HCA Reports Fourth Quarter and Year End 2009 Results
NASHVILLE, Tenn., Feb. 18 /PRNewswire/ -- HCA Inc. today announced financial and operating results for its fourth quarter and fiscal year ended December 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050825/CLTH069LOGO )
Fourth Quarter Summary:
- Revenues increased 4.7 percent to $7.605 billion from $7.265 billion in the fourth quarter of 2008.
- Net income attributable to HCA Inc. totaled $216 million, compared to $276 million in the prior year's fourth quarter.
- Adjusted EBITDA totaled $1.343 billion, compared to $1.237 billion in the fourth quarter of 2008.
- Provision for doubtful accounts totaled $693 million, compared to $889 million in the prior year.
- Charity care and uninsured discounts totaled $1.499 billion, compared to $1.007 billion in the fourth quarter of 2008.
- Interest expense was flat at $500 million compared to the prior year's fourth quarter.
- Same facility equivalent admissions and same facility admissions increased 2.6 percent and 1.2 percent, respectively, in the fourth quarter compared to the same period last year.
- Same facility revenue per equivalent admission increased 1.9 percent. Revenue per equivalent patient day, on a same facility basis, increased 3.3 percent.
- Total surgeries, on a same facility basis, declined 0.1 percent from the prior year's fourth quarter.
- Same facility emergency department visits increased 9.1% compared to the fourth quarter of 2008.
Fourth quarter of 2009 performance was driven by solid inpatient, outpatient and emergency department volumes. HCA's revenues for the fourth quarter totaled $7.605 billion, compared to $7.265 billion in the fourth quarter of 2008. Net income attributable to HCA Inc. for the fourth quarter of 2009 totaled $216 million, compared to $276 million in the prior year's fourth quarter. Income before income taxes for the fourth quarter of 2009 was $451 million, compared to $379 million in the fourth of 2008. Adjusted EBITDA in the quarter totaled $1.343 billion, compared to $1.237 billion in the previous year's fourth quarter. A table describing adjusted EBITDA and reconciling net income attributable to HCA Inc. to adjusted EBITDA is included in this release. Results for the fourth quarter of 2009 include impairments of long-lived assets of $27 million and losses on sales of facilities of $7 million. Fourth quarter 2008 results include impairments of long-lived assets of $11 million and gains on sales of facilities of $7 million. The provision for income taxes was $112 million higher for the fourth quarter of 2009 ($147 million) than for the fourth quarter of 2008 ($35 million) due to the benefit recorded in the fourth quarter of 2008 related to the favorable revision to the proposed disallowance of certain prior period expenses and related interest.
The provision for doubtful accounts decreased to $693 million, or 9.1 percent of revenues, in the fourth quarter of 2009 from $889 million, or 12.2 percent of revenues, in the fourth quarter of 2008. The reduction in our provision for doubtful accounts was primarily attributable to an increase in charity care and uninsured discounts which totaled $1.499 billion in the fourth quarter of 2009 compared to $1.007 billion in the fourth quarter of 2008. The sum of the provision for doubtful accounts, uninsured discounts and charity care, as a percentage of the sum of net revenues, uninsured discounts and charity care was 24.1 percent for the fourth quarter of 2009 compared to 22.9 percent for the fourth quarter of 2008. Same facility uninsured admissions increased 0.2 percent in the fourth quarter of 2009 compared to the prior year's fourth quarter. Same facility uninsured admissions comprised 6.4 percent of total admissions in the fourth quarter of 2009 compared to 6.5 percent in the fourth quarter of 2008.
During the fourth quarter of 2009, salaries and benefits, supply expense and other operating expenses totaled $5.633 billion compared to $5.192 billion in the fourth quarter of 2008. These expenses, as a percent of revenues, increased 2.5 percent in the fourth quarter of 2009 compared to the fourth quarter of 2008. This increase was primarily due to the impact of the increased revenue reductions for uninsured discounts and charity care which reduced the Company's rate of net revenue growth in the quarter.
