1
EXHIBIT 99
LIFEPOINT HOSPITALS REPORTS 45.5% AND 55.6% INCREASE IN PRO FORMA EPS FOR FOURTH
QUARTER AND YEAR, RESPECTIVELY
BRENTWOOD, Tenn.--(BW HealthWire)--Feb. 6, 2001--
Fourth Quarter Highlights:
- On a pro forma basis:
- Quarterly EPS of $0.16 compared with $0.11 in the prior year
- EBITDA margin increased to 20.9%, a 310bp increase over prior year
- Increase in admissions of 13.6%
- Increase in equivalent admissions of 12.6%
- Recruited 179 physicians since Company's formation
- Sold 63-bed Springhill Medical Center in Springhill, Louisiana
- Signed Corporate Integrity Agreement with the U.S. Department of Health and
Human Services
LifePoint Hospitals, Inc. (NASDAQ: LPNT - news) today announced results for the
fourth quarter and year ended December 31, 2000.
Revenues were $142.5 million, and net income was $5.4 million, or $0.16 per
diluted share, for the fourth quarter ended December 31, 2000. For the year
ended December 31, 2000, revenues were $557.1 million, and net income was $17.9
million, or $0.54 per diluted share.
On a pro forma basis, diluted earnings per share increased 45.5% to $0.16 for
the fourth quarter of 2000 compared with diluted earnings per share of $0.11 in
the fourth quarter of 1999. Revenues increased
- 20.4% to $142.5 million from $118.3 million in the same period last year.
Earnings before interest, income taxes, depreciation, amortization, ESOP
expense and minority interest (EBITDA) increased
- 40.9% to $29.8 million from $21.1 million in the same period last year.
On a pro forma basis, diluted earnings per share for the year ended December 31,
2000, increased 55.6% to $0.56 compared with diluted earnings per share of $0.36
last year. Revenues for the year ended December 31, 2000, increased 14.8% to
$542.7 million from $472.6 million
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in the same period last year, and EBITDA increased
- 35.5% to $106.8 million from $78.8 million in the same period last year.
The pro forma results for the year ended December 31, 2000 and 1999 adjust the
actual operating results to exclude the operating results of facilities sold
which were previously listed as "held for sale." The pro forma results for 1999
also adjust actual operating results to reflect the debt assumed in connection
with the spin-off from HCA, overhead expenses, and ESOP expense as if the
spin-off had occurred January 1, 1999.
"The year 2000 was a rewarding year," said James M. Fleetwood Jr., LifePoint
Hospitals' chairman and chief executive officer. "Through the work of dedicated
management in our hospitals and strong operational performance, we were able to
exceed the goals that we set for the year. We continue the execution of our
operating strategy and our vision by expanding services and improving the
quality of care in our non-urban communities. In 2001, we will continue to be
diligent in our efforts to increase shareholder value."
During the fourth quarter, the Company sold 63-bed Springhill Medical Center in
Springhill, Louisiana to Springhill Medical Services, Inc. Also, LifePoint
Hospitals signed a Corporate Integrity Agreement with the U.S. Department of
Health and Human Services (HHS). The Agreement formalized a comprehensive
program that the Company implemented when it was formed to ensure and monitor
compliance.
On January 2, 2001, the Company opened Bluegrass Community Hospital, a 25-bed
critical access hospital located in Versailles, Kentucky, which is being
operated under a two-year lease agreement with renewal options.
A listen-only simulcast and replay of LifePoint Hospitals' fourth quarter and
year-end conference call will be available on-line at www.lifepointhospitals.com
and www.streetevents.com on February 7, 2001, beginning at 10:00 a.m. Eastern
Time.
LifePoint Hospitals, Inc. owns and operates 21 hospitals in non-urban areas. In
most cases, the LifePoint facility is the only hospital in its community.
LifePoint's non-urban operating strategy offers continued operational
improvement by focusing on its five core values: delivering high quality patient
care, supporting physicians, creating excellent workplaces for its employees,
providing community value, and ensuring fiscal responsibility. Headquartered in
Brentwood, Tennessee, LifePoint Hospitals is affiliated with over 6,000
employees.
