Team Health Holdings Q3 Profit Down

(RTTNews) - Team Health Holdings, Inc. (TMH), a provider of outsourced physician staffing solutions for hospitals in the United States, reported that its net earnings for its third quarter of 2014 were $27.6 million, or $0.38 per share, down from $29.4 million, or $0.41 per share, in the third quarter of 2013.

The financial results for the third quarter of 2014 included $3.1 million of contingent purchase and other acquisition compensation expense ($2.4 million after-tax), non-cash amortization expense of $13.0 million ($8.8 million after tax), and a $7.1 million increase in prior year professional liability loss reserves ($4.4 million million after tax).

Financial results for the third quarter of 2013 included a credit of $1.6 million of contingent purchase and other acquisition compensation expense ($0.7 million after-tax), and non-cash amortization expense of $8.7 million.

Excluding the items, net earnings for the third quarter of 2014 would have been $43.2 million and Adjusted earnings per share would have been $0.60 per share. Excluding the items, net earnings for the third quarter of 2013 would have been $34.6 million and Adjusted earnings per share would have been $0.49 per share.

As a result of the recent increased pace of acquisition closings, the Company also incurred an elevated level of transaction costs in the third quarter of 2014 in the amount of $3.1 million, which constrained Adjusted Earnings Per Share by approximately $0.04 per share.

Net revenue increased 17.5% to $712.2 million from $606.1 million in the third quarter of 2013. Acquisitions contributed 10.1%, same contract revenue contributed 7.1%, and net sales growth contributed 0.3% of the increase in quarter-over-quarter growth in net revenue.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share and revenues of $688.07 million for the quarter. Analysts' estimates typically exclude special items.

The company believes that it remains well positioned to achieve revenue and earnings growth through the remainder of 2014 and have great momentum going into next year. As a result of its financial performance through the first three quarters of 2014 and its current expectations about operating trends and contributions from recent acquisitions over the remainder of the year, it has increased its estimate for net revenue growth for fiscal year 2014. Its revised net revenue range is now between $2.77 billion and $2.79 billion, reflecting an annual growth rate of between 16.0% and 17.0%, which is an increase from the prior guidance of 13.0% to 14.0%. Analysts expect the company to report revenues of $2.71 billion for fiscal 2014.