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EXHIBIT 99
(LIFEPOINT HOSPITALS, INC. LOGO)
CONTACT: PENNY L. BRAKE
DIRECTOR, FINANCE
(615) 372-8532
LIFEPOINT HOSPITALS REPORTS 100% INCREASE
IN SECOND QUARTER EPS BEFORE EXTRAORDINARY ITEM
SECOND QUARTER HIGHLIGHTS:
Continuing strong financial performance
- Quarterly EPS of $0.22 (before extraordinary item) compared
with $0.11 in the prior year
- EBITDA margin increased to 21.0%, a 250bp increase over prior
year
- Increase in admissions of 12.1%
- Increase in equivalent admissions of 9.0%
Kenneth C. Donahey named chairman and chief executive officer
Completion of a $200 million, five-year amended and restated credit
agreement
BRENTWOOD, TENNESSEE (July 23, 2001) - LifePoint Hospitals, Inc. (NASDAQ: LPNT)
today announced results for the second quarter ended June 30, 2001.
For the quarter ended June 30, 2001, net revenues were $151.6 million,
up 13.8% from $133.3 million a year ago. Income before extraordinary item for
the quarter totaled $8.5 million, or $0.22 per diluted share, versus $3.7
million, or $0.11 per diluted share, in the prior-year period, representing
increases of 130.3% and 100.0%, respectively. Shares used in calculating diluted
earnings per share for the second quarter of 2001 included 3.7 million
additional shares compared with the second quarter of 2000, primarily as a
result of the secondary offering of common stock completed in March 2001.
Including the extraordinary item, net income for the quarter ended June 30,
2001, totaled $6.9 million, or $0.18 per diluted share. Earnings before
interest, income taxes, depreciation, amortization, ESOP expense, minority
interest and extraordinary loss (EBITDA) increased 29.3% to $31.8 million from
$24.6 million in the same period last year.
For the six months ended June 30, 2001, net revenues were $305.9
million, up 13.6% from $269.3 million a year ago. Income before extraordinary
item and gain on previously impaired asset for the six-month period totaled
$17.1 million, or $0.46 per diluted share, versus $7.7 million, or $0.24 per
diluted share, in the prior-year period, representing increases of 121.9% and
91.7%, respectively. Including the extraordinary item and gain on previously
impaired asset, net income for the six months ended June 30, 2001, totaled $15.5
million, or $0.43 per diluted share. Earnings before interest, income taxes,
depreciation, amortization, ESOP expense, minority interest, gain on previously
impaired asset and extraordinary loss (EBITDA) increased 34.0% to $65.8 million
from $49.1 million in the same period last year.
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LPNT Announces Second Quarter Results
Page 2
July 23, 2001
In June, the Company announced that it had completed a $200 million,
five-year amended and restated credit agreement with a syndicate of banks led by
Fleet National Bank. The agreement increased the Company's available credit
under its revolving credit agreement from $65 million to $200 million and
extended the current agreement to five years. During the quarter, the Company
wrote off $2.6 million of deferred loan costs related to the original credit
agreement, which resulted in an extraordinary charge of $1.6 million, or $0.04
per diluted share.
Mr. Donahey said, "Our strong financial performance in the second
quarter continues to be driven by our disciplined operational strategy. We will
continue to execute this strategy by adding services, controlling costs and
recruiting physicians. I am extremely pleased that while we are delivering these
solid results to our shareholders, we are providing exceptional levels of care
in the communities we serve. In addition, with the completion of the amended and
restated credit agreement, we have the financial resources the Company needs to
realize its long-term growth objectives."
A listen-only simulcast and replay of LifePoint Hospitals' second
quarter conference call will be available on-line at www.lifepointhospitals.com
and www.streetevents.com on July 24, 2001, beginning at 10:00 a.m. Eastern Time.
LifePoint Hospitals, Inc. 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 highly competitive nature
of the healthcare business; (vii) 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 (viii) 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.
All references to "Company" and "LifePoint" as used throughout this
document refer to LifePoint Hospitals, Inc. and its affiliates.
