In This Article:
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Full-Year Facility Service Revenue: Increased by 1.1% to $331.5 million.
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Income from Operations: Grew 10.5% to $54.7 million, excluding impairment of goodwill.
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Adjusted EBITDA: Increased 7.3% to $71.4 million.
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Fourth Quarter Facility Service Revenue: Decreased by 1.1% to $91.1 million.
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Total Surgical Cases: Decreased by 0.2%, with inpatient cases down 5.3% and observation cases down 4.3%, offset by a 2% increase in outpatient cases.
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Pain Management Cases: Increased by 2.4% in the quarter.
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Total Operating Expenses: Essentially flat, declining by $0.1 million.
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Consolidated Salaries and Benefits: Increased by 4.8% due to higher salaries, wages, and benefit costs.
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Drugs and Supplies: Decreased by 4% due to fewer orthopedic and spine cases and improved implant cost savings.
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G&A Expenses: Decreased by 1.2% when excluding a $0.5 million increase in corporate level costs.
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Impairment Charge: $2.3 million against Goodwill related to Newport ASC.
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Income from Operations (Q4): Down 4.9% to $17.4 million.
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Adjusted EBITDA (Q4): Down 2.8% to $21.7 million.
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Cash and Cash Equivalents: Increased to $108.5 million at year-end.
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Dividends Paid: $6.1 million during 2024.
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Share Repurchase: $16.6 million returned to shareholders through NCIB, including $5.3 million in Q4.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Medical Facilities Corp (MFCSF) reported solid increases in income from operations, adjusted EBITDA, and net income for the year 2024.
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The sale of Black Hills to Sanford Health resulted in cash proceeds of $96.1 million, significantly strengthening the company's balance sheet.
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The company achieved a record high year-end cash balance of $108.5 million, enhancing its ability to return capital to shareholders.
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Medical Facilities Corp (MFCSF) repurchased approximately 1.7 million common shares, returning $16.6 million to shareholders under its normal course issuer bid.
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Arkansas Surgical Hospital received the 2024 Press Ganey Human Experience Guardian of Excellence Award for the fifth consecutive year, highlighting the company's commitment to quality care.
Negative Points
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Fourth quarter facility service revenue decreased by 1.1% to $91.1 million due to lower surgical case volumes.
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Income from operations in the fourth quarter was down 4.9% to $17.4 million, and adjusted EBITDA decreased by 2.8% to $21.7 million.
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The company recorded a $2.3 million impairment charge against Goodwill related to its Newport ASC due to a competitive environment.
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Consolidated salaries and benefits increased by 4.8% due to higher clinical and non-clinical salaries and wages, impacting overall expenses.
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Corporate expenses were higher year-over-year, influenced by a non-cash impact of the mark-to-market adjustment for share-based compensation.