Health Management Associates, Inc. (NYSE: HMA) today announced its consolidated financial results for the fourth quarter and year ended December 31, 2012.
Key metrics from continuing operations for the fourth quarter (all percentage changes in the bullet points below compare the fourth quarter of 2012 to the fourth quarter of 2011) include:
- As shown in the tables accompanying this press release, diluted earnings per share (“EPS”) from continuing operations increased to $0.19. Excluding the impact of approximately $20.3 million, or $0.05 per diluted share, of interest rate swap accounting and mark-to-market adjustments on the swap due to interest rate conditions, and excluding approximately $52.6 million, or $0.12 per diluted share, of Medicare and Medicaid Healthcare Information Technology (“HCIT”) incentive payments, net of Medicaid rate adjustments, diluted earnings per share from continuing operations was $0.12 per diluted share, as compared to $0.13 per diluted share in the prior year. Also impacting the fourth quarter was approximately $0.04 per diluted share of incremental legal and investigation expense and approximately $0.02 to $0.03 per diluted share related to Mississippi Medicaid payment reductions, which were offset by Medicare and Medicaid HCIT incentive payments;
- Net revenue increased 6.6% to $1.481 billion;
- Adjusted EBITDA increased 13.7% to $254.0 million;
- Same hospital net revenue increased 5.1% to $1.459 billion;
- Same hospital net revenue per adjusted admission increased 5.2%;
- As shown in the accompanying table, same hospital Adjusted EBITDA increased 22.2% to $324.9 million, resulting in a 320 basis point improvement in margin to 22.3%. Excluding HCIT incentive payments of approximately $52.6 million and $38.2 million for the fourth quarter 2012 and 2011, net of Medicaid rate adjustments, respectively, same hospital Adjusted EBITDA increased 19.6% to $272.3 million and same hospital Adjusted EBITDA margin increased 230 basis points to 18.7%; and
- Same hospital surgeries and emergency room visits increased 0.9% and 9.2%, respectively.
The tables accompanying this press release include reconciliations of consolidated net income to all presentations of Adjusted EBITDA (which is not a GAAP measure) contained in this press release. Those tables also reconcile earnings per share on a GAAP basis to those amounts presented in this press release and contain disclaimers and other important information regarding how Health Management defines and uses Adjusted EBITDA.