American Renal Associates reports second-quarter earnings

American Renal Associates Holdings Inc. increased net patient service operating revenues by 16.8% in the second quarter of 2018, reaching $217.2 million compared to the same period last year, company officials said during an earnings call on Aug. 8.

Net loss attributable to ARA was $18 million as compared to a net loss of $2.1 million. Adjusted net income attributable to ARA was $6.9 million, or $0.20 per share, for the quarter. Total dialysis treatments increased 5.6%, of which 4.5% was non-acquired growth.

“We are pleased with the company’s second-quarter 2018 performance,” said Joseph Carlucci, chairman and CEO of ARA in a company press release. “We executed well with our business development program by opening five de novo clinics and signing three additional new deals during the second quarter of 2018. Our normalized treatment growth was 6.3% during the second quarter of 2018, and this rate of growth was essentially in-line with our expectations.”

Carlucci said revenue growth was favorably impacted by a new CMS coverage policy for calcimimetics, as well as broader adoption of coverage policies by other payers for the pharmaceuticals.

“Importantly, on a volume basis, our commercial payor mix remained stable with that of the first quarter of 2018,” the Carlucci said. The company also switched from the anemia drug Aranesp to Mircera, a lower-cost erythropoietin stimulating agent.

Company stock, traded on the New York Stock Exchange, hit $20.79 on Aug. 15, after hitting a low of $9.91 in November 2017 after shareholders and health care plan UnitedHealth Care filed lawsuits against the company over its business practices. ARA settled with UnitedHealth Care for $32 million in August and with shareholders for $4 million in February.

Reference:

http://ir.americanrenal.com/news-releases/2018/08-07-2018-210533279