Wellness services provider Healthways on Tuesday afternoon reported a second-quarter profit of $5.1 million, down from $5.8 million a year ago. Per diluted share, earnings were 15 cents, 8 cents better than analysts had expected.
Revenues at Franklin-based Healthways rose slightly to $170 million, with performance-based fees offsetting the drop in business from Cigna, which is winding down its large contract with the company. Excluding Cigna, Healthways' top line grew by 11 percent from last year's second quarter. During the period, the company signed up nine new customers and expanded or extended another 14 contracts.
"We continue to expect substantially stronger earnings for the second half of 2012 than the first half of the year, with second-half earnings to be more heavily weighted to the fourth quarter," said President and CEO Ben Leedle. "Net cash flows from operations for the second quarter totaled $21.7 million. We continue to expect net cash flows from operations for all of 2012 in a range of $60 million to $80 million."
Shares of Healthways (Ticker: HWAY) closed Tuesday trading at $8.45. Year to date, they're up more than 20 percent.
Surgery center chain AmSurg posted Q2 profits of $55.5 million, a jump of 20 percent from a year ago. Per diluted share, earnings came in at 49 cents, a penny shy of estimates.
Nashville-based AmSurg saw revenues climb 23 percent to almost $232 million, with same-center revenues rising 3 percent from the spring of 2011. But operating margins fell a point to 30.9 percent primarily because the company's supply costs jumped almost 40 percent from a year ago.
"We are pleased with the improved operating environment evidenced by two consecutive quarters of at least 3% same-center revenue growth, compared with 1% for the first two quarters last year," said President and CEO Chris Holden. "While not discounting the potential impact of uncertain economic conditions and high unemployment, our second-quarter results support our confidence in meeting our guidance of revenue and earnings growth in the mid to high teens for 2012."
AmSurg shares (Ticker: AMSG) closed Tuesday trading at $29.70 and are up about 14 percent in 2012.