EXHIBIT 99
[PROVINCE HEALTHCARE LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: PAMELA L. HUNTER
VICE PRESIDENT, INVESTOR RELATIONS
(615) 370-1377
PROVINCE HEALTHCARE REPORTS SECOND QUARTER RESULTS:
Brentwood, TN, July 27, 2004 - Province Healthcare Company (NYSE:PRV)
today announced results for the second quarter ended June 30, 2004. Diluted
earnings per share (EPS) for the second quarter were $0.34 compared to $0.20 in
the prior year's quarter.
As previously announced, the Company sold Glades General Hospital in
Belle Glade, Florida, on April 30, 2004, and sold Brim Healthcare, Inc. on June
30, 2004. The operating results for both entities are reported as "discontinued
operations", and the consolidated financial statements and statistics for all
prior periods have been adjusted to reflect this presentation.
Diluted earnings per share from continuing operations for the quarter
increased 15.0% to $0.23 compared to $0.20 in the prior year's quarter. Revenues
from continuing operations for the second quarter of 2004 increased 13.4% to
$208.5 million, compared with $183.9 million in the same quarter of last year.
For the quarter, income from continuing operations was $11.8 million, compared
with $9.9 million in the prior year's quarter. Cash flow from operations for the
second quarter increased 38.1% to $23.8 million, compared with $17.2 million in
the same quarter of last year.
Revenues from continuing operations for the six months ended June 30,
2004 increased 11.7% to $409.1 million, compared with $366.4 million in the same
period of 2003. Income from continuing operations for first half of the year was
$24.0 million, compared with last year's income from continuing operations of
$19.8 million. Diluted earnings per share from continuing operations for the
first half of the year increased 14.6% to $0.47 per diluted share, compared with
$0.41 per diluted share in the prior year period.
Province ended the second quarter of 2004 with 20 owned or leased
hospitals, of which 19 are same-store hospitals. Memorial Medical Center in Las
Cruces, New Mexico, acquired through a long-term lease effective June 1, 2004,
is excluded from same-store results. On a same-store basis, net patient revenue
for the quarter increased 6.4%, net patient revenue per adjusted admission
increased 6.8% and surgeries increased 2.9%. Province continues to see the
results of the successful recruitment of primarily specialist physicians in 2003
and 2004; strong outpatient growth and increasing acuity. Specialists typically
generate 20% fewer admissions, but 50% greater net revenue per admission.
Same-store adjusted admissions were flat quarter over quarter, as a result of an
increase in same-store outpatient revenue and a decline in same-store
admissions. Additionally, same-store acuity, as measured by the Medicare case
mix index, increased to 1.22 in the second quarter of 2004 from 1.19 in the
second quarter of 2003. Same-store accounts receivable days outstanding stood at
54 days at June 30, 2004.
Martin S. Rash, Chairman and Chief Executive Officer of Province
Healthcare, said, "The initial operations of Memorial Medical Center in Las
Cruces, New Mexico are exceeding our expectations, and we expect this hospital
to be slightly accretive for the remainder of the year. We continue to be
pleased with our successful physician recruitment efforts, with 71 physicians
recruited to date, of which two-thirds are specialists. We are very confident in
our operations for the remainder of year."
A listen-only simulcast of Province Healthcare's second quarter
conference call will be available on-line at www.prhc.net on July 28, 2004,
beginning at 11:00 a.m. Eastern Daylight Time.
The Company owns or leases 20 general acute care hospitals in 12 states
with a total of 2,492 licensed beds.
Certain information contained in this release constitutes
forward-looking statements. These statements are based only on our current
estimates of future events. Forward-looking statements involve known and unknown
risks and uncertainties which may cause our 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 and uncertainties are described in our most recent reports and filings
with the Securities and Exchange Commission. You should not rely on the
forward-looking statements contained in this release, as we cannot predict or
control many of the factors that may cause future events or results to differ
from those forecasted. We undertake no obligation to update any forward-looking
statements on the basis of any information, future events or otherwise.
