American Renal Associates Announces Third Quarter 2012 Results

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American Renal Associates Announces Third Quarter 2012 Results

BEVERLY, Mass.--(BUSINESS WIRE)-- American Renal Associates Holdings, Inc., and its subsidiary American Renal Holdings Inc. announced results today for the quarter ended September 30, 2012. Financial and operating highlights include:

  • Revenues - Patient service operating revenues for the three and nine months ended September 30, 2012 were $108.3 million and $307.3 million, respectively, as compared to $92.7 million and $267.0 million, respectively, for the same periods in 2011.
  • Adjusted EBITDA(1)- Adjusted EBITDA for the three and nine months ended September 30, 2012 was $20.9 million and $58.5 million, respectively. This compares to Adjusted EBITDA for the three and nine months ended September 30, 2011 of $17.3 million and $48.3 million, respectively.
  • Center Activity - As of September 30, 2012, we provided services at 125 outpatient dialysis centers serving 8,312 patients. During the third quarter of 2012, we opened 7 de novo centers and acquired 1 center.
  • Volume - Total treatments for the third quarter of 2012 were 301,901 or 3,871 treatments per day, representing a per day increase of 17.2% over the third quarter of 2011. Non-acquired treatment growth was 8.5% in the third quarter.

American Renal Associates will hold a conference call to discuss its results for the third quarter ended September 30, 2012 today at 5:00 p.m. Eastern Time. The live call can be accessed by dialing either 1-877-407-8029 or 201-689-8029.


This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as "anticipate", "estimate", "expect", "project", "intend", "forecast", "plan", "believe", and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, income tax matters, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. We undertake no obligation to update our forward-looking statements.

___________________________________________________________________________

(1) This press release includes Adjusted EBITDA and Adjusted EBITDA including noncontrolling interests, neither of which are financial measures defined by Generally Accepted Accounting Principles (GAAP). See Reconciliation of Non-GAAP Financial Measures section at the end of this press release for the definitions of these measures as well as their reconciliations to net income.

About American Renal Associates

American Renal Associates Holdings, Inc. is the parent of American Renal Holdings Inc. and American Renal Associates LLC ("ARA") and is a leading owner and provider of outpatient kidney dialysis facilities operating facilities in partnership with nephrologists throughout the United States. The Company's unique operating philosophy merges physician autonomy, leading edge patient care and financial partnership between the nephrologists and ARA. Consequently, ARA has become one of the largest providers of outpatient kidney dialysis services in the nation with 125 owned facilities as of September 30, 2012 which are located in 21 states and the District of Columbia. For more information, visit www.americanrenal.com.

American Renal Associates Holdings, Inc.
Consolidated Statements of Income
(unaudited and in thousands)
         
 
 
 
Three Months EndedNine Months Ended
September 30,September 30,
2012201120122011
 
Patient service operating revenues$108,288$92,666$307,324$266,975
Provision for uncollectible accounts (869) (1,118) (1,747) (3,492)
Net patient service operating revenues107,41991,548305,577263,483
 
Operating expenses:
Patient care costs62,24554,922179,117162,497
General and administrative11,7059,70133,62329,418
Merger related costs-228-450
Depreciation and amortization 5,333   4,509  15,151   13,222 
 
Total operating expenses 79,283  69,360  227,891  205,587 
 
Operating Income28,13622,18877,68657,896
 
Interest expense, net (10,247) (9,752) (30,425) (26,376)
 
Income before income taxes17,88912,43647,26131,520
 
Income tax expense 2,991  1,038  5,638  1,812 
 
Net income14,89811,39841,62329,708
 
Less: Net income attributable to noncontrolling interests (13,169) (10,050) (35,924) (27,186)
 
Net income attributable to ARAH$1,729 $1,348 $5,699 $2,522 
 
 
American Renal Associates Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
     
 
 
September 30,December 31,
20122011
 
Assets
Cash$42,775$36,774
Patient accounts receivable, net55,74156,027
Income tax receivable1,3221,322
Inventories, prepaid expenses and other current assets 17,060 15,101
 
Total current assets116,898109,224
 
Property and equipment, net81,16372,416
Deferred financing costs, net4,6054,962
Intangible assets, net35,71835,416
Other long-term assets2,7511,734
Goodwill 531,867 504,045
 
Total assets$773,002$727,797
 
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses$61,194$52,682
Amount due to sellers6752,192
Current portion of long-term debt2,9772,662
Current portion of capital lease obligations 92 51
 
Total current liabilities64,93857,587
 
Long-term debt, less current portion406,030391,084
Capital lease obligations, less current portion153111
Other long-term liabilities3,5393,362
Deferred tax liabilities16,23316,233
Noncontrolling interests subject to put provisions53,11947,492
Total equity 228,990 211,928
 
Total liabilities & equity$773,002$727,797
 
 
American Renal Associates Holdings, Inc.
Supplemental Business Metrics
(unaudited)
           
Three MonthsThree MonthsThree MonthsNine MonthsNine Months
EndedEndedEndedEndedEnded
September 30,June 30,September 30,September 30,September 30,
20122012201120122011
Volume
Treatments301,901285,037260,976862,580757,131
Number of treatment days787879234234
Treatments per day3,8713,6543,3033,6863,236
Non-acquired growth year over year8.5%9.5%16.5%9.8%16.8%
 
Revenue
Patient service operating revenues (in thousands)$108,288$101,872$92,666$307,324$266,975
Patient service operating revenues per treatment$358.69$357.40$355.07$356.28$352.61
Per treatment increase from previous quarter$1.29$4.90$0.65N/AN/A
 
Provision for uncollectible accounts
As a % of patient service operating revenues0.8%0.0%1.2%0.6%1.3%
 
Expenses
Patient care costs
Amount (in thousands)$62,245$58,793$54,922$179,117$162,497
As a % of patient service operating revenues57.5%57.7%59.3%58.3%60.9%
Per treatment$206.18$206.26$210.45$207.65$214.62

Per treatment decrease from previous quarter

$

( 0.08

)$( 4.44 Read Full Story

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