Parent of Longview Regional reports jump in earnings, revenues
From Staff and Wire Reports
July 27, 2012 at 11 p.m.
The parent company of Longview Regional Medical Center this week reported a 130 percent jump in profit compared to the same quarter a year ago.
Franklin-based Community Health Systems' earnings for the quarter ending June 30 were $83.4 million on revenue of $3.2 billion. Quarterly earnings compared to the $34.4 million a year ago.
While the jump in income equates to a 130 percent increase in profit compared to the same quarter a year ago, last year's numbers were impacted by a write down of $37 million related to a hospital sale, officials said.
Net revenues were up 8.1 percent from a year ago when quarterly revenues were $3 billion.
"We have continued to extend our market reach in 2012 through selective acquisitions," CEO Wayne Smith said in a news release. "Our strategy has always been focused on identifying select hospital facilities in strategic markets that meet our operating profile and provide significant opportunity for improvement."
Community Health Systems earlier this year announced a multi-million dollar expansion of Longview Regional. Preliminary work began this month in preparation for construction.
"We will continue to pursue our acquisition strategy and leverage our proven track record of successful hospital acquisitions in a consolidating, but currently highly fragmented industry," Smith said.
Shares closed at $24.96 on Friday. The stock's 52-week range is $14.61 to $28.79.
Income from continuing operations increased to $102.2 million for the three months ended June 30, compared with $92.9 million, for the same period in 2011.
The consolidated operating results for the three months ended June 30, 2012, reflect a 3 percent increase in total admissions and a 5.7 percent increase in total adjusted admissions compared with the same period in 2011. On a same-store basis, admissions decreased 2.0 percent while adjusted admissions increased 0.5 percent compared with the same period in 2011. On a same-store basis, net operating revenues increased 4.5 percent compared with the same period in 2011.
The consolidated operating results for the six months ended June 30, reflect a 3.1 percent increase in total admissions. On a same-store basis, admissions decreased 2.2 percent. On a same-store basis, net operating revenues increased 4.4 percent compared with the same period in 2011.
Smith said he felt optimistic about the future.
"We further believe that our prospects for continued growth are very favorable in light of the recent decision surrounding health care reform," he said. "We are well positioned to leverage these industry dynamics as the leading operator of hospitals in non-urban and mid-size markets throughout the country."