BURLINGTON VT - Fletcher Allen reported an operating income of $16.4 million for the first two quarters of the 2007 fiscal year. This includes an operating income of approximately $8.8 million for the second quarter.  The second quarter covers the period beginning January 1 and ending March 31, 2007.

Second Quarter Results

Operating income for the second quarter was $5.1 million above budget and $5.5 million above the corresponding quarter in FY 2006.  Net operating revenues for the quarter were $189.7 million, $9.8 above budgeted revenues.  The organization's operating expenses for the quarter were $181.0 million, $4.7 million over budget, resulting in an operating income of $8.8 million and an operating margin of 4.6% for the second quarter.  By comparison, the organization produced an income from operations of $3.3 million in the second quarter of FY 2006.

Year-to-date Results

On a year-to-date basis, $16.4 million net income from operations was above the budgeted $7.8 million for the period, and produced an operating margin of 4.4%. A year ago, the organization generated a two-quarter operating gain of $1.3 million.  Operating expenses for the first half of the fiscal year were above budget by $7.1 million.

A key financial indicator, earnings before interest, depreciation and amortization (EBIDA) stood at $41.7 million for the first two quarters.  This was above the FY 2007 budget forecast of $34.2 million.  EBIDA provides a good measure of the organization's actual earnings.

Key volume measures for the two quarters were mixed. Total inpatient discharges were below budget by about 5.3%.  Combined Inpatient and Outpatient Days, a measure of the number of patients in the hospital each day, were approximately19% above budget, and physician office visits were approximately 1% below budget.  At the end of the second quarter, days cash on hand stood at 111.6 days using a 12-month rolling average.

The institution began making its quarterly financials public with the release of the first quarter results for FY 2003 in February 2003.  The audited financial statements for the years ending September 30, 2005 and 2006, as well as the quarterly results for FY 2003 through the second quarter of FY 2007, are available on the Fletcher Allen Web site at www.fletcherallen.org.

• FY 2007 Second Quarter Y-T-D Financial Results
• FY 2007 Second Quarter Financial Results