Earnings wrap: Iasis, Delek Logistics

People costs jump at hospital chain, better-than-expected Q1 for pipeline owner

Iasis Healthcare posted a profit of $1.2 million in its second fiscal quarter, which was down significantly from the Franklin-based health care company’s year-ago results of $11.2 million.

Revenues for the quarter rose slightly from last year to $654 million. Hospital admissions fell by 1.3 percent while adjusted admissions — a number that excludes skilled nursing and chemical dependency patients — increased 0.8 percent, a positive sign in a marketplace generally seeing falling admissions.

Second-quarter salaries and benefits paid to Iasis’ hospital employees totaled $253 million, a jump of 11 percent. That number was a big factor in the hospital division swinging to a loss of $6.6 million versus a year-ago profit of $8.8 million.

In their report, Iasis executives said, “The second quarter included strong volume increases in January due, in part, to an earlier peak in flu related cases followed by weaker volume in February and, especially, March due to the impact of the ‘leap year’ effect, holidays and generally weaker volume in those months.”

Net revenue per adjusted admission in the quarter fell 1 percent from the prior-year quarter. The 2012 number included a boost from Medicare-related adjustments.

Delek Logistics Partners earned $12.2 million in the first quarter of this year, a jump from the $2.5 million its predecessor organization earned in early 2012. Revenues fell 12 percent to $211 million but the company’s cost of goods sold fell 17 percent to $188 million.

Chairman and CEO Uzi Yemin said the quarter’s performance was better than expected and that his team expects to buy more assets from its mothership Delek US Holdings organization in the second half of the year.

Delek Logistics partner units (Ticker: DKL) were up slightly to $33.58 in late-morning trading Wednesday. They’ve climbed more than 45 percent year to date.