During the current year quarter, Vanguard’s net income was $1.8 million compared to a $0.8 million net loss during the prior year quarter.
The improvement during the current year quarter was primarily due to the previously discussed growth in patient service and health plan premium revenues. Net income during the current year quarter was adversely impacted by a $6.2 million impairment loss to adjust the carrying value of a non-hospital building to fair value. Adjusted EBITDA for the current year quarter was $74.5 million, a 12.4% increase compared to the prior year quarter. A reconciliation of Adjusted EBITDA to net income (loss) as determined in accordance with generally accepted accounting principles for the quarters ended June 30, 2008 and 2009 is included in the attached supplemental financial information. Vanguard reported income from continuing operations of $27.7 million during the current year compared to a loss of $0.4 million during the prior year. Net income for the current year was $28.6 million compared to a net loss of $0.7 million during the prior year. Adjusted EBITDA was $302.4 million for the current year, an increase of $36.0 million or 13.5% from the prior year. A reconciliation of Adjusted EBITDA to net income (loss) as determined in accordance with generally accepted accounting principles for the years ended June 30, 2008 and 2009 is included in the attached supplemental financial information. Vanguard owns and operates 15 acute care hospitals and complementary facilities and services in Chicago, Illinois Phoenix, Arizona San Antonio, Texas and Massachusetts. Vanguard’s strategy is to develop locally branded, comprehensive healthcare delivery networks in urban markets. Vanguard will pursue acquisitions where there are opportunities to partner with leading delivery systems in new urban markets. Upon acquiring a facility or network of facilities, Vanguard implements strategic and operational improvement initiatives including expanding services, strengthening relationships with physicians and managed care organizations, recruiting new physicians and upgrading information systems and other capital equipment. These strategies improve quality and network coverage in a cost effective and accessible manner for the communities Vanguard serves.
Contact: Vanguard Health Systems, Inc. Aaron Broad Director Investor Relations (615) 665-6131