HCA Reports First Quarter 2001 EPS of $0.60 vs $0.53 Last Year Excluding Gains, Restructuring and Investigation Related Costs

Apr 23, 2001, 01:00 ET from HCA

    NASHVILLE, Tenn., April 23 /PRNewswire Interactive News Release/ --
     HCA (NYSE:   HCA) today announced operating results for the first quarter
 ended March 31, 2001.  "This was another outstanding quarter for the Company,"
 stated Jack O. Bovender, Jr., CEO and President of HCA.  "Our same-facility
 hospital volumes were strong, as was our revenue per admission, resulting in
 excellent same facility net revenue growth.  Our operating costs as a
 percentage of net revenue continued to improve, more than offsetting higher
 interest expense and the significant costs we are incurring in our shared
 services initiatives.  We believe that our shared services investments will
 generate substantial long-term benefits in our supply, administrative and
 infrastructure costs," Bovender added.
     Revenues for the first quarter totaled $4.5 billion compared to
 $4.3 billion in the first quarter of 2000.  Net income, excluding gains on
 sales of facilities and restructuring and investigation related costs (non-
 recurring items), totaled $331 million or $0.60 per diluted share for the
 first quarter of 2001, compared to $306 million or $0.53 per diluted share in
 the first quarter of 2000.  Net income, including non-recurring items, totaled
 $326 million or $0.59 per diluted share for the first quarter of 2001, versus
 $296 million or $0.52 per diluted share in the same period of 2000.
     Same facility revenues for the first quarter increased 6.8 percent, while
 revenue per equivalent admission increased 4.9 percent.  Same facility
 inpatient revenue per admission rose 6.9 percent.   Same facility admissions
 increased 2.3 percent for the quarter.  All prior-year comparisons include the
 results of an additional business day in 2000 associated with leap year.
 Net income, excluding the amortization of goodwill and non-recurring items,
 totaled $348 million or $0.63 per diluted share for the quarter, compared to
 $324 million or $0.56 per diluted share for the first quarter of 2000.
     At March 31, 2001, the Company's balance sheet reflected total debt of
 $6.7 billion, stockholders' equity of $4.5 billion and total assets of
 $17.5 billion.  The Company's debt-to-debt plus common, temporary and minority
 equity was 53 percent at March 31, 2001.  Capital expenditures for the quarter
 were $273 million.
     During the first quarter, the Company settled repurchases of 7.6 million
 shares of its common stock at a total cost of $247 million (average cost of
 $32.43 per share).  At March 31, 2001, 26.7 million shares at a cost of
 $872 million, had been purchased by certain financial institutions utilizing
 forward purchase contracts.  These shares remain outstanding until the related
 forward purchase contracts are settled by the Company.  As of March 31, 2001,
 the Company had 537 million shares outstanding compared to 557 million at
 March 31, 2000.
     As of March 31, 2001, the Company operated 194 hospitals and 77 ambulatory
 surgery centers (including 9 hospitals and 3 ASCs owned through equity joint
 ventures), compared to 205 hospitals and 83 ambulatory surgery centers
 (including 13 hospitals and 3 ASCs owned through equity joint ventures) as of
 March 31, 2000.  During the first quarter of 2001, the Company sold two
 hospitals and one ASC.
     The Company's annual shareholders meeting will be held in Nashville,
 Tennessee on May 24th at 1:30 p.m. Central Daylight Time for shareholders of
 record at March 30, 2001.
     HCA will host a conference call for investors at 8:30 a.m. Central
 Daylight Time today.  All interested investors are invited to access a live
 audio broadcast of the call, via webcast.  The broadcast also will be
 available on a replay basis beginning this afternoon and throughout the next
 30 days.  The webcast can be accessed at www.videonewswire.com/HCA/042301/ or
 via the Investor Relations site at www.hcahealthcare.com.
 
