Total third-quarter revenue increased 38 percent to $49.6 million, compared with $36 million in the third quarter of 2012.
Net income attributable to common shareholders was $1.0 million, or $0.00 per share, compared with net income attributable to common shareholders of $2.0 million, or $0.01 per share, in the comparable quarter of 2012. On a non-GAAP basis, UGHS reported adjusted EBITDA of approximately $5.5 million, compared to approximately $14.1 million in the third quarter of 2012.
Dr. Hassan Chahadeh, M.D., chairman and CEO of the company, commented on the sales growth as well as the decline in net income.
“This was a much better quarter for the company than the previous quarters of 2013, and we are working diligently to improve our financial reporting systems as well as our ongoing commitment to the development of our physician-centric health delivery system in Dallas. Financially, our net revenue increased by 38 percent relative to the third quarter of 2012, yet our operating income decreased from prior-year levels. While our UGH Houston hospital continues to perform well, our UGH Dallas hospital has struggled to achieve expected results and we have implemented a strategic plan to improve results in the upcoming quarters,” he said in the news release.
For the nine months ended September 30, 2013, UGHS reported total revenue of $127.2 million, an increase of 51 percent compared with $84.2 million in the first nine months of 2012.
Dr. Chahadeh also noted several factors that the company believes will lead to its filing on time in future quarters.
“We are very pleased that we have now filed our three quarterly reports and believe the hiring of additional financial staff, including a chief accounting officer, two controllers at our hospitals, a controller for our Hospitality Management Company and a controller for our physician management services group, as well as a number of other support staff, will contribute to our ability to file on a timely basis in the future,” noted Dr. Chahadeh. “We invested nearly $15 million during the first nine months of 2013 on marketing initiatives, financial auditing and accounting, legal, management retention, and future development costs. These were reflected as non-capitalized expenses, and we expect at least half of these costs to be non-recurring in 2014. We expect to realize significant benefits from these investments in the current and future years.”
For more information visit www.universitygeneralhospital.com
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