May 10 2010
Psychiatric Solutions, Inc. ("PSI") (NASDAQ: PSYS) today announced financial results for the first quarter ended March 31, 2010. Revenue increased 9.7% for the first quarter to $476.0 million from $433.9 million for the first quarter of 2009. Income from continuing operations attributable to PSI stockholders increased 15.2% to $31.7 million from $27.5 million. Income from continuing operations attributable to PSI stockholders per diluted share was $0.56 for the first quarter of 2010, up 14.3% from $0.49 for the first quarter of 2009.
PSI's same-facility revenue for the first quarter of 2010 grew 7.0% from the first quarter last year, primarily due to a 5.9% increase in patient days and a 1.0% increase in revenue per patient day. The Company expanded its same-facility EBITDA margin by 70 basis points to 21.5% in the first quarter from 20.8% in the first quarter of 2009. For the first quarter of 2010, consolidated adjusted EBITDA increased to $83.8 million, which was 17.6% of revenue, from $76.7 million or 17.7% of revenue, for the first quarter of 2009. A reconciliation of all GAAP and non-GAAP financial results in this release can be found on page 6.
Net cash from continuing operating activities for the latest quarter increased 42.3% from the first quarter of 2009 to $56.1 million or 1.8 times income from continuing operations attributable to PSI stockholders. Capital expenditures primarily for maintenance and the addition of beds to existing facilities totaled $29.6 million for the quarter. PSI's ratio of debt to total capitalization improved to 52.8% at the end of the first quarter of 2010 from 53.5% at the end of 2009 and 58.0% at the end of the first quarter of 2009. In addition, the ratio of debt to adjusted EBITDA for the trailing 12 months improved to 3.5 at the end of the first quarter of 2010 from 3.6 at the end of 2009 and 3.9 at the end of the first quarter last year. PSI completed the first quarter of 2010 with $32.6 million in cash and cash equivalents and no borrowings under its $300 million revolving credit facility.
As previously announced, a special committee of our Board of Directors was formed in response to approaches PSI received from third parties regarding a potential sale of PSI. The special committee retained Goldman, Sachs & Co. and Shearman & Sterling LLP as its financial and legal advisors and is considering possible responses. There can be no assurance that a sale of PSI will take place. PSI does not expect to make further public comments regarding these matters unless and until it enters into an agreement with respect to a sale or it is determined that a sale will not be pursued.
Source:
Psychiatric Solutions, Inc.