     This press release contains forward-looking statements based on current
 management expectations.  Those forward-looking statements include statements
 other than those made solely with respect to historical fact.  Numerous risks,
 uncertainties and other factors may cause actual results to differ materially
 from those expressed in any forward-looking statements.  These factors
 include, but are not limited to, (i) the outcome of the known and unknown
 governmental investigations and litigation involving the Company's business
 practices, including the ability to negotiate, execute and timely consummate
 definitive settlement agreements in the government's civil cases and to obtain
 court approval thereof, (ii) the highly competitive nature of the health care
 business, (iii) the efforts of insurers, health care providers and others to
 contain health care costs, (iv) possible changes in the Medicare and Medicaid
 programs that may impact reimbursements to health care providers and insurers,
 (v) changes in Federal, state or local regulation affecting the health care
 industry, (vi) the possible enactment of Federal or state health care reform,
 (vii) the ability to attract and retain qualified management and personnel,
 including affiliated physicians, nurses and medical support personnel, (viii)
 liabilities and other claims asserted against the Company, (ix) fluctuations
 in the market value of the Company's common stock, (x) ability to complete the
 share repurchase program and to settle related forward purchase contracts,
 (xi) changes in accounting practices, (xii) changes in general economic
 conditions, (xiii) future divestitures which may result in additional charges,
 (xiv) changes in revenue mix and the ability to enter into and renew managed
 care provider arrangements on acceptable terms, (xv) the availability and
 terms of capital to fund the expansion of the Company's business, (xvi)
 changes in business strategy or development plans, (xvii) slowness of
 reimbursement, (xviii) the ability to implement the Company's shared services
 and other initiatives and realize a decrease in administrative and
 infrastructure costs, (xix)  the outcome of pending and any future tax audits
 and litigation associated with the Company's tax positions, (xx) the outcome
 of the Company's continuing efforts to monitor, maintain and comply with
 appropriate laws, regulations, policies and procedures and the Company's
 corporate integrity agreement with the government, (xxi) increased reviews of
 the Company's cost reports, (xxii) the ability to maintain and increase
 patient volumes and control the costs of providing services, and (xxiii) other
 risk factors detailed from time to time in the Company's filings with the SEC.
 Many of the factors that will determine the Company's future results are
 beyond the ability of the Company to control or predict.  Readers should not
 place undue reliance on forward-looking statements, which reflect management's
 views only as of the date hereof.  The Company undertakes no obligation to
 revise or update any forward-looking statements, or to make any other forward-
 looking statements, whether as a result of new information, future events or
 otherwise.
     All references to "Company" and "HCA" as used throughout this document
 refer to HCA - The Healthcare Company and its affiliates.
 
 
                          HCA
            Consolidated Operating Results Summary
       (Dollars in millions, except per share amounts)
 
 
                                                 First Quarter
                                                2001       2000
 
     Revenues                                 $4,501     $4,271
 
     EBITDA (a)                                 $972       $906
 
     Net income:
      Excluding gains on sales of facilities
       and restructuring of operations
       and investigation related costs          $331       $306
      Gains on sales of facilities
      (net of tax)                                 4         --
      Restructuring of operations and
       investigation related costs
       (net of tax)                               (9)       (10)
 
     Net income                                 $326       $296
 
 
     Diluted earnings per share:
      Excluding gains on sales of facilities
       and restructuring of operations
       and investigation related costs         $0.60      $0.53
      Gains on sales of facilities              0.01         --
      Restructuring of operations and
       investigation related costs             (0.02)     (0.01)
 
        Net income                             $0.59      $0.52
 
     Shares used in computing
      diluted earnings per share (000)       554,818    573,054
 
     (a) EBITDA is defined as income before depreciation and amortization,
         interest expense, gains on sales of facilities, restructuring of
         operations and investigation related costs, minority interests and
         income taxes.
 
