acquired contracts

-

16,091

Consolidated:

    Fee-for-service revenue

265,047

311,006

    Contract and other revenue

110,479

116,231

        Total net revenue less provision for uncollectibles

$  375,526

$  427,237

The following table reflects the visits and procedures included within fee-for-service revenues described in the table above:

Three Months Ended

June 30,  

2010

2011

(in thousands)

Fee-for-service visits and procedures:

    Same contract

1,904

1,938

    New and acquired contracts, net of terminations

133

319

        Total fee-for-service visits and procedures

2,037

2,257

Team Health Holdings Inc.

Revenue Analysis

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 net, new and acquired contracts during the periods, as set forth in the table below:

Six months Ended

June 30,

2010

2011

(in thousands)

Same contracts:

    Fee-for-service revenue

$  477,900

$  524,275

    Contract and other revenue

187,553

184,146

        Total same contracts

665,453

708,421

New contracts, net of terminations:

    Fee-for-service revenue

34,082

55,281

    Contract and other revenue

36,999

39,923

        Total new contracts, net of terminations

71,081

95,204

Acquired contracts:

    Fee-for-service revenue

3,371

29,277

    Contract and other revenue

87

6,829

        Total acquired contracts

3,458

36,106

Consolidated:

    Fee-for-service revenue

515,353

608,833

    Contract and other revenue

224,639

230,898

        Total net revenue less provision for uncollectibles

$  739,992

$  839,731

The following table reflects the visits and procedures included within fee-for-service revenues described in the table above:

Six months Ended

June 30,  

2010

2011

(in thousands)

Fee-for-service visits and procedures:

    Same contract

3,637

3,800

    New and acquired contracts, net of terminations

317

640

        Total fee-for-service visits and procedures

3,954

4,440

SOURCE Team Health Holdings Inc.



RELATED LINKS

http://www.teamhealth.com