Prospect Medical turns fiscal 3Q profit of $2.8 M
Prospect Medical Holdings Inc., which has agreed to be acquired by a private equity firm, said Tuesday it turned a profit in its fiscal third quarter as revenue edged up 2 percent.
The Los Angeles company has five hospitals in Southern California and provides health care management services to people enrolled in HMO plans. It earned $2.8 million, or 12 cents per share, in the three months that ended June 30. That compares to a loss of $238,000, or a penny per share, in the same quarter of 2009.
Revenue climbed to $116.9 million from $114.3 million.
The company said it agreed to be acquired by an entity sponsored by Leonard Green & Partners LP for $8.50 per share in cash.
Prospect Medical's shares fell 6 cents to $8.48 in Tuesday afternoon trading.
For the quarter, the company said its hospital services revenue increased nearly 5 percent to $69.5 million, but medical group revenues fell slightly to $47.4 million due in part to lower HMO enrollment levels caused by high unemployment.