MIAMI--(BUSINESS WIRE)--Pacer Health Corporation (OTCBB:
PHLH -
News), a Miami-based owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities, today reported income from operations of $229,859 compared to year-ago losses from operations of $70,115, an increase of 228%. The first-quarter earnings were positively affected by the acquisition of Knox County Hospital and the implementation of various cost restructuring plans, offset by a settlement of a preacquisition lawsuit.
Revenue for the three months ended March 31, 2007, increased 133% to $11.0 million from $4.7 million for the same period in 2006. Same facility revenue for the three months ended March 31, 2007, increased 12% to $5.1 million compared to $4.6 million for the same period in 2006.
Commenting on the first-quarter and year ahead, Rainier Gonzalez, chairman and chief executive officer said, "This was an outstanding quarter for Pacer. We achieved strong revenue growth in all of our facilities. We have made, and will continue to make, significant strides in leveraging our operations while we continue our integration of Knox County Hospital which has resulted in higher operating margins for Pacer." Mr. Gonzalez also noted, "Our strategic focus on turning around financially distressed hospitals continues to deliver solid results. This demonstrates the validity of our business model."
First quarter 2007 net loss decreased to $160,432 from year-ago net loss of $1,704,627, a decrease of 90%. First quarter results were positively impacted by the acquisition of Knox County Hospital and the implementation of various cost restructuring plans, offset by a settlement of a preacquisition lawsuit of $400,000 and interest expense related to convertible debentures of $222,501.
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities serving non-urban areas throughout the Southeast. Please visit http://www.pacerhealth.com for more information.
Forward-Looking Statements
Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's SEC filings. The Company undertakes no duty to update its forward- looking statements, including its long-term growth targets.
