Quorum Health Corporation Announces Third Quarter 2016 Operating Results And Updated 2016 Guidance

Quorum Health Corporation (NYSE: QHC) (the "Company") today announced its operating and financial results for the three and nine months ended September 30, 2016.

Net operating revenues for the three months ended September 30, 2016 totaled $543.9 million, compared to $543.1 million for the same period in 2015, a 0.1% increase. Income from operations for the three months ended September 30, 2016 was $17.5 million, compared to $19.8 million for the same period in 2015. Net cash used in operating activities for the three months ended September 30, 2016 was $(0.4) million, compared to $(17.3) million for the same period in 2015.

Adjusted EBITDA for the three months ended September 30, 2016 was $46.7 million, compared to $60.3 million for the same period in 2015. The operating results for the three months ended September 30, 2016 reflect a 3.2% decrease in total admissions and a 3.0% decrease in total adjusted admissions compared with the same period in 2015. Net loss attributable to Quorum Health Corporation for the three months ended September 30, 2016 was $(7.0) million, or $(0.24) per share, compared to $(5.7) million, or $(0.20) per share, for the same period in 2015.

Commenting on these results, Thomas D. Miller, president and chief executive officer of Quorum Health Corporation, said, "Our results for this quarter demonstrate that we are committed to improving our operating and financial performance. Additionally, we are focused on restructuring our portfolio and positioning Quorum Health for long-term success. We have agreements for the sale of two facilities and expect to close on these transactions by year end. The Adjusted EBITDA of these two facilities represents approximately 50% of the negative Adjusted EBITDA of the entire group of assets we intend to divest. We will use the proceeds from these two sales to reduce our debt. We remain dedicated to reducing our leverage, improving profitability and increasing shareholder value." Evidencing improved results, Mr. Miller pointed out that net operating revenues for the three months ended September 30, 2016 increased 2.7%, from $529.7 million for the three months ended June 30, 2016. Net cash used in operating activities for the three months ended September 30, 2016 was $(0.4) million, compared to net cash provided by operating activities of $36.8 million for the three months ended June 30, 2016. Adjusted EBITDA for the three months ended September 30, 2016 increased 59.9%, from $29.2 million for the three months ended June 30, 2016.

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