EXHIBIT 99.1
[HCA LOGO] NEWS
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
INVESTOR CONTACT: MEDIA CONTACT:
Mark Kimbrough Jeff Prescott
615-344-2688 615-344-5708
HCA REPORTS SECOND QUARTER 2005 RESULTS OF $0.90 PER DILUTED SHARE
Nashville, Tenn., July 27, 2005 - HCA (NYSE: HCA) today announced results for
its second quarter ended June 30, 2005. Net income for the second quarter of
2005 was $405 million, or $0.90 per diluted share, compared to $352 million, or
$0.72 per diluted share, in the previous year's second quarter. The Company's
results for the second quarter include the following:
- favorable tax settlement related to the Company's divestiture
of certain non-core business units in 1998 and 2001 of $48
million, or $0.11 per diluted share;
- recognition of a previously deferred gain on the Company's
sale of certain medical office buildings (the MedCap
properties) of $29 million pretax, or $0.04 per diluted share;
and
- additional depreciation expense of $30 million, or $0.04 per
diluted share, to correct accumulated depreciation and assure
a consistent application of the Company's accounting policy
relative to certain short-lived medical equipment.
Also, the Company recognized a reduction in its estimated professional liability
insurance reserves of $36 million pretax, or $0.05 per diluted share, during the
second quarter of 2005. Results for the second quarter of 2004 included a
reduction in estimated professional liability reserves of $59 million pretax, or
$0.07 per diluted share. The adjustments to insurance reserves reduce "other
operating expenses" in the Company's consolidated income statement.
Same facility admissions in the second quarter of 2005 decreased 0.3 percent and
same facility equivalent admissions, which take into account outpatient volume,
increased 1.2 percent compared to the second quarter of 2004.
Same facility revenues rose 4.3 percent to $6.0 billion in the second quarter of
2005 and same facility revenue per equivalent admission increased 3.1 percent
compared to the prior year's second quarter. Adjusting for discounts provided to
uninsured patients of $183 million, same facility revenues increased 7.5 percent
and same facility revenue per equivalent admission increased 6.2 percent in the
second quarter of 2005 compared to the second quarter of 2004. The Company also
provided $275 million in charity care in the second quarter of 2005 compared to
$232 million in last year's second quarter.
1
"Although the second quarter of 2005 results include the previously mentioned
items that affected several lines of our income statement, I believe the results
reflect a solid quarter with soft inpatient volume in some markets, exceptional
expense management, reasonable pricing growth and a slight increase in bad debt
expense," stated Jack O. Bovender, HCA's Chairman and CEO.
The provision for doubtful accounts in the second quarter of 2005 was $541
million, or 8.9 percent of revenues, compared to $661 million, or 11.3 percent
of revenues, in the second quarter of 2004. Adjusting for the effect of the
uninsured discounts provided to the uninsured during the quarter, the provision
for doubtful accounts for the second quarter of 2005 would be $725 million, or
11.6 percent of revenues. The Company's uninsured discount policy lowers
revenues and the provision for doubtful accounts by generally corresponding
amounts. Uninsured patient admissions increased 5.1 percent in the second
quarter of 2005 compared to the prior year period.
Same facility emergency room visits increased 3.4 percent in the second quarter
of 2005, compared to the same period of 2004. The same facility outpatient
surgeries increase of 1.2 percent was comprised of hospital based outpatient
surgical procedures which increased 1.0 percent and free-standing outpatient
surgical procedures which increased 1.7 percent, on a same facility basis.
Revenues for the six months ended June 30, 2005 were $12.3 billion compared to
$11.8 billion in the same period of 2004. Net income totaled $819 million, or
$1.84 per diluted share, for the six months ended June 30, 2005 compared to $697
million, or $1.41 per diluted share, for the six months ended June 30, 2004.
CASH FLOW AND BALANCE SHEET
HCA's cash flow from operations increased 11.9 percent to $763 million in the
second quarter of 2005 compared to $682 million in the second quarter of 2004.
As of June 30, 2005, the Company's balance sheet reflected total debt of $9.4
billion, stockholders' equity (including common and minority equity) of $6.9
billion and total assets of $21.7 billion. HCA's ratio of debt to debt plus
common and minority equity was 57.5 percent at June 30, 2005, compared to 61.7
percent at March 31, 2005 and 66.9 percent at December 31, 2004.
