Accretive Health, Inc. (NYSE: AH), today reported financial results for the second quarter ended June 30, 2012.
Highlights for Second Quarter 2012
- New 5 year $1.6 billion to $1.7 billion revenue Master Professional Services Agreement signed with Ascension Health.
- Settles lawsuit in Minnesota with no admission of wrongdoing.
- Net services revenue for the second quarter increased 29% to $236.7 million from $183.6 million in the second quarter of 2011.
- Due to lost operating margin and stranded personnel cost, the following matters had a negative financial impact of $14.6 million and include lost operating margin and stranded personnel costs arising from the Minnesota litigation and resulting contract terminations; and associated legal defense and crisis management costs which together aggregated $14.6 million, the Company had a net loss of $0.6 million as compared with a net income of $8.6 million in the second quarter of 2011.
- Diluted loss per share of $0.01 in the second quarter of 2012 as compared to diluted earnings per share of $0.08 in the second quarter of 2011.
- Non-GAAP adjusted EBITDA of $7.3 million in the second quarter of 2012 as compared to $20.7 million in the second quarter of 2011.
- Non-GAAP adjusted diluted earnings per share of $0.03 in the second quarter of 2012 as compared to $0.12 in the second quarter of 2011.
Mary Tolan, Accretive Health's Founder and Chief Executive Officer, said, “We are pleased to announce the recent signing of our new five-year contract with Ascension Health, the nation’s largest Catholic and non-profit health care system. The new contract marks the continuation of our successful partnership between Ascension Health and Accretive Health which began in 2004. We look forward to entering a new era of creating value together through our partnership.