The above statements include forward-looking statements based on current
management expectations. Numerous factors exist which may cause results to
differ from these expectations. Many of the factors that will determine the
Company's future results are beyond the ability of the Company to control or
predict. These statements are subject to risks and uncertainties relating to the
Company, including without limitation, (i) possible changes in reimbursement to
healthcare providers and insurers that may reduce payments; (ii) its ability to
attract and retain qualified management and personnel, including physicians;
(iii) the geographic concentration of the Company's operations; (iv) risks
associated with the Company's acquisition and disposition strategies; (v) the
regulated nature of the healthcare industry; (vi) the fact that the Company is
highly leveraged; (vii) the highly competitive nature of the healthcare
business; (viii) the potential adverse impact of government investigations and
litigation involving the business practices of HCA (to the extent relating to
periods prior to the Company's formation); and (ix) those risks and
uncertainties detailed from time to time in the Company's filings with the
Securities and Exchange Commission. Therefore, the Company's actual results may
differ materially. The Company undertakes no obligation to update any
forward-looking statements, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise.
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All references to "Company" and "LifePoint" as used throughout this document
refer to LifePoint Hospitals, Inc. and its affiliates.
LIFEPOINT HOSPITALS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Dec. 31, Dec. 31,
2000 1999
------- -------
ASSETS
Current assets:
Cash and cash equivalents $39.7 $12.5
Accounts receivable, net 41.7 46.7
Inventories 13.9 14.3
Deferred taxes and
other current assets 22.2 25.9
------- -------
117.5 99.4
Property and equipment, at cost:
Land 8.7 7.9
Buildings 236.9 204.1
Equipment 244.9 260.6
Construction in progress 9.4 20.2
------- -------
499.9 492.8
Accumulated depreciation (183.4) (198.4)
------- -------
316.5 294.4
Intangible assets, net 53.8 26.4
Other 0.2 0.2
------- -------
$488.0 $420.4
======= =======
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $16.1 $26.5
Accrued salaries 13.8 14.7
Other current liabilities 11.1 12.9
Current maturities of
long-term debt 11.1 3.1
------- -------
52.1 57.2
Long-term debt 278.3 257.1
Deferred income taxes 15.2 12.5
Professional liability risks
and other liabilities 9.4 3.4
Minority interests in equity
of consolidated entities 4.6 4.5
Stockholders' equity:
Common stock 0.3 0.3
Capital in excess of par value 156.5 137.9
Unearned ESOP compensation (25.7) (28.9)
Notes receivable for shares
sold to employees (7.2) (10.2)
Retained earnings
(accumulated deficit) 4.5 (13.4)
------- -------
128.4 85.7
------- -------
$488.0 $420.4
======= =======
Current ratio 2.26 1.74
Ratio of debt to debt plus
common and minority equity 68.5% 74.3%
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LIFEPOINT HOSPITALS, INC.
CONSOLIDATED INCOME STATEMENTS
For the Three Months and Year Ended December 31, 2000 and 1999
Dollars in Millions, except per share amounts
Actual
For the Three Months Ended
December 31,
2000 1999
------------------------- ------------------------
Amount Ratio Amount Ratio
Revenues $ 142.5 100.0% $ 127.4 100.0%
---------- ---------- ---------- ----------
Salaries and benefits 56.0 39.2% 52.3 41.0%
Supplies 16.9 11.8% 16.5 12.9%
Other operating expenses 29.3 20.6% 29.9 23.5%
Provision for
doubtful accounts 10.6 7.5% 8.1 6.4%
---------- ---------- ---------- ----------
112.8 79.1% 106.8 83.8%
---------- ---------- ---------- ----------
EBITDA 29.7 20.9% 20.6 16.2%
Depreciation and
amortization 8.8 6.2% 8.1 6.5%
Interest expense 7.8 5.4% 6.0 4.7%
Management fees -- -- % -- -- %