The Company had 452.0 million common shares outstanding at June 30, 2005,
compared to 441.2 million shares at March 31, 2005 and 422.6 million shares at
December 31, 2004.
STATUS OF ASSET SALES
A definitive agreement was signed with LifePoint Hospitals, Inc. for their
purchase of five hospitals located in Virginia and West Virginia for $285
million, plus other adjustments and working capital valued at approximately $45
million at March 31, 2005. A definitive agreement was also signed with Capella
Healthcare, a newly formed company headed by former executives
2
of Province Healthcare, for their purchase of five hospitals located in
Tennessee, Oklahoma, Louisiana and Washington for approximately $260 million,
inclusive of working capital. The divestitures are subject to customary
regulatory approvals and are expected to be completed in the fourth quarter of
2005.
EARNINGS GUIDANCE FOR 2005
With today's announcement, the Company is reaffirming its earnings guidance for
2005 of $3.05 to $3.20 per diluted share, excluding gains on sales of assets,
impairments and tax settlements.
FACILITIES AT QUARTER END
At June 30, 2005, the Company operated 190 hospitals and 92 freestanding surgery
centers (including seven hospitals and eight freestanding surgery centers
operated through equity method joint ventures) located in 23 states, London,
England and Geneva, Switzerland compared to 190 hospitals and 91 freestanding
surgery centers (including seven hospitals and nine freestanding surgery centers
operated through equity method joint ventures) at June 30, 2004.
EARNINGS CONFERENCE CALL
HCA will host a conference call for investors to discuss second quarter results
at 8:30 a.m. Central Daylight Time today. All interested investors are invited
to access a live audio broadcast of the call via webcast. The broadcast also
will be available on a replay basis beginning this afternoon and through the
next year. The webcast can be accessed via the following link:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=63489&event
ID=1098761 or on the Investor Relations page at www.hcahealthcare.com.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include all statements
regarding our estimated results of operations for future periods and all
statements other than those made solely with respect to historical fact.
Numerous risks, uncertainties and other factors may cause actual results to
differ materially from those expressed in any forward-looking statements. These
factors include, but are not limited to, (i) increases in the amount and risk of
collectability of uninsured accounts and deductibles and co-pay amounts for
insured accounts, (ii) the ability to achieve operating and financial targets,
achieve expected levels of patient volumes and control the costs of providing
services, (iii) the highly competitive nature of the health care business, (iv)
the efforts of insurers, health care providers and others to contain health care
costs, (v) possible changes in the Medicare, Medicaid and other state programs
that may impact reimbursements to health care providers and insurers, (vi) the
ability to attract and retain qualified management and other personnel,
including affiliated physicians, nurses and medical support personnel, (vii)
potential liabilities and other claims that may be asserted against the Company,
(viii) fluctuations in the market value of the Company's common stock, (ix) the
impact of the Company's charity care and uninsured discounting policy changes,
(x) changes in accounting practices, (xi) changes
3
in general economic conditions, (xii) the ability to consummate the divestitures
of the ten hospitals on the terms set forth in the definitive agreements (xiii)
future divestitures which may result in charges, (xiv) changes in revenue mix
and the ability to enter into and renew managed care provider arrangements on
acceptable terms, (xv) the availability and terms of capital to fund the
expansion of the Company's business, (xvi) changes in business strategy or
development plans, (xvii) delays in receiving payments for services provided,
(xviii) the possible enactment of Federal or state health care reform, (xix) the
outcome of pending and any future tax audits, appeals and litigation associated
with the Company's tax positions, (xx) the outcome of the Company's continuing
efforts to monitor, maintain and comply with appropriate laws, regulations,
policies and procedures and the Company's corporate integrity agreement with the
government, (xxi) changes in Federal, state or local regulations affecting the
health care industry, (xxii) the ability to develop and implement the payroll
and human resources information systems within the expected time and cost
projections and, upon implementation, to realize the expected benefits and
efficiencies, (xxiii) maintaining the increased quarterly cash dividend rate for
the entire fiscal year, and (xxiv) other risk factors detailed in the Company's
filings with the SEC. Many of the factors that will determine the Company's
future results are beyond the ability of the Company to control or predict. In
light of the significant uncertainties inherent in the forward-looking
statements contained herein, readers should not place undue reliance on
forward-looking statements, which reflect management's views only as of the date
hereof. The Company undertakes no obligation to revise or 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 "HCA" as used throughout this document refer to
HCA Inc. and its affiliates.