Same facility admissions increased 1.2 percent and same facility equivalent admissions increased 2.6 percent in the fourth quarter of 2009 compared to the prior year's fourth quarter. Same facility inpatient surgeries declined 0.3 percent and same facility outpatient surgeries declined 0.1 percent in the fourth quarter. Same facility revenue per equivalent admission increased 1.9 percent in the fourth quarter of 2009 compared to the fourth quarter of 2008.
Revenues for the twelve months ended December 31, 2009 totaled $30.052 billion compared to $28.374 billion in 2008. Net income attributable to HCA Inc. was $1.054 billion for the year ended December 31, 2009 compared to $673 million in 2008. Adjusted EBITDA totaled $5.472 billion for 2009 compared to $4.574 billion for 2008. Results for the year ended December 31, 2009 include losses on sales of facilities of $15 million and impairments of long-lived assets of $43 million compared to gains on sales of facilities of $97 million and impairments of long-lived assets of $64 million in 2008.
Cash flows from operating activities increased $757 million to $2.747 billion for the year ended December 31, 2009, from $1.990 billion for the year ended December 31, 2008. The increase was due primarily to the $473 million increase in net income and $143 million improvement from changes in operating assets and liabilities and the provision for doubtful accounts.
As of December 31, 2009, HCA's balance sheet reflected cash and cash equivalents of $312 million, total debt of $25.670 billion, and total assets of $24.131 billion. During the fourth quarter of 2009, capital expenditures totaled $402 million, excluding acquisitions. For the year ended December 31, 2009, capital expenditures totaled $1.317 billion, excluding acquisitions.
During 2009, HCA issued $3.060 billion aggregate principal amount of first and second lien notes. The net proceeds from the debt issuances were used to repay outstanding indebtedness under the Company's senior secured term loan facilities.
On January 27, 2010, our Board of Directors declared a distribution to the Company's stockholders and holders of vested stock options. The distribution was $17.50 per share and vested stock option, or approximately $1.750 billion in the aggregate. The distribution was paid on February 5, 2010 to holders of record on February 1, 2010. The distribution was funded using funds available under our existing senior secured credit facilities and approximately $100 million of cash on hand.
As of December 31, 2009, HCA operated 163 hospitals and 105 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers operated through equity method joint ventures).
Earnings Conference Call
HCA will host a conference call for investors at 9:00 a.m. Central Time today. A live audio broadcast of the call via webcast will also be available to investors. The broadcast will be available on a replay basis beginning this afternoon. The webcast can be accessed at: http://www.videonewswire.com/event.asp?id=65983 or through the Company's Investor Relations web page, www.hcahealthcare.com.
Cautionary Statement about Results and Other Forward-Looking Information
This press release contains forward-looking statements based on current management expectations. Those forward-looking statements include all 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, (1) the ability to recognize the benefits of the Recapitalization, (2) the impact of the substantial indebtedness incurred to finance the Recapitalization and the ability to refinance such indebtedness on acceptable terms, (3) the possible enactment of federal or state health care reform and changes in federal, state or local laws or regulations affecting the health care industry, (4) increases, particularly in the current economic downturn, in the amount and risk of collectibility of uninsured accounts and deductibles and copayment amounts for insured accounts, (5) the ability to achieve operating and financial targets, and attain expected levels of patient volumes and control the costs of providing services, (6) possible changes in the Medicare, Medicaid and other state programs, including Medicaid supplemental payments pursuant to upper payment limit ("UPL") programs, that may impact reimbursements to health care providers and insurers, (7) the highly competitive nature of the health care business, (8) changes in revenue mix, including potential declines in the population covered under managed care agreements due to the current economic downturn and the ability to enter into and renew managed care provider agreements on acceptable terms, (9) the efforts of insurers, health care providers and others to contain health care costs, (10) the outcome of our continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures, (11) increases in wages and the ability to attract and retain qualified management and personnel, including affiliated physicians, nurses and medical and technical support personnel, (12) the availability and terms of capital to fund the expansion of our business and improvements to our existing facilities, (13) changes in accounting practices, (14) changes in general economic conditions nationally and regionally in our markets, (15) future divestitures which may result in charges, (16) changes in business strategy or development plans, (17) delays in receiving payments for services provided, (18) the outcome of pending and any future tax audits, appeals and litigation associated with our tax positions, (19) potential liabilities and other claims that may be asserted against us, and (20) other risk factors described in our annual report on Form 10-K and other filings with the Securities and Exchange Commission. Many of the factors that will determine our future results are beyond our ability to control or predict. In light of the significant uncertainties inherent in the forward-looking statements contained herein, readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake 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.
