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Exhibit 20
COLUMBIA/HCA
Healthcare Corporation
NEWS
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FOR IMMEDIATE RELEASE
INVESTOR CONTACT MEDIA CONTACT
Mark Kimbrough: 615-344-2688 Jeff Prescott: 615-344-5708
COLUMBIA/HCA REPORTS SECOND QUARTER 1999
EPS FROM CONTINUING OPERATIONS OF $0.31
EXCLUDING NON-RECURRING ITEMS
SAME FACILITY REVENUE PER EQUIVALENT ADMISSION INCREASES 3.9%
EXCLUDING HOSPITALS HELD FOR SALE
NASHVILLE, TENN., JULY 27, 1999 - Columbia/HCA Healthcare Corporation (NYSE:
COL) today announced operating results for the second quarter and six months
ended June 30, 1999.
For the second quarter of 1999, revenues totaled $4.2 billion compared
to $4.8 billion in the second quarter of 1998. Net income from continuing
operations, excluding gains on sales of facilities, impairment of long-lived
assets and restructuring of operations and investigation related costs, totaled
$182 million or $0.31 per diluted share for the second quarter of 1999, compared
to $191 million or $0.30 per diluted share in the second quarter of 1998. Net
income for the second quarter of 1999 totaled $106 million or $0.18 per diluted
share, compared to $78 million or $0.12 per diluted share in the second quarter
of 1998.
For the quarter ended June 30, 1999, same facility revenues, excluding
hospitals sold or being held for sale, increased 4.3 percent while same facility
revenue per equivalent admission increased 3.9 percent. Same facility admissions
for the Company's hospitals increased by 1.1 percent during the quarter.
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The Company recorded asset impairment charges of approximately $54
million ($51 million net of tax), or $0.09 per diluted share during the second
quarter of 1999. In the second quarter of 1998, the Company incurred losses from
discontinued operations and the disposal of discontinued businesses totaling $95
million after tax, or $0.15 per diluted share.
During the second quarter of 1999, the Company's remaining core assets
had a combined net income from continuing operations, excluding gains on sales
of facilities, impairment of long-lived assets and restructuring of operations
and investigation related costs, of $0.33 per diluted share; assets sold or
being held for sale experienced a net loss of $0.02 per diluted share during the
quarter.
Revenues for the six months ended June 30, 1999, totaled $8.8 billion
compared to $9.7 billion in the first six months of 1998. Net income from
continuing operations, before gains on sales of facilities, impairment of
long-lived assets and restructuring and investigation related costs, totaled
$453 million or $0.74 per diluted share in the first half of 1999, compared to
$432 million or $0.67 per diluted share for the six months ended June 30, 1998.
Net income totaled $428 million or $0.70 per diluted share in 1999, versus $275
million or $0.43 per diluted share in 1998.
Several factors continue to affect the Company's financial results
during the first half of 1999. These factors include reduced Medicare
reimbursement mandated by the Balanced Budget Act of 1997; increased supply
expense due to the increasing costs of new technology and pharmaceuticals; and
increased bad debt expense.
As of June 30, 1999, the Company operated 220 hospitals and 85
ambulatory surgery centers (including 16 hospitals and 4 ASCs owned through
50/50 equity joint ventures), compared to 335 hospitals and 144 ambulatory
surgery centers (including 26 hospitals and 5 ASCs owned through equity joint
ventures) at June 30, 1998.
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On May 11, 1999, the Company completed the tax-free spin-offs to
Columbia/HCA shareholders of LifePoint Hospitals, Inc. (NASD: LPNT) and Triad
Hospitals, Inc. (NASD: TRIH). Columbia/HCA received approximately $900 million,
tax-free from the spin-off transaction. The results of operations for LifePoint
and Triad, for periods prior to the spin-offs, are included in the Company's
consolidated financial results. The Company also sold its investments in 8
hospitals and certain other non-core assets during the second quarter of 1999
for approximately $160 million, net of tax.
During the second quarter of 1999, the Company completed the repurchase of
approximately 62 million shares of its common stock for approximately $1.5
billion. Since August 1998, the Company has repurchased approximately 85 million
shares of its common stock for approximately $2 billion. As of June 30, 1999,
the Company had approximately 564 million shares issued and outstanding.
At June 30, 1999, the Company's balance sheet reflected total debt of
approximately $6.7 billion, stockholders' equity of approximately $5.4 billion
and total assets of approximately $16.7 billion. Capital expenditures for the
quarter totaled approximately $389 million. The Company's total debt-to-capital
ratio was 52 percent at June 30, 1999, compared to 50 percent at June 30, 1998.
