Envision Healthcare Holdings, Inc.(NYSE: EVHC) (EVHC or the Company) today is announcing expected 2013 Adjusted EBITDA results and providing guidance for 2014.
- Full year 2013 Adjusted EBITDA is expected to be $455 million to $457 million, approximately 12.5% to 13% over prior year, excluding an unusual recent jury award for an EmCare 2011 medical malpractice case. The Company anticipates a reserve of $5 million to be recorded in the 4 th quarter of 2013 for this case.
- The Company expects 2014 full-year Adjusted EBITDA to be in the range of $538 million to $545 million. This guidance includes an estimated Adjusted EBITDA benefit from Medicaid parity of $17 million to $20 million but does not include other benefits from healthcare reform including potential rate increases from conversion of uninsured or additional volumes from newly insured lives.
- The Company expects 2014 full-year Adjusted EPS to be in the range of $1.10 to $1.15 per diluted share.
William A. Sanger, President and Chief Executive Officer, said, “Building off a very successful year in 2013, we anticipate this momentum to continue in 2014 as reflected in our strong guidance. We believe our integrated service offerings and our ability to improve metrics and outcomes across the patient continuum differentiates us and will further drive demand for our services. In addition, we believe our liquidity will allow us to take advantage of acquisition opportunities in the changing healthcare landscape. Lastly, we expect to realize an incremental benefit in 2014 as the impacts of healthcare reform materialize.”
Preliminary Summary of Operations for the 4 th Quarter and Full-Year ended December 31, 2013The Company expects 4 th quarter 2013 Adjusted EBITDA to be $126 million to $128 million excluding an anticipated reserve of $5 million to be recorded in the quarter for an unusual recent jury award for an EmCare 2011 medical malpractice case. In the 4 th quarter, EVHC experienced softer volumes and increased startup costs related to new contract starts at both American Medical Response (AMR) and EmCare. The Company saw improved results in the latter part of the quarter primarily driven by higher influenza activity and seasonal volume increases. The Company’s revenue increased approximately 18% compared to the 4 th quarter of 2012, excluding revenue from the 2012 Hurricane Sandy FEMA deployment. EmCare experienced revenue growth of approximately 23% over the same period last year, 17% of which was organic growth, as a result of a significant number of new contract starts during the year and in the 4 th quarter. AMR revenue growth in the 4 th quarter, driven by recent 911 wins, was approximately 10% when excluding $37 million in revenue for the Hurricane Sandy FEMA deployment in the 4 th quarter of 2012. Adjusted EBITDA margins improved in the quarter with EmCare margins expected to be approximately 13.5% (prior to the impact of the aforementioned insurance case reserve to be recorded) and expected AMR margins of approximately 11.7%.
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