HCA Inc.
Condensed Consolidated Income Statements
Fourth Quarter
(Dollars in millions)
2009 2008
---- ----
Amount Ratio Amount Ratio
------ ----- ------ -----
Revenues $7,605 100.0% $7,265 100.0%
Salaries and benefits 3,078 40.5 2,877 39.6
Supplies 1,241 16.3 1,157 15.9
Other operating expenses 1,314 17.2 1,158 16.0
Provision for doubtful
accounts 693 9.1 889 12.2
Equity in earnings of
affiliates (64) (0.8) (53) (0.7)
Depreciation and
amortization 358 4.7 354 4.9
Interest expense 500 6.6 500 6.9
Losses (gains) on sales
of facilities 7 0.1 (7) (0.1)
Impairment of long-lived
assets 27 0.4 11 0.1
--- --- --- ---
7,154 94.1 6,886 94.8
----- ---- ----- ----
Income before income taxes 451 5.9 379 5.2
Provision for income taxes 147 1.9 35 0.5
--- --- --- ---
Net income 304 4.0 344 4.7
Net income attributable to
noncontrolling interests 88 1.2 68 0.9
--- --- --- ---
Net income attributable
to HCA Inc. $216 2.8 $276 3.8
==== === ==== ===
HCA Inc.
Condensed Consolidated Income Statements
For the Years Ended December 31, 2009 and 2008
(Dollars in millions)
2009 2008
---- ----
Amount Ratio Amount Ratio
------ ----- ------ -----
Revenues $30,052 100.0% $28,374 100.0%
Salaries and benefits 11,958 39.8 11,440 40.3
Supplies 4,868 16.2 4,620 16.3
Other operating expenses 4,724 15.7 4,554 16.1
Provision for doubtful
accounts 3,276 10.9 3,409 12.0
Equity in earnings of
affiliates (246) (0.8) (223) (0.8)
Depreciation and
amortization 1,425 4.8 1,416 5.0
Interest expense 1,987 6.6 2,021 7.1
Losses (gains) on sales
of facilities 15 - (97) (0.3)
Impairment of long-lived
assets 43 0.1 64 0.2
28,050 93.3 27,204 95.9
------ ---- ------ ----
Income before income
taxes 2,002 6.7 1,170 4.1
Provision for income
taxes 627 2.1 268 0.9
--- --- --- ---
Net income 1,375 4.6 902 3.2
Net income attributable
to noncontrolling
interests 321 1.1 229 0.8
--- --- --- ---
Net income attributable
to HCA Inc. $1,054 3.5 $673 2.4
====== === ==== ===
HCA Inc.
Supplemental Operating Results Summary
(Dollars in millions)
For the Years
Fourth Quarter Ended December 31,
-------------- ------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $7,605 $7,265 $30,052 $28,374
Net income attributable
to HCA Inc. $216 $276 $1,054 $673
Losses (gains) on sales
of facilities (net of tax) 4 (5) 9 (58)
Impairment of long-lived
assets (net of tax) 24 6 34 40
Net income attributable
to HCA Inc., excluding
losses (gains) on sales
of facilities and
impairment of
long-lived assets (a) 244 277 1,097 655
Depreciation and
amortization 358 354 1,425 1,416
Interest expense 500 500 1,987 2,021
Provision for income taxes 153 38 642 253
Net income attributable
to noncontrolling
interests 88 68 321 229
Adjusted EBITDA (a) $1,343 $1,237 $5,472 $4,574
====== ====== ====== ======
(a) Net income attributable to HCA Inc., excluding losses (gains) on
sales of facilities and impairment of long-lived assets and adjusted
EBITDA are non-GAAP financial measures. We believe net income
attributable to HCA Inc., excluding losses (gains) on sales of
facilities and impairment of long-lived assets and adjusted EBITDA
are important measures that supplement discussions and analysis of
our results of operations. We believe it is useful to investors to
provide disclosures of our results of operations on the same basis
used by management. Management relies upon net income attributable to
HCA Inc., excluding losses (gains) on sales of facilities and
impairment of long-lived assets and adjusted EBITDA as the primary
measures to review and assess operating performance of its hospital
facilities and their management teams.