 
                           HCA
                 Consolidated Income Statements
                         First Quarter
         (Dollars in millions, except per share amounts)
 
                                   2001                 2000
                            Amount    Ratio      Amount      Ratio
 
     Revenues               $4,501    100.0%     $4,271      100.0%
 
     Salaries and
      benefits               1,782     39.6       1,661       38.9
     Supplies                  711     15.8         670       15.7
     Other operating
      expenses                 757     16.8         764       17.8
     Provision for doubtful
      accounts                 325      7.2         302        7.1
     Equity in earnings
      of affiliates            (46)    (1.0)        (32)      (0.7)
 
                             3,529     78.4       3,365       78.8
 
        EBITDA                 972     21.6         906       21.2
 
     Depreciation and
      amortization             257      5.7         256        6.0
     Interest expense          142      3.2         119        2.8
     Gains on sales of
      facilities               (13)    (0.3)         --         --
     Restructuring of
      operations and
      investigation related
      costs                    14       0.3          13        0.3
 
 
     Income before minority
      interests and
      income taxes            572      12.7         518       12.1
 
     Minority interests in
      earnings of consolidated
      entities                 30       0.7          26        0.6
 
     Income before income
      taxes                   542      12.0         492       11.5
 
     Provision for income
      taxes                   216       4.8         196        4.6
 
     Net income              $326       7.2        $296        6.9
 
     Diluted earnings per share:
      Excluding gains on sales of
       facilities and restructuring
       of operations and
       investigation
       related costs        $0.60                 $0.53
      Gains on sales of
       facilities            0.01                    --
      Restructuring of
       operations and
       investigation
       related costs        (0.02)                (0.01)
 
      Net income            $0.59                 $0.52
 
     Shares used in computing
      diluted earnings
      per share (000)     554,818               573,054
 
 
 
                              HCA
                  Consolidated Balance Sheets
                     (Dollars in millions)
 
                                          March 31,   December 31,
                                            2001           2000
 
     ASSETS
     Current assets:
      Cash and cash equivalents             $188           $314
      Accounts receivable, net             2,412          2,211
      Other                                1,825          1,928
 
        Total current assets               4,425          4,453
 
     Property and equipment, at cost      14,388         14,290
     Accumulated depreciation             (5,943)        (5,810)
 
                                           8,445          8,480
 
     Investments of insurance subsidiary   1,301          1,371
     Investments in and advances
      to affiliates                          822            779
     Intangible assets, net                2,117          2,155
     Other                                   433            330
 
                                         $17,543        $17,568
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
      Accounts payable                      $691           $693
      Other current liabilities            1,423          1,487
      Government settlement accrual          745            840
      Long-term debt due within one year     730          1,121
 
        Total current liabilities          3,589          4,141
 
     Long-term debt                        5,926          5,631
     Professional liability
      risks, deferred taxes
      and other liabilities                2,199          2,050
     Minority interests in
      equity of consolidated
      entities                               583            572
     Forward purchase contracts and
      put options                            747            769
 
     Stockholders' equity                  4,499          4,405
 
                                         $17,543        $17,568
 
     Current ratio                          1.23           1.08
     Ratio of debt to debt plus common,
      temporary and minority equity         53.3%          54.0%
     Shares outstanding (thousands)      537,222        542,992
 
 
                             HCA
                     Operating Statistics
 
 
                                             First Quarter
                                           2001         2000
     Consolidated Hospitals:
 
     Number of Hospitals                    185           192
     Weighted Average Licensed Beds      40,950        42,184
     Licensed Beds at End of Period      40,895        42,006
 
     Admissions                         412,000       408,100
      Same Facility % Change                2.3%
     Equivalent Admissions              597,800       595,900
      Same Facility % Change                1.8%
     Revenue per Equivalent
      Admissions                         $7,528        $7,168
       Same Facility % Change               4.9%
     Inpatient Revenue per Admission
      Same Facility % Change                6.9%
 
     Patient Days                     2,055,700     2,065,400
     Equivalent Patient Days          2,982,900     3,015,500
 
     Emergency Room Visits            1,186,200     1,140,800
      Same Facility % Change                7.7%
 
     Outpatient Revenues as a
      Percentage of
      Patient Revenues                     36.3%         36.7%
 
     Average Length of Stay                 5.0           5.1
 
     Occupancy                             55.8%         53.8%
     Equivalent Occupancy                  81.0%         78.5%
 
     Number of Consolidated and
      Non-Consolidated (50/50 Equity
      Joint Ventures) Hospitals:
 
       Consolidated                         185           192
       Non-Consolidated (50/50 Equity
        Joint Ventures)                       9            13
 
