Solid Profits Point LifePoint to Acquisitions

LifePoint Hospitals said today that net income increased to $41.8 million, or 76 cents per share, in the first quarter ended March 31, compared with income of $29.8 million or 53 cents a share, during the year ago period. Analysts had forecast earnings of 61 cents per share, excluding special items. The Brentwood, Tenn.-based rural hospital operator said revenues rose to $699.9 million in the quarter, up 5.8 percent from $661.2 million for the same period a year ago.

LifePoint (Nasdaq: LPNT) said it set aside $82.7 million, or 11.8 percent of net revenue, for doubtful accounts, up from $73.1 million, or 11.1 percent, during the year ago period.

LifePoint raised it earnings guidance to reflect a favorable tax adjustment in the first quarter and the impact of its share repurchase plan. The company now expects earnings in the range of $2.35 to $2.65 a share. In February it forecast earnings in the range of $2.25 to $2.55 per share.

LifePoint executives said the firm it will aggressively pursue acquisitions.

"The pipeline [for acquisitions] appears to be more open again," a top executive said during LifePoint’s conference call to discuss first-quarter results.

LifePoint provides healthcare services in non-urban communities in 17 states. Most of the 48 hospitals it operates are in communities where LifePoint Hospitals is the only community hospital provider.