- TABLES TO FOLLOW -
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
June 30, December 31,
2004 2003(*)
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 1,987 $ 46,117
Accounts receivable, less allowance for doubtful accounts
of $81,591 in 2004 and $66,835 in 2003 125,754 110,335
Inventories 21,108 18,424
Prepaid expenses and other 20,580 14,844
Assets of discontinued operations 3,011 15,362
----------- -----------
172,440 205,082
Property and equipment, net 551,535 459,843
Goodwill 390,305 309,191
Other assets 33,636 36,874
----------- -----------
$ 1,147,916 $ 1,010,990
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 28,925 $ 16,083
Accrued salaries and benefits 29,901 27,852
Accrued expenses 23,221 13,586
Current portion of long-term debt 305 743
Liabilities of discontinued operations 550 5,386
----------- -----------
82,902 63,650
Long-term debt, less current portion 521,213 447,956
Other liabilities 56,848 50,601
Minority interests 2,089 1,910
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 June 30, 2004 and December 31,
2003, issued and outstanding 49,804,885
shares and 48,841,157 shares at June 30,
2004 and December 31, 2003, respectively 498 488
Additional paid-in-capital 314,058 306,091
Retained earnings 170,945 141,186
Accumulated other comprehensive loss (637) (892)
----------- -----------
Total stockholders' equity 484,864 446,873
----------- -----------
$ 1,147,916 $ 1,010,990
=========== ===========
- -----------------------------------
(*) Derived from the audited consolidated financial statements of Province and
its subsidiaries, contained in the Company's Annual Report on Form 10-K, filed
with the Securities and Exchange Commission on March 9, 2004. The December 31,
2003 balance sheet presented above reflects the restatement of Brim Healthcare,
Inc. as a discontinued operation.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended June 30,
2004 2003
---------------------------- ---------------------------
% of % of
Amount Revenues Amount Revenues
------------- -------- ------------ ----------
Revenues:
Net patient revenue $ 205,886 $ 181,758
Other 2,648 2,177
------------- ------------
208,534 100.0% 183,935 100.0%
Expenses:
Salaries, wages and benefits 75,221 36.1 70,732 38.5
Purchased services 20,504 9.8 17,578 9.6
Supplies 25,847 12.4 23,040 12.5
Provision for doubtful accounts 21,711 10.4 16,263 8.8
Other operating expenses 24,269 11.6 21,341 11.6
Rentals and leases 2,961 1.4 2,234 1.2
Depreciation and amortization 11,466 5.5 9,079 4.9
Interest expense 7,416 3.6 6,635 3.6
Minority interests 169 0.1 82 --
Loss on sale of assets 18 -- -- --
Loss on early extinguishment of debt -- -- 477 0.3
------------- ------- ------------ ----------
Total expenses 189,582 90.9 167,461 91.0
------------- ------- ------------ ----------
Income before provision for income taxes 18,952 9.1 16,474 9.0
Income taxes 7,122 3.4 6,555 3.6
------------- ------- ------------ ----------
Income from continuing operations 11,830 5.7% 9,919 5.4%
======= ==========
Discontinued operations, net of tax:
Loss from operations (464) (258)
Net gain on divestitures 6,833 --
------------- -------------
Net income $ 18,199 $ 9,661
============= =============
Diluted earnings (loss) per common share:
Continuing operations (a) $ 0.23 $ 0.20
Discontinued operations:
Loss from operations (0.01) --
Net gain on divestitures 0.12 --
------------- -------------
Net income $ 0.34 $ 0.20
============= =============
- -----------------------------------
(a) See calculation of diluted earnings per common share from continuing
operations in the Selected Operating Statistics section (attached).
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Six Months Ended June 30,
2004 2003
---------------------------- ---------------------------
% of % of
Amount Revenues Amount Revenues
------------- -------- ------------ ----------
Revenues:
Net patient revenue $ 404,127 $ 361,438
Other 4,983 4,940
------------- ------------
409,110 100.0% 366,378 100.0%
Expenses:
Salaries, wages and benefits 149,576 36.6 141,781 38.7
Purchased services 38,942 9.5 34,141 9.3
Supplies 51,886 12.7 47,035 12.9
Provision for doubtful accounts 41,944 10.2 32,303 8.8
Other operating expenses 46,935 11.5 42,804 11.7
Rentals and leases 5,256 1.3 4,478 1.2
Depreciation and amortization 21,642 5.3 17,915 4.9
Interest expense 14,336 3.5 12,357 3.4
Minority interests 236 -- 149 --
Loss on sale of assets 18 -- -- --
Loss on early extinguishment of debt -- -- 477 0.1
------------- ------- ------------ ----------
Total expenses 370,771 90.6 333,440 91.0
------------- ------- ------------ ----------
Income before provision for income taxes 38,339 9.4 32,938 9.0
Income taxes 14,302 3.5 13,127 3.6
------------- ------- ------------ ----------
Income from continuing operations 24,037 5.9% 19,811 5.4%
======= ==========
Discontinued operations, net of tax:
Loss from operations (940) (299)
Net gain on divestitures 6,663 --
------------- -------------
Net income $ 29,760 $ 19,512
============= =============
Diluted earnings (loss) per common share:
Continuing operations (b) $ 0.47 $ 0.41
Discontinued operations:
Loss from operations (0.02) (0.01)
Net gain on divestitures 0.11 --
------------- -------------
Net income $ 0.56 $ 0.40
============= =============
- -----------------------------------
(b) See calculation of diluted earnings per common share from continuing
operations in the Selected Operating Statistics section (attached).
