University General Health System Reports 51% Increase in Revenue for First Nine Months of 2013

University General Health System Reports 51% Increase in Revenue for First Nine 
Months of 2013 
Company Files Forms 10-Q for First Three Quarters of 2013 With SEC
and Expects Timely Filings in 2014 
HOUSTON, TX -- (Marketwired) -- 02/03/14 --  University General
Health System, Inc. (OTCQB: UGHS) a diversified, integrated
multi-specialty health delivery system, today announced significantly
improved revenue for the third quarter and first nine months of 2013.
The Company will host an investor conference call at 11:15 a.m.
Eastern Time on Tuesday, February 4, 2014 to discuss third quarter
and nine-month operating results and other topics of interest (see
details below).  
Highlights for the quarter ended September 30, 2013:  


 
--  Total revenue rose 38% to $49.6 million, compared with $36 million in
    the third quarter of 2012.
    
    
--  Net patient revenue increased 35% to approximately $43.1 million,
    compared with approximately $31.9 million in the quarter ended
    September 30, 2012. Average daily inpatient census at University
    General Hospital - Houston (UGH-Houston) remained stable relative to
    prior-year levels, reflecting an average occupancy rate of 65.0%
    versus 66.7% for the same period in 2012. The increase in net patient
    revenue was primarily attributable to the ongoing execution of the
    Company's physician-centric, integrated health delivery system
    strategy and an increase in Hospital Outpatient Revenues. University
    General Hospital - Dallas (UGH-Dallas) recorded an average occupancy
    rate of 21% of available beds. Through acquisitions, continued
    implementation of the integrated multi-specialty health delivery
    strategy, and initiatives designed to increase occupancy levels at
    University General Hospital - Dallas, management believes that
    improvement in net patient revenues will continue in 2014.
    
    
--  Resident revenue for the senior living business segment approximated
    $2.0 million, support services revenue totaled $2.1 million, and other
    revenue totaled $2.4 million in the third quarter of 2013. The senior
    living properties reported continued stable utilization, with an
    overall occupancy rate in excess of 92% for the three months ended
    September 30, 2012.
    
    
--  Net patient revenue from Medicare and Medicaid, excluding a provision
    for doubtful accounts, accounted for approximately 26.0 % of total net
    patient revenue, and revenue from commercial and managed care
    providers accounted for approximately 70.1% of net patient revenue,
    during the quarter ended September 30, 2013. This compared with 26.6%
    of total net patient revenue from Medicare and Medicaid and 72.6% from
    commercial and managed care providers in the prior-year period.
    Self-pay revenue increased from 0.8% of total net patient revenue in
    the quarter ended September 30, 2012 to 3.9% in the quarter ended
    September 30, 2013. The provision for doubtful accounts increased to
    27.0% of patient revenue in the third quarter of 2013, versus 9.9% in
    the comparable 2012 period.
    
    
--  Operating income approximated $2.8 million in the third quarter of
    2013, versus approximately $11.7 million in the prior-year quarter.
    The decrease was primarily due to losses attributable to UGH-Dallas,
    along with investments in marketing initiatives and management and
    development services.
    
    
--  The Company recorded net income attributable to common shareholders of
    $1.0 million, or $0.00 per share, in the third quarter of 2013,
    compared with net income attributable to common shareholders of $2.0
    million, or $0.01 per share, in the comparable quarter of 2012.
    
    
--  Adjusted EBITDA for the quarter totaled approximately $5.5 million in
    the quarter ended September 30, 2013, versus approximately $14.1
    million in the third quarter of 2012. (Note: Adjusted EBITDA is a
    non-GAAP measure that is reconciled with GAAP results in a table at
    the end of this press release).

