Accretive Health Reports EPS $0.09 Vs. $0.09 Estimates (AH)

Accretive Health AH today announced financial results for the quarter and year ended December 31, 2010. Financial Results - Fourth Quarter and Year Ended 2010: -Net services revenue for the fourth quarter of 2010 was $170.0 million, an increase of $32.5 million, or 24%, over the fourth quarter of 2009. Net services revenue for the year ended December 31, 2010 was $606.3 million, an increase of $96.1 million, or 19%, over the year ended December 31, 2009. -Operating margin for the fourth quarter of 2010 was $38.3 million, an increase of $10.0 million, or 35%, over the fourth quarter of 2009. Operating margin for the year ended December 31, 2010 was $128.0 million, an increase of $28.5 million, or 29%, over the year ended December 31, 2009. -Non-GAAP adjusted EBITDA was $16.7 million for the fourth quarter of 2010, an increase of $6.0 million, or 56%, over the fourth quarter of 2009. Non-GAAP adjusted EBITDA in the fourth quarter of 2010 reflects increased investment in the new Quality and Total Cost of Care offering and public company costs incurred during the period which together aggregated $1.8 million. -Non-GAAP adjusted EBITDA for the year ended December 31, 2010 was $45.0 million, an increase of $12.1 million, or 37%, from the 2009 results. Non-GAAP adjusted EBITDA for 2010 reflects $4.4 million of increased investment in the new Quality and Total Cost of Care offering and $1.3 million of public company costs. -Non-GAAP adjusted net income per diluted common share was $0.09 and $0.24 for the fourth quarter and year ended December 31, 2010, respectively. Net income attributable to common shareholders for the fourth quarter of 2010 was $5.5 million, an increase of $3.2 million when compared to the $2.3 million attributable to common shareholders during the fourth quarter of 2009. Net income attributable to common shareholders for the year ended December 31, 2010 was $12.6 million, an increase of $6.1 million when compared to the $6.5 million attributable to common shareholders during the year ended December 31, 2009. -Diluted net income per common share was $0.06 and $0.13 for the quarter and year ended December 31, 2010, respectively. Mary Tolan, Accretive Health's Co-Founder and Chief Executive Officer said, “We continue to grow our revenue cycle management business with new client additions and strong value creation for these clients and the company. The strength of our market presence continued to expand as evidenced by a pipeline of opportunities that is the strongest the company has ever seen. Since the public offering in 2010, we have more potential customers reaching out to learn about our offering and the value it can deliver for their organization. Our clients continued to adopt our Shared Services offering, further validating the strength of our customer partnerships. We expanded our already sizable market opportunity with the launch of our new and innovative Quality and Total Cost of Care offering with our inaugural customer Fairview Health Services. The Quality and Total Cost of Care offering, only a few months into implementation, is delivering results in line with our expectations on key quality and total cost of care metrics." “Looking ahead, we believe we are poised for strong growth and profitability in 2011 and beyond. Our new business pipeline is robust and we are encouraged by the high level of engagement we encounter when meeting with provider CEOs and CFOs. The significant revenue cycle sales campaigns we discussed last quarter are progressing well. We are also excited about the early opportunities we are seeing in our new Quality and Total Cost of Care business, where we are in active contract negotiations with two potential clients. In the coming years, we expect to benefit from continued growth in our revenue cycle management business, including a growing contribution from incentive payments as our contracts mature, and from new contracts in our Quality and Total Cost of Care offering.”