DYNACQ International Dynacq Healthcare Inc. - The Surgical Model of the Future

Dynacq Healthcare, Inc. Announces Financial Results for the Fiscal Quarter Ended February 28, 2009
HOUSTON--(BUSINESS WIRE)—April 14, 2009--Dynacq Healthcare, Inc. (DYII) today reported financial results for the second fiscal quarter ended February 28, 2009. For the fiscal quarter ended February 28, 2009, the Company had income from continuing operations of $290,000, or $0.02 per share, which was an improvement from the first quarter of this fiscal year, but not from the same quarter in the previous fiscal year. All per share amounts are calculated on a fully diluted basis.

The net patient service revenue in the quarter ended February 28, 2009 improved from the first quarter ended November 30, 2008 by $1.9 million, or 18%, from $10.8 million for the quarter ended November 30, 2008 to $12.8 million for the quarter ended February 28, 2009. The income from continuing operations increased to $290,000 for the quarter ended February 28, 2009 compared to a loss from continuing operations of $643,000 for the quarter ended November 30, 2008.

Net patient service revenues for the quarter decreased by $8.3 million, or 39%, from $21.1 million for the same quarter in 2008 to $12.8 million in 2009. The overall number of cases decreased in the current period and the contractual allowance as a percentage of gross billed charges increased due to lower reimbursements, primarily on workers’ compensation cases. Additionally, in the prior period, revenues of $3.8 million were recognized based on settlements reached with insurance carriers for Medical Dispute Resolution accounts receivable with dates of service ranging from 2001 to 2005.

Net income for the quarter ended February 28, 2009 was $290,000, or $0.02 per share, versus net income of $7.4 million, or $0.44 per share, in the quarter ended February 29, 2008 due in part to the sale of the Company’s Baton Rouge facility, which was reported as discontinued operations, during the quarter ended February 29, 2008. The gain on sale of this facility was $2.8 million, or $0.17 per share, net of income taxes.

Net patient service revenues for the six months ended February 28, 2009 decreased by $11.3 million, or 32%, from $34.9 million for the same six month period in 2008 to $23.6 million in 2009. The contractual allowance as a percentage of gross billed charges increased due to lower reimbursements, primarily on workers’ compensation cases. Additionally, in the prior period revenues of $4.5 million were recognized based on settlements reached with insurance carriers for Medical Dispute Resolution accounts receivable with dates of service ranging from 2001 to 2005. 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. Loss from continuing operations for the six months ended February 28, 2009 was $352,000, or $0.02 per share, versus income from continuing operations of $7.0 million, or $0.42 per share, in the same period in 2008. Net loss was $352,000, or $0.02 per share, for the six months ended February 28, 2009 versus net income of $9.8 million, or $0.59 per share, for the same period in 2008, in part because the Company sold its Baton Rouge facility, which was reported as discontinued operations, during the quarter ended February 29, 2008. The gain on sale of this facility was $2.8 million, or $0.17 per share, net of income taxes.

Dynacq Healthcare, Inc. ("www.dynacq.com") is a holding company. Its subsidiaries provide surgical healthcare services and related ancillary services through hospital facilities.


Contact:

Dynacq Healthcare, Inc., Houston
Philip S. Chan, 713-378-2000
info@dynacq.com

Source: Dynacq Healthcare, Inc.

Copyright © 2004 Dynacq Healthcare, Inc. All rights reserved.
Privacy Policy