  
"This was a much better quarter for the Company than the previous
quarters of 2013, and we are working diligently to improve our
financial reporting systems as well as our ongoing commitment to the
development of our physician-centric health delivery system in
Dallas," commented Dr. Hassan Chahadeh, M.D., Chairman and Chief
Executive Officer of University General Health System, Inc.
"Financially, our net revenue increased by 38% relative to the third
quarter of 2012, yet our operating income decreased from prior-year
levels. While our UGH Houston hospital continues to perform well, our
UGH Dallas hospital has struggled to achieve expected results and we
have implemented a strategic plan to improve results in the upcoming
quarters."  
Highlights for the nine months ended September 30, 2013:  


 
--  Total revenue rose 51% to $127.2 million, compared with $84.2 million
    in the first nine months of 2012.
    
    
--  Net patient revenue increased 48% to approximately $111 million,
    compared with approximately $75 million in the nine months ended
    September 30, 2012. The year-to-date increase resulted from growth in
    outpatient revenues and a stabilized occupancy rate of 62.0% at our
    Houston hospital. The Dallas hospital reflected an overall occupancy
    rate, based upon available beds, of 24.0% for the first nine months of
    2013.
    
    
--  Resident revenue for the senior living business segment approximated
    $5.9 million, support services revenue totaled $5.0 million, and other
    revenue totaled $5.7 million in the first nine months of 2013. The
    senior living properties reported continued stable utilization, with
    an overall occupancy rate in excess of 93% for the most recent
    nine-month period.
    
    
--  Net patient revenue from Medicare and Medicaid, excluding a provision
    for doubtful accounts, accounted for approximately 30.4% of total net
    patient revenue, and revenue from commercial and managed care
    providers accounted for approximately 65.5% of net patient revenue,
    during the nine months ended September 30, 2013. This compared with
    29.2% of total net patient revenue from Medicare and Medicaid and
    65.1% from commercial and managed care providers, in the corresponding
    period of the previous year. Self-pay revenue decreased from 5.7% of
    total net patient revenue in the nine months ended September 30, 2012
    to 4.1% in the nine months ended September 30, 2013. The provision for
    doubtful accounts increased to 20% of patient revenue in the first
    nine months of 2013, versus 9.3% in the comparable 2012 period. This
    significant increase is primarily due to the growth in revenues
    attributable to out-of-network benefits as well as a deterioration in
    accounts receivable aging. The Company is developing a strategic plan
    to reverse this trend in 2014. The Company also expects to announce
    that it will go in-network with two of the largest out-of-network
    insurance providers in early 2014, which should contribute to
    improvement in doubtful accounts in the current year.
    
    
--  An operating loss of ($1.8 million) was posted in the first nine
    months of 2013, versus operating income of approximately $23.6 million
    in the prior-year period.
    
    
--  Primarily due to an increase in the Company's stock price since April
    2012, a non-cash derivative expense and change in the fair market
    v
alue of the derivatives totaling $7.0 million was recorded in the
    first nine months of 2013, versus $9.8 million in derivative expense
    for the corresponding prior-year period.
    
    
--  The Company recorded a net loss attributable to common shareholders of
    ($15 million), or ($0.04) per share, in the nine months ended
    September 30, 2013, compared with net income attributable to common
    shareholders of $3.6 million, or $0.01 per share, in the comparable
    period of 2012.
    
    
--  Adjusted EBITDA for the nine months ended September 30, 2013
    approximated $10.7 million, versus approximately $29.5 million in the
    first nine months of 2012. (Note: Adjusted EBITDA is a non-GAAP
    measure that is reconciled with GAAP results in a table at the end of
    this press release).
    
    
--  Total shareholders' equity improved to $16.8 million at September 30,
    2013, from $10.7 million at December 31, 2012.

