Quorum Health (QHC) Posts Loss in Q2, Revenues Decline

Quorum Health Corporation QHC reported second-quarter 2016 adjusted loss of $1.02 per share, comparing unfavorably with the Zacks Consensus Estimate of earnings of 11 cents. The company had reported earnings of 5 cents per share in the year-ago quarter. The loss per share figure excludes impairment charges of $216.1 million or $7.61 per share.

On Apr 29, Quorum Health became an independent public company post its spin off from Community Health Systems CYH. The company includes 38 affiliated hospitals and related outpatient services in 16 states.

Quarter Details

Total net operating revenues declined 1.6% year over year to $529.7 million. Number of licensed beds at end of period declined 0.4% to 3.579. Adjusted admissions were 58,942, down 2.5% from the year-ago quarter.

However, total operating costs and expenses climbed 4.1% from the year-ago quarter to almost $532 million, led by a 4.4% year-over-year rise in salaries and benefits amounting to $264.9 million.

Notably, operating results excludes $250.4 million of impairment charges, $1.2 million of transaction costs related to the spin-off and $5.4 million of legal and settlement costs.
 

QUORUM HEALTH Price, Consensus and EPS Surprise

QUORUM HEALTH Price, Consensus and EPS Surprise | QUORUM HEALTH Quote

Adjusted EBITDA in the second quarter was $29.2 million, representing a 51% decline from the year-earlier quarter's $59.6 million.

Guidance

For full-year 2016, Quorum Health anticipates net operating revenues in the range of $2.2 billion to $2.2 billion.

Adjusted EBITDA is estimated in the band of $175 million to $200 million.

Some notable companies in the broader medical sector include Natus Medical Inc. BABY and Masimo Corporation MASI.

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