LifePoint Hospitals CEO Discusses Q2 2012 Results - Earnings Call Transcript
July 27, 2012 4:26 PM ET
LifePoint Hospitals, Inc. (LPNT)
Q22012 Earnings Call
July 27, 2012 10:00 am ET
Bill Carpenter - Chairman and Chief Executive Officer
Jeff Sherman - our Chief Financial Officer
David Dill - President and Chief Operating Officer
A.J. Rice – UBS
Darren Lehrich - Deutsche Bank
Kevin Fischbeck - Banc of America
Tom Gallucci - Lazard Capital Markets
Kevin Campbell - Avondale Partners
Gary Taylor - Citigroup
Ralph Giacobbe - Credit Suisse
Chris Rigg - Susquehanna Financial Group
Ladies and gentlemen, thank you for standing by. Welcome to the LifePoint Hospitals’ second quarter 2012 earnings conference call.
On today’s call, LifePoint will be making forward-looking statements based upon management's current expectations. Numerous factors could cause LifePoint's results to differ from these expectations and LifePoint has outlined these factors in its filings with the SEC.
The company encourages you to review these filings. LifePoint also asks that you please review the cautionary language under the caption Important Legal Information in the company's press release issued this morning. The company undertakes no obligation to update or make any other forward-looking statements, whether as a result of new information, future events or otherwise. Also, please visit LifePoint's website for links to various information and filings.
During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. [Operator Instructions] As a reminder, this conference is being recorded today, Friday, July 27, 2012.
I would now like to turn the conference over to Bill Carpenter, Chairman and Chief Executive Officer at LifePoint Hospitals. Please go ahead, sir.
Thank you and welcome everyone LifePoint Hospitals' second quarter 2012 earnings call. We hope you've had a chance to review the press release we issued earlier this morning. After my initial remarks, Jeff Sherman, our Chief Financial Officer will discuss in detail LifePoint's results for the second quarter. After our prepared remarks, Jeff and I, as well as David Dill, our President and Chief Operating Officer, will be available to answer your questions.
Let me begin by summarizing our solid results for the second quarter. Revenues from continuing operations grew to $827 million, up 10.7% from the same period last year. EBITDA for the quarter was $139 million, up 2.7% from the prior year, and EPS for the quarter was $0.83, up 7.8% over last year.
We also announced this week that we entered into a new credit facility at very attractive terms. Jeff will discuss this in our financial results in greater detail later during the call.
Inpatient volumes continued to be soft and we were impacted in large part by the economy and the continued shift to outpatient services. In the second quarter, which is our toughest quarter, we experienced a 6.4% decline in inpatient admissions. However, outpatient volumes continued to be strong. We experienced an increase of 3.8% in emergency department business and 2.9% in outpatient surgeries. The improvement in outpatient volume resulted in a 13% in our outpatient revenue growth for the quarter.
We also saw an improvement in our payor mix. This quarter, we continued to execute our strategic plan and invested in our business to better position LifePoint for the future. While these investments will impact our near term results, they are critical to our future success and ability to maximize returns.
We continue to make progress on key initiatives including successfully implementing our acquisition strategy, continuing our physician recruitment efforts including increased physician employments, adding resources to improve clinical quality and manage increase regulatory oversight facing our industry, investing appropriate in meaningful use initiatives and announcing a shared services arrangement with Parallon Business Solutions.
We are continuing our disciplined approach to acquisitions. On July 2, we finalized the purchase of Woods Memorial Hospital in Etowah, Tennessee. The Woods Memorial facility includes a 72 bed hospital and 88 bed nursing home and is Lifepoint’s 56th hospital campus and our 11th facility in Tennessee. As part of the acquisition, Woods will partner with nearby Athens Regional Medical Center to strengthen healthcare in the region.
The hospitals will operate as part of a common system sharing resources and coordinating services to enhance the care provided in their communities. One component of our strategy is to acquire hospitals through our innovative joint venture with Duke. To date, we have successfully purchased three hospitals in Duke LifePoint.
We are also close to completing or previously announced acquisition of Marquette General Health System in the Upper Peninsula of Michigan. We are very excited about this transaction. In addition to being a high quality regional referral center and market of good demographics, it also expands the Duke LifePoint footprint into a new market and state. The Marquette acquisition highlights the evolution of the Duke Lifepoint partnership. It also demonstrates our commitment to using our combined resources to expand already successful clinical programs at leading hospitals.
At Marquette, we are committed to investing in physician recruitment and capital improvement projects including a state-of-the-art outpatient surgery center and a comprehensive cancer center. This acquisition presents an opportunity to expand our concept of the becoming originally integrate health system in the Upper Peninsula with Marquette General at the center.
In addition to the strong growth we anticipate as a result of recent acquisitions we remain focused on continuing to improve our recruitment and professional development efforts. Year-to-date, we are on target in terms of physician recruitment.
We also continued to provide employees across the company with leadership training through our LifePoint learning academy. This program allows us to train and develop future leaders within our company especially leaders at individual hospitals.
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