  
"We are very pleased that we have now filed our three quarterly reports
and believe the hiring of additional financial staff, including a
Chief Accounting Officer, two controllers at our hospitals, a
controller for our Hospitality Management Company and a controller
for our physician management services group, as well as a number of
other support staff, will contribute to our ability to file on a
timely basis in the future," noted Dr. Chahadeh. "We invested nearly
$15 million during the first nine months of 2013 on marketing
initiatives, financial auditing and accounting, legal, management
retention, and future development costs. These were reflected as
non-capitalized expenses, and we expect at least half of these costs
to be non-recurring in 2014. We expect to realize significant
benefits from these investments in the current and future years." 
Use of Non-GAAP Financial Measures  
Adjusted EBITDA  
Adjusted EBITDA is a measure of operating performance that is not
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). Adjusted EBITDA should not be considered in
isolation or as a substitute for net income (loss), income from
operations or cash flows provided by or used in operations, as
determined in accordance with GAAP. Adjusted EBITDA represents a key
measure of the Company's operating performance that is used by
management to evaluate operating performance by excluding certain
items of income and expense that relate to the financing and
capitalization of the business. The Company defines Adjusted EBITDA
as net income (loss) before provision (benefit) for income taxes,
non-operating (income) expense items, (gain) loss on sale of assets,
depreciation and amortization (including non-cash impairment
charges), amortization of deferred gain, and non-cash employee stock
grant expense.  
The Company believes Adjusted EBITDA is useful to investors in
evaluating its performance, results of operations and financial
position for the following reasons:  


 
--  It is helpful in identifying trends in day-to-day performance because
    the items excluded have little or no significance to day-to-day
    operations;
--  It provides an assessment of controllable expenses and affords
    management the ability to make decisions that are expected to
    facilitate the achievement of current financial goals and optimal
    financial performance; and
--  It is an indication of whether adjustments to current spending
    decisions are necessary.

  
About University General Health System, Inc.  
University General Health System, Inc. ("University General") is a
diversified, integrated multi-specialty health care provider that
delivers concierge physician and patient-oriented services by
providing timely, innovative health solutions that are uniquely
competitive, efficient, and adaptive in today's health care delivery
environment. The Company currently operates two hospitals in Houston
and Dallas, Texas, ambulatory surgical centers, a number of
diagnostic imaging and physical therapy clinics, sleep clinics,
sports and rehab clinics, poli-clinics, and a hyperbaric wound care
center. Also, University General owns three senior living facilities,
manages six senior living facilities, and owns a Support Services
company that provides revenue cycle and luxury facilities management
services. 
The Company is headquartered in Houston, Texas, and its common stock
trades on the OTCQB under the symbol "UGHS". 
Make sure you are first to receive timely information on University
General Health System, Inc. when it crosses the newswire. Sign up for
UGHS's email news alert system today at
http://ir.stockpr.com/ughsystem/email-alerts . 
Forward-Looking Statements  
The information in this news release includes certain forward-looking
statements that are based upon assumptions that in the future may
prove not to have been accurate and are subject to significant risks
and uncertainties, including statements related to the future
financial performance of the Company. Although the Company believes
that the expectations reflected in the forward-looking statements are
reasonable, it can give no assurance that such expectations or any of
its forward-looking statements will prove to be correct. Factors that
could cause results to differ include, but are not limited to,
successful execution of growth strategies, product development and
acceptance, the impact of competitive services and pricing, general
economic conditions, and other risks and uncertainties described in
the Company's periodic filings with the Securities and Exchange
Commission.  
(Financial Highlights Follow) 


 
                                                                            
                   University General Health System, Inc.                   
                        Consolidated Balance Sheets                         
                                                                            
                                                                            
                                               September 30,   December 31, 
                                               -------------  ------------- 
                                                    2013           2012     
                                               -------------  ------------- 
                    ASSETS                      (Unaudited)                 
Current Assets                                                              
Cash and cash equivalents                      $   1,471,292  $   1,188,230 
Accounts receivable, less allowance for                                     
 doubtful accounts of $47,343,827 and                                       
 $21,422,475                                      28,617,887     20,941,005 
Inventories                                        2,392,581      1,458,089 
Prepaid expenses and other assets                  4,253,796      3,986,378 
Current deferred taxes                             2,187,792      1,729,150 
                                               -------------  ------------- 
  Total Current Assets                            38,923,348     29,302,852 
                                                                            
