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August 5, 2010
Share ThisPsychiatric Solutions Inc. (PSYS) reported an EPS of 69 cents in the second quarter of 2010, surpassing the Zacks Consensus Estimate of 61 cents. EPS increased 11.1% from 62 cents in the year-ago quarter.
Results for the second quarter included $6.4 million of transaction costs associated with its planned acquisition by Pennsylvania-based Universal Health Services Inc (UHS). The acquisition is expected to close in the fourth quarter.
Psychiatric Solutions reported a 10.4% year-over-year increase in revenue to $502.7 million from $455.3 million in the year-ago quarter, which beats the Zacks Consensus revenue estimate of $488 million. The company derives its revenue from owned or operated facilities (same facility) and from managed contracts or Others.
Total facility’s revenue grew 10.2% to $467.1 million with 6% increase in patient days (773.2 million) and a 4% increase in revenue per patient day ($0.6 million). Total admissions increased 11.3% to 49.9 million, while average length of stay declined 4.9% to 15.5 million.
The same-facility’s revenue grew 7.7% year over year to $456.6 million, attributable to a 4.2% increase in patient days (760.5 million) and a 3.3% increase in revenue per patient day ($0.6 million). Total admissions for the same facility increased 8.2% year over year to 48.5 million, while average length of stay declined 3.7% to 15.7 million.
Adjusted EBITDA (excluding one-time items) increased to $97.4 million, or 19.4% of revenue from $89.6 million, or 19.7% of revenue in the year-ago quarter.
Psychiatric Solutions exited the quarter with $49.7 million in cash and cash equivalents and no borrowings under its $300 million revolving credit facility. Cash from operating activities increased 25.9% year over year to $99.1milion. Capital expenditures for the maintenance and addition of beds to the existing facilities amounted to $28.1 million. The company also
made a principal payment of $56.7 million on long-term debt during the quarter, including a $50 million optional prepayment on its senior secured term loan. Its ratio of debt-to-total capitalization improved to 50.6% at the end of the second quarter from 52.8% at the end of first quarter and 56.5% at the end of the year-ago quarter.
Psychiatric Solutions operates behavioral health facilities, including psychiatric hospitals and residential treatment facilities. The company provides its services in both an acute care and residential treatment center (RTC) setting, offering longer-term treatment primarily to
children and adolescents with long-standing behavioral problems.
Read the full analyst report on "PSYS"
Read the full analyst report on "UHS"
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