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EXHIBIT 20
[HCA LOGO]
NEWS
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FOR IMMEDIATE RELEASE
INVESTOR CONTACT MEDIA CONTACT
Mark Kimbrough: 615-344-2688 Jeff Prescott: 615-344-5708
HCA REPORTS 2000 RESULTS
EPS FOR YEAR INCREASES 24% FROM $1.30 TO $1.61
EPS FOR FOURTH QUARTER INCREASES 25% FROM $0.28 TO $0.35
EXCLUDING GAINS, IMPAIRMENTS, RESTRUCTURING, INVESTIGATION AND
SETTLEMENT RELATED COSTS
HCA TO ACQUIRE 200 BED HOSPITAL IN RICHMOND, VIRGINIA
NASHVILLE, TENN., FEBRUARY 6, 2001 - HCA (NYSE: HCA) today announced operating
results for the year and fourth quarter ended December 31, 2000. "HCA's success
in 2000 and, in fact, over the past three years is the result of putting in
place solid operational strategies and focusing on our local hospitals," stated
Jack O. Bovender, Jr., President and Chief Executive Officer of HCA. "We are now
realizing and benefiting from our shared culture, a common vision of caring,
compassion and quality care."
For the year ended December 31, 2000, revenues totaled $16.67 billion
compared with $16.66 billion for 1999. Net income, excluding gains on sales of
facilities, impairment of long-lived assets, restructuring costs, investigation
and settlement related costs (non-recurring items), totaled $913 million or
$1.61 per diluted share in 2000, compared to $767 million or $1.30 per diluted
share for 1999. Net income, including all non-recurring items, totaled $219
million or $0.39 per diluted share for 2000, versus net income of $657 million
or $1.11 per diluted share for 1999.
For the fourth quarter ended December 31, 2000, revenues totaled $4.2
billion, up 5.9 percent from $3.9 billion in the fourth quarter of 1999. Net
income, excluding all non-recurring items, totaled $198 million or $0.35 per
diluted share for the fourth quarter of 2000, compared to net income of $159
million or $0.28 per diluted share during the
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fourth quarter of 1999. Net income, including all non-recurring items, for the
fourth quarter of 2000 totaled $21 million or $0.04 per diluted share, compared
to net income of $91 million or $0.16 per diluted share in the fourth quarter of
1999.
For the year 2000, the Company's same facility revenues increased 6.2
percent; same facility admissions at the Company's hospitals increased by 2.8
percent and same facility revenue per adjusted admission increased 3.6 percent.
During the fourth quarter of 2000, same facility revenues increased 6.4 percent;
same facility admissions increased by 1.8 percent and same facility revenue per
adjusted admission increased 5.2 percent.
HCA also announced today that it has signed a letter of intent to
acquire HEALTHSOUTH Medical Center, a 200-bed hospital in Richmond, VA. Details
of the transaction were not disclosed. HCA expects to complete this acquisition
in the first quarter of 2001, subject to obtaining required regulatory
approvals.
As previously reported in December 2000, the Company and its affiliates
reached an agreement with the criminal division of the Department of Justice
(DOJ) and U.S. attorney's offices to resolve all pending federal criminal issues
in the Columbia investigation. The terms of this agreement resulted in the
recording of an after-tax charge of approximately $95 million, or $0.17 per
diluted share, in the fourth quarter of 2000. In the second quarter of 2000, the
Company recorded an after-tax charge of $498 million, or $0.89 per diluted
share, in connection with its civil settlement of certain issues with the DOJ.
The Company paid the criminal settlement in the first quarter of 2001 and
expects to pay the civil settlement in the first or second quarter of 2001.
During the year 2000, the Company sold 10 hospitals, 8 surgery centers
and certain other non-core assets resulting in a pretax gain of $34 million ($16
million net of tax) or $0.03 per diluted share. Also during the year, the
Company recorded asset impairment charges of $117 million ($80 million net of
tax) or $0.14 per diluted share. Approximately $100 million ($68 million net of
tax) or $0.12 per diluted share of these asset impairment charges were recorded
during the fourth quarter of 2000. The majority of the fourth quarter impairment
charge related to a reduction in asset valuations in our Atlanta market.
