EXHIBIT 99
(LIFEPOINT HOSPITALS, INC. LOGO)
CONTACT: MICHAEL J. CULOTTA
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
(615) 372-8512
LIFEPOINT HOSPITALS REPORTS 52% INCREASE
IN FIRST QUARTER 2002 EPS (BEFORE EXTRAORDINARY ITEM)
BRENTWOOD, TENNESSEE (April 22, 2002) - LifePoint Hospitals, Inc. (NASDAQ: LPNT)
today announced results for the first quarter ended March 31, 2002.
For the first quarter ended March 31, 2002, net revenues were $181.6
million, up 17.7% from $154.3 million a year ago. Income before extraordinary
item for the quarter totaled $14.5 million, or $0.38 per diluted share, versus
$8.6 million, or $0.25 per diluted share (including a $0.5 million pre-tax gain,
or $0.01 per diluted share), in the prior-year period, representing increases of
68.5% and 52%, respectively. Shares used in calculating diluted earnings per
share for the first quarter of 2002 increased approximately 4.4 million shares
compared with the first quarter of 2001, primarily as a result of the secondary
offering of common stock completed on March 22, 2001. Including the
extraordinary item, net income for the quarter ended March 31, 2002, totaled
$13.7 million, or $0.36 per diluted share. Earnings before interest, income
taxes, depreciation, amortization, ESOP expense, extraordinary loss, gain on
previously impaired assets, and minority interest (EBITDA) increased 25.2% to
$42.6 million from $34.0 million in the same period last year.
Kenneth C. Donahey, chairman and chief executive officer of LifePoint
Hospitals, said, "We are pleased to report that, once again, we have exceeded
analysts' expectations. We are proud of the consistency of this performance, but
equally proud that we are generating these outstanding financial results by
delivering exceptional healthcare in our 23 communities throughout the United
States. In our non-urban facilities, we are proving on a daily basis that
quality care and a cost-effective operating strategy are mutually compatible."
Mr. Donahey continued, "During first quarter 2002, we invested
approximately $10 million to improve the quality of care in our communities
through the expansion of services and increased utilization. Since our
formation, we have recruited 233 physicians, an increasing percentage of whom
are specialists providing services that previously were unavailable in our
communities. In addition, we continue to see solid growth in the surgery and
diagnostic areas. We are pleased with this level of performance, but far from
satisfied. We will continue to work diligently to improve healthcare in our
communities and generate improved returns for our shareholders."
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LPNT Announces First Quarter Results
Page 2
April 22, 2002
Subsequent to the close of the first quarter, the Company announced
that it had utilized its available cash to purchase, in the open market and in
privately negotiated transactions, $60,123,000 in principal amount of the
outstanding $150 million, 10 3/4% Senior Subordinated Notes due 2009 (the
"Notes")1. During the first quarter, the Company recorded an extraordinary
charge of $0.8 million as a result of these purchases. The decision to purchase
a portion of the outstanding Notes was based on the Company's strong cash
position in the first quarter and the fact that LifePoint Hospitals'
acquisitions and other capital expenditures are more heavily weighted toward the
last six months of the year.
A listen-only simulcast and replay of LifePoint Hospitals' first
quarter conference call will be available on-line at www.lifepointhospitals.com
and www.companyboardroom.com on April 23, 2002, beginning at 10:00 a.m. Eastern
Time.
LifePoint Hospitals, Inc. operates 23 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 7,000
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,
nurses and clinical support personnel; (iii) the geographic concentration of the
Company's operations; (iv) risks associated with the Company's acquisition and
disposition strategies; (v) the management of healthcare risks as a result of
the delivery of patient care; (vi) the regulated nature of the healthcare
industry; (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); (ix) fluctuations in the market value of the
Company's common stock; and (x) 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.
(1) The Financial Accounting Standards Board ("FASB") has issued an exposure
draft that rescinds FASB Statement No. 4, Reporting Gains and Losses from
Extinguishment of Debt. If this exposure draft is approved, the accounting
for the early extinguishment of debt would be reported as a component of
interest expense. The application of this proposal statement would be
effective beginning the fiscal year after the proposed statement is issued,
but earlier application is encouraged.
