Envision Healthcare Announces Two EmCare Acquisitions;sees FY15 Adj. EPS In Line

(RTTNews) - Envision Healthcare Holdings Inc. (EVHC) announced that its EmCare, Inc. business has entered into two agreements to acquire Emergency Medical Associates (EMA) of Parsippany, N.J. and Scottsdale Emergency Associates, LTD (SEA) of Phoenix, Ariz. The physician groups are expected to add an estimated $300 million to EmCare's revenues and approximately 1.9 million patient encounters annually.

The acquisitions are expected to close before the end of February pending completion of certain closing conditions. Nexus Health Capital served as the Investment Banking Advisor to EMA and SEA.

Arizona's Department of Health Services approved American Medical Response or AMR's application to provide ambulance services in most of Maricopa County, including Phoenix. The Director's approval is subject to the normal appeal and review processes.

Envision expects 2015 full-year Adjusted EBITDA to be $653 to $665 million and Adjusted earnings per share to be $1.42 to $1.50. Analysts polled by Thomson Reuters expect the company to report earnings of $1.48 per share for fiscal 2015. Analysts' estimates typically exclude special items.

First quarter 2015 Adjusted EBITDA and Adjusted earnings per share is expected to be approximately 19 to 20 percent of the full-year guidance due to normal expense seasonality, including higher payroll taxes in the first quarter, particularly for its EmCare subsidiary; the anticipated loss of Medicare parity for care reimbursed for certain Medicaid patients effective January 1, 2015 and the timing of the closing of the EMA and SEA acquisitions.