Welcome! NASHVILLE, TN — (Marketwire) — 05/11/09 — Vanguard Health Systems, Inc.
(“Vanguard”) today announced results for the third quarter ended March 31, 2009. Adjusted EBITDA was $86.2 million for the quarter ended March 31, 2009, an increase of $11.1 million or 14.8% from the prior year quarter. A reconciliation of Adjusted EBITDA to net income as determined in accordance with generally accepted accounting principles for the quarters ended March 31, 2008 and 2009 is included in the attached supplemental financial information. Total revenues for the nine months ended March 31, 2009 were $2,369.6 million, an increase of $295.5 million or 14.2% from the prior year period. Patient service revenues and health plan premium revenues increased $148.4 million and $147.1 million, respectively, from the prior year period. Patient service revenues for the current year period were positively impacted by a 1.8% increase in hospital adjusted discharges and a 6.9% increase in patient revenue per adjusted hospital discharge compared to the prior year period. Health plan premium revenues increased 44.1% during the current year period primarily due to PHP’s new contract that went into effect on October 1, 2008, as previously discussed. For the nine months ended March 31, 2009, Vanguard had income from continuing operations of $26.2 million compared to $0.4 million during the prior year period. Net income for the current year period was $26.8 million compared to $0.1 million for the prior year period. Adjusted EBITDA was $227.9 million for the nine months ended March 31, 2009, an increase of $27.8 million or 13.9% from the prior year period. A reconciliation of Adjusted EBITDA to net income as determined in accordance with generally accepted accounting principles for the nine-month periods ended March 31, 2008 and 2009 is included in the attached supplemental financial information.
Cash flows from operating activities were $247.4 million for the nine months ended March 31, 2009, an increase of $122.0 million from the prior year period. The increase was primarily attributable to the improved operating results during the current year period, improved net cash collections on accounts receivable and the impact of PHP’s significant enrollee growth on the timing of capitation payments received and claims payments made for new members. Net days in accounts receivable improved by 6 days from 53 days as of March 31, 2008 to 47 days as of March 31, 2009. Vanguard’s cash and cash equivalents balance was $292.2 million as of March 31, 2009 compared to $141.6 million as of June 30, 2008.