Friday, Lifepoint Hospitals, Inc. (LPNT) reported a drop in second-quarter earnings, reflecting a decline in admissions as well as higher provision for doubtful accounts. Going forward, the company backed its full year revenue guidance, while lifting its earnings per share outlook, and announced a $100 million buyback program.
The Brentwood, Tennessee-based company's second quarter net income attributable to LifePoint Hospitals, Inc. slipped to $26.3 million or $0.49 per share from $27.8 million or $0.52 per share for the same period last year.
On average, nineteen analysts polled by Thomson Reuters expected the company to earn $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenues rose 10.4% to $735.3 million, up from $665.7 million in the comparable period last year. Analysts forecasted revenues of $720.98 million.
Commenting on the results, William Carpenter III, president and chief executive officer, said, "We are where we expected to be for the quarter and at this point in the year. We are tracking at the upper end of our full year guidance, which we are reiterating and tightening."
Total operating expenses rose to $687.6 million from $615.3 million in the prior year period. Provision for doubtful debts was increased to $92.2 million from $74.9 million a year ago. LifePoint noted that the consolidated financial results for the latest quarter reflect a 0.5% decrease in admissions, compared to the same period last year. On a same-hospital basis, admissions during the quarter slipped 5.3%, compared to the same a year ago due in part to a shift from inpatient admissions to outpatient visits. Same-hospital equivalent admissions during the quarter were down 0.1%.
During the quarter, gross outpatient revenue increased by $111.0 million, or 13.3%, on a same-hospital basis from a year ago, driven primarily by growth in imaging, lab, ER and outpatient cardiac procedures in the quarter.
For the first half, net income attributable to LifePoint Hospitals, Inc. was $64.7 million or $1.21 per share, down from $66.5 million or $1.23 per share for the same period a year ago. Revenues rose 8.9% to $1.471 billion from $1.351 billion in the corresponding period last year.
Additionally, the company announced a share repurchase program of up to $100 million of the company's common stock over the next 18 months.
The company noted that based on the July 31, 2009, closing price of $27.66 per share, approximately 3.6 million shares or 6.6% of the company's shares outstanding could be repurchased for $100 million. The company had approximately 54.8 million shares of common stock outstanding as of July 31, 2009. The company intends to fund the buyback with cash on hand or cash generated from operations.
Looking ahead, the company backed its full year 2009 revenue estimate range of $2.9 billion to $3.0 billion. The company also raised its full year diluted earnings per share estimate to a range of $2.35 to $2.55 from $2.25 to $2.35 forecasted earlier. Analysts are currently looking for earnings of $2.51 per share on revenues of $2.90 billion.
LPNT is trading at $25.91, down $2.13 or 8.35%, on a volume of about 1.49 million shares.
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