Nov 3 2009
Emergency Medical Services Corporation (NYSE:EMS) (EMSC or the Company) today announces results for the third quarter ended September 30, 2009.
William A. Sanger, Chairman and Chief Executive Officer, said, “EMSC had an excellent third quarter. We produced diluted EPS of $0.66 and improved operating margins. This improvement is a result of the signing of new contracts, increased volumes at our emergency departments, expansion of our new service lines and improved resource utilization. I am particularly pleased that we were able to produce comparable results to the same quarter last year despite the more than $100 million of FEMA hurricane revenues in the third quarter of 2008. Finally, we continue to supplement our balance sheet by generating strong free cash flow, enhancing our ability to capitalize on market opportunities.”
Results of Operations for the Third Quarter 2009
For the quarter ended September 30, 2009, EMSC generated net revenue of $665.1 million, a decrease of 2.1% compared to the same period last year, or a 15.0% increase excluding third quarter 2008 FEMA hurricane deployment revenue of $101.1 million. There was no FEMA hurricane deployment revenue in 2009.
EMSC generated net income of $28.9 million, or $0.66 per diluted share, for the third quarter of 2009, compared to net income of $28.6 million, or $0.66 per diluted share, in the third quarter of 2008. Adjusted EBITDA was $72.3 million, a decrease of 1.6% compared to the same quarter last year. Adjusted EBITDA in 2008 was favorably impacted by the FEMA hurricane deployment. Adjusted EBITDA was positively impacted in 2009 by the net impact of increased volume from net new contracts, higher rates and volumes from existing contracts, improvement in compensation and benefits expenses as a percentage of net revenue and lower fuel costs. A description of the non-GAAP measures, Adjusted EBITDA and Free Cash Flow, and a reconciliation of non-GAAP to GAAP financial measures are included in this news release.
Cash provided by operating activities was $68.9 million in the third quarter of 2009, compared to $75.0 million for the same quarter last year. Working capital changes in the third quarter 2008 were significantly impacted by the FEMA hurricane deployment. During the third quarter of 2009, accounts receivable decreased $7.6 million, and Days Sales Outstanding (DSO) decreased 3 days sequentially. Free cash flow was $61.2 million in the third quarter of 2009 compared to $65.5 million in the same quarter last year.
Net cash used in investing activities was $8.9 million for the quarter ended September 30, 2009, compared to $17.9 million for the same period in 2008. Third quarter 2009 was positively impacted by a decrease in insurance collateral of $6.0 million. Acquisition related funding was $1.2 million in the third quarter 2009 compared to $8.4 million in the same period last year.
For the quarter ended September 30, 2009, net cash provided by financing activities was $4.0 million compared to $5.5 million for the same quarter last year. At September 30, 2009, there were no amounts outstanding under our revolving credit facility.
Results of Operations for the Nine Months Ended September 30, 2009
EMSC’s net revenue was $1.92 billion for the nine months ended September 30, 2009, an increase of 5.5% compared to the same period last year, or an 11.7% increase excluding the third quarter 2008 impact of the FEMA hurricane deployment.
EMSC’s net income for the nine months ended September 30, 2009 was $82.0 million, or $1.89 per diluted share, compared to net income of $64.0 million, or $1.49 per diluted share, an increase of 27.1% over the same period last year. Adjusted EBITDA was $210.8 million, an increase of 14.9% compared to the same period last year. The increase in earnings is attributable primarily to the net impact of increased volume from net new contracts, higher rates and volumes on existing contracts, improvement in compensation and benefits expenses as a percentage of net revenue and lower fuel costs, partially offset by higher insurance expense and the favorable impact of the FEMA hurricane deployment in 2008.
Cash provided by operating activities for the nine months ended September 30, 2009 was $209.8 million compared to $130.4 million for the same period in 2008. The increase in operating cash flow relates primarily to an increase in net income, further reductions in DSO, and changes in accounts payable and accrued liabilities. Working capital changes for the nine months ended September 30, 2008 were significantly impacted by the FEMA hurricane deployment. Changes in accounts payable and accrued liabilities increased $10.6 million during the nine months ended September 30, 2009. Accounts receivable decreased $8.4 million for the nine months ended September 30, 2009, primarily due to a decrease in DSO of 10 days during the same period. Free cash flow was $179.5 million for the nine months ended September 30, 2009, an increase of $51.1 million over the nine months ended September 30, 2008.
Net cash used in investing activities was $31.7 million for the nine months ended September 30, 2009 compared to $30.4 million for the same period in 2008. Reductions in net insurance collateral were $4.1 million during 2009 compared to $16.0 million during 2008. Net capital expenditures were $33.6 million during the nine months ended September 30, 2009 compared to $21.4 million during the same period in 2008 due primarily to the timing of capital purchases. The quarter ended September 30, 2009 included $1.4 million used in the acquisition of businesses compared to $28.3 million in the same period in 2008.
For the nine months ended September 30, 2009 net cash provided by financing activities was $6.8 million compared to $6.7 million for the nine months ended September 30, 2008.
Source:
Emergency Medical Services Corporation