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LPNT Announces Second Quarter Results
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July 23, 2001
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
DOLLARS IN MILLIONS
JUNE 30, DECEMBER 31,
2001 2000
------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 29.5 $ 39.7
Accounts receivable, net 42.5 41.7
Inventories 14.2 13.9
Deferred taxes and other current assets 14.8 22.2
------- -------
101.0 117.5
Property and equipment:
Land 9.1 8.7
Buildings and improvements 242.4 236.9
Equipment 250.8 244.9
Construction in progress 20.3 9.4
------- -------
522.6 499.9
Accumulated depreciation (195.7) (183.4)
------- -------
326.9 316.5
Intangible assets, net 52.9 53.8
Other 0.1 0.2
------- -------
$ 480.9 $ 488.0
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LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 13.7 $ 16.1
Accrued salaries 14.9 13.8
Other current liabilities 15.2 11.1
Current maturities of long-term debt -- 11.1
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43.8 52.1
Long-term debt 150.0 278.3
Deferred income taxes 16.3 15.2
Professional liability risks and other liabilities 14.2 9.4
Minority interests in equity of consolidated entities 4.4 4.6
Stockholders' equity:
Common stock 0.4 0.3
Capital in excess of par value 263.1 156.5
Unearned ESOP compensation (24.1) (25.7)
Notes receivable for shares sold to employees (7.2) (7.2)
Retained earnings 20.0 4.5
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252.2 128.4
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$ 480.9 $ 488.0
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Current ratio 2.31 2.26
Ratio of debt to debt plus common and minority equity 36.9% 68.5%
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LPNT Announces Second Quarter Results
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July 23, 2001
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONSOLIDATED INCOME STATEMENTS
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------------------- --------------------------------------
2001 2000 2001 2000
---------------- ----------------- ---------------- ------------------
AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO
------- ------ ------- ------ -------- ----- -------- -------
Revenues $ 151.6 100.0% $ 133.3 100.0% $ 305.9 100.0% $ 269.3 100.0%
Salaries and benefits 59.4 39.2% 54.4 40.8% 119.7 39.1% 110.1 40.9%
Supplies 18.8 12.4% 16.0 12.0% 38.4 12.5% 33.0 12.2%
Other operating expenses 31.0 20.4% 28.5 21.3% 59.4 19.5% 58.2 21.7%
Provision for
doubtful accounts 10.6 7.0% 9.8 7.4% 22.6 7.4% 18.9 7.0%
------- ------ ------- ------ -------- ----- -------- -------
119.8 79.0% 108.7 81.5% 240.1 78.5% 220.2 81.8%
------- ------ ------- ------ -------- ------ -------- -------
EBITDA 31.8 21.0% 24.6 18.5% 65.8 21.5% 49.1 18.2%
Depreciation and
amortization 8.5 5.7% 8.4 6.4% 16.6 5.4% 16.8 6.3%
Interest expense, net 3.7 2.4% 7.4 5.6% 10.2 3.3% 14.6 5.4%
ESOP expense 2.4 1.6% 1.3 1.0% 5.0 1.7% 2.4 0.9%
Gain on previously
impaired asset -- -- -- -- (0.5) (0.2)% -- --
------- ------ ------- ------ -------- ------ -------- -------
Income before minority
interest, income taxes
and extraordinary item 17.2 11.3% 7.5 5.5% 34.5 11.3% 15.3 5.6%
Minority interest 0.7 0.4% 0.7 0.4% 1.3 0.5% 1.3 0.4%
------- ------ ------- ------ -------- ------ -------- -------
Income before income taxes
and extraordinary item 16.5 10.9% 6.8 5.1% 33.2 10.8% 14.0 5.2%
Provision for income taxes 8.0 5.3% 3.1 2.3% 16.1 5.2% 6.3 2.3%
------- ----- ------- ----- -------- ----- -------- ------
Income before
extraordinary item 8.5 5.6% 3.7 2.8% 17.1 5.6% 7.7 2.9%
Extraordinary loss on early
retirement of debt, net 1.6 1.0% -- -- 1.6 0.5% -- --
------- ------ ------- ------ -------- ------ -------- -------
Net income $ 6.9 4.6% $ 3.7 2.8% $ 15.5 5.1% $ 7.7 2.9%
======= ====== ======= ====== ======== ====== ======== =======
Shares used in diluted
EPS (000's) 37,662 32,539 35,875 32,281
Diluted earnings per share:
Net income, excluding
gain on previously
impaired asset and
extraordinary item $ 0.22 $ 0.11 $ 0.46 $ 0.24
Gain on previously
impaired asset -- -- 0.01 --
Extraordinary loss
on early retirement
of debt, net (0.04) -- (0.04) --
------- ------- -------- --------
Net income $ 0.18 $ 0.11 $ 0.43 $ 0.24
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LPNT Announces Second Quarter Results
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July 23, 2001
LIFEPOINT HOSPITALS, INC.
STATISTICS
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------------------- ---------------------------------
% %
2001 2000 CHANGE 2001 2000 CHANGE
------- ------- ------- ------- ------- -------
Number of hospitals at end of period 21 22 (4.5)% 21 22 (4.5)%
Licensed beds at end of period 1,963 2,083 (5.8)% 1,963 2,083 (5.8)%
Admissions 17,128 15,281 12.1% 36,028 32,476 10.9%
Equivalent admissions 31,379 28,780 9.0% 64,454 59,301 8.7%
Revenues per equivalent admission $ 4,833 $ 4,632 4.3% $ 4,746 $ 4,542 4.5%
Net outpatient revenues as a
percentage of net patient revenues 48.1% 50.1% 46.8% 48.6%
Average daily census 755 676 11.7% 805 738 9.1%
Average length of stay 4.0 4.0 -- 4.0 4.1 (2.4)%
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