In the report, Envision noted that its board of directors authorized a share repurchase program of up to $500 million.
In terms of the 2015 guidance, the company updated its outlook and expects adjusted EBITDA in the range of $600 million to $605 million and EPS to be in the range of $1.28 to $1.30. The consensus estimates for the full year are $1.46 in EPS on $5.44 billion in revenue.
William A. Sanger, chairman, president and CEO of Envision, said:
While our AMR and Evolution Health results for the 2015 third quarter were in line, performance at EmCare fell short of our expectations. EmCare’s same-store revenue growth, while positive, was lower than in recent quarters due to a reduction in anticipated volume. On a sequential basis, EmCare’s revenue, when excluding Evolution Health, grew by $3.7 million, while compensation and benefits were up $14 million in the quarter. As staffing schedules are set 45 to 60 days in advance, based on anticipated volumes and hospital expectations, we were not successful in adjusting coverage in line with lower-than-expected volumes.
He added:
In addition, a number of recent contract starts had staffing challenges that resulted in higher-than-expected temporary compensation costs in the period. Most of those contracts have either been renegotiated or are being terminated during the fourth quarter.
On the books, Envision’s cash and cash equivalents totaled $129.89 million at the end of the third quarter, compared to $318.90 million at the end of December 2014.
Shares of Envision were last seen trading down more than 31% at $25.03. The stock has a consensus analyst price target of $48.56 and a 52-week trading range of $20.41 to $45.95.
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