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In 1999, the Company recorded gains on sales of facilities totaling
$297 million ($164 million net of tax) or $0.28 per diluted share and asset
impairment charges of $220 million ($194 million net of tax) or $0.33 per
diluted share.
At December 31, 2000, the Company's balance sheet reflected total debt
of approximately $6.8 billion, stockholders equity (including temporary equity
of $769 million, primarily forward purchase contracts) of $5.2 billion, and
total assets of $17.6 billion. The Company's ratio of debt to debt plus common,
temporary and minority equity was 54 percent at December 2000, compared to 53
percent at September 30, 2000, and 50 percent at December 31, 1999. As of
December 31, 2000, the Company had approximately 543 million common shares
outstanding compared to 564 million shares at December 31, 1999.
During 2000, HCA continued to make significant investments in its
hospitals and communities. HCA's capital investments totaled $1.2 billion in
2000. Additionally, the Company's acquisition expenditures in 2000 approximated
$350 million, primarily related to hospital acquisitions in London, England.
Proceeds from the Company's asset sales during 2000 totaled approximately $327
million.
Net income, excluding amortization of goodwill and non-recurring items,
totaled $986 million or $1.74 per diluted share in 2000, compared to $850
million or $1.45 per diluted share for 1999.
During 2000, the Company settled repurchases of approximately 30.4
million shares of its common stock at a total cost of approximately $874 million
(average cost of approximately $28.77 per share). At December 31, 2000, forward
purchase contracts for approximately 23.4 million shares were outstanding. These
shares were purchased throughout the year by certain financial organizations
through a series of forward purchase contracts. In accordance with the terms of
the forward purchase contracts, the shares purchased remain issued and
outstanding until the forward purchase contracts are settled by the Company.
In accordance with new accounting directives from the Securities and
Exchange Commission, the approximate $751 million value of forward purchase
contracts
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outstanding at year-end has been recorded on the Company's balance sheet as
temporary equity.
As of December 31, 2000, the Company operated 196 hospitals and 78
ambulatory surgery centers (including 9 hospitals and 3 ASCs owned through
equity joint ventures), compared to 207 hospitals and 83 ambulatory surgery
centers (including 12 hospitals and 3 ASCs owned through equity joint ventures)
as of December 31, 1999.
The Company's annual shareholder meeting will be held in Nashville,
Tennessee on May 24th at 1:30 pm local time for shareholders of record at March
30, 2001.
HCA will host a conference call for investors at 8:30 a.m. CST today.
All interested investors are invited to access a live audio broadcast of the
call, via Web cast. The broadcast also will be available on a replay basis
beginning this afternoon and throughout the next 30 days.
The Web cast can be accessed at www.videonewswire.com/HCA/020601/ or
via the Investor Relations site at www.hcahealthcare.com.
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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 including: (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
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 program 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, (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) the ability to enter into 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 e-health initiatives, (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 anticipated corporate integrity agreement with the
government, and (xxi) other risk factors detailed from time to time in the
Company's filings with the SEC may cause actual results to differ materially
from these anticipated in the forward looking statements. Many of the factors
that will determine the Company's future results are beyond the ability of the
Company to control or predict.
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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.