ESOP expense 2.7 1.9% 1.2 0.9%
Impairment of
long-lived assets -- -- % 25.4 19.9%
---------- ---------- ---------- ----------
Income (loss) before
minority interests
and income taxes 10.4 7.4% (20.1) (15.8%)
Minority interests 0.4 0.4% 0.5 0.4%
---------- ---------- ---------- ----------
Income (loss) before
income taxes 10.0 7.0% (20.6) (16.2%)
Provision for income
taxes (benefit) 4.6 3.2% (7.1) (5.6%)
---------- ---------- ---------- ----------
Net income (loss) $ 5.4 3.8% $ (13.5) (10.6%)
========== ========== ========== ==========
Shares used in diluted
EPS (000's) 33,876 31,069
Diluted earnings (loss) per share:
Income from continuing
operations, excluding
impairment of
long-lived assets $ 0.16 $ 0.09
Impairment of
long-lived assets -- (0.53)
---------- ----------
Net income (loss) $ 0.16 $ (0.44)
========== ==========
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Actual
For the Year Ended
December 31,
2000 1999
------------------------- ------------------------
Amount Ratio Amount Ratio
Revenues $ 557.1 100.0% $ 515.2 100.0%
---------- ---------- ---------- ----------
Salaries and benefits 224.2 40.2% 217.4 42.2%
Supplies 67.0 12.0% 64.2 12.5%
Other operating expenses 118.1 21.3% 117.3 22.7%
Provision for
doubtful accounts 42.0 7.5% 38.2 7.4%
---------- ---------- ---------- ----------
451.3 81.0% 437.1 84.8%
---------- ---------- ---------- ----------
EBITDA 105.8 19.0% 78.1 15.2%
Depreciation and
amortization 34.1 6.2% 31.4 6.2%
Interest expense 30.7 5.5% 23.4 4.5%
Management fees -- -- % 3.2 0.6%
ESOP expense 7.1 1.3% 2.9 0.6%
Impairment of
long-lived assets (1.4) (0.3%) 25.4 4.9%
---------- ---------- ---------- ----------
Income (loss) before
minority interests
and income taxes 35.3 6.3% (8.2) (1.6%)
Minority interests 2.2 0.4% 1.9 0.4%
---------- ---------- ---------- ----------
Income (loss) before
income taxes 33.1 5.9% (10.1) (2.0%)
Provision for income
taxes (benefit) 15.2 2.7% (2.7) (0.6%)
---------- ---------- ---------- ----------
Net income (loss) $ 17.9 3.2% $ (7.4) (1.4%)
========== ========== ========== ==========
Shares used in diluted
EPS (000's) 32,944 30,529
Diluted earnings (loss) per share:
Income from continuing
operations, excluding
impairment of
long-lived assets $ 0.52 $ 0.29
Impairment of
long-lived assets 0.02 (0.53)
---------- ----------
Net income (loss) $ 0.54 $ (0.24)
========== ==========
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LIFEPOINT HOSPITALS, INC.
CONSOLIDATED INCOME STATEMENTS
For the Three Months and Year Ended December 31, 2000 and 1999
Dollars in Millions, except per share amounts
Pro Forma(1)
For the Three Months Ended
December 31,
2000 1999
------------------------ ------------------------
Amount Ratio Amount Ratio
Revenues $ 142.5 100.0% $ 118.3 100.0%
---------- ---------- ---------- ----------
Salaries and benefits 55.9 39.2% 47.8 40.4%
Supplies 16.9 11.8% 15.0 12.7%
Other operating expenses 29.2 20.6% 26.7 22.7%
Provision for
doubtful accounts 10.7 7.5% 7.7 6.4%
---------- ---------- ---------- ----------
112.7 79.1% 97.2 82.2%
---------- ---------- ---------- ----------
EBITDA 29.8 20.9% 21.1 17.8%
Depreciation and
amortization 8.7 6.2% 7.2 6.2%
Interest expense 7.8 5.4% 6.0 5.0%
ESOP expense 2.7 1.9% 1.2 1.0%
---------- ---------- ---------- ----------
Income before minority
interests and income taxes 10.6 7.4% 6.7 5.6%
Minority interests 0.5 0.3% 0.5 0.5%
---------- ---------- ---------- ----------
Income before income taxes 10.1 7.1% 6.2 5.1%
Provision for income taxes 4.7 3.3% 2.7 2.1%
---------- ---------- ---------- ----------
Net income $ 5.4 3.8% $ 3.5 3.0%
========== ========== ========== ==========
Shares used in
diluted EPS (000's) 33,876 31,069
Diluted earnings per share $ 0.16 $ 0.11
========== ==========
% change % change
from from
prior year prior year
---------- ----------
Revenues 20.4% 9.0%
EBITDA 40.9% 535.5%
Income before
income taxes 66.1% 152.9%
Net income 53.6% 151.2%