Long-Term Assets                                                            
Property, equipment and leasehold                            
               
 improvements, net                                98,839,623     96,965,889 
Intangible assets, net                             4,848,153      5,919,000 
Goodwill                                          41,831,642     39,271,829 
Deferred tax assets                                2,853,551        659,405 
Other non-current assets, net                      2,159,371      2,721,587 
                                               -------------  ------------- 
  Total Long-Term Assets                         150,532,340    145,537,710 
                                                                            
                                               -------------  ------------- 
  Total Assets                                 $ 189,455,688  $ 174,840,562 
                                               =============  ============= 
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)                              
Current Liabilities                                                         
Accounts payable                               $  18,260,258  $   9,699,411 
Payables to related parties                        2,154,739      2,133,053 
Accrued expenses                                  13,405,037     11,938,589 
Payroll taxes payable                              3,185,898      1,610,836 
Income tax payable                                14,896,483     11,813,198 
Deferred revenue                                   1,385,592        238,846 
Notes payable, current portion                    21,510,306     26,089,305 
Notes payable to related parties, current                                   
 portion                                           1,329,375      1,853,380 
Capital lease obligations, current portion           835,385        826,800 
Derivative liability                                 564,824      4,897,053 
                                               -------------  ------------- 
  Total Current Liabilities                       77,527,897     71,100,471 
                                                                            
Long-Term Liabilities                                                       
Lines of credit, less current portion             18,613,293     12,579,933 
Notes payable, less current portion               42,198,002     46,947,860 
Capital lease obligations, less current                                     
 portion                                          31,211,290     30,928,491 
                                               -------------  ------------- 
  Total Long-Term Liabilities                     92,022,585     90,456,284 
                                                                            
Total Liabilities                                169,550,482    161,556,755 
                                                                            
Commitments and contingencies                                               
                                                                            
Series C, convertible preferred stock, $0.001                               
 par value, 20,000,000 shares authorized,                                   
 3,626 and 3,379 shares issued and                                          
 outstanding, respectively ($1,000 stated          3,079,292      2,566,308 
 value)                                                                     
                                                                            
Shareholders' Equity and (Deficiency)                                       
Preferred, par value $0.001, 20,000,000 shares                              
 authorized, Preferred stock Series B - 3,000                               
 shares issued and outstanding                             3              3 
Common stock, par value $0.001, 480,000,000                                 
 shares authorized,376,803,299 and 343,459,294                              
 shares issued and outstanding, respectively         376,803        343,459 
Additional paid-in-capital                        86,525,014     65,419,774 
Shareholders' receivables                         (2,518,569)    (2,828,251)
Accumulated deficit                              (72,321,878)   (57,186,915)
                                               -------------  ------------- 
  Total shareholders' equity                      12,061,373      5,748,070 
Noncontrolling interest                            4,764,541      4,969,429 
                                               -------------  ------------- 
  Total equity                                    16,825,914     10,717,499 
                                               -------------  ------------- 
  Total Liabilities and Shareholders' Equity   $ 189,455,688  $ 174,840,562 
                                               =============  ============= 
                                                                            
                                                                            
                                                                            
                   University General Health System, Inc.                   
                   Consolidated Statements of Operations                    
                                (Unaudited)                                 
                                                                            