4
HCA INC.
CONSOLIDATED INCOME STATEMENTS
SECOND QUARTER
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2005 2004
---------------------- ---------------------
AMOUNT RATIO Amount Ratio
------ ----- ------ -----
Revenues ................................................ $ 6,070 100.0% $ 5,833 100.0%
Salaries and benefits ................................... 2,463 40.6 2,334 40.0
Supplies ................................................ 1,042 17.2 967 16.6
Other operating expenses ................................ 981 16.2 891 15.3
Provision for doubtful accounts ......................... 541 8.9 661 11.3
Gains on investments .................................... (22) (0.4) (18) (0.3)
Equity in earnings of affiliates ........................ (53) (0.9) (53) (0.9)
Depreciation and amortization ........................... 364 6.0 315 5.4
Interest expense ........................................ 165 2.7 136 2.3
Gains on sales of facilities ............................ (29) (0.5) -- --
----------------------- ---------------------
5,452 89.8 5,233 89.7
---------------------- ---------------------
Income before minority interests and income taxes ....... 618 10.2 600 10.3
Minority interests in earnings of consolidated entities . 49 0.8 35 0.6
--------------------- ---------------------
Income before income taxes .............................. 569 9.4 565 9.7
Provision for income taxes .............................. 164 2.7 213 3.7
------------------------ ----------------------
Net income ......................................... $ 405 6.7 $ 352 6.0
======================= ======================
Diluted earnings per share .............................. $ 0.90 $ 0.72
Shares used in computing diluted earnings per share (000) 451,731 490,261
5
HCA INC.
CONSOLIDATED INCOME STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2005 2004
------------------------- ----------------------
AMOUNT RATIO Amount Ratio
------ ----- ------ -----
Revenues ................................................ $ 12,252 100.0% $ 11,770 100.0%
Salaries and benefits ................................... 4,906 40.0 4,667 39.7
Supplies ................................................ 2,093 17.1 1,947 16.5
Other operating expenses ................................ 1,953 15.9 1,842 15.6
Provision for doubtful accounts ......................... 1,115 9.1 1,355 11.5
Gains on investments .................................... (31) (0.2) (28) (0.2)
Equity in earnings of affiliates ........................ (106) (0.9) (99) (0.8)
Depreciation and amortization ........................... 701 5.7 618 5.2
Interest expense ........................................ 329 2.7 271 2.3
Gains on sales of facilities ............................ (29) (0.2) -- --
------------------------- ----------------------
10,931 89.2 10,573 89.8
------------------------- ----------------------
Income before minority interests and income taxes ....... 1,321 10.8 1,197 10.2
Minority interests in earnings of consolidated entities . 89 0.7 73 0.7
------------------------- ----------------------
Income before income taxes .............................. 1,232 10.1 1,124 9.5
Provision for income taxes .............................. 413 3.4 427 3.6
------------------------- ----------------------
Net income ......................................... $ 819 6.7 $ 697 5.9
========================== =======================
Diluted earnings per share .............................. $ 1.84 $ 1.41
Shares used in computing diluted earnings per share (000) 443,739 493,941
6
HCA INC.