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HCA
CONSOLIDATED OPERATING RESULTS SUMMARY
(Dollars in millions, except per share amounts)
FOR THE TWELVE MONTHS
FOURTH QUARTER ENDED DECEMBER 31,
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2000 1999 2000 1999
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Revenues......................................................................... $ 4,173 $ 3,942 $ 16,670 $ 16,657
EBITDA (a)....................................................................... $ 736 $ 649 $ 3,177 $ 2,888
Net income:
Excluding settlement with federal government, gains and losses on sales of
facilities, impairment of long-lived assets and restructuring of
operations and investigation related costs............................... $ 198 $ 159 $ 913 $ 767
Settlement with federal government (net of tax)............................. (95) -- (593) --
Gains and losses on sales of facilities (net of tax)........................ (2) 13 16 164
Impairment of long-lived assets (net of tax)................................ (68) (63) (80) (194)
Restructuring of operations and investigation related costs (net of tax).... (12) (18) (37) (80)
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Net income.................................................................. $ 21 $ 91 $ 219 $ 657
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Diluted earnings per share:
Excluding settlement with federal government, gains and losses on sales of
facilities, impairment of long-lived assets and restructuring of
operations and investigation related costs............................... $0.35 $0.28 $1.61 $1.30
Settlement with federal government.......................................... (0.17) -- (1.05) --
Gains and losses on sales of facilities..................................... -- 0.02 0.03 0.28
Impairment of long-lived assets............................................. (0.12) (0.11) (0.14) (0.33)
Restructuring of operations and investigation related costs................. (0.02) (0.03) (0.06) (0.14)
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Net income.................................................................. $ 0.04 $ 0.16 $ 0.39 $ 1.11
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Shares used in computing diluted earnings per share (000)........................ 566,128 568,589 567,685 591,029
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(a) EBITDA is defined as income before depreciation and amortization, interest
expense, settlement with federal government, gains and losses on sales of
facilities, impairment of long-lived assets, restructuring of operations
and investigation related costs, minority interests and income taxes
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HCA
CONSOLIDATED INCOME STATEMENTS
FOURTH QUARTER
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2000 1999
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AMOUNT RATIO Amount Ratio
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Revenues........................................................... $ 4,173 100.0% $ 3,942 100.0%
Salaries and benefits.............................................. 1,683 40.3 1,611 40.9
Supplies........................................................... 669 16.0 651 16.5
Other operating expenses........................................... 797 19.2 764 19.3
Provision for doubtful accounts.................................... 321 7.7 284 7.2
Equity in earnings of affiliates................................... (33) (0.8) (17) (0.4)
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3,437 82.4 3,293 83.5
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EBITDA......................................................... 736 17.6 649 16.5
Depreciation and amortization...................................... 255 6.0 258 6.6
Interest expense................................................... 157 3.8 120 3.0
Settlement with federal government................................. 95 2.3 -- --
Gains and losses on sales of facilities............................ 4 0.1 (40) (1.0)
Impairment of long-lived assets.................................... 100 2.4 60 1.5
Restructuring of operations and investigation related costs........ 21 0.5 32 0.8
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Income before minority interests and income taxes.................. 104 2.5 219 5.6
Minority interests in earnings of consolidated entities............ 3 0.1 16 0.5
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Income before income taxes......................................... 101 2.4 203 5.1
Provision for income taxes......................................... 80 1.9 112 2.8
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Net income..................................................... $ 21 0.5 $ 91 2.3
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Diluted earnings per share:
Excluding settlement with federal government, gains and
losses on sales of facilities, impairment of long-lived
assets and restructuring of operations and
investigation related costs.............................. $ 0.35 $ 0.28
Settlement with federal government............................. (0.17) --
Gains and losses on sales of facilities........................ -- 0.02
Impairment of long-lived assets................................ (0.12) (0.11)
Restructuring of operations and investigation related costs.... (0.02) (0.03)
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Net income..................................................... $ 0.04 $ 0.16
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Shares used in computing diluted earnings per share (000).......... 566,128 568,589
Certain prior year amounts have been reclassified to conform to current year
presentation.
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HCA
CONSOLIDATED INCOME STATEMENTS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2000 1999
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AMOUNT RATIO Amount Ratio
Revenues......................................................... $ 16,670 100.0% $ 16,657 100.0%
Salaries and benefits............................................ 6,639 39.8 6,694 40.2
Supplies......................................................... 2,640 15.8 2,645 15.9
Other operating expenses......................................... 3,085 18.6 3,251 19.5
Provision for doubtful accounts.................................. 1,255 7.5 1,269 7.6
Equity in earnings of affiliates................................. (126) (0.8) (90) (0.5)
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13,493 80.9 13,769 82.7
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EBITDA....................................................... 3,177 19.1 2,888 17.3
Depreciation and amortization.................................... 1,033 6.2 1,094 6.6
Interest expense................................................. 559 3.4 471 2.8
Settlement with federal government............................... 840 5.0 -- --
Gains on sales of facilities..................................... (34) (0.2) (297) (1.8)
Impairment of long-lived assets.................................. 117 0.7 220 1.3
Restructuring of operations and investigation related costs...... 62 0.4 116 0.7
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Income before minority interests and income taxes................ 600 3.6 1,284 7.7
Minority interests in earnings of consolidated entities.......... 84 0.5 57 0.3
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Income before income taxes....................................... 516 3.1 1,227 7.4
Provision for income taxes....................................... 297 1.8 570 3.5
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Net income................................................... $ 219 1.3 $ 657 3.9
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Diluted earnings per share:
Excluding settlement with federal government, gains on
sales of facilities, impairment of long-lived assets
and restructuring of operations and investigation
related costs.......................................... $ 1.61 $ 1.30
Settlement with federal government........................... (1.05) --
Gains on sales of facilities................................. 0.03 0.28
Impairment of long-lived assets.............................. (0.14) (0.33)
Restructuring of operations and investigation related costs.. (0.06) (0.14)
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Net income................................................... $ 0.39 $ 1.11
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Shares used in computing diluted earnings per share (000)........ 567,685 591,029
Certain prior year amounts have been reclassified to conform to current year
presentation.
