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EXHIBIT 20
[HCA LETTERHEAD]
NEWS
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FOR IMMEDIATE RELEASE
INVESTOR CONTACT MEDIA CONTACT
Mark Kimbrough: 615-344-2688 Jeff Prescott: 615-344-5708
HCA REPORTS FIRST QUARTER 2001
EPS OF $0.60 VS $0.53 LAST YEAR
EXCLUDING GAINS, RESTRUCTURING AND INVESTIGATION RELATED COSTS
NASHVILLE, TENN., APRIL 23, 2001 - HCA (NYSE: HCA) today announced
operating results for the first quarter ended March 31, 2001. "This was another
outstanding quarter for the Company," stated Jack O. Bovender, Jr., CEO and
President of HCA. "Our same-facility hospital volumes were strong, as was our
revenue per admission, resulting in excellent same facility net revenue growth.
Our operating costs as a percentage of net revenue continued to improve, more
than offsetting higher interest expense and the significant costs we are
incurring in our shared services initiatives. We believe that our shared
services investments will generate substantial long-term benefits in our supply,
administrative and infrastructure costs," Bovender added.
Revenues for the first quarter totaled $4.5 billion compared to $4.3
billion in the first quarter of 2000. Net income, excluding gains on sales of
facilities and restructuring and investigation related costs (non-recurring
items), totaled $331 million or $0.60 per diluted share for the first quarter of
2001, compared to $306 million or $0.53 per diluted share in the first quarter
of 2000. Net income, including non-recurring items, totaled $326 million or
$0.59 per diluted share for the first quarter of 2001, versus $296 million or
$0.52 per diluted share in the same period of 2000.
Same facility revenues for the first quarter increased 6.8 percent,
while revenue per equivalent admission increased 4.9 percent. Same facility
inpatient revenue per admission rose 6.9 percent. Same facility admissions
increased 2.3 percent for the
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quarter. All prior-year comparisons include the results of an additional
business day in 2000 associated with leap year.
Net income, excluding the amortization of goodwill and non-recurring
items, totaled $348 million or $0.63 per diluted share for the quarter, compared
to $324 million or $0.56 per diluted share for the first quarter of 2000.
At March 31, 2001, the Company's balance sheet reflected total debt of
$6.7 billion, stockholders' equity of $4.5 billion and total assets of $17.5
billion. The Company's debt to debt plus common, temporary and minority equity
was 53 percent at March 31, 2001. Capital expenditures for the quarter were $273
million.
During the first quarter, the Company settled repurchases of 7.6
million shares of its common stock at a total cost of $247 million (average cost
of $32.43 per share). At March 31, 2001, 26.7 million shares at a cost of $872
million, had been purchased by certain financial institutions utilizing forward
purchase contracts. These shares remain outstanding until the related forward
purchase contracts are settled by the Company. As of March 31, 2001, the Company
had 537 million shares outstanding compared to 557 million at March 31, 2000.
As of March 31, 2001, the Company operated 194 hospitals and 77
ambulatory surgery centers (including 9 hospitals and 3 ASCs owned through
equity joint ventures), compared to 205 hospitals and 83 ambulatory surgery
centers (including 13 hospitals and 3 ASCs owned through equity joint ventures)
as of March 31, 2000. During the first quarter of 2001, the Company sold two
hospitals and one ASC.
The Company's annual shareholders meeting will be held in Nashville,
Tennessee on May 24th at 1:30 p.m. Central Daylight Time for shareholders of
record at March 30, 2001.
HCA will host a conference call for investors at 8:30 a.m. Central
Daylight Time today. All interested investors are invited to access a live audio
broadcast of the call, via webcast. The broadcast also will be available on a
replay basis beginning this afternoon and throughout the next 30 days. The
webcast can be accessed at www.videonewswire.com/HCA/0423/01/ 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 may cause actual results to differ materially
from those expressed in any forward-looking statements. These factors include,
but are not limited to, (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 to obtain court
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 and Medicaid
programs 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, nurses and medical support personnel, (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) changes
in revenue mix and the ability to enter into and renew 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 other initiatives and realize a
decrease in administrative and infrastructure costs, (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 corporate integrity agreement with the government, (xxi)
increased reviews of the Company's cost reports, (xxii) the ability to maintain
and increase patient volumes and control the costs of providing services, and
(xxiii) other risk factors detailed from time to time in the Company's filings
with the SEC. Many of the factors that will determine the Company's future
results are beyond the ability of the Company to control or predict. 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)
FIRST QUARTER
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2001 2000
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Revenues ............................................................................ $ 4,501 $ 4,271
EBITDA (a) .......................................................................... $ 972 $ 906
Net income:
Excluding gains on sales of facilities and restructuring of operations and
investigation related costs .................................................. $ 331 $ 306
Gains on sales of facilities (net of tax) ....................................... 4 --
Restructuring of operations and investigation related costs (net of tax) ........ (9) (10)
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Net income ...................................................................... $ 326 $ 296
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Diluted earnings per share:
Excluding gains on sales of facilities and restructuring of operations and
investigation related costs .................................................. $ 0.60 $ 0.53
Gains on sales of facilities .................................................... 0.01 --
Restructuring of operations and investigation related costs ..................... (0.02) (0.01)
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Net income ...................................................................... $ 0.59 $ 0.52
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Shares used in computing diluted earnings per share (000) ........................... 554,818 573,054
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(a) EBITDA is defined as income before depreciation and amortization,
interest expense, gains on sales of facilities, restructuring of
operations and investigation related costs, minority interests and
income taxes.