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
Three Months Ended June 30,
-------------------------
2004 2003
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Income from continuing operations $ 11,830 $ 9,919
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities:
Depreciation and amortization 11,466 9,079
Deferred income taxes 8,158 2,325
Provision for professional liability 1,641 1,404
Loss on early extinguishment of debt -- 477
Loss on sale of assets 18 --
Changes in operating assets and liabilities, net of effects
from acquisitions and disposals:
Accounts receivable 1,658 842
Inventories (388) 284
Prepaid expenses and other (8,208) 3,100
Accounts payable and accrued expenses (3,192) (16,338)
Accrued salaries and benefits 1,126 1,139
Other (313) 4,998
--------- ---------
Net cash provided by operating activities 23,796 17,229
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (19,245) (15,250)
Escrow deposit on potential investment -- (3,798)
Purchase of hospitals and healthcare entities (152,779) (3,153)
--------- ---------
Net cash used in investing activities (172,024) (22,201)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt 110,000 194,212
Repayments of debt (34,870) (186,887)
Issuance of common stock 3,362 72
--------- ---------
Net cash provided by financing activities 78,492 7,397
--------- ---------
Net cash provided by (used in) continuing operations (69,736) 2,425
Net cash provided by discontinued operations 15,115 724
--------- ---------
Increase (decrease) in cash and cash equivalents (54,621) 3,149
Cash and cash equivalents at beginning of period 56,608 15,990
--------- ---------
Cash and cash equivalents at end of period $ 1,987 $ 19,139
========= =========
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
Six Months Ended June 30,
-------------------------
2004 2003
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Income from continuing operations $ 24,037 $ 19,811
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities:
Depreciation and amortization 21,642 17,915
Deferred income taxes 10,532 3,155
Provision for professional liability 3,244 3,383
Loss on early extinguishment of debt -- 477
Loss on sale of assets 18 --
Changes in operating assets and liabilities, net of effects
from acquisitions and disposals:
Accounts receivable (3,298) (375)
Inventories (199) 429
Prepaid expenses and other (10,591) (1,920)
Accounts payable and accrued expenses 5,146 5,091
Accrued salaries and benefits (3,273) 1,942
Other 1,551 4,026
--------- ---------
Net cash provided by operating activities 48,809 53,934
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (37,712) (30,404)
Escrow deposit on potential investment -- (3,798)
Purchase of hospitals and healthcare entities (152,783) (3,153)
--------- ---------
Net cash used in investing activities (190,495) (37,355)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt 110,000 194,212
Repayments of debt (35,125) (207,274)
Issuance of common stock 7,264 1,235
--------- ---------
Net cash provided by (used in) financing activities 82,139 (11,827)
--------- ---------
Net cash provided by (used in) continuing operations (59,547) 4,752
Net cash provided by (used in) discontinued operations 15,417 (238)
--------- ---------
Increase (decrease) in cash and cash equivalents (44,130) 4,514
Cash and cash equivalents at beginning of period 46,117 14,625
--------- ---------
Cash and cash equivalents at end of period $ 1,987 $ 19,139
========= =========
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SELECTED OPERATING STATISTICS (UNAUDITED)
Actual Same Store(1)
------ -------------
Three Months Ended Three Months Ended
June 30, June 30,
------------------------------- ----------------------------------
2004 2003 2004 2003
-------- -------- -------- --------
CONSOLIDATED HOSPITALS:
Number of hospitals at end of period 20 19 5.3% 19 19 --%
Licensed beds at end of period 2,492 2,208 12.9 2,206 2,208 --
Beds in service at end of period 2,119 1,933 9.6 1,920 1,933 (0.7)
Inpatient admissions 17,724 17,579 1.0 16,883 17,579 (4.0)
Adjusted admissions(2) 33,564 32,143 4.4 32,026 32,143 (0.4)
Patient days 76,208 74,713 2.0 72,580 74,713 (2.8)
Adjusted patient days(3) 144,323 136,619 5.6 137,678 136,619 0.8
Average length of stay (days) 4.3 4.3 -- 4.3 4.3 --
Net patient revenue $205,886 $181,758 13.3 $193,417 $181,758 6.4
Net patient revenue:
Per inpatient admission $ 11,616 $ 10,340 12.3 $ 11,456 $ 10,340 10.8
Per adjusted admission $ 6,134 $ 5,655 8.5 $ 6,039 $ 5,655 6.8
Gross revenue:
Inpatient $239,461 $219,842 8.9 $225,931 $219,842 2.8
Outpatient 214,010 182,075 17.5 202,566 182,075 11.3
-------- -------- -------- --------
$453,471 $401,917 12.8 $428,497 $401,917 6.6
======== ======== ======== ========
NET PATIENT REVENUE BY PAYOR:
Medicare 38.8% 38.5% 38.5% 38.5%
Medicaid 8.7 10.7 9.7 10.7
Other 52.5 50.8 51.8 50.8
-------- -------- -------- --------
Total 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ========
Three Months Ended June 30,
-----------------------------------
2004 2003
-------------- ---------------
DILUTED EARNINGS PER SHARE CALCULATION:
Income from continuing operations $ 11,830 $ 9,919
Add convertible notes interest, net of tax(4) 1,899 --
-------------- ---------------
Adjusted net income $ 13,729 $ 9,919
============== ===============
Basic shares plus stock options 50,600 49,032
Convertible shares(4) 9,100 --
-------------- ---------------
Diluted shares outstanding 59,700 49,032
============== ===============
Diluted earnings per share $ 0.23 $ 0.20
============== ===============
- ---------------------------
(1) Represents hospitals owned or leased during both periods.
