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	Quarterly Financials
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Quarterly Financials
-Annual Audit

Current Financial Press Release

Immediate (September 17, 2008)

Mike Noble
Marketing and Communications
802-847-2886

Fletcher Allen Releases Year-to-Date and Third Quarter Financial Results

BURLINGTON VT - Fletcher Allen reported an operating income of $13.7 million for the first three quarters of the 2008 fiscal year. This includes an operating income of approximately $9.0 million for the third quarter. The third quarter covers the period beginning April 1 and ending June 30.

Third Quarter Results

Operating income for the third quarter was $2.8 million above budget and $3.6 million above the corresponding quarter in FY 2007. Net operating revenues for the quarter were $200.6 million, $2.9 million above budgeted revenues. The organization's operating expenses for the quarter were $191.6 million, $147,000 under budget, resulting in an operating income of approximately $9.0 million and an operating margin of approximately 4.49% for the third quarter. By comparison, the organization produced an income from operations of $5.4 million in the third quarter of FY 2007.

Year-to-date Results

On a year-to-date basis, $13.7 million net income from operations was below the budgeted $16.2 million for the period, and produced an operating margin of 2.3%. A year ago, the organization generated a three-quarter operating gain of $21.8 million. For the first three quarters of the fiscal year, net operating revenues were $585.3 million, $4.6 million below budget. Operating expenses were $571.7 million, below budget by $2.0 million. The fiscal year runs from October 1 through September 30.

A key financial indicator, earnings before interest, depreciation and amortization (EBIDA) stood at approximately $56.6 million for the first three quarters. This was just below the FY 2008 budget forecast of $57.7 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 above budget by slightly less than 1%. Combined Inpatient and Outpatient Days, a measure of the number of patients in the hospital each day, were approximately 18% above budget, and physician office visits were less than 1% below budget. At the end of the second quarter, days cash on hand stood at 121.8 days using a 12-month rolling average. This indicator is a projected estimate of the number of days an organization could meet operating expenditures provided no additional revenues were received.

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, 2006 and 2007, as well as the quarterly results for FY 2003 through the third quarter of FY 2008, are available on the Fletcher Allen Web site at www.fletcherallen.org .

About Fletcher Allen

Fletcher Allen Health Care, together with our partners at the University of Vermont College of Medicine and the College of Nursing and Health Sciences, is Vermont’s academic medical center. Our mission is to improve the health of the people in the communities we serve by integrating patient care, education and research in a caring environment. Fletcher Allen serves as a regional referral center -- providing advanced care to approximately one million people in Vermont and northern New York -- and as a community hospital for approximately 150,000 residents in Chittenden and Grand Isle counties. With more than 30 patient care sites and 100 outreach clinics, programs and services throughout the region, Fletcher Allen is committed to being a national model for the delivery of high-quality academic health care for a rural region.