       Total Number of Hospitals            194           205
 
 
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SOURCE HCA
    NASHVILLE, Tenn., April 23 /PRNewswire Interactive News Release/ --
     HCA (NYSE:   HCA) today announced operating results for the first quarter
 ended March 31, 2001.  "This was another outstanding quarter for the Company,"
 stated Jack O. Bovender, Jr., CEO and President of HCA.  "Our same-facility
 hospital volumes were strong, as was our revenue per admission, resulting in
 excellent same facility net revenue growth.  Our operating costs as a
 percentage of net revenue continued to improve, more than offsetting higher
 interest expense and the significant costs we are incurring in our shared
 services initiatives.  We believe that our shared services investments will
 generate substantial long-term benefits in our supply, administrative and
 infrastructure costs," Bovender added.
     Revenues for the first quarter totaled $4.5 billion compared to
 $4.3 billion in the first quarter of 2000.  Net income, excluding gains on
 sales of facilities and restructuring and investigation related costs (non-
 recurring items), totaled $331 million or $0.60 per diluted share for the
 first quarter of 2001, compared to $306 million or $0.53 per diluted share in
 the first quarter of 2000.  Net income, including non-recurring items, totaled
 $326 million or $0.59 per diluted share for the first quarter of 2001, versus
 $296 million or $0.52 per diluted share in the same period of 2000.
     Same facility revenues for the first quarter increased 6.8 percent, while
 revenue per equivalent admission increased 4.9 percent.  Same facility
 inpatient revenue per admission rose 6.9 percent.   Same facility admissions
 increased 2.3 percent for the quarter.  All prior-year comparisons include the
 results of an additional business day in 2000 associated with leap year.
 Net income, excluding the amortization of goodwill and non-recurring items,
 totaled $348 million or $0.63 per diluted share for the quarter, compared to
 $324 million or $0.56 per diluted share for the first quarter of 2000.
     At March 31, 2001, the Company's balance sheet reflected total debt of
 $6.7 billion, stockholders' equity of $4.5 billion and total assets of
 $17.5 billion.  The Company's debt-to-debt plus common, temporary and minority
 equity was 53 percent at March 31, 2001.  Capital expenditures for the quarter
 were $273 million.
     During the first quarter, the Company settled repurchases of 7.6 million
 shares of its common stock at a total cost of $247 million (average cost of
 $32.43 per share).  At March 31, 2001, 26.7 million shares at a cost of
 $872 million, had been purchased by certain financial institutions utilizing
 forward purchase contracts.  These shares remain outstanding until the related
 forward purchase contracts are settled by the Company.  As of March 31, 2001,
 the Company had 537 million shares outstanding compared to 557 million at
 March 31, 2000.
     As of March 31, 2001, the Company operated 194 hospitals and 77 ambulatory
 surgery centers (including 9 hospitals and 3 ASCs owned through equity joint
 ventures), compared to 205 hospitals and 83 ambulatory surgery centers
 (including 13 hospitals and 3 ASCs owned through equity joint ventures) as of
 March 31, 2000.  During the first quarter of 2001, the Company sold two
 hospitals and one ASC.
     The Company's annual shareholders meeting will be held in Nashville,
 Tennessee on May 24th at 1:30 p.m. Central Daylight Time for shareholders of
 record at March 30, 2001.
     HCA will host a conference call for investors at 8:30 a.m. Central
 Daylight Time today.  All interested investors are invited to access a live
 audio broadcast of the call, via webcast.  The broadcast also will be
 available on a replay basis beginning this afternoon and throughout the next
 30 days.  The webcast can be accessed at www.videonewswire.com/HCA/042301/ or
 via the Investor Relations site at www.hcahealthcare.com.
 