(2) Used by management and investors as a general measure of combined
inpatient and outpatient volume. Adjusted admissions are computed by
multiplying admissions (inpatient volume) by the outpatient factor. The
outpatient factor is the sum of gross inpatient revenue and gross
outpatient revenue divided by gross inpatient revenue. The adjusted
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.
(3) Adjusted patient days are computed by multiplying patient days
(inpatient volume) by the outpatient factor. The outpatient factor is
the sum of gross inpatient revenue and gross outpatient revenue divided
by gross inpatient revenue. The adjusted patient days computation
equates outpatient revenue to the volume measure (patient days) used to
measure inpatient volume, resulting in a general measure of combined
inpatient and outpatient volume.
(4) The Company's two outstanding series of convertible notes are
anti-dilutive for the three and six month periods ended June 30, 2003
and thus, are not included in the diluted earnings per share
calculation for such period.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SELECTED OPERATING STATISTICS (UNAUDITED)
Actual Same Store(1)
------ -------------
Six Months Ended Six Months Ended
June 30, June 30,
------------------------------- ----------------------------------
2004 2003 2004 2003
-------- -------- -------- --------
CONSOLIDATED HOSPITALS:
Number of hospitals at end of period 20 19 5.3% 19 19 --%
Licensed beds at end of period 2,492 2,208 12.9 2,206 2,208 --
Beds in service at end of period 2,119 1,933 9.6 1,920 1,933 (0.7)
Inpatient admissions 36,717 36,303 1.1 35,876 36,303 (1.2)
Adjusted admissions(2) 67,548 65,252 3.5 66,010 65,252 1.2
Patient days 157,455 155,296 1.4 153,827 155,296 (1.0)
Adjusted patient days(3) 289,643 279,137 3.8 282,998 279,137 1.4
Average length of stay (days) 4.3 4.3 -- 4.3 4.3 --
Net patient revenue $404,127 $361,438 11.8 $391,658 $361,438 8.4
Net patient revenue:
Per inpatient admission $ 11,007 $ 9,956 10.6 $ 10,917 $ 9,956 9.7
Per adjusted admission $ 5,983 $ 5,539 8.0 $ 5,933 $ 5,539 7.1
Gross revenue:
Inpatient $493,404 $447,607 10.2 $479,874 $447,606 7.2
Outpatient 414,286 357,079 16.0 402,842 357,079 12.8
-------- -------- -------- --------
$907,690 $804,686 12.8 $882,716 $804,685 9.7
======== ======== ======== =========
NET PATIENT REVENUE BY PAYOR:
Medicare 39.6% 39.0% 39.5% 39.0%
Medicaid 9.0 10.7 9.5 10.7
Other 51.4 50.3 51.0 50.3
-------- -------- -------- --------
Total 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ========
Six Months Ended June 30,
-----------------------------------
2004 2003
-------------- ---------------
DILUTED EARNINGS PER SHARE CALCULATION:
Income from continuing operations $ 24,037 $ 19,811
Add convertible notes interest, net of tax(4) 3,797 --
-------------- ---------------
Adjusted net income $ 27,834 $ 19,811
============== ===============
Basic shares plus stock options 50,469 48,895
Convertible shares(4) 9,100 --
-------------- ---------------
Diluted shares outstanding 59,569 48,895
============== ===============
Diluted earnings per share $ 0.47 $ 0.41
============== ===============
- ---------------------------
See accompanying footnotes on previous page.