                         Three Months Ended           Nine Months Ended     
                            September 30,               September 30,       
                     --------------------------  -------------------------- 
                         2013          2012          2013          2012     
                     ------------  ------------  ------------  ------------ 
Revenues                                                                    
  Patient service                                                           
   revenues, net of                                                         
   contractual                                                              
   adjustments       $ 58,957,696  $ 35,351,438  $138,091,078  $ 82,675,939 
  Provision for                                                             
   doubtful accounts  (15,882,706)   (3,494,644)  (27,516,589)   (7,682,475)
                     ------------  ------------  ------------  ------------ 
  Net patient                                                               
   service revenue                                                          
   less provision                                                           
   for doubful                                                              
   accounts            43,074,990    31,856,794   110,574,489    74,993,464 
  Senior living                                                             
   revenues             1,952,308     1,969,785     5,937,310     5,746,643 
  Support services                                                          
   revenues             2,084,213       702,542     5,011,325     1,581,606 
  Other revenues        2,440,186     1,491,270     5,719,737     1,858,810 
                     ------------  ------------  ------------  ------------ 
    Total revenues     49,551,697    36,020,391   127,242,861    84,180,523 
                                                                            
Operating expenses                                                          
  Salaries, wages                                                           
   and benefits        20,074,367    10,448,799    58,204,402    27,466,450 
  Medical supplies      8,183,573     4,820,777    20,195,617    11,612,638 
  General and                                                               
   administrative                                                           
   expenses                                                                 
   (includes related                                           
             
   party expenses of                                                        
   $144,600 and                                                             
   $372,697 for the                                                         
   three months                                                             
   ended and                                                                
   $605,026 and                                                             
   $1,054,340 for                                                           
   the nine months                                                          
   ended,                                                                   
   respectively)       15,775,004     7,222,741    41,887,838    19,117,554 
  Gain on                                                                   
   extinguishment of                                                        
   liabilities                  -      (618,353)      (64,517)   (3,521,879)
  Depreciation and                                                          
   amortization                                                             
   (includes related                                                        
   party expenses of                                                        
   $0 and $171,290                                                          
   for three months                                                         
   ended and $0 and                                                         
   $513,870 for nine                                                        
   months ended,                                                            
   respectively)        2,677,210     2,443,747     8,812,874     5,938,840 
                     ------------  ------------  ------------  ------------ 
    Total operating                                                         
     expenses          46,710,154    24,317,711   129,036,214    60,613,603 
                     ------------  ------------  ------------  ------------ 
Operating income                                                            
 (loss)                 2,841,543    11,702,680    (1,793,353)   23,566,920 
Other income                                                                
 (expense)                                                                  
Interest expense,                                                           
 net of interest                                                            
 income of $21,500                                                          
 and $20,000 for                                                            
 three months ended                                                         
 and $64,500 and                                                            
 $60,000 for nine                                                           
 months ended                                                               
 (includes related                                                          
 party interest                                                             
 expense $29,614 and                                                        
 $571,394 for the                                                           
 three months ended                                                         
 and $104,286 and                                                           
 $1,734,144 for the                                                         
 nine months ended)    (1,858,474)   (1,363,821)   (5,494,145)   (4,187,121)
Other income                                                                
 (expense)                             (252,970)      510,707      (381,026)
Direct investor                                                             
 expense                        -      (857,674)   (4,918,121)   (5,558,963)
Change in fair                                                              
 market value                                                               
 derivatives              302,500    (5,173,513)   (2,067,251)   (4,256,980)
                     ------------  ------------  ------------  ------------ 
Income (loss) before                                                        
 income tax             1,285,569     4,054,702   (13,762,163)    9,182,830 
  Income tax expense      143,499     2,271,631       430,497     5,777,762 
                     ------------  ------------  ------------  ------------ 
Income (loss) before                                                        
 noncontrolling                                                             
 interest               1,142,070     1,783,071   (14,192,660)    3,405,068 
Net income                                                                  
 attributable to                                                            
 noncontrolling                                                             
 interests                 72,893       212,131       204,888       239,966 
                     ------------  ------------  ------------  ------------ 
Net income (loss)                                                           
 attributable to the                                                        
 Company             $  1,214,963  $  1,995,202  $(13,987,772) $  3,645,034 
                     ============  ============  ============  ============ 
                                                                            
