Team Health CFO: Balance sheet supports growth; leverage comfortable

By Jennifer Lanning Drey

Savannah, Ga., Jan. 13 - Team Health Holdings Inc. has a balance sheet that is very supportive of its growth objectives, with $142 million of liquidity and no immediate refinancing needs, David Jones, Team Health's chief financial officer, said during a Thursday presentation at the JPMorgan health care conference in San Francisco.

The company's free cash flow, combined with the expansion of EBTIDA over time, has allowed it to delever fairly aggressively, he later added.

Team Health's cash flow provided by operations increased to $45.8 million in the third quarter ended Sept. 30 versus $35.3 million in the same quarter of 2009.

"This is a business that generates a significant amount of free cash flow," Jones said.

As a result, Team Health is now about 2.7 times leveraged versus about 6 times leveraged in 2005, he said.

"That's a very comfortable leverage position for us, and we think it allows for additional growth in the future," Jones said.

As previously reported, the company also redeemed $46 million of 11 ¼% senior notes in December with cash on hand.

Team Health is a Knoxville, Tenn.-based provider of outsourced health care professional staffing and administrative services to hospitals and other health care institutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.