EXHIBIT 20
Investor Contacts: MEDIA CONTACT:
Victor L. Campbell Lee A. Wood Lindy B. Richardson
502/572-2173 or 502/572-2115 502/572-2153
615/320-205
COLUMBIA/HCA RECORDS SECOND QUARTER EARNINGS PER SHARE GROWTH OF 22%
WITH EPS FROM CONTINUING OPERATIONS REPORTED AT $0.60
Same-Hospital Operating Statistics Up From Prior Year
Louisville, KY, July 28, 1994 -- Columbia/HCA Healthcare
Corporation (NYSE:COL) today announced operating results for the second
quarter ended June 30, 1994. Results for the quarter exceeded expectations
due to growth in same-hospital utilization and financial performance, the
impact of recent debt refinancings, and the realization of anticipated
merger synergies.
Columbia/HCA's earnings per share from continuing operations
increased 22% to $.60 for the second quarter ended June 30, 1994, compared
to earnings per share of $0.49 for the second quarter of 1993. Net
revenues for the second quarter of 1994 totaled $2.7 billion, up 6% from
$2.5 billion in the second quarter of 1993. Operating income in the second
quarter rose 10% to $543 million, up from $496 million last year.
Columbia/HCA's same-hospital admissions increase 1.1% during the
second quarter of 1994, continuing the trend seen in the first quarter.
Same-hospital outpatient visits rose 22% over the second quarter of 1993,
primarily as a result of expanding home health and other ancillary
outpatient services.
"Columbia/HCA's earnings growth in the second quarter reflects a
combination of operating improvements and the realization of anticipated
merger synergies," said David T. Vandewater, Chief Operating Officer of
Columbia/HCA. "Our focus on labor and supply costs improved our operating
margin this quarter to 20.2% compared to 19.5% in the second quarter of
1993."
"The debt refinancings accomplished in late 1993 and thus far in
1994 have significantly reduced interest expense," said David C. Colby,
Columbia/HCA's Chief Financial Officer. "In addition, Columbia/HCA has
continued to generate strong cash flow as evidenced by the fact that the
ratio of debt to total capitalization improved from 51.6% at year end to
49.5% at June 30, 1994. In the first half of 1994, the Company has
expended significant amounts related to its capital expenditure and
acquisition programs while reducing debt by $42 million."
Richard L. Scott, President and Chief Executive Officer of
Columbia/HCA, added that "We continue to be successful as we create
efficient, quality-focused healthcare delivery systems in our markets. The
commitment of our local market management teams in custom designing
provider networks for their communities is at the base of our success. The
expected third quarter completion of the Medical Care America acquisition
will continue to add needed surgical facilities to many of our markets,
enabling Columbia/HCA to enhance local services."
The following table highlights the consolidated operating
results of Columbia/HCA for the second quarter and six months ended June
30, 1994 and 1993, and reflects non-recurring items and discontinued
operations for the respective periods:
Columbia/HCA Consolidated Operating Results
(Dollars in Millions, Except Per Share Amounts)
Second Quarter Six Months
1994 1993 % Change 1994 1993 % Change
Revenues .......................... $2,689 $2,536 6% $5,467 $5,190 5%
Operating income (a)............... $543 $496 10% $1,146 $1,053 9%
Net income:
Continuing operations:
Excluding non-recurring items... $205 $166 24% $444 $371 20%
Non-recurring items (net of tax) - - (102) -
Discontinued operations .......... - - - 16
Loss on extinguishment of debt ... - - (92) -
Net income .................. $205 $166 $250 $387
Earnings per common share:
Continuing operations:
Excluding non-recurring items ... $0.60 $0.49 22% $1.30 $1.10 18%
Non-recurring items ............. - - (0.30) -
Discontinued operations .......... - - - 0.04
Loss on extinguishment of debt ... - - (0.27) -
Net income .................. $0.60 $0.49 $0.73 $1.14
Shares used in earnings per
share computations (000) ......... 342,103 338,544 341,862 338,165
(a)Income from continuing operations before non-recurring transactions,
depreciation and amortization, interest expense, minority interests and
income taxes.
Columbia/HCA Healthcare Corporation is the nation's largest
healthcare services provider, with 196 acute-care and specialty hospitals
in 26 states, England and Switzerland, employing approximately 130,000
people. Columbia/HCA recently announced plans to create innovative
strategic partnerships with prominent healthcare providers, such as
Crawford Long Hospital of Emory University in Atlanta and Southwest Texas
Methodist Hospital in San Antonio, to enhance local delivery networks. With
its comprehensive approach, Columbia/HCA meets the healthcare needs of its
communities in a cost-effective, quality manner.