Less: Cash dividend-                                                        
 Convertible                                                                
 Preferred C Stock          6,359       (53,387)      (43,949)      (53,387)
Less: Accretion non-                                                        
 cash dividend-                                                             
 Convertible                                                                
 Preferred C Stock       (241,023)     (145,562)     (897,860)     (236,879)
                                                                            
                     ------------  ------------  ------------  ------------ 
Net income (loss)                                                           
 attributable to                                                            
 common shareholders $    980,299  $  1,796,253  $(14,929,581) $  3,354,768 
                     ============  ============  ============  ============ 
                                                                            
Basic and diluted                                                           
 income (loss) per                                                          
 share data:                                                                
                                                                            
  Basic earnings                                                            
   (loss) per common                                                        
   share             $       0.00  $       0.01  $      (0.04) $       0.01 
                     ============  ============  ============  ============ 
                                                                            
  Basic weighted                                                            
   average shares                                                           
   outstanding        372,809,534   325,144,781   364,568,843   306,101,581 
                     ============  ============  ============  ============ 
                                                                            
  Diluted earnings                                                          
   (loss) per common                                                        
   share             $       0.00  $       0.01  $      (0.04) $       0.01 
                     ============  ============  ============  ============ 
                                                                 
           
  Diluted weighted                                                          
   average shares                                                           
   outstanding        399,102,442   346,557,557   364,568,843   325,967,397 
                     ============  ============  ============  ============ 
                                                                            
                                                                            
                                                                            

 
                   University General Health System, Inc.                   
                   Consolidated Statements of Cash Flows                    
                                (Unaudited)                                 
                                                                            
                                                     Nine Months Ended      
                                                       September 30,        
                                               ---------------------------- 
                                                    2013           2012     
                                               -------------  ------------- 
Cash flows from operating activities:                                       
  Net income (loss)                            $ (14,192,660) $   3,405,068 
  Adjustments to reconcile net income (loss)                                
   to net cash provided by operating                                        
   activities:                                                              
    Depreciation and amortization                  8,812,874      5,938,840 
    Provision for doubtful accounts               27,516,589      7,682,475 
    Gain on sales of assets                                -        (11,583)
    Gain on extinguishment of liabilities            (64,517)    (3,521,879)
    Deferred income taxes benefits                (2,652,788)             - 
    Compensation expense                           3,636,000              - 
    Direct investor expense                        4,918,122      5,558,963 
    Change in fair market value of derivatives     2,067,251      4,256,980 
    Other                                            675,412        392,609 
  Net changes in operating assets and                                       
   liabilities:                                                             
    Accounts receivable                          (35,193,471)   (20,212,013)
    Related party receivables and payables            21,686        321,621 
    Inventories                                     (934,492)       415,081 
    Prepaid expenses and other assets               (737,029)    (2,033,897)
    Accounts payable, accrued expenses and                                  
     taxes payable                                14,472,255      2,750,062 
    Deferred revenues                              1,146,746        (50,171)
                                               -------------  ------------- 
      Net cash provided by operating                                        
       activities                                  9,491,978      4,892,156 
                                               -------------  ------------- 
Cash flows from investing activities:                                       
  Additions to property, equipment and                                      
   leasehold improvements                         (5,860,463)    (2,009,359)
  Business acquisitions, net of cash acquired     (1,733,562)      (222,594)
  Investments in unconsolidated affiliates            60,000       (160,000)
                                               -------------  ------------- 
    Net cash used in investing activities         (7,534,025)    (2,391,953)
                                               -------------  ------------- 
Cash flows from financing activities:                                       
  Proceeds from revolving credit facility                                   
   borrowings                                     88,693,593     12,269,000 
  Payments of revolving credit facility                                     
   borrowings                                    (82,660,233)    (8,451,025)
  Distribution to noncontrolling interests                 -       (172,762)
  Issuance of common stock                         2,200,000      5,195,827 
  Issuance of Preferred Series C Convertible                                
   Stock, net issuance costs                       2,974,181      3,344,669 
  Dividend paid on Preferred C Convertible                                  
   Stock                                            (205,382)       (76,160)
  Borrowings under notes payable                   1,389,042      8,122,781 
  Payments on notes payable                      (12,804,493)   (13,155,873)
  Payments on debt issuance costs                          -       (798,251)
  Borrowings under notes payable to related                                 
   party                                             144,081         43,685 
  Payments on notes payable to related party        (668,087)      (145,003)
  Payments on capital leases                        (737,593)    (3,873,037)
                                               -------------  ------------- 
    Net cash used in financing activities         (1,674,891)     2,303,851 
                                               -------------  ------------- 
                                                                            