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HCA
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS)
DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
2000 2000 1999
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ASSETS
Current assets:
Cash and cash equivalents........................... $ 314 $ 180 $ 190
Accounts receivable, net............................ 2,211 2,044 1,873
Other............................................... 1,928 1,725 1,534
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Total current assets........................... 4,453 3,949 3,597
Property and equipment, at cost.......................... 14,290 14,772 14,084
Accumulated depreciation................................. (5,810) (5,987) (5,594)
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8,480 8,785 8,490
Investments of insurance subsidiary...................... 1,371 1,486 1,457
Investments in and advances to affiliates................ 779 586 654
Intangible assets, net of accumulated amortization....... 2,155 2,312 2,319
Other.................................................... 330 389 368
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$ 17,568 $ 17,507 $ 16,885
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable.................................... $ 693 $ 614 $ 657
Other current liabilities........................... 1,689 1,509 1,515
Government settlement accrual....................... 840 745 --
Long-term debt due within one year.................. 1,121 1,434 1,160
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Total current liabilities...................... 4,343 4,302 3,332
Long-term debt........................................... 5,631 5,426 5,284
Professional liability risks, deferred taxes and
other liabilities................................... 1,848 1,671 1,889
Minority interests in equity of consolidated entities.... 572 702 763
Forward purchase contracts and put options............... 769 -- --
Stockholders' equity..................................... 4,405 5,406 5,617
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$ 17,568 $ 17,507 $ 16,885
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Current ratio............................................ 1.03 0.92 1.08
Ratio of debt to debt plus common, temporary and
minority equity..................................... 54.0% 52.9% 50.2%
Shares outstanding (thousands)........................... 542,992 552,842 564,273
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HCA
OPERATING STATISTICS
FOR THE TWELVE MONTHS
FOURTH QUARTER ENDED DECEMBER 31,
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2000 1999 2000 1999
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CONSOLIDATED HOSPITALS:
Number of Hospitals 187 195 187 195
Weighted Average Licensed Beds 41,128 42,850 41,659 46,291
Licensed Beds at End of Period 41,009 42,484 41,009 42,484
Admissions 383,600 381,700 1,553,500 1,625,400
Same Facility % Change 1.8% 2.8%
Equivalent Admissions 565,800 567,000 2,300,800 2,425,100
Same Facility % Change 1.1% 2.6%
Revenue per Equivalent Admission $ 7,377 $ 6,953 $ 7,246 $ 6,869
Same Facility % Change 5.2% 3.6%
Patient Days 1,892,600 1,875,400 7,668,400 8,030,800
Equivalent Patient Days 2,791,400 2,785,900 11,356,900 11,982,000
Emergency Room Visits 1,123,000 1,114,800 4,534,400 4,765,900
Outpatient Revenues as a
Percentage of Patient Revenues 36.7% 38.5% 37.4% 38.8%
Surgery Cases 320,300 324,100 1,310,100 1,372,600
Average Length of Stay 4.9 4.9 4.9 4.9
Occupancy 50.0% 47.6% 50.3% 47.5%
Equivalent Occupancy 73.7% 70.7% 74.5% 70.9%
NUMBER OF CONSOLIDATED AND
NON-CONSOLIDATED (50/50 EQUITY
JOINT VENTURES) HOSPITALS:
Consolidated 187 195 187 195
Non-Consolidated (50/50 Equity
Joint Ventures) 9 12 9 12
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Total Number of Hospitals 196 207 196 207
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