     This press release contains forward-looking statements based on current
 management expectations.  Those forward-looking statements include statements
 other than those made solely with respect to historical fact.  Numerous risks,
 uncertainties and other factors may cause actual results to differ materially
 from those expressed in any forward-looking statements.  These factors
 include, but are not limited to, (i) the outcome of the known and unknown
 governmental investigations and litigation involving the Company's business
 practices, including the ability to negotiate, execute and timely consummate
 definitive settlement agreements in the government's civil cases and to obtain
 court approval thereof, (ii) the highly competitive nature of the health care
 business, (iii) the efforts of insurers, health care providers and others to
 contain health care costs, (iv) possible changes in the Medicare and Medicaid
 programs that may impact reimbursements to health care providers and insurers,
 (v) changes in Federal, state or local regulation affecting the health care
 industry, (vi) the possible enactment of Federal or state health care reform,
 (vii) the ability to attract and retain qualified management and personnel,
 including affiliated physicians, nurses and medical support personnel, (viii)
 liabilities and other claims asserted against the Company, (ix) fluctuations
 in the market value of the Company's common stock, (x) ability to complete the
 share repurchase program and to settle related forward purchase contracts,
 (xi) changes in accounting practices, (xii) changes in general economic
 conditions, (xiii) future divestitures which may result in additional charges,
 (xiv) changes in revenue mix and the ability to enter into and renew managed
 care provider arrangements on acceptable terms, (xv) the availability and
 terms of capital to fund the expansion of the Company's business, (xvi)
 changes in business strategy or development plans, (xvii) slowness of
 reimbursement, (xviii) the ability to implement the Company's shared services
 and other initiatives and realize a decrease in administrative and
 infrastructure costs, (xix)  the outcome of pending and any future tax audits
 and litigation associated with the Company's tax positions, (xx) the outcome
 of the Company's continuing efforts to monitor, maintain and comply with
 appropriate laws, regulations, policies and procedures and the Company's
 corporate integrity agreement with the government, (xxi) increased reviews of
 the Company's cost reports, (xxii) the ability to maintain and increase
 patient volumes and control the costs of providing services, and (xxiii) other
 risk factors detailed from time to time in the Company's filings with the SEC.
 Many of the factors that will determine the Company's future results are
 beyond the ability of the Company to control or predict.  Readers should not
 place undue reliance on forward-looking statements, which reflect management's
 views only as of the date hereof.  The Company undertakes no obligation to
 revise or update any forward-looking statements, or to make any other forward-
 looking statements, whether as a result of new information, future events or
 otherwise.
     All references to "Company" and "HCA" as used throughout this document
 refer to HCA - The Healthcare Company and its affiliates.
 
 
                          HCA
            Consolidated Operating Results Summary
       (Dollars in millions, except per share amounts)
 
 
                                                 First Quarter
                                                2001       2000
 
     Revenues                                 $4,501     $4,271
 
     EBITDA (a)                                 $972       $906
 
     Net income:
      Excluding gains on sales of facilities
       and restructuring of operations
       and investigation related costs          $331       $306
      Gains on sales of facilities
      (net of tax)                                 4         --
      Restructuring of operations and
       investigation related costs
       (net of tax)                               (9)       (10)
 
     Net income                                 $326       $296
 
 
     Diluted earnings per share:
      Excluding gains on sales of facilities
       and restructuring of operations
       and investigation related costs         $0.60      $0.53
      Gains on sales of facilities              0.01         --
      Restructuring of operations and
       investigation related costs             (0.02)     (0.01)
 
        Net income                             $0.59      $0.52
 
     Shares used in computing
      diluted earnings per share (000)       554,818    573,054
 
     (a) EBITDA is defined as income before depreciation and amortization,
         interest expense, gains on sales of facilities, restructuring of
         operations and investigation related costs, minority interests and
         income taxes.
 
 
                           HCA
                 Consolidated Income Statements
                         First Quarter
         (Dollars in millions, except per share amounts)
 
                                   2001                 2000
                            Amount    Ratio      Amount      Ratio
 
     Revenues               $4,501    100.0%     $4,271      100.0%
 
     Salaries and
      benefits               1,782     39.6       1,661       38.9
     Supplies                  711     15.8         670       15.7
     Other operating
      expenses                 757     16.8         764       17.8
     Provision for doubtful
      accounts                 325      7.2         302        7.1
     Equity in earnings
      of affiliates            (46)    (1.0)        (32)      (0.7)
 