SUPPLEMENTAL OPERATING RESULTS SUMMARY
(Dollars in millions, except per share amounts)
FOR THE SIX MONTHS
SECOND QUARTER ENDED JUNE 30, 2005
----------------------- ----------------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues ................................................................... $ 6,070 $ 5,833 $ 12,252 $ 11,770
Net income ................................................................. $ 405 $ 352 $ 819 $ 697
Gains on sales of facilities (net of tax) ................................ (18) -- (18) --
Tax settlement ........................................................... (48) -- (48) --
--------- --------- --------- ---------
Net income, excluding gains on sales of facilities and tax settlement(a) ... 339 352 753 697
Depreciation and amortization ............................................ 364 315 701 618
Interest expense ......................................................... 165 136 329 271
Minority interests in earnings of consolidated entities .................. 49 35 89 73
Provision for income taxes ............................................... 201 213 450 427
--------- --------- --------- ---------
Adjusted EBITDA(a) ....................................................... $ 1,118 $ 1,051 $ 2,322 $ 2,086
========= ========= ========= =========
Diluted earnings per share:
Net income ............................................................... $ 0.90 $ 0.72 $ 1.84 $ 1.41
Gains on sales of facilities ............................................. (0.04) -- (0.04) --
Tax settlement ........................................................... (0.11) -- (0.11) --
--------- --------- --------- ---------
Net income, excluding gains on sales of facilities and tax settlement(a) $ 0.75 $ 0.72 $ 1.69 $ 1.41
========= ========= ========= =========
Shares used in computing diluted earnings per share (000)................... 451,731 490,261 443,739 493,941
- ----------------------------
(a) Net income, excluding gains on sales of facilities and tax settlement
and adjusted EBITDA are non-GAAP financial measures. The Company
believes that net income excluding, gains on sales of facilities and
tax settlement and adjusted EBITDA are important measures that
supplement discussions and analysis of the Company's results of
operations. The Company believes that it is useful to investors to
provide disclosures of its results of operations on the same basis as
that used by management. HCA's management relies upon net income,
excluding gains on sales of facilities and tax settlement and adjusted
EBITDA as the primary measures to review and assess operating
performance of its hospital facilities and their management teams.
Management and investors review both the Company's overall performance
(including net income, excluding gains on sales of facilities and tax
settlement, GAAP net income and GAAP EPS) and operating performance of
the Company's health care facilities (adjusted EBITDA). Adjusted EBITDA
and the adjusted EBITDA margin (adjusted EBITDA divided by revenues)
are utilized by management and investors to compare the Company's
current operating results with the corresponding periods during the
previous year and to compare the Company's operating results with other
companies in the health care industry. The Company recorded gains on
sales of facilities and a tax settlement during the second quarter of
2005. It is reasonable to expect that gains on sales of facilities and
tax settlements will occur in future periods, but the amounts
recognized for these items can vary significantly from quarter to
quarter, do not directly relate to the ongoing operations of the
Company's health care facilities and complicate quarterly comparisons
of the Company's results of operations and operations comparisons with
other health care companies.
Net income, excluding gains on sales of facilities and tax settlement
and adjusted EBITDA are not measures of financial performance under
accounting principles generally accepted in the United States, and
should not be considered as alternatives to net income as a measure of
operating performance or to cash flows from operating, investing and
financing activities as a measure of liquidity. Because net income,
excluding gains on sales of facilities and tax settlement and adjusted
EBITDA are not measurements determined in accordance with generally
accepted accounting principles and are susceptible to varying
calculations, net income, excluding gains on sales of facilities and
tax settlement and adjusted EBITDA, as presented, may not be comparable
to other similarly titled measures presented by other companies.
7
HCA INC.
SUPPLEMENTAL NON-GAAP DISCLOSURES
OPERATING MEASURES ADJUSTED FOR THE IMPACT OF DISCOUNTS FOR THE UNINSURED
SECOND QUARTER 2005
(DOLLARS IN MILLIONS, EXCEPT REVENUE PER EQUIVALENT ADMISSION)
REPORTED UNINSURED NON-GAAP GAAP % NON-GAAP %
GAAP DISCOUNTS ADJUSTED OF ADJUSTED
AMOUNTS ADJUSTMENT(a) AMOUNTS(b) REVENUES REVENUES
---------- -------------- ----------- ----------------- -----------
2005 2004 2005
----- ----- ----
REPORTED:
Revenues ............................ $ 6,070 $ 184 $ 6,254 100.0% 100.0% 100.0%
Salaries and benefits ............... 2,463 -- 2,463 40.6% 40.0% 39.4%
Supplies ............................ 1,042 -- 1,042 17.2% 16.6% 16.7%
Other operating expenses ............ 981 -- 981 16.2% 15.3% 15.5%
Provision for doubtful accounts ..... 541 184 725 8.9% 11.3% 11.6%
Admissions .......................... 407,600 407,600
Equivalent admissions ............... 619,700 619,700
Revenue per equivalent admission .... $ 9,795 $ 10,092
% change from prior year ............ 2.6% 5.7%
SAME FACILTY:
Revenues ............................ $ 6,010 $ 183 $ 6,193
Admissions .......................... 406,300 406,300
Equivalent admissions ............... 613,900 613,900
Revenue per equivalent admission .... $ 9,790 $ 10,087
% change from prior year ............ 3.1% 6.2%
(a) Represents the impact of the discounts for the uninsured for the period.