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LPNT Announces First Quarter Results
Page 3
April 22, 2002
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONSOLIDATED INCOME STATEMENTS
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
FOR THE THREE MONTHS ENDED
MARCH 31,
-------------------------------------------------------
2002 2001
----------------------- -----------------------
AMOUNT RATIO AMOUNT RATIO
-------- ----- -------- -----
Revenues $ 181.6 100.0% $ 154.3 100.0%
Salaries and benefits 70.7 39.0% 60.3 39.1%
Supplies 22.9 12.6% 19.6 12.7%
Other operating expenses 32.2 17.7% 28.4 18.4%
Provision for doubtful accounts 13.2 7.3% 12.0 7.8%
-------- ----- -------- -----
139.0 76.6% 120.3 78.0%
-------- ----- -------- -----
EBITDA 42.6 23.4% 34.0 22.0%
Depreciation and amortization 9.4 5.2% 8.1 5.3%
Interest expense, net 4.1 2.2% 6.5 4.2%
Gain on previously impaired assets -- -% (0.5) (0.4)%
ESOP expense 2.5 1.4% 2.6 1.7%
-------- ----- -------- -----
Income before minority interest, income
taxes and extraordinary item 26.6 14.6% 17.3 11.2%
Minority interest 0.7 0.4% 0.6 0.4%
-------- ----- -------- -----
Income before income taxes
and extraordinary item 25.9 14.2% 16.7 10.8%
Provision for income taxes 11.4 6.2% 8.1 5.2%
-------- ----- -------- -----
Income before extraordinary item 14.5 8.0% 8.6 5.6%
Extraordinary loss on early extinguishment
of senior subordinated notes, net 0.8 0.5% -- -%
-------- ----- -------- -----
Net income $ 13.7 7.5% $ 8.6 5.6%
======== ===== ======== =====
Shares used in diluted EPS (000's) 38,456 34,069
Diluted earnings per share:
Income before gain on previously
impaired assets and extraordinary item $ 0.38 $ 0.24
Gain on previously impaired assets, net -- 0.01
Extraordinary loss on early extinguishment
of senior subordinated notes, net (0.02) --
-------- --------
Net income $ 0.36 $ 0.25
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LPNT Announces First Quarter Results
Page 4
April 22, 2002
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
THREE MONTHS ENDED
MARCH 31,
-----------------------------------------
%
2002 2001 CHANGE
-------- -------- ------
Number of hospitals at end of period 23 21 9.5%
Licensed beds at end of period 2,197 1,988 10.5%
Weighted average licensed beds 2,197 1,988 10.5%
ACTUAL:
Admissions 20,551 18,900 8.7%
Equivalent admissions(1) 37,588 33,075 13.6%
Revenues ($ in millions) $ 181.6 $ 154.3 17.7%
Revenues per equivalent admission $ 4,832 $ 4,664 3.6%
Outpatient factor(1) 1.83 1.75
Total surgeries 21,818 18,597 17.3%
Outpatient surgeries 16,166 13,555 19.3%
Emergency room visits 84,987 77,573 9.6%
Net outpatient revenues as a
percentage of net patient revenues 47.7% 45.5%
SAME-HOSPITAL(3):
Admissions 18,743 18,900 (0.8)%
Equivalent admissions(1) 33,775 33,075 2.1%
Revenues ($ in millions) $ 166.4(2) $ 154.1 8.0%
Revenues per equivalent admission $ 4,926 $ 4,659 5.7%
Outpatient factor(1) 1.80 1.75
Total surgeries 20,200 18,597 8.6%
Outpatient surgeries 15,041 13,555 11.0%
Emergency room visits 76,758 77,573 (1.1)%
(1) Equivalent admissions is used by management and investors as a general
measure of combined inpatient and outpatient volume. Equivalent
admissions is computed by multiplying admissions (inpatient volumes) by
the sum of gross inpatient revenue and gross outpatient revenue and
then dividing the resulting amount by gross inpatient revenue. The
equivalent admissions computation "equates" outpatient revenue to the
volume measure (admissions) used to measure inpatient volume resulting
in a general measure of combined inpatient and outpatient volume.
(2) In addition to same-hospital revenue growth of $12.3 million over the
prior year period, 2001 acquisitions increased the growth in actual
revenues by $15.0 million.
(3) Same hospital information excludes the operations of hospitals which
the Company either acquired or divested during the years presented. The
costs of corporate overhead are included in same hospital information.
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LPNT Announces First Quarter Results
Page 5
April 22, 2002
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
DOLLARS IN MILLIONS
MARCH 31, DECEMBER 31,
2002 2001
--------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 73.8 $ 57.2
Accounts receivable, net 77.5 56.7
Inventories 16.6 16.3
Deferred taxes and other current assets 13.8 18.7
------- -------
181.7 148.9
Property and equipment:
Land 10.6 10.7
Buildings and improvements 261.9 262.0
Equipment 271.0 263.4
Construction in progress 8.4 7.2
------- -------
551.9 543.3
Accumulated depreciation (213.7) (204.9)
------- -------
338.2 338.4
Deferred loan costs, net 6.6 7.1
Goodwill, net 47.2 47.1
Other 11.9 12.8
------- -------
$ 585.6 $ 554.3
======= =======
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 20.7 $ 19.0
Accrued salaries 16.8 18.6
Other current liabilities 16.6 10.7
Estimated third-party payor settlements 29.2 17.9
------- -------
83.3 66.2
Long-term debt 142.5 150.0
Deferred income taxes 22.2 21.0
Professional liability risks and other liabilities 19.4 16.9
Minority interests in equity of consolidated entities 5.0 5.2
Stockholders' equity:
Common stock 0.4 0.4
Capital in excess of par value 288.7 285.0
Unearned ESOP compensation (21.7) (22.5)
Notes receivable for shares sold to employees (5.7) (5.7)
Retained earnings 51.5 37.8
------- -------
313.2 295.0
------- -------
$ 585.6 $ 554.3
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