Envision Healthcare Profit Falls, Yet Tops Street - Update

(RTTNews) - Envision Healthcare Holdings Inc. (EVHC) Wednesday reported a lower fourth-quarter profit, hurt mainly by debt-related charges even as revenue climbed 13 percent. However, earnings for the quarter topped Wall Street estimates, but revenue missed expectations.

Envision, which went public last August after a successful IPO, provides healthcare-related services to consumers, hospitals and government entities.

Greenwood Village, Colorado-based Envision posted fourth-quarter net income of $8 million or $0.04 per share, compared with $12 million or $0.09 per share last year.

Results for the recent quarter included tax-effected impact of $38.7 million in debt-related costs and depreciation/ amortization expense of $36 million. Also included is provision of profit to non-controlling interest of $5 million.

Excluding items, adjusted earnings for the quarter were $37 million or $0.20 per share. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts, estimates typically exclude special items.

Revenue for the fourth quarter climbed to $985 million from $872 million in the prior year. Analysts estimated revenue of $994.4 million for the quarter.

Envision operates two businesses: EmCare Holdings, the facility-based and post-acute care physician services segment; and American Medical Response, the healthcare transportation services segment.

EmCare revenue was up 23 percent for the quarter, while American Medical Response revenue fell 1.5 percent. EmCare weighted patient encounters climbed to 3.2 million from 2.8 million a year ago.

For fiscal year 2014, Envision continues to project adjusted earnings of $1.10 per share to $1.15 per share, while analysts currently expect $0.84 per share.

In February, Envision closed the acquisition of Life Line Ambulance in Arizona with annualized revenue of about $16 million.

Envision, earlier known as Emergency Medical Services Corp, made its debut on the New York Stock Exchange on August 14, 2013, after pricing its initial public offering of 42 million shares at $23 per share.

On Wednesday, the stock closed at $33.68, down $0.60 or 1.75%, on a volume of 946 thousand shares on the NYSE. In after hours, the stock gained $0.32 or 0.95%, to trade at $34.00.