Net increase in cash and cash equivalents            283,062      4,804,054 
Cash and cash equivalents:                                                  
  Beginning of period                              1,188,230        538,018 
                                               -------------  ------------- 
  End of period                                $   1,471,292  $   5,342,072 
                                               =============  ============= 
Supplemental disclosures of cash flow                                       
 information:                                                               
  Interest paid                                $   4,789,838  $   4,690,494 
  Income taxes paid                            $           -  $     383,434 
Supplemental noncash investing activities:                                  
  Property and equipment additions financed    $   1,028,978  $     819,236 
Supplemental noncash financing activities:                                  
  Issuance of common stock                     $   4,638,772  $     670,000 
  Transfer of related party debt to third                                   
   party debt                                  $           -  $   2,510,836 
  Noncash consideration paid for acquisitions  $   2,113,069  $   7,789,624 
  Dividend on Preferred C Convertible Stock    $      43,949  $      53,387 
  Derivative ceases to exist                   $  11,637,078  $           - 
                                                                            
                                                                            
                                                                            
                   UNIVERSITY GENERAL HEALTH SYSTEM, INC.                   
                        Adjusted EBITDA Calculation                         
                                                                            
Adjusted EBITDA 2013                                                        
                                           Three Months Ended September 30, 
                                                 2013             2012      
                                           ---------------  --------------- 
Net income (loss) attributable to the                                       
 Company                                   $     1,214,963  $     1,995,202 
(Income) loss attributable to                          
                     
 noncontrolling interests                  $       (72,893) $      (212,131)
Provision (benefit) for income taxes               143,499        2,271,631 
Other non-operating expense (income)                     -          252,970 
Interest expense:                                                           
  Debt and lease obligations                     1,879,974        1,383,821 
Interest (income)                                  (21,500)         (20,000)
Direct investor expense                                  -          857,674 
Change in fair value of derivatives               (302,500)       5,173,513 
Depreciation and amortization                    2,677,210        2,443,747 
                                           ---------------  --------------- 
Adjusted EBITDA                            $     5,518,753  $    14,146,427 
                                           ===============  =============== 
                                                                            
                                                                            
                                            Nine Months Ended September 30, 
                                                 2013             2012      
                                           ---------------  --------------- 
Net income (loss) attributable to the                                       
 Company                                   $   (13,987,772) $     3,645,034 
(Income) loss attributable to                                               
 noncontrolling interests                  $      (204,888) $      (239,966)
Employee stock grant expense                     3,636,000                - 
Provision (benefit) for income taxes               430,497        5,777,762 
Other non-operating expense (income)              (510,707)         381,026 
Interest expense:                                                           
  Debt and lease obligations                     5,558,645        4,247,121 
Interest (income)                                  (64,500)         (60,000)
Direct investor expense                          4,918,121        5,558,963 
Change in fair value of derivatives              2,067,251        4,256,980 
Depreciation and amortization                    8,812,874        5,938,840 
                                           ---------------  --------------- 
Adjusted EBITDA                            $    10,655,521  $    29,505,760 
                                           ===============  =============== 

  
Contacts:
Donald Sapaugh
President
University General Health System, Inc.
(713) 375-7557
dsapaugh@ughs.net  
R. Jerry Falkner, CFA
RJ Falkner & Company, Inc.
(800) 377-9893
info@rjfalkner.com 
 
 
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