SEC Filings

10-Q
ENVISION HEALTHCARE CORP filed this Form 10-Q on 11/03/2017
Entire Document
 
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)

Consolidated Operations
 
The following table shows certain statement of operations items expressed as a percentage of net revenues for the three and nine months ended September 30, 2017 and 2016. The operating results of EHH are included in our operating results effective December 1, 2016.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Net revenue
100.0
 %
 
100.0
%
 
100.0
 %
 
100.0
%
Operating expenses:
 
 
 
 
 
 
 
Salaries and benefits
71.6

 
56.4

 
71.1

 
55.6

Supply cost
2.7

 
5.8

 
2.8

 
6.3

Insurance expense
2.3

 
2.3

 
2.3

 
2.4

Other operating expenses
10.0

 
11.3

 
9.8

 
11.8

Transaction and integration costs
0.9

 
2.1

 
1.2

 
1.0

Impairment charges

 

 

 

Depreciation and amortization
3.7

 
3.8

 
3.7

 
3.9

Total operating expenses
91.1

 
81.8

 
91.0

 
81.0

Net gain (loss) on disposals and deconsolidations
(0.2
)
 
0.5

 
(0.2
)
 
0.3

Equity in earnings of unconsolidated affiliates
0.3

 
0.5

 
0.3

 
0.8

Operating income
9.0

 
19.2

 
9.1

 
20.1

Interest expense, net
3.1

 
4.0

 
2.9

 
4.1

Other income, net
0.1

 

 

 

Earnings from operations before income taxes
6.0

 
15.2

 
6.2

 
15.9

Income tax expense
1.4

 
3.6

 
1.4

 
3.6

Net earnings from continuing operations
4.6

 
11.6

 
4.9

 
12.3

Discontinued operations:
 
 
 
 
 
 
 
Earnings from discontinued operations
0.5

 

 
0.5

 

Income tax expense from discontinued operations
(1.1
)
 

 
(8.8
)
 

Net loss from discontinued operations
(0.6
)
 

 
(8.4
)
 

Net earnings (loss)
4.0

 
11.6

 
(3.5
)
 
12.3

Net earnings attributable to noncontrolling interests
2.5

 
6.8

 
2.7

 
7.2

Net earnings (loss) attributable to Envision Healthcare Corporation stockholders
1.4
 %
 
4.9
%
 
(6.2
)%
 
5.1
%

Three and Nine Months Ended September 30, 2017 compared to Three and Nine Months Ended September 30, 2016

Net revenue increased $1.17 billion, or 142.1%, to $1.99 billion in the three months ended September 30, 2017 from $822.2 million in the three months ended September 30, 2016. Net revenue increased $3.51 billion, or 152.3%, to $5.82 billion in the nine months ended September 30, 2017 from $2.31 billion in the nine months ended September 30, 2016. Our net revenue was impacted primarily due to the following:

an increase of $1.17 billion and $3.51 billion during the three and nine months ended September 30, 2017, respectively, associated with our physician services segment, driven primarily by a full period of results of operations received from the Merger in the current period, acquisitions completed in 2016 and 2017, increases in our same-contract growth and the consolidation of a partnership previously accounted for as an equity method investment; and
a decrease of $5.2 million during the three months ended September 30, 2017 associated with our ambulatory services segment due to disposal and deconsolidation activity; an increase of $2.3 million during the nine months ended September 30, 2017 associated with our ambulatory services segment driven primarily by acquisitions completed in 2016 and 2017 and increases in our same-center growth offset by disposal and deconsolidation activity.


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