NovaMed, Inc. (NovaMed) has reported total net revenue of $141.2 million for the full year 2008, up 10%, compared with the total net revenue of $128.6 million in the previous year-end. It reported net income of $9.5 million, or $0.38 per diluted share, for the full year of 2008, compared with the net loss of $5.5 million, or $0.22 per diluted share, in the previous year-end.
Total net revenue grew to $36.1 million, up 8% from $33.13 million in the prior year fourth quarter. Net revenue from surgical facilities was also up 8% to $30,280,000 from $28,118,000 in the prior year fourth quarter, despite a 2% decline in same facility net revenue. Net income from continuing operations in the fourth quarter of 2008 was $2,403,000, or $0.10 per diluted share, compared to $850,000, or $0.03 per diluted share, in the prior year fourth quarter (net income from continuing operations in the fourth quarter of 2007 was negatively impacted by a loss on equity investment and severance expense of $1,238,000 which totaled $0.05 per diluted share). Net cash provided by operations was $8,053,000 in the fourth quarter of 2008, up 8% from $7,464,000 in the prior year fourth quarter.
“In a year marked by significant economic challenges for all industries, we are pleased to report that NovaMed had very solid financial performance in both the fourth quarter and 2008,” commented Mr. Hall. “Our strong cash flow from operations of $8.1 million in the fourth quarter and $25.1 million for the year demonstrates our financial health and we are well positioned for growth in 2009.”
Highlights of fourth quarter continuing operations include:
Net income from continuing operations increased 183% to $2,403,000
Cash flow from operations increased 8% to $8,053,000
Operating income increased 12% to $9,223,000
Total net revenue increased 8% to $36,177,000
For the year ended December 31, 2008, net revenue from surgical facilities growing to $116,447,000, up 10% from $105,752,000 in 2007. Net income from continuing operations in 2008 was $9.3 million, or $0.37 per diluted share, compared to $5.9 million, or $0.24 per diluted share, in 2007, an increase of 57%. Same-facility net revenue growth was 2% for 2008. Net cash provided by operations was $25,051,000 in 2008, up 37% from $18,342,000 in 2007.
During the fourth quarter of 2008, NovaMed completed two acquisitions and continued to execute its stock repurchase program. On December 1, 2008, NovaMed acquired a 65% interest in two separate ambulatory surgery centers. Both facilities are located in Pennsylvania. NovaMed also acquired about 1,809,000 shares of its common stock in the fourth quarter of 2008 as part of a stock repurchase program previously announced on July 31, 2008. The total shares purchased in 2008 were about 1,909,000.
“Our year-end acquisition of two large multi-specialty centers and growing cash flow provides NovaMed with solid growth momentum as we move into 2009,” added Hall.