On January 1, 2005, HCA modified its policies to provide discounts to
uninsured patients who do not qualify for Medicaid or charity care. These
discounts are similar to those provided to many local managed care plans.
In implementing the discount policy HCA first attempts to qualify
uninsured patients for Medicaid, other Federal or state assistance or
charity care. If an uninsured patient does not qualify for these programs,
the uninsured discount is applied.
(b) Revenues, the provision for doubtful accounts, certain operating
expense categories as a percentage of revenues and revenue per equivalent
admission have been adjusted to exclude the discounts under HCA's
uninsured discount policy (non-GAAP financial measures). The Company
believes that these non-GAAP financial measures are useful to investors
to provide disclosures of its results of operations on the same basis
as that used by management. Management uses this information to compare
revenues, the provision for doubtful accounts, certain operating
expense categories as a percentage of revenues and revenue per
equivalent admission for periods prior and subsequent to the January 1,
2005 implementation of the uninsured discount policy. Management finds
this information to be useful to enable the evaluation of revenue and
certain expense category trends that are influenced by patient volumes
and are generally analyzed as a percentage of net revenues. These
non-GAAP financial measures should not be considered an alternative to
GAAP financial measures. The Company believes this supplemental
information provides it and the users of its financial statements with
useful information for period-to-period comparisons. Investors are
encouraged to use GAAP measures when evaluating the Company's overall
financial performance.
8
HCA INC.
SUPPLEMENTAL NON-GAAP DISCLOSURES
OPERATING MEASURES ADJUSTED FOR THE IMPACT OF DISCOUNTS FOR THE UNINSURED
SIX MONTHS ENDED JUNE 30, 2005
(DOLLARS IN MILLIONS, EXCEPT REVENUE PER EQUIVALENT ADMISSION)
<Table>
<Caption>
REPORTED UNINSURED NON-GAAP GAAP % NON-GAAP %
GAAP DISCOUNTS ADJUSTED OF ADJUSTED
AMOUNTS ADJUSTMENT(a) AMOUNTS(b) REVENUES REVENUES
------------ ------------- ------------ ------------------ ----------
2005 2004 2005
------- ------- -------
REPORTED:
Revenues .............................. $ 12,252 $ 293 $ 12,545 100.0% 100.0% 100.0%
Salaries and benefits ................. 4,906 -- 4,906 40.0% 39.7% 39.1%
Supplies .............................. 2,093 -- 2,093 17.1% 16.5% 16.7%
Other operating expenses .............. 1,953 -- 1,953 15.9% 15.6% 15.5%
Provision for doubtful accounts ....... 1,115 293 1,408 9.1% 11.5% 11.2%
Admissions............................. 840,200 840,200
Equivalent admissions ................. 1,256,100 1,256,100
Revenue per equivalent admission ...... $ 9,754 $ 9,987
% change from prior year .............. 2.4% 4.9%
SAME FACILITY:
Revenues .............................. $ 12,143 $ 291 $ 12,434
Admissions ............................ 837,500 837,500
Equivalent admissions ................. 1,248,800 1,248,800
Revenue per equivalent admission ...... $ 9,724 $ 9,957
% change from prior year .............. 2.7% 5.2%
</Table>
(a) Represents the impact of the discounts for the uninsured for the period. On
January 1, 2005, HCA modified its policies to provide discounts to
uninsured patients who do not qualify for Medicaid or charity care. These
discounts are similar to those provided to many local managed care plans.
