Fourth-quarter and fiscal year-end 2009 results announced by IASIS Healthcare

IASIS Healthcare® LLC (“IASIS”) today announced financial and operating results for the fiscal fourth quarter and year ended September 30, 2009.

Net revenue for the fourth quarter totaled $620.1 million, an increase of 20.3%, compared to $515.4 million in the prior year quarter. Adjusted EBITDA for the fourth quarter totaled $67.9 million, an increase of 17.2%, compared to $58.0 million, which includes $3.6 million in hurricane-related property damage sustained as a result of Hurricane Ike, in the prior year quarter. A table describing adjusted EBITDA and reconciling net earnings from continuing operations to adjusted EBITDA is included in this press release in the attached Supplemental Consolidated Statements of Operations Information. Net loss from continuing operations for the fourth quarter totaled $30.0 million, compared to net earnings from continuing operations of $5.4 million in the prior year quarter.

Included in the net loss from continuing operations for the fourth quarter is a $64.6 million non-cash charge ($43.2 million after taxes) for the impairment of goodwill related to the Florida market. The Company has experienced changes in market conditions and the business mix of its Florida operations, which negatively impacted operating results in this market. Accordingly, the Company has written off the goodwill associated with this market.

Admissions and adjusted admissions increased 4.2% and 4.7%, respectively, in the fourth quarter, compared to the prior year quarter. Excluding the impact of Hurricane Ike in the prior year quarter, admissions and adjusted admissions increased 3.5% and 3.9%, respectively, in the fourth quarter. Net patient revenue per adjusted admission increased 8.2% in the fourth quarter, compared to the prior year quarter.

Net revenue for the year ended September 30, 2009, totaled $2.4 billion, an increase of 14.4%, compared to $2.1 billion in the prior year. Adjusted EBITDA for the year ended September 30, 2009, totaled $299.4 million, an increase of 13.0%, compared to $264.8 million, which includes $3.6 million in hurricane-related property damage, in the prior year. Net earnings from continuing operations for the year ended September 30, 2009, which includes the impact of the Company’s non-cash charge related to the impairment of its goodwill, totaled $28.3 million, compared to $47.6 million in the prior year.

For the year ended September 30, 2009, admissions decreased 0.2% and adjusted admissions increased 2.4%, compared to the prior year. Net patient revenue per adjusted admission increased 6.6% for the year ended September 30, 2009, compared to the prior year.

Operating cash flows for the year ended September 30, 2009, were $272.0 million, compared to $143.4 million in the prior year. Strong operating cash flows and effective capital management has resulted in significant increases to free-cash-flow and the Company’s overall cash position.

“We are pleased with our financial and operating results,” said David R. White, chairman and chief executive officer of IASIS Healthcare. “Despite the difficulties of a prolonged economic recession, we continue to achieve top-line and EBITDA growth, and our focus on liquidity and effective capital management has helped to generate significant improvements in our cash flow for the year. I believe these successes highlight the excellence and commitment of our team. We are also encouraged by the rebound in patient volumes that we have seen across the back half of our 2009 fiscal year, and we hope to carry the momentum of our success into the next fiscal year.”