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Team Health Q3 net revenue rises 26%

November 04, 2015

Team Health Holdings Inc. (NYSE: TMH), a clinical outsourcing provider in healthcare, reported third-quarter net revenue rose 26.2% to $899.2 million. Team Health operates healthcare staffing firm D&Y among its other business operations.

“Third quarter consolidated revenue growth was driven by positive contributions from acquisitions, net new contract sales, and same contract results,” said President and CEO Mike Snow. “The company continued to benefit from the significant number of transactions we closed in 2014 and 2015, as the financial performance of our recent acquisitions was again the largest driver of our revenue increase between quarters.”

Net earnings attributable to Team Health rose 28.5% in the third quarter to $35.4 million.

Financial results for the third quarter of 2015 included a credit of $3.5 million of contingent purchase and other acquisition compensation expense ($3.1 million after-tax), non-cash amortization expense of $20.6 million ($15.1 million after-tax) and $2.6 million in non-tax-deductible transaction costs related to the proposed IPC Healthcare Inc. merger.

Team Health this week rejected a second, revised merger deal from AmSurg Corp.

Team Health expects net revenue growth for fiscal year 2015 to range between $3.52 billion and $3.55 billion, reflecting an annual growth rate of 25.0% to 26.0%.

Shares in Team Health rose 1.13% in early afternoon trading today to $57.06. The company had a market cap of $4.13 billion, according to Yahoo!