Diluted earnings per share 45.5% 147.8%
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Pro Forma(1)
For the Year Ended
December 31,
2000 1999
------------------- -------------------
Amount Ratio Amount Ratio
Revenues $542.7 100.0% $472.6 100.0%
--------- -------- --------- --------
Salaries and benefits 217.2 40.0% 195.4 41.4%
Supplies 65.4 12.1% 58.1 12.3%
Other operating expenses 114.0 21.0% 106.8 22.5%
Provision for
doubtful accounts 39.3 7.2% 33.5 7.1%
--------- -------- --------- --------
435.9 80.3% 393.8 83.3%
--------- -------- --------- --------
EBITDA 106.8 19.7% 78.8 16.7%
Depreciation and
amortization 32.8 6.0% 27.9 6.0%
Interest expense 30.7 5.7% 26.0 5.5%
ESOP expense 7.1 1.3% 3.9 0.8%
--------- -------- --------- --------
Income before minority
interests and income taxes 36.2 6.7% 21.0 4.4%
Minority interests 2.2 0.4% 1.9 0.4%
--------- -------- --------- --------
Income before income taxes 34.0 6.3% 19.1 4.0%
Provision for income taxes 15.7 2.9% 8.1 1.7%
--------- -------- --------- --------
Net income $18.3 3.4% $11.0 2.3%
========= ======== ========= ========
Shares used in
diluted EPS (000's) 32,944 30,675
Diluted earnings per share $0.56 $0.36
========= =========
% change % change
from from
prior year prior year
----------- -----------
Revenues 14.8% 4.9%
EBITDA 35.5% 57.5%
Income before
income taxes 78.7% 361.0%
Net income 66.1% 352.2%
Diluted earnings per share 55.6% 340.0%
(1) Pro forma is defined as the consolidated income statement less held for sale
facilities and pro forma adjustments.
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LIFEPOINT HOSPITALS, INC.
STATISTICS
For the Three Months and Year ended December 31, 2000 and 1999
Actual
---------------------------
%
2000 1999 change
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For the Three Months:
Number of hospitals at end of period 20 23 (13.0%)
Licensed beds at end of period 1,963 2,169 (9.5%)
Admissions 16,888 15,833 6.7%
Equivalent admissions 29,732 28,440 4.5%
Revenues per equivalent admission $4,793 $4,478 7.0%
Net outpatient revenues as a
percentage of net patient revenues 45.7% 47.9%
Average daily census 738 713 3.5%
Average length of stay 4.0 4.1 (2.4%)
Pro Forma
---------------------------
%
2000 1999 change
-------- -------- -------
For the Three Months:
Number of hospitals at end of period 20 20 - %
Licensed beds at end of period 1,963 1,896 3.5%
Admissions 16,888 14,870 13.6%
Equivalent admissions 29,759 26,439 12.6%
Revenues per equivalent admission $4,789 $4,477 7.0%
Net outpatient revenues as a
percentage of net patient revenues 47.0 48.3%
Average daily census 738 664 11.1%
Average length of stay 4.0 4.1 (2.4%)
Actual
---------------------------
%
2000 1999 change
-------- -------- -------
For the Year ended:
Number of hospitals at end of period 20 23 (13.0%)
Licensed beds at end of period 1,963 2,169 (9.5%)
Admissions(1) 66,085 64,081 3.1%
Equivalent admissions(1) 119,812 114,321 4.8%
Revenues per equivalent admission(1) $4,650 $4,507 3.2%
Net outpatient revenues as a
percentage of net patient revenues 48.1% 47.2%
Average daily census 737 739 (0.3%)
Average length of stay(1) 4.1 4.2 (2.4%)
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Pro Forma
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%
2000 1999 change
-------- -------- -------
For the Year ended:
Number of hospitals at end of period 20 20 - %
Licensed beds at end of period 1,963 1,896 3.5%
Admissions(1) 64,945 59,392 9.3%
Equivalent admissions(1) 117,031 105,599 10.8%
Revenues per equivalent admission(1) $4,637 $4,476 3.6%
Net outpatient revenues as a
percentage of net patient revenues 48.3% 47.9%
Average daily census 723 677 6.8%
Average length of stay(1) 4.1 4.2 (2.4%)
(1) 1999 restated due to correction for admissions.
Contact: LifePoint Hospitals, Inc., Brentwood
James M. Fleetwood, Jr., 615/372-8512
Kenneth C. Donahey, 615/372-8533
www.lifepointhospitals.com