Management and investors review both the overall performance
(including; net income attributable to HCA Inc., excluding losses
(gains) on sales of facilities and impairment of long-lived assets
and GAAP net income attributable to HCA Inc.) and operating
performance (adjusted EBITDA) of our health care facilities.
Adjusted EBITDA and the adjusted EBITDA margin (adjusted EBITDA
divided by revenues) are utilized by management and investors to
compare our current operating results with the corresponding periods
during the previous year and to compare our operating results with
other companies in the health care industry. It is reasonable to
expect that losses (gains) on sales of facilities and impairment of
long-lived assets will occur in future periods, but the amounts
recognized can vary significantly from period to period, do not
directly relate to the ongoing operations of our health care
facilities and complicate period comparisons of our results of
operations and operations comparisons with other health care
companies.
Net income attributable to HCA Inc., excluding losses (gains) on
sales of facilities and impairment of long-lived assets and adjusted
EBITDA are not measures of financial performance under accounting
principles generally accepted in the United States, and should not be
considered as alternatives to net income attributable to HCA Inc. as
a measure of operating performance or cash flows from operating,
investing and financing activities as a measure of liquidity.
Because net income attributable to HCA Inc., excluding losses (gains)
on sales of facilities and impairment of long-lived assets and
adjusted EBITDA are not measurements determined in accordance with
generally accepted accounting principles and are susceptible to
varying calculations, net income attributable to HCA Inc., excluding
losses (gains) on sales of facilities and impairment of long-lived
assets and adjusted EBITDA, as presented, may not be comparable to
other similarly titled measures presented by other companies.
HCA Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
December 31, September 30, December 31,
2009 2009 2008
---- ---- ----
ASSETS
Current assets:
Cash and cash equivalents $312 $443 $465
Accounts receivable, net 3,692 3,499 3,780
Inventories 802 745 737
Deferred income taxes 1,192 1,099 914
Other 579 515 405
--- --- ---
Total current assets 6,577 6,301 6,301
Property and equipment, at cost 24,669 24,389 23,714
Accumulated depreciation (13,242) (13,038) (12,185)
------- ------- -------
11,427 11,351 11,529
Investments of insurance
subsidiary 1,166 1,371 1,422
Investments in and advances
to affiliates 853 855 842
Goodwill 2,577 2,596 2,580
Deferred loan costs 418 436 458
Other 1,113 1,210 1,148
----- ----- -----
$24,131 $24,120 $24,280
======= ======= =======
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
Accounts payable $1,460 $1,199 $1,370
Accrued salaries 849 954 854
Other accrued expenses 1,158 1,316 1,282
Long-term debt due
within one year 846 635 404
--- --- ---
Total current
liabilities 4,313 4,104 3,910
Long-term debt 24,824 25,279 26,585
Professional liability risks 1,057 1,097 1,108
Income taxes and other
liabilities 1,768 1,782 1,782
----- ----- -----
Total liabilities 31,962 32,262 33,385
Equity securities with contingent
redemption rights 147 147 155
EQUITY (DEFICIT)
HCA Inc. stockholders' deficit (8,986) (9,279) (10,255)
Noncontrolling interests 1,008 990 995
----- --- ---
Total deficit (7,978) (8,289) (9,260)
------ ------ ------
24,131 $24,120 $24,280
======= ======= =======
HCA Inc.
