Quorum Health Corporation reported second-quarter 2016 adjusted loss of $1.02 per share, comparing unfavorably with the Zacks Consensus Estimate of earnings of 11 cents. The company had reported earnings of 5 cents per share in the year-ago quarter. The loss per share figure excludes impairment charges of $216.1 million or $7.61 per share.

On Apr 29, Quorum Health became an independent public company post its spin off from Community Health Systems (CYH Quick QuoteCYH - Free Report) . The company includes 38 affiliated hospitals and related outpatient services in 16 states.

Quarter Details

Total net operating revenues declined 1.6% year over year to $529.7 million. Number of licensed beds at end of period declined 0.4% to 3.579. Adjusted admissions were 58,942, down 2.5% from the year-ago quarter.

However, total operating costs and expenses climbed 4.1% from the year-ago quarter to almost $532 million, led by a 4.4% year-over-year rise in salaries and benefits amounting to $264.9 million.

Notably, operating results excludes $250.4 million of impairment charges, $1.2 million of transaction costs related to the spin-off and $5.4 million of legal and settlement costs.
 

Adjusted EBITDA in the second quarter was $29.2 million, representing a 51% decline from the year-earlier quarter’s $59.6 million.

Guidance

For full-year 2016, Quorum Health anticipates net operating revenues in the range of $2.2 billion to $2.2 billion.

Adjusted EBITDA is estimated in the band of $175 million to $200 million.

Some notable companies in the broader medical sector include Natus Medical Inc. and Masimo Corporation (MASI Quick QuoteMASI - Free Report) .

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