EXHIBIT-20
INVESTOR CONTACT: MEDIA CONTACT:
Victor L. Campbell Lindy B. Richardson
615/320-2053 615/320-2166
COLUMBIA/HCA REPORTS EPS OF $2.42 IN 1994 VS. $1.99 IN 1993
EXCLUDING NON-RECURRING ITEMS; EPS GROWTH OF 22%
Fourth Quarter EPS of $.62 vs. $.52 Last Year; Net Revenues Up 14%
in Fourth Quarter
NASHVILLE, Tn., February 17, 1995 -- Columbia/HCA Healthcare
Corporation (NYSE:COL) today announced operating results for the fourth
quarter and year ended December 31, 1994.
Excluding non-recurring items, earnings per share for 1994
increased 22% to $2.42 from $1.99 in 1993. Net revenues rose 9% to
$11.1 billion compared to $10.3 billion last year, while operating
income totaled $2.3 billion, up 14% from last year's $2.0 billion.
Income from continuing operations increased 26% to $847 million
compared to $673 million in 1993.
Non-recurring transactions, which related primarily to costs
incurred in connection with the HCA merger and refinancings of debt,
reduced 1994 net income by $217 million, or $.62 per share. Net income
in 1993 was reduced by $182 million, or $.53 per share, resulting from
charges related to the Galen merger and refinancings of debt.
For the three months ended December 31, 1994, earnings per share
rose 19% to $.62 from $.52 in the fourth quarter last year. Net
revenues were $2.9 billion, up 14% from $2.6 billion in 1993.
Operating income rose 23% to $623 million from $507 million, and
income from continuing operations increased 28% to $227 million from
$176 million.
Columbia/HCA's same hospital admissions, adjusted for outpatient
activity, improved for the fifth consecutive quarter, increasing 5.3%
over last year's fourth quarter volumes. Outpatient visits on a same
hospital basis grew 76% in the fourth quarter primarily as a result of
expanding home health and other ancillary outpatient services.
"Operating margins for 1994 improved to 20.4% from 19.5% in 1993,
despite significant additions during the year of lower margin home
health and sub-acute services," said David T. Vandewater,
Columbia/HCA's Chief Operating Officer. "I am pleased with our
progress in increasing utilization and controlling costs in 1994. As
we begin 1995, our management team is focused on increasing
productivity, reducing supply costs, lowering days in accounts
receivable and improving inpatient and outpatient utilization rates,"
he added.
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David C. Colby, Columbia/HCA's Senior Vice President and Treasurer,
said, "Our financial position has improved substantially over last year
even though our capital improvement and development programs have
accelerated. Columbia/HCA's year-end current ratio was 1.4 compared to
1.3 at December 31, 1993, and the ratio of debt to total capitalization
improved to 43.9% compared to 51.6% at the end of last year."
Richard L. Scott, President and Chief Executive Officer of
Columbia/HCA, said, "While we are pleased with the Company's
outstanding results in 1994, we plan to focus even greater attention in
1995 on meeting or exceeding customer expectations in every facet of
our operations, developing services that are convenient and customer-
oriented, developing better outcome measurements, and building customer
loyalty through increased awareness of Columbia as a leader in cost-
effective, quality healthcare services. We also look forward to our
merger with HealthTrust, Inc., scheduled for completion in March 1995,
as it will enhance many of our local provider networks, improve our
economies of scale, and further our efforts to control healthcare costs
while providing quality patient care," he concluded.
"Over the past two years, we are proud to have been involved in
acquisitions and joint ventures with tax-exempt hospitals which have
created community foundations with assets in excess of $500 million,"
said Dr. Thomas F. Frist, Jr., Columbia/HCA's Chairman of the Board and
this year's Chairman of United Way of America.
Columbia/HCA is the nation's largest healthcare services provider,
with 200 hospitals and over 100 free-standing outpatient surgery
centers located in 33 states and two foreign countries. Columbia/HCA
provided over $800 million in uncompensated patient care and paid
approximately $1 billion in federal, state and local taxes in 1994.
# # #
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Columbia/HCA Healthcare Corporation
Operating Results Summary
(Dollars in millions, except per share amounts)
Fourth Quarter Year
1994 1993 % Change 1994 1993 % Change
Revenues. . . . . . . . . . . . . . $2,937 $2,571 14.3 $11,132 $10,252 8.6
Operating income(a) . . . . . . . . $623 $507 23.2 $2,276 $2,004 13.6
Net income :
Continuing operations:
Excluding non-recurring items. . $227 $176 28.4 $847 $673 25.7
Non-recurring items (net of tax) - - (102) (98)
Discontinued operations. . . . . . - - - 16
Loss on extinguishment of debt . . - - (115) (84)
Net income . . . . . . . . . . $227 $176 $630 $507
Earnings per common share:
Continuing operations:
Excluding non-recurring items. . $0.62 $0.52 19.2 $2.42 $1.99 21.6
Non-recurring items (net of tax) - - (0.29) (0.29)
Discontinued operations. . . . . . - - - 0.04
Loss on extinguishment of debt . . - - (0.33) (0.24)
Net income . . . . . . . . . . $0.62 $0.52 $1.80 $1.50
Shares used in earnings per
share computations (000) . . . . .365,437 340,642 350,075 339,222
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(a) Income from continuing operations before non-recurring items, depreciation and
amortization, interest expense, minority interests and income taxes.
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