NovaMed, Inc. (Nasdaq: NOVA), a leading operator of ambulatory surgery centers in partnership with physicians, today announced results for the third quarter ended September 30, 2009. Total net revenue grew to $38,768,000, up 8% from $36,050,000 in the prior year third quarter.
Net income from continuing operations attributable to NovaMed in the third quarter of 2009 increased 4% to $1,862,000 from $1,798,000 in the prior year third quarter. Diluted earnings from continuing operations per common share attributable to NovaMed increased 14% to $0.08 in the third quarter of 2009 from $0.07 in the third quarter of 2008. Net cash provided by operations increased 15% to $7,133,000, or $0.30 per diluted share, in the third quarter of 2009 from $6,196,000, or $0.25 per diluted share, in the prior year third quarter. Interest expense in the third quarter of 2009 included non-cash, imputed interest of $1,075,000, or $0.03 per diluted share, recorded in accordance with NovaMed’s adoption of Accounting Standards Codification (“ASC”) 470-20 (formerly FASB Staff Position APB 14-1). Third quarter 2008 results have been recast to include imputed interest of $985,000, or $0.02 per diluted share. Same-facility revenue declined 1% in the third quarter of 2009.
“We are pleased with our third quarter results,” commented Thomas S. Hall, Chairman, President and Chief Executive Officer of NovaMed, Inc. “Although the economy continues to present us with challenges, we are encouraged by the improvement in same-facility revenue growth over the prior two quarters. Keep in mind that our second quarter is generally our strongest quarter. Our strong cash flow from operations of $7.1 million was 3.8 times net income from continuing operations attributable to NovaMed. With capital expenditures of just over $700,000 in the quarter, our free cash flow was over $6.4 million which continued to allow us to deleverage our balance sheet in the third quarter.”
Highlights of third quarter continuing operations include: