Nobilis Health Corp. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported total revenues of $69,189,000 against $79,962,000 a year ago. The year-over-year change in top line revenues in the second quarter can be attributed to the discontinuation of Lab Testing ancillary, representing $8.3 million of nonrecurring revenue in the second quarter. Income from operations was $4,130,000 against $7,385,000 a year ago. Income before income taxes and non-controlling interests was $2,235,000 against $5,504,000 a year ago. Net income attributable to the company was $885,000 or $0.01 per diluted share against $1,585,000 or $0.02 per diluted share a year ago. However, net income was impacted by an additional $1.3 million of amortization related to the Elite acquisition. Excluding that impact, net income for the second quarter 2018 would have increased to $2.2 million. EBITDA was $9,880,000 against $8,005,000 a year ago. Adjusted EBITDA was $11,434,000 against $10,053,000 a year ago.

For the six months, the company reported total revenues of $133,533,000 against $148,264,000 a year ago. The primary contributor to shortfall in year-over-year revenue was a $15 million decrease in patient and net professional fees. Income from operations was $2,298,000 against $4,250,000 a year ago. Loss before income taxes and non-controlling interests was $1,610,000 against income of $1,747,000 a year ago. Net loss attributable to the company was $2,967,000 or $0.04 per diluted share against $813,000 or $0.01 per diluted share a year ago and was also negatively impacted by the increased amortization for the Elite acquisition. Net cash provided by operating activities was $2,728,000 against $18,894,000 a year ago. Purchase of property and equipment was $1,338,000 against $3,802,000 a year ago. EBITDA was $12,934,000 against $7,732,000 a year ago. Adjusted EBITDA was $16,520,000 against $12,067,000 a year ago.

Given the results of the first half of the year, the company is lowering its 2018 revenue guidance to $315 million to $330 million and adjusted EBITDA in the range of $56 million to $59 million.