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HCA
CONSOLIDATED INCOME STATEMENTS
FIRST QUARTER
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2001 2000
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AMOUNT RATIO Amount Ratio
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Revenues ............................................................. $ 4,501 100.0% $4,271 100.0
Salaries and benefits ................................................ 1,782 39.6 1,661 38.9
Supplies ............................................................. 711 15.8 670 15.7
Other operating expenses ............................................. 757 16.8 764 17.8
Provision for doubtful accounts ...................................... 325 7.2 302 7.1
Equity in earnings of affiliates ..................................... (46) (1.0) (32) (0.7)
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3,529 78.4 3,365 78.8
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EBITDA ........................................................... 972 21.6 906 21.2
Depreciation and amortization ........................................ 257 5.7 256 6.0
Interest expense ..................................................... 142 3.2 119 2.8
Gains on sales of facilities ......................................... (13) (0.3) -- --
Restructuring of operations and investigation related costs .......... 14 0.3 13 0.3
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Income before minority interests and income taxes .................... 572 12.7 518 12.1
Minority interests in earnings of consolidated entities .............. 30 0.7 26 0.6
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Income before income taxes ........................................... 542 12.0 492 11.5
Provision for income taxes ........................................... 216 4.8 196 4.6
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Net income ....................................................... $ 326 7.2 $ 296 6.9
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Diluted earnings per share:
Excluding gains on sales of facilities and restructuring
of operations and investigation related costs .............. $ 0.60 $ 0.53
Gains on sales of facilities ..................................... 0.01 --
Restructuring of operations and investigation related costs ...... (0.02) (0.01)
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Net income ....................................................... $ 0.59 $ 0.52
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Shares used in computing diluted earnings per share (000) ............ 554,818 573,054
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HCA
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS)
MARCH 31, DECEMBER 31,
2001 2000
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ASSETS
Current assets:
Cash and cash equivalents ....................................... $ 188 $ 314
Accounts receivable, net ........................................ 2,412 2,211
Other ........................................................... 1,825 1,928
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Total current assets ....................................... 4,425 4,453
Property and equipment, at cost ...................................... 14,388 14,290
Accumulated depreciation ............................................. (5,943) (5,810)
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8,445 8,480
Investments of insurance subsidiary .................................. 1,301 1,371
Investments in and advances to affiliates ............................ 822 779
Intangible assets, net ............................................... 2,117 2,155
Other ................................................................ 433 330
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$ 17,543 $ 17,568
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................................ $ 691 $ 693
Other current liabilities ....................................... 1,423 1,487
Government settlement accrual ................................... 745 840
Long-term debt due within one year .............................. 730 1,121
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Total current liabilities .................................. 3,589 4,141
Long-term debt ....................................................... 5,926 5,631
Professional liability risks, deferred taxes and
other liabilities ............................................... 2,199 2,050
Minority interests in equity of consolidated entities ................ 583 572
Forward purchase contracts and put options ........................... 747 769
Stockholders' equity ................................................. 4,499 4,405
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$ 17,543 $ 17,568
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Current ratio ........................................................ 1.23 1.08
Ratio of debt to debt plus common, temporary and minority equity ..... 53.3% 54.0%
Shares outstanding (thousands) ....................................... 537,222 542,992
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HCA
OPERATING STATISTICS
FIRST QUARTER
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2001 2000
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CONSOLIDATED HOSPITALS:
Number of Hospitals 185 192
Weighted Average Licensed Beds 40,950 42,184
Licensed Beds at End of Period 40,895 42,006
Admissions 412,000 408,100
Same Facility % Change 2.3%
Equivalent Admissions 597,800 595,900
Same Facility % Change 1.8%
Revenue per Equivalent Admission $ 7,528 $ 7,168
Same Facility % Change 4.9%
Inpatient Revenue per Admission
Same Facility % Change 6.9%
Patient Days 2,055,700 2,065,400
Equivalent Patient Days 2,982,900 3,015,500
Emergency Room Visits 1,186,200 1,140,800
Same Facility % Change 7.7%
Outpatient Revenues as a
Percentage of Patient Revenues 36.3% 36.7%
Average Length of Stay 5.0 5.1
Occupancy 55.8% 53.8%
Equivalent Occupancy 81.0% 78.5%
NUMBER OF CONSOLIDATED AND
NON-CONSOLIDATED (50/50 EQUITY
JOINT VENTURES) HOSPITALS:
Consolidated 185 192
Non-Consolidated (50/50 Equity
Joint Ventures) 9 13
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Total Number of Hospitals 194 205
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