Foundation
HealthCare, Inc. (OTCQB: FDNH) owns and operates surgical hospitals that
provide both general and specialty surgeries – including orthopedics,
neurosurgery, pain management, podiatry, gynecology, optometry and
gastroenterology – as well as a collection of ancillary hospital-based services
that helps set the Foundation HealthCare specialty hospital environment apart
from the competition. Additionally, Foundation HealthCare is an
industry-leading ambulatory surgery center (ASC) management and development
company offering turnkey management and development solutions for its physician
partners. Through these operations, the company is focused on creating an
outstanding patient experience while maximizing partner and shareholder value.
“Patient
care is our number one priority at Foundation HealthCare and a key
differentiator in our business model,” Stanton Nelson, chief executive officer
of Foundation, stated in a news release. “Our physician partners and our clinical
teams continue to perform at a high level which is why we believe our patient
satisfaction scores are some of the highest in the country.”
In the
second quarter of 2015, the company successfully translated its high patient
satisfaction scores into strong financial results. Foundation achieved a 44
percent year-over-year increase in net revenues for the period, recording $31.9
million, while its adjusted EBITDA rose by a massive 246 percent to $3.6
million. The company also took significant steps toward ensuring future growth
through the sale of its minority interest in an underperforming hospital in
Sherman, Texas, for a gain of $6.3 million and the negotiation of a $20 million
line of credit to aid in the pursuit of viable acquisition targets.
“The core
of Foundation’s growth strategy is to expand services at our majority-owned
hospitals and acquire more of these hospitals,” continued Nelson. “Our $20
million acquisition line of credit… combined with our continued growth
positions us well to aggressively pursue opportunities in new geographic
markets.”
The
company’s current portfolio of facilities and affiliates includes two
majority-owned surgical hospitals located in San Antonio and El Paso, Texas, as
well as minority interests in one hospital in Edmond, Oklahoma, and eight ASCs
located across five states. Foundation also maintains an interest in one
hospital outpatient department through its investment in the Edmond hospital,
and the company has a management contract with one ASC in Louisiana in which it
has no ownership interest.
As the
healthcare industry continues to shift toward value-based care options, this
diverse portfolio of properties should provide Foundation with a platform to
realize sustained financial growth moving forward. Look for the company to
leverage the added flexibility afforded by its recently negotiated line of
credit in order to capitalize on this market shift while promoting strong
returns for the foreseeable future.
For more
information, visit www.fdnh.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
