Revenue cycle manager and clinical information intermediary Emdeon posted a net loss of $59.5 million in the second quarter, when it took a big impairment charge related to a pharmacy services client that will not renew its contract in full.
Excluding that $73.2 million writedown, Nashville-based Emdeon would have posted operating profits of $19.0 million versus $15.7 million the year prior. Adjusted EBITDA, officials said, grew to $90.3 million from $77.2 million. Revenues grew 10 percent to $336 million.
"We continued to experience positive momentum throughout our business as evidenced by a robust pipeline and a continued substantial increase in new sales over the prior year quarter,” said President and CEO Neil de Crescenzo. “We are excited to expand our capabilities with the acquisition of Capario that closed in late July and brings a suite of innovative, cloud-based applications. Capario is expected to add to our Adjusted EBITDA in 2014 and further enhances our strategy and forward growth trajectory.”
Emdeon's earnings release didn't include details about the pharmacy services customer pulling back from its current level of service. The company's quarterly report added only that it "abandoned a customer related project that was under development and assessed the recoverability of the net assets included in the relevant asset group" before taking the charge. Through the first six months of the year, the pharmacy segment booked revenues of $61.3 million, up from $50.1 million from the first half of 2013. Adjusted EBITDA for those periods was $32.4 million and $29.1 million, respectively.
Skilled nursing provider Diversicare Healthcare Services posted second-quarter net income of $1.1 million, or 17 cents per diluted share, up from a loss of $2.1 million the year prior.
The company announced revenues of $82.3 million, up from $61.5 million in Q2 2013, an increase primarily due to the acquisition of 11 nursing centers in the last two years. Adjusted EBITDA increased to $4.6 million from a loss of $500,000 the year prior. Occupancy in the quarter increased to 78.2 percent from 74.9 percent, and same-store revenues increased 4.7 percent.
"I am extremely pleased to announce our second quarter results, which are a direct reflection of our strategic plans and operating initiatives coming to fruition," Kelly Gill, Diversicare CEO, said in a release."The second quarter marks our third consecutive quarter of strong EBITDA growth since the culmination of our restructuring in the third quarter of 2013. I believe this continuation of the results from the previous two quarters is indicative of the sustainable path established through our completed strategic investments and repositioning of the company."
Shares of Diversicare (Ticker: DVCR) were down 2.5 percent to $6.61 Thursday afternoon. Year to date, they're up 42 percent.
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