EXHIBIT 99.1
(PROVINCE HEALTHCARE LOGO)
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: MERILYN H. HERBERT
VICE PRESIDENT, INVESTOR RELATIONS
(615) 370-1377
PROVINCE HEALTHCARE REPORTS FIRST QUARTER RESULTS
Brentwood, TN, April 23, 2003 - Province Healthcare Company (NYSE:PRV)
today announced results consistent with its previously disclosed expectations
for the first quarter ended March 31, 2003. Diluted earnings per share (EPS) for
the quarter were $0.20 compared with $0.23 in the prior year's first quarter.
Net operating revenues for the first quarter increased 17.4% to $194.4
million, compared with $165.6 million in the same period of 2002. Earnings
before income taxes, depreciation and amortization, interest, minority interests
and gain or loss on sale of assets (EBITDA) were $31.6 million, compared with
$31.3 million in the previous year. Net income for the first quarter of 2003 was
$9.9 million compared with $11.7 million in the prior year. Cash flow from
operations for the first quarter increased to $36.0 million compared with $23.5
million reported last year and accounts receivable days outstanding improved
from 58 days at December 31, 2002 to 53 days at March 31, 2003.
Province ended the first quarter of 2003 with 20 owned or leased
hospitals, of which 18 are same-store hospitals. Excluded from same-store
results are Memorial Hospital of Martinsville and Henry County in Martinsville,
Virginia, acquired on May 1, 2002, and Los Alamos Medical Center in Los Alamos,
New Mexico, acquired on June 1, 2002.
In line with expectations, total same-store hospital admissions
decreased 2.5% compared with the first quarter of last year, but adjusted
admissions increased 2.3%. Net patient service revenue decreased 2.5%, while
gross outpatient revenue increased 14.9%. Adjusting for units closed in 2002,
same-store hospital admissions declined 1.7% and same-store revenue declined
1.9%.
Martin S. Rash, Chairman and Chief Executive Officer of Province
Healthcare, said, "Our results in the quarter were exactly in line with our
previously disclosed expectations for the first quarter of 2003. We saw
improving volume trends in our same-store hospitals, as well as substantial
improvement in expense control where we are actually seeing more rapid
improvement than we had forecast originally. In addition, surgery volume
improved from the 8.6% decline seen in the fourth quarter last year to only 0.4%
decline in the first quarter this year. As the physicians recruited in 2002
continue to build their practices successfully, we expect same-store volumes to
return to the Company's traditional levels: admission increases in the 1% to 3%
range and revenue increases of 3% to 6% for the year 2003."
The Company owns or leases 20 general acute care hospitals in 13 states
with a total of 2,281 licensed beds. The Company also provides management
services to 37 non-urban hospitals in 14 states with a total of 2,955 licensed
beds.
Certain statements contained in this release, constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements may include projections of
revenues, income or loss, capital expenditures, capital structure, or other
financial items, statements regarding the plans and objectives of management for
future operations, statements of future economic performance, statements of the
assumptions underlying or relating to any of the foregoing statements, and other
statements which are other than statements of historical fact. These statements
are based on current estimates of future events, and the Company has no
obligation to update or correct these estimates unless considered material to
the Company. Forward-looking statements involve known and unknown risks and
uncertainties which may cause the Company's actual results in future periods to
differ materially from forecasted results. Those risks include, among others,
risks associated with general economic and business conditions, the effect of
future governmental regulations, changes in reimbursement levels by government
programs, including Medicare and Medicaid or other third party payors,the
Company's continued ability to recruit and retain physicians and the Company's
ability to successfully complete and integrate acquisitions. Those and other
risks are described in the Company's reports and filings with the Securities and
Exchange Commission.
