Vanguard Health 4Q net income falls on sale costs

Vanguard Health 4th-qtr net income falls on costs related to its sale to Tenet and other items

Associated Press

NASHVILLE, Tenn. (AP) -- Hospital operator Vanguard Health Systems, which is being acquired by competitor Tenet Healthcare, said its net income fell in the fourth quarter.

Vanguard said its net income decreased because of one-time charges related to the sale of the company along with restructuring, impairment, and debt retirement charges. The company runs 28 acute care and specialty hospitals in markets including Chicago, Detroit, San Antonio, Boston, and Phoenix.

Vanguard Health Systems Inc. said its net income declined to $14.5 million, or 18 cents per share, from $19.3 million, or 24 cents per share. Revenue rose 4 percent, to $1.52 billion from $1.45 billion.

Analysts were expecting net income of 18 cents per share and $1.51 billion in revenue, according to FactSet.

The company said its revenue rose 1 percent to $6 billion in fiscal 2013. The period ended June 30.

Tenet Healthcare Corp. agreed to buy Vanguard in June for $21 per share, or about $1.8 billion. The companies valued the deal at $4.3 billion including debt, and they expect the sale to close before the end of the year.

Shares of Vanguard Health Systems lost 4 cents to $20.90 in afternoon trading.

View Comments (0)