                             3,529     78.4       3,365       78.8
 
        EBITDA                 972     21.6         906       21.2
 
     Depreciation and
      amortization             257      5.7         256        6.0
     Interest expense          142      3.2         119        2.8
     Gains on sales of
      facilities               (13)    (0.3)         --         --
     Restructuring of
      operations and
      investigation related
      costs                    14       0.3          13        0.3
 
 
     Income before minority
      interests and
      income taxes            572      12.7         518       12.1
 
     Minority interests in
      earnings of consolidated
      entities                 30       0.7          26        0.6
 
     Income before income
      taxes                   542      12.0         492       11.5
 
     Provision for income
      taxes                   216       4.8         196        4.6
 
     Net income              $326       7.2        $296        6.9
 
     Diluted earnings per share:
      Excluding gains on sales of
       facilities and restructuring
       of operations and
       investigation
       related costs        $0.60                 $0.53
      Gains on sales of
       facilities            0.01                    --
      Restructuring of
       operations and
       investigation
       related costs        (0.02)                (0.01)
 
      Net income            $0.59                 $0.52
 
     Shares used in computing
      diluted earnings
      per share (000)     554,818               573,054
 
 
 
                              HCA
                  Consolidated Balance Sheets
                     (Dollars in millions)
 
                                          March 31,   December 31,
                                            2001           2000
 
     ASSETS
     Current assets:
      Cash and cash equivalents             $188           $314
      Accounts receivable, net             2,412          2,211
      Other                                1,825          1,928
 
        Total current assets               4,425          4,453
 
     Property and equipment, at cost      14,388         14,290
     Accumulated depreciation             (5,943)        (5,810)
 
                                           8,445          8,480
 
     Investments of insurance subsidiary   1,301          1,371
     Investments in and advances
      to affiliates                          822            779
     Intangible assets, net                2,117          2,155
     Other                                   433            330
 
                                         $17,543        $17,568
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
      Accounts payable                      $691           $693
      Other current liabilities            1,423          1,487
      Government settlement accrual          745            840
      Long-term debt due within one year     730          1,121
 
        Total current liabilities          3,589          4,141
 
     Long-term debt                        5,926          5,631
     Professional liability
      risks, deferred taxes
      and other liabilities                2,199          2,050
     Minority interests in
      equity of consolidated
      entities                               583            572
     Forward purchase contracts and
      put options                            747            769
 
     Stockholders' equity                  4,499          4,405
 
                                         $17,543        $17,568
 
     Current ratio                          1.23           1.08
     Ratio of debt to debt plus common,
      temporary and minority equity         53.3%          54.0%
     Shares outstanding (thousands)      537,222        542,992
 
 
                             HCA
                     Operating Statistics
 
 
                                             First Quarter
                                           2001         2000
     Consolidated Hospitals:
 
     Number of Hospitals                    185           192
     Weighted Average Licensed Beds      40,950        42,184
     Licensed Beds at End of Period      40,895        42,006
 
     Admissions                         412,000       408,100
      Same Facility % Change                2.3%
     Equivalent Admissions              597,800       595,900
      Same Facility % Change                1.8%
     Revenue per Equivalent
      Admissions                         $7,528        $7,168
       Same Facility % Change               4.9%
     Inpatient Revenue per Admission
      Same Facility % Change                6.9%
 
     Patient Days                     2,055,700     2,065,400
     Equivalent Patient Days          2,982,900     3,015,500
 
     Emergency Room Visits            1,186,200     1,140,800
      Same Facility % Change                7.7%
 
     Outpatient Revenues as a
      Percentage of
      Patient Revenues                     36.3%         36.7%
 
     Average Length of Stay                 5.0           5.1
 
     Occupancy                             55.8%         53.8%
     Equivalent Occupancy                  81.0%         78.5%
 
     Number of Consolidated and
      Non-Consolidated (50/50 Equity
      Joint Ventures) Hospitals:
 
       Consolidated                         185           192
       Non-Consolidated (50/50 Equity
        Joint Ventures)                       9            13
 
       Total Number of Hospitals            194           205
 
 
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 SOURCE  HCA

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