William CarpenterNelson, thank you very much. Welcome everyone to LifePoint Hospital’s third quarter 2011 earnings call. We hope you’ve had a chance to take a look at the press release we issued this morning. In a few minutes Jeff Sherman, our Chief Financial Officer will discuss in detail LifePoint’s results for the third quarter. After that Jeff and I, as well as David Dill, our President and Chief Operating Officer will answer your questions. Let me start by summarizing our results for the third quarter. Revenues from continuing operations grew to $877 million, up 5.4% from the same period last year. EBITDA for the quarter was $127 million, up 6.3% over last year and EPS for the quarter was $0.77, up 6.9% over last year. Through the first nine months of the year, our revenues, EBITDA and EPS were up 9.7%, 8.1% and 10% respectively over last year. We are pleased with our results in the quarter and with the progress that we’ve made throughout 2011. Our quality scores continue to improve. Our acquisitions are performing well. We have very active pipeline and we continue to operate efficiently to control costs. Admissions from continuing operations were up 2.6% and adjusted admissions were up 2.2% versus 2010. On a same-store basis, admissions were down 0.2%, but adjusted admissions declining 0.9%. As you’ve heard me say, service and quality are key factors in driving value. We strive to be the preferred provider for people in the communities we serve. We are recruiting the right positions in the right communities and we’re on track to achieve our annual recruiting target. We’re closely working with our positions to optimize critical outcomes, enhance our mutual success and drive performance. Our core measure results are improving across the company and especially in our larger hospitals where we’ve seen the most opportunity. In addition our focus on customer satisfaction continues to produce results as we move toward value-based purchasing.
Our solid balance sheet, strong cash flows and ample liquidity allow us to make strategic investments to improve our performance. While we are maintaining our focus on being the sole provider in smaller communities we are seeking to grow strategically through selective acquisitions and move into faster growing markets with a more diversified employer base and a favorable payer mix.Our most recent acquisitions Clark Regional and HighPoint Health System continue to contribute to our earnings growth and to demonstrate significant long-term potential. Clark Regional will not move into its new facility until the first half of 2012, but still, already the hospital achieved high single-digit margins in the quarter. HighPoint has improved to low double-digit margins since we acquired it. We expect to see further significant improvement from these acquisitions, once Clark makes its move and additional market opportunities are realized at HighPoint. More recently, our innovative partnership Duke/LifePoint Healthcare has made several announcements. We acquired Person Memorial hospital in Roxboro, North Carolina. On Monday, we expect to close our acquisition of Maria Parham Medical Center in Henderson, North Carolina. Earlier this week, we announced that we signed a memorandum of understanding to acquire Twin County Regional Healthcare in Galax, Virginia. This would be the first acquisition in Virginia as a part of the Duke/LifePoint partnership and we look forward to working with Twin County to finalize this potential transaction. Combined, these three acquisitions would represent approximately $180 million in annual revenue. These together with our purchase of the North Carolina Cardiac cath labs, and CONs in the second quarter, illustrate the significant progress we’ve made since our partnership with Duke was formed earlier this year. The momentum we’ve experienced validates the vision we have for Duke/LifePoint and demonstrates the unique option we offer in today’s healthcare market. Of course, we continue to pursue acquisition opportunities outside of Duke/LifePoint. Our pipeline is very active, driven by the hard work of our development team.
In this time of unprecedented change and uncertainty, LifePoint is uniquely positioned to offer solutions to standalone hospitals and the communities they serve. We also continue to drive organic growth through service line development, position recruitment and end market transactions.Read the rest of this transcript for free on seekingalpha.com