* * *
This press release contains forward-looking statements based on current
management expectations. Numerous factors, including those detailed from
time-to-time in the Company's filings with the Securities and Exchange
Commission, may cause results to differ materially from those anticipated in the
forward-looking statements. 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 and, therefore,
actual results may differ materially.
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 "Columbia/HCA" as used throughout this document
refer to Columbia/HCA Healthcare Corporation and its affiliates.
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COLUMBIA/HCA HEALTHCARE CORPORATION
CONSOLIDATED OPERATING RESULTS SUMMARY
(Dollars in millions, except per share amounts)
FOR THE SIX MONTHS
SECOND QUARTER ENDED JUNE 30,
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
Revenues ................................................... $ 4,161 $ 4,781 $ 8,816 $ 9,682
EBITDA (a) ................................................. $ 706 $ 796 $ 1,584 $ 1,697
Net income:
Income from continuing operations, excluding gains on
sales of facilities, impairment of long-lived assets
and restructuring of operations and investigation
related costs ...................................... $ 182 $ 191 $ 453 $ 432
Gains on sales of facilities (net of tax) .............. -- -- 151 --
Impairment of long-lived assets (net of tax) ........... (51) -- (131) --
Restructuring of operations and investigation
related costs (net of tax) ......................... (25) (18) (45) (40)
Discontinued operations:
Loss from operations of discontinued businesses
(net of tax) .................................... -- (22) -- (44)
Loss on disposal of discontinued businesses
(net of tax) .................................... -- (73) -- (73)
----------------------- ----------------------
Net income ............................................ $ 106 $ 78 $ 428 $ 275
======================= ======================
Diluted earnings per share:
Income from continuing operations, excluding gains on
sales of facilities, impairment of long-lived assets
and restructuring of operations and investigation
related costs ....................................... $ 0.31 $ 0.30 $ 0.74 $ 0.67
Gains on sales of facilities ........................... -- -- 0.24 --
Impairment of long-lived assets ........................ (0.09) -- (0.21) --
Restructuring of operations and investigation
related costs ...................................... (0.04) (0.03) (0.07) (0.06)
Discontinued operations:
Loss from operations of discontinued businesses ..... -- (0.04) -- (0.07)
Loss on disposal of discontinued businesses ......... -- (0.11) -- (0.11)
----------------------- ----------------------
Net income ............................................. $ 0.18 $ 0.12 $ 0.70 $ 0.43
======================= ======================
Shares used in computing diluted earnings per share (000) .. 583,826 647,993 614,249 646,467
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(a) EBITDA is defined as income from continuing operations before depreciation
and amortization, interest expense, gains on sales of facilities,
impairment of long-lived assets, restructuring of operations and
investigation related costs, minority interests and income taxes.
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COLUMBIA/HCA HEALTHCARE CORPORATION
CONSOLIDATED INCOME STATEMENTS
SECOND QUARTER
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
1999 1998
---------------------- ----------------------
Amount Ratio Amount Ratio
------ ----- ------ -----
Revenues ...................................................... $ 4,161 100.0% $ 4,781 100.0%
Salaries and benefits ......................................... 1,676 40.3 1,998 41.8
Supplies ...................................................... 654 15.7 719 15.0
Other operating expenses ...................................... 826 19.8 961 20.2
Provision for doubtful accounts ............................... 329 7.9 340 7.1
Equity in earnings of affiliates .............................. (30) (0.7) (33) (0.7)
----------------------- ----------------------
3,455 83.0 3,985 83.4
----------------------- ----------------------
EBITDA .................................................... 706 17.0 796 16.6
Depreciation and amortization ................................. 278 6.8 311 6.4
Interest expense .............................................. 118 2.8 145 3.0
Gains on sales of facilities .................................. (8) (0.2) -- --
Impairment of long-lived assets ............................... 54 1.3 -- --
Restructuring of operations and investigation related costs ... 30 0.7 31 0.7
----------------------- ----------------------
Income from continuing operations before minority interests
and income taxes .......................................... 234 5.6 309 6.5
Minority interests in earnings of consolidated entities ....... 14 0.3 18 0.4
----------------------- ----------------------
Income from continuing operations before income taxes ......... 220 5.3 291 6.1
Provision for income taxes .................................... 114 2.7 118 2.5
----------------------- ----------------------
Income from continuing operations ............................. 106 2.6 173 3.6
Discontinued operations:
Loss from operations of discontinued businesses
(net of tax benefit) ................................ -- -- (22) (0.5)
Loss on disposal of discontinued businesses
(net of tax benefit) ................................ -- -- (73) (1.5)
----------------------- ----------------------
Net income ................................................ $ 106 2.6 $ 78 1.6
======================= ======================
Diluted earnings per share:
Income from continuing operations, excluding gains on
sales of facilities, impairment of long-lived
assets and restructuring and investigation
related costs ....................................... $