|HOUSTON--(BUSINESS WIRE)—January 14, 2009--Dynacq Healthcare, Inc. (DYII) today reported financial results for the first fiscal quarter ended November 30, 2008. For the fiscal quarter ended November 30, 2008, the Company had a loss from continuing operations of $643,000, or $(0.04) per share, compared to income from continuing operations of $2.2 million, or $0.13 per share, in the fiscal quarter ended November 30, 2007, primarily due to reduced levels of reimbursement for workers’ compensation cases as a result of the new workers’ compensation fee guidelines and the temporary closure of the Company’s Pasadena, Texas facility damaged by Hurricane Ike. All per share amounts are calculated on a fully diluted basis.
Net patient service revenues for the quarter decreased by $3.0 million, or 21%, from $13.8 million in 2007 to $10.9 million in 2008. Even though the number of cases and the gross billed charges increased by 13% and 28%, respectively, net patient service revenue decreased due to an increase in the contractual allowance as a percentage of gross billed charges. The contractual allowance increased from 54% of gross billed charges for the quarter ended November 30, 2007 to 72% for the quarter ended November 30, 2008, due to lower reimbursements, primarily on workers’ compensation cases based on the Texas Workers’ Compensation 2008 Acute Care Hospital Outpatient and Inpatient Facility Fee Guidelines, which became effective March 1, 2008. Gross billed charges and net patient service revenues were also negatively impacted by Hurricane Ike in the month of September 2008 for our Pasadena facility, which was not in full operations for about three weeks.
Net loss for the quarter ended November 30, 2008 was $643,000, or $(0.04) per share, versus net income of $2.4 million, or $0.14 per share, in the quarter ended November 30, 2007.
Dynacq Healthcare, Inc. ("www.dynacq.com") is a holding company.
Its subsidiaries provide surgical healthcare services and related
ancillary services through hospital facilities.
Dynacq Healthcare, Inc., Houston
Philip S. Chan, 713-378-2000
Dynacq Healthcare, Inc.