SEC Filings

8-K
ENVISION HEALTHCARE CORP filed this Form 8-K on 08/07/2017
Entire Document
 
Envision Healthcare Reports 2017 Second Quarter Financial Results
 
Page 3
 
 
August 7, 2017
 
 



Liquidity
Envision had cash and cash equivalents of $464.6 million at June 30, 2017, which includes $23.3 million of cash attributable to its Medical Transportation business. Availability under its asset-based lending facility was $619.7 million as of June 30, 2017. During 2017 through today, Envision has invested more than $600 million in acquisitions.

Net cash flows from operations, less distributions to noncontrolling interests and excluding transaction costs, were $236.6 million for the second quarter of 2017. The Company’s ratio of total net debt at June 30, 2017, to trailing 12 months EBITDA as calculated under the Company’s credit agreement was 4.5 times. Interest expense reflects a re-allocation of $21.8 million to discontinued operations for the three months ended June 30, 2017.

Discontinued Operations
Envision’s Medical Transportation business is reported as a component of discontinued operations following a decision made earlier this year to market and divest American Medical Response.

Net revenues from discontinued operations were $588.8 million for the second quarter of 2017, and declined by 0.3% compared to the prior-year period. Adjusted EBITDA was $68.2 million, or $59.7 million when excluding the favorable impact of $8.5 million from the re-allocation of corporate expenses.

Guidance
Envision is revising its 2017 guidance to reflect lower emergency medicine volumes and their impact on Envision’s financial performance. Envision now anticipates that it will generate net revenues of $7.75 billion to $8.00 billion for 2017. Guidance is unchanged for same-contract revenue growth of 3% to 4% for Physician Services, and same-center revenue growth of 0% to 1% for ASCs.

Envision expects Adjusted EBITDA of $1.02 billion to $1.04 billion. The top end of Envision’s most recent Adjusted EBITDA guidance is being reduced by $26 million, or approximately 2%, principally due to lower anticipated emergency medicine volumes than had been previously forecast. Adjusted EPS for the year is expected to be $3.35 to $3.45.

For the third quarter of 2017, Envision expects to generate Adjusted EBITDA of $266 million to $278 million, and Adjusted EPS of $0.87 to $0.93.

Non-GAAP Adjusted EBITDA guidance for the full year and third quarter of 2017 excludes interest expense, income taxes, depreciation, amortization, share-based compensation, impairment charges, debt extinguishment costs, transaction and integration costs, changes in contingent purchase price consideration, gain or loss on deconsolidations and discontinued operations, net of non-controlling interests. Non-GAAP Adjusted EPS guidance for the full year and third quarter of 2017 excludes acquisition-related transaction and integration costs, acquisition-related amortization expense, gains and losses on future deconsolidation transactions, share-based compensation, impairment charges and debt extinguishment costs, net of tax impact. Envision is not providing a reconciliation of its Adjusted EBITDA and Adjusted EPS guidance because the exact amount of individual adjustments for these items are not currently determinable, including variability and timing associated with acquisitions, disposals, deconsolidations and impairment charges. These amounts may be significant and may vary significantly from period to period (see page 6 for a reconciliation of all historical GAAP and non-GAAP financial results).

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