In implementing the discount policy HCA first attempts to qualify uninsured
patients for Medicaid, other Federal or state assistance or charity care.
If an uninsured patient does not qualify for these programs, the uninsured
discount is applied.
(b) Revenues, the provision for doubtful accounts, certain operating expense
categories as a percentage of revenues and revenue per equivalent admission
have been adjusted to exclude the discounts under HCA's uninsured discount
policy (non-GAAP financial measures). The Company believes that these
non-GAAP financial measures are useful to investors to provide disclosures
of its results of operations on the same basis as that used by management.
Management uses this information to compare revenues, the provision for
doubtful accounts, certain operating expense categories as a percentage of
revenues and revenue per equivalent admission for periods prior and
subsequent to the January 1, 2005 implementation of the uninsured discount
policy. Management finds this information to be useful to enable the
evaluation of revenue and certain expense category trends that are
influenced by patient volumes and are generally analyzed as a percentage of
net revenues. These non-GAAP financial measures should not be considered an
alternative to GAAP financial measures. The Company believes this
supplemental information provides it and the users of its financial
statements with useful information for period-to-period comparisons.
Investors are encouraged to use GAAP measures when evaluating the Company's
overall financial performance.
9
HCA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS)
<Table>
<Caption>
JUNE 30, March 31, December 31,
2005 2005 2004
------------ ------------ ------------
ASSETS
Current assets:
Cash and cash equivalents ................................... $ 463 $ 144 $ 129
Accounts receivable, less allowance for
doubtful accounts ......................................... 3,214 3,254 3,083
Inventories ................................................. 580 577 577
Deferred income taxes ....................................... 464 458 467
Other ....................................................... 370 484 427
------------ ------------ ------------
5,091 4,917 4,683
Property and equipment, at cost ............................... 20,344 20,216 19,970
Accumulated depreciation ...................................... (9,160) (8,888) (8,574)
------------ ------------ ------------
11,184 11,328 11,396
Investments of insurance subsidiary ........................... 1,997 1,953 2,047
Investments in and advances to affiliates ..................... 556 611 486
Goodwill ...................................................... 2,622 2,579 2,540
Deferred loan costs ........................................... 92 96 99
Other ......................................................... 176 205 214
------------ ------------ ------------
$ 21,718 $ 21,689 $ 21,465
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................ $ 832 $ 842 $ 855
Accrued salaries ............................................ 578 581 579
Other accrued expenses ...................................... 1,255 1,298 1,254
Long-term debt due within one year .......................... 560 486 486
------------ ------------ ------------
3,225 3,207 3,174
Long-term debt ................................................ 8,800 9,372 10,044
Professional liability risks .................................. 1,303 1,326 1,283
Deferred taxes and other liabilities .......................... 1,472 1,664 1,748
Minority interests in equity of consolidated entities ......... 801 789 809
Stockholders' equity .......................................... 6,117 5,331 4,407
------------ ------------ ------------
$ 21,718 $ 21,689 $ 21,465
============ ============ ============
Current ratio ................................................. 1.58 1.53 1.48
Ratio of debt to debt plus common and minority equity ......... 57.5% 61.7% 66.9%
Shares outstanding (thousands) ................................ 451,963 441,167 422,642
</Table>
10
HCA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004
(DOLLARS IN MILLIONS)
<Table>
<Caption>
2005 2004
------------ ------------
Cash flows from operating activities:
Net income ............................................................................ $ 819 $ 697
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts .................................................... 1,115 1,355
Depreciation and amortization ...................................................... 701 618
Income taxes ....................................................................... 222 254
Change in operating assets and liabilities ......................................... (1,341) (1,533)
Other .............................................................................. 70 63
------------ ------------
Net cash provided by operating activities ..................................... 1,586 1,454
------------ ------------
Cash flows from investing activities:
Purchase of property and equipment .................................................... (625) (787)
Acquisition of hospitals and health care entities ..................................... (84) (30)
Disposal of hospitals and health care entities ........................................ 36 28
Change in investments ................................................................. (110) (71)
Other ................................................................................. 25 1
------------ ------------
Net cash used in investing activities ......................................... (758) (859)
------------ ------------
Cash flows from financing activities:
Issuance of long-term debt ............................................................ -- 501
Net change in revolving bank credit facility .......................................... (700) (160)
Repayment of long-term debt ........................................................... (480) (383)
Repurchase of common stock ............................................................ -- (592)
Issuance of common stock .............................................................. 922 127
Payment of cash dividends ............................................................. (123) (72)
Other ................................................................................. (113) (11)
------------ ------------
Net cash used in financing activities ......................................... (494) (590)
------------ ------------
Change in cash and cash equivalents ........................................................ 334 5
Cash and cash equivalents at beginning of period ........................................... 129 115
------------ ------------
Cash and cash equivalents at end of period ................................................. $ 463 $ 120
============ ============
Interest payments .......................................................................... $ 308 $ 258
Income tax payments, net of refunds ........................................................ $ 191 $ 173
</Table>
11
HCA INC.
