WASHINGTON (dpa-AFX) - Hospital operator Tenet Healthcare Corp. (THC) reported Tuesday a decline in first-quarter profit, reflecting mainly higher bad debt expenses, despite about 2 percent rise in revenues. The company also confirmed its earnings outlook for 2012.
On April 26, Tenet raised its 2012 adjusted EBITDA forecast to a new range of $1.250 billion to $1.375 billion, an increase of $25 million.
The company noted that its bad debt expense widened 6 percent to $193 million. Selected operating expenses advanced 1.9 percent per adjusted admission.
Trevor Fetter, president and chief executive officer of the company said, 'Our solid first quarter performance allowed us to raise our 2012 Outlook for Adjusted EBITDA by an additional $25 million. This was our second Outlook increase this year.'
During the quarter, adjusted admissions increased 2.8 percent from last year, while total admissions declined 0.1 percent. Normalized for a weak flu season, total admissions grew 0.2 percent. Surgeries improved 6.6 percent and Emergency Department visits was up 5.2 percent from the preceding year.
In the first quarter, net income attributable to shareholders declined to $58 million or $0.13 per share from $73 million or $0.14 per share reported last year.
On average, 16 analysts polled by Thomson Reuters expected earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude one-time items.
Adjusted EBITDA for the recent quarter was $314 million, lower than $379 million in the year-ago quarter.
Net revenues increased 2.2 percent to $2.35 billion from $2.3 billion in the same quarter last year, but was below analysts' estimate of $2.49 billion. Net patient revenue per adjusted patient day was $2,518, an increase of 1.6 percent.
Looking ahead to the second quarter, the company expects adjusted EBITDA to be in the range of $225 million to $250 million.
THC is currently trading at $4.85, down 3.74 percent, on a volume of 1.28 million shares on the NYSE.
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