EXHIBIT 99
[LIFEPOINT LOGO]
HOSPITALS, INC.
CONTACT: MICHAEL J. CULOTTA
SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
(615) 372-8512
LIFEPOINT HOSPITALS ANNOUNCES COMPLETION
OF NOTE OFFERING
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COMPANY UPDATES GUIDANCE FOR 2002
BRENTWOOD, TENNESSEE (May 23, 2002) - LifePoint Hospitals, Inc. (NASDAQ: LPNT)
announced today that it has completed its previously announced offering of an
aggregate of $250 million of its 4 1/2% Convertible Subordinated Notes due June
1, 2009. After paying expenses associated with the offering, LifePoint estimates
that net proceeds from the offering will approximate $242.6 million.
The Company intends to use these proceeds for general corporate
purposes, which may include capital improvements on its existing facilities,
working capital, and, subject to market conditions, repurchases of its 10 3/4%
Senior Subordinated Notes.
Through its wholly owned subsidiary, LifePoint Hospitals Holdings, Inc.
(Holdings), the Company has purchased through May 1, 2002, in the open market
and in privately negotiated transactions, approximately $65 million in principal
amount of Holding's outstanding 10 3/4% Senior Subordinated Notes due 2009 (the
"Notes"). Approximately $85 million in principal amount of the Notes remains
outstanding.
The completion of the offering and repurchase of a portion of the Notes
do not impact the Company's previous 2002 guidance related to operating
statistics such as revenue growth of 14% to 16% and margin expansion of 50 to
100 basis points. However, the Company now anticipates its net interest expense
(including additional interest expense from the 4 1/2% note offering, interest
on the remaining $85 million 10 3/4% Notes, fees related to its credit
agreement, amortization of deferred loan costs and investment income) will be
approximately $4.8 million per quarter.
The Company's current earnings per share guidance for the year 2002 is
approximately $1.23 to $1.25, representing a 32% to 34% increase over 2001
earnings per share of $0.93 (excluding extraordinary items and gain on
previously impaired assets). On a quarterly basis, the Company anticipates
earnings per share of $0.26 to $0.27 for each of the second and third quarters
and approximately $0.33 for the fourth quarter of 2002. The Company recently
reported earnings per share of $0.38, excluding extraordinary items, for the
first quarter of 2002. If the Company were successful in repurchasing the
remaining 10 3/4% Notes, it could result in additional net interest savings of
approximately $2.0 million ($1.2 million, after tax), or $0.03 earnings per
share per quarter.
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LPNT Completes Note Offering and
Updates Guidance for 2002
Page 2
May 23, 2002
The additional Notes may be purchased by the Company from time-to-time,
based upon its view of market conditions and other relevant factors. LifePoint
is not able at this time to quantify the aggregate principal amount of
additional Notes, if any, that may ultimately be purchased, but the amounts
involved may be material.
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.
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References contained in this press release to "LifePoint Hospitals,
Inc.," "LifePoint" or the "Company" refer to LifePoint Hospitals, Inc. and its
subsidiaries.
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) whether the Company is able to
successfully purchase Notes on terms and conditions acceptable to the Company;
(ii) whether the Company is able to obtain the necessary approvals under the
Credit Agreement; (iii) whether Notes remain available for purchase on terms
acceptable to the Company; (iv) the possibility that existing accounting
practices relating to the treatment of the extraordinary charge to be incurred
by the Company could be changed based on current proposals; (v) the possibility
that the Company's judgment regarding the tax implications of the purchases
could be challenged; (vi) the possibility that interest rates could rise and
increase the Company's borrowing costs under the Credit Agreement; (vii) the
possibility that the Company's liquidity needs could change; (viii) the
possibility that costs associated with the purchase of Notes might be greater
than anticipated; 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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