CONTACT: Merilyn H. Herbert, Province Healthcare Company (PRV) at (615) 370-1377
- TABLES TO FOLLOW -
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
March 31, December 31,
2003 2002
--------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 15,891 $ 14,417
Accounts receivable, less allowance for doubtful accounts
of $73,447 in 2003 and $68,158 in 2002 118,858 117,431
Inventories 19,728 19,835
Prepaid expenses and other 20,285 14,071
--------- ---------
174,762 165,754
Property, plant and equipment, net 453,508 447,379
Goodwill 319,390 319,390
Unallocated purchase price 469 466
Other assets 39,135 38,722
--------- ---------
Total assets $ 987,264 $ 971,711
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,106 $ 20,162
Accrued salaries and benefits 25,261 25,380
Accrued expenses 22,313 13,198
Current portion of long-term debt 1,612 1,668
--------- ---------
81,292 60,408
Long-term debt, less current portion 441,276 461,576
Other liabilities 37,824 33,913
Minority interests 2,656 2,612
Stockholders' equity:
Preferred stock - $0.01 par value, 100,000 shares
authorized, none issued and outstanding -- --
Common stock - $0.01 par value; 150,000,000 shares
authorized at March 31, 2003 and December
31, 2002, issued and outstanding 48,720,594
shares and 48,581,549 shares at March 31,
2003 and December 31, 2002, respectively 487 486
Additional paid-in-capital 305,264 304,102
Retained earnings 119,418 109,567
Accumulated other comprehensive loss (953) (953)
--------- ---------
Total stockholders' equity 424,216 413,202
--------- ---------
Total liabilities and stockholders' equity $ 987,264 $ 971,711
========= =========
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended March 31,
------------------------------
2003 2002
----------- -----------
Revenue:
Net patient service revenue $ 187,559 $ 159,780
Other 6,841 5,821
----------- -----------
Net operating revenue 194,400 165,601
Expenses:
Salaries, wages and benefits 75,330 62,152
Purchases services 17,784 17,091
Supplies 24,747 19,745
Provision for doubtful accounts 17,194 14,738
Other operating expenses 25,287 18,396
Rentals and leases 2,433 2,152
----------- -----------
162,775 134,274
EBITDA (*) 31,625 31,327
Depreciation and amortization 9,277 7,581
Interest expense 5,859 4,196
Minority interests 67 59
Loss on sale of assets 3 5
----------- -----------
Income before provision for income taxes 16,419 19,486
Income taxes 6,568 7,794
----------- -----------
Net income $ 9,851 $ 11,692
=========== ===========
Net income per common share:
Basic $ 0.20 $ 0.25
=========== ===========
Diluted $ 0.20 $ 0.23
=========== ===========
Weighted average common shares:
Basic 48,681,000 47,550,000
Diluted 48,758,000 61,194,000
(*) EBITDA for 2003 and 2002, respectively, represents the sum of income before
provision for income taxes, depreciation and amortization, interest,
minority interests and gain or loss on sale of assets. EBITDA serves as a
measure of leverage capacity and debt service ability, and is commonly used
as an analytical indicator within the healthcare industry. EBITDA, however,
is not a measure of financial performance under accounting principles
generally accepted in the United States, and should not be considered an
alternative to net income as a measure of operating performance or to cash
flows from operating, investing or financing activities as a measure of
liquidity. Because EBITDA is not a measurement determined in accordance with
accounting principles generally accepted in the United States and is
susceptible to varying calculations, EBITDA as presented may not be
comparable to other similarly titled measures of other companies.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SELECTED OPERATING STATISTICS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Actual Same Store(a)
------ -------------
Three Months Ended Three Months Ended
March 31, March 31,
2003 2002 2003 2002
-------- -------- -------- --------
CONSOLIDATED HOSPITALS:
Number of hospitals at end of period 20 18 18 18
Licensed beds at end of period 2,281 2,156 1,997 2,156
Beds in service at end of period 1,994 1,831 1,795 1,831
Inpatient admissions 19,768 17,999 17,541 17,999
Adjusted admissions 34,692 29,097 29,771 29,097
Patient days 84,132 80,329 74,206 80,239
Adjusted patient days 147,683 129,896 125,967 129,896
Average length of stay (days) 4.3 4.5 4.2 4.5
Net patient service revenue $187,559 $159,780 $155,606 $159,637
Gross revenue:
Inpatient $242,061 $215,389 $218,795 $215,389
Outpaitent 182,790 132,867 152,603 132,867
-------- -------- -------- --------
$424,851 $348,256 $371,398 $348,256
======== ======== ======== ========
NET PATIENT REVENUE BY PAYOR:
Medicare 38.2% 43.4% 39.7% 43.4%
Medicaid 11.5% 14.1% 13.2% 14.1%
Other 50.3% 42.5% 47.1% 42.5%
-------- -------- -------- --------
Total 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ========
Three Months Ended March 31,
----------------------------
2003 2002
----------- -----------
DILUTED EARNINGS PER SHARE CALCULATION:
Net income $ 9,851 $ 11,692
Add convertible notes interest, net of tax (b) -- 2,407
----------- -----------
Adjusted net income $ 9,851 $ 14,099
=========== ===========
Basic shares plus stock options 48,758,000 49,295,000
Convertible shares (b) -- 11,899,000
----------- -----------
Diluted shares outstanding 48,758,000 61,194,000
=========== ===========
Diluted earnings per share $ 0.20 $ 0.23
=========== ===========
(a) Represents eighteen hospitals owned during both periods
(b) Convertible notes are anti-dilutive for the three months ended March 31,
2003, thus not included in diluted earnings per share calculation