Inpatient behavioral health care services provider Psychiatric Solutions, Inc. (PSYS) reported Tuesday a 6.7% year-over-year increase in profit for the third quarter, helped by a 5.5% revenue growth on higher admissions. Earnings per share from continuing operations grew a penny, but came in below analysts expectations by six cents. The company also trimmed its earnings guidance for the full year 2009. Following the announcement, the company's stock traded down 13%in the after-hours trading.
In a statement, chairman, president and chief executive officer, Joey Jacobs said, "PSI's revenue and earnings did not meet our expectations for the third quarter of 2009. In addition to the impact of the Labor Day holiday occurring a week later than in the third quarter of 2008, our revenue growth was affected by a lower than expected increase in revenue per patient day of 1.7% due to adverse changes in our payor mix. Lastly, our management contract segment's earnings were lower than anticipated for the quarter."
The Franklin, Tennessee-based company reported net income of $28.15 million or $0.50 per share for the third quarter, higher than $26.38 million or $0.47 per share in prior-year quarter.
Income from continuing operations for the quarter also grew to $28.07 million or $0.50 per share from $27.99 million or $0.49 per share in the year-ago quarter. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the third quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 5.5% to $455.31 million from $431.71 million in the same quarter last year. Eleven Wall Street analysts had a consensus revenue estimate of $462.18 million for the quarter.
The company's same-facility revenue increased 4.7%, reflecting a 3.3% increase in patient days and a 1.6% increase in revenue per patient day. Total admissions at all facilities for the third quarter grew 7.9% to 44,914 from last year's 41,631.
Net cash from continuing operations increased 11.2% for the third quarter to $34.6 million from $31.2 million for the third quarter last year.
Capital expenditures for the quarter were $65.7 million, which included the purchase of two inpatient psychiatric facilities. The company ended the third quarter with cash and cash equivalents of $13.37 million, compared to $44.96 million at end of the prior-year quarter.
For the nine-month period, net income of $89.94 million or $1.60 per share, higher than $80.93 million or $1.44 per share in prior-year period. Income from continuing operations for the period also grew to $90.09 million or $1.60 per share from $80.69 million or $1.42 per share in the year-ago period.
Revenues for the year-t-date period rose to $1.35 billion from $1.27 billion in the same period last year. The company's same-facility revenue increased 4.7%.
Looking ahead to fiscal 2009, based on the results of the first nine months, Psychiatric Solutions cut its guidance for earnings from continuing operations to a range of $2.11 to $2.14 per share from the prior forecast in the range of $2.16 to $2.24 per share. The Street is looking for full year 2009 earnings of $2.27 per share.
PSYS closed Tuesday's regular trading session at $24.14, up $0.51 or 2.16% on a volume of 1.26 million shares, higher than the three-month average volume of 0.63 million shares. However, the stock traded down $3.14 or 13.01% to $21.00 in the after-hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.