Condensed Consolidated Statements of Cash Flow
For the Years Ended December 31, 2009 and 2008
(Dollars in millions)
2009 2008
---- ----
Cash flows from operating activities:
Net income $1,375 $902
Adjustments to
reconcile net income
to net cash provided
by operating activities:
Change in operating assets
and liabilities (3,091) (3,367)
Provision for doubtful accounts 3,276 3,409
Depreciation and amortization 1,425 1,416
Income taxes (520) (448)
Losses (gains) sales of facilities 15 (97)
Impairment of long-lived assets 43 64
Amortization of deferred loan costs 80 79
Pay-in-kind interest 58 -
Share-based compensation 40 32
Other 46 -
--- ---
Net cash provided by operating
activities 2,747 1,990
----- -----
Cash flows from investing activities:
Purchase of property and equipment (1,317) (1,600)
Acquisition of hospitals and health
care entities (61) (85)
Disposal of hospitals and health care
entities 41 193
Change in investments 303 21
Other (1) 4
--- ---
Net cash used in investing activities (1,035) (1,467)
------ ------
Cash flows from financing activities:
Issuance of long-term debt 2,979 -
Net change in revolving bank credit
facilities (1,335) 700
Repayment of long-term debt (3,103) (960)
Distributions to noncontrolling interests (330) (178)
Payment of debt issuance costs (70) -
Other (6) (13)
--- ---
Net cash used in financing activities (1,865) (451)
------ ----
Change in cash and cash equivalents (153) 72
Cash and cash equivalents at beginning
of period 465 393
--- ---
Cash and cash equivalents at end of period $312 $465
==== ====
Interest payments $1,751 $1,979
Income tax payments, net of refunds $1,147 $716
HCA Inc.
Operating Statistics
For the Years
Fourth Quarter Ended December 31,
-------------- ------------------
2009 2008 2009 2008
---- ---- ---- ----
Consolidating Hospitals:
------------------------
Number of Hospitals 155 158 155 158
Weighted Average
Licensed Beds 38,843 38,474 38,825 38,422
Licensed Beds at
End of Period 38,839 38,504 38,839 38,504
Reported:
Admissions 385,300 380,100 1,556,500 1,541,800
% Change 1.4% 1.0%
Equivalent
Admissions 603,800 587,300 2,439,000 2,363,600
% Change 2.8% 3.2%
Revenue per
Equivalent
Admission $12,595 $12,370 $12,321 $12,005
% Change 1.8% 2.6%
Inpatient Revenue
per Admission $12,368 $11,742 $11,809 $11,336
% Change 5.3% 4.2%
Patient Days 1,863,500 1,865,100 7,537,100 7,611,000
Equivalent
Patient Days 2,920,200 2,882,100 11,810,700 11,667,700
Inpatient
Surgery Cases 122,200 121,300 494,500 493,100
% Change 0.7% 0.3%
Outpatient
Surgery Cases 200,900 201,900 794,600 797,400
% Change -0.5% -0.4%
Emergency Room
Visits 1,394,600 1,276,900 5,593,500 5,246,400
% Change 9.2% 6.6%
Outpatient
Revenues as a
Percentage
of Patient
Revenues 36.3% 37.5% 37.8% 37.4%
Average Length
of Stay 4.8 4.9 4.8 4.9
Occupancy 52.1% 52.7% 53.2% 54.1%
Equivalent
Occupancy 81.6% 81.5% 83.4% 82.9%
Same Facility:
Admissions 378,400 374,000 1,528,500 1,510,600
% Change 1.2% 1.2%
Equivalent
Admissions 591,800 577,100 2,390,600 2,312,700
% Change 2.6% 3.4%
Revenue per
Equivalent
Admission $12,599 $12,362 $12,325 $12,007
% Change 1.9% 2.6%
Inpatient Revenue
per Admission $12,401 $11,777 $11,849 $11,377
% Change 5.3% 4.1%
Inpatient Surgery
Cases 120,200 120,500 487,400 485,000
% Change -0.3% 0.5%
Outpatient
Surgery Cases 197,900 198,100 783,600 784,400
% Change -0.1% -0.1%
Emergency Room
Visits 1,361,400 1,247,800 5,455,100 5,096,200
% Change 9.1% 7.0%
Number of Consolidating
and Nonconsolidating
(Equity Joint Ventures)
Hospitals:
Consolidating 155 158 155 158
Nonconsolidating
(Equity Joint
Ventures) 8 8 8 8
--- --- --- ---
Total Number of
Hospitals 163 166 163 166
=== === === ===
SOURCE HCA Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article