OPERATING STATISTICS
<Table>
<Caption>
FOR THE SIX MONTHS
SECOND QUARTER ENDED JUNE 30,
------------------------------ ------------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
CONSOLIDATED HOSPITALS:
Number of Hospitals .......................... 183 183 183 183
Weighted Average Licensed Beds ............... 41,948 41,962 41,903 41,948
Licensed Beds at End of Period ............... 42,013 41,930 42,013 41,930
REPORTED:
Admissions ................................... 407,600 410,500 840,200 840,800
% Change ............................... -0.7% -0.1%
Equivalent Admissions ........................ 619,700 610,800 1,256,100 1,236,000
% Change ............................... 1.5% 1.6%
Revenue per Equivalent Admission ............. $ 9,795 $ 9,550 $ 9,754 $ 9,523
% Change ............................... 2.6% 2.4%
Inpatient Revenue per Admission .............. $ 9,163 $ 8,807 $ 9,115 $ 8,748
% Change ............................... 4.0% 4.2%
Patient Days ................................. 2,009,100 2,033,400 4,168,300 4,207,000
Equivalent Patient Days ...................... 3,055,400 3,026,100 6,231,600 6,184,300
Inpatient Surgery Cases ...................... 136,400 135,500 271,900 270,900
% Change ............................... 0.6% 0.3%
Outpatient Surgery Cases ..................... 216,200 213,000 427,200 420,500
% Change ............................... 1.5% 1.6%
Emergency Room Visits ........................ 1,345,600 1,309,600 2,737,400 2,606,500
% Change ............................... 2.7% 5.0%
Outpatient Revenues as a
Percentage of Patient Revenues ......... 37.5% 37.1% 36.5% 36.6%
Average Length of Stay ....................... 4.9 5.0 5.0 5.0
Occupancy .................................... 52.6% 53.3% 55.0% 55.1%
Equivalent Occupancy ......................... 79.9% 79.3% 82.2% 81.0%
SAME FACILITY:
Admissions ................................... 406,300 407,600 837,500 834,800
% Change ............................... -0.3% 0.3%
Equivalent Admissions ........................ 613,900 606,900 1,248,800 1,228,000
% Change ............................... 1.2% 1.7%
Revenue per Equivalent Admission ............. $ 9,790 $ 9,494 $ 9,724 $ 9,467
% Change ............................... 3.1% 2.7%
Inpatient Revenue per Admission .............. $ 9,211 $ 8,787 $ 9,116 $ 8,722
% Change ............................... 4.8% 4.5%
Inpatient Surgery Cases ...................... 136,500 134,300 271,300 269,000
% Change ............................... 1.7% 0.8%
Outpatient Surgery Cases ..................... 212,400 209,800 420,100 414,200
% Change ............................... 1.2% 1.4%
Emergency Room Visits ........................ 1,338,900 1,294,300 2,724,200 2,578,200
% Change ............................... 3.4% 5.7%
NUMBER OF CONSOLIDATED AND
NON-CONSOLIDATED (50/50 EQUITY
JOINT VENTURES) HOSPITALS:
Consolidated ................................. 183 183 183 183
Non-Consolidated (50/50 Equity
Joint Ventures) ........................ 7 7 7 7
------------ ------------ ------------ ------------
Total Number of Hospitals .................... 190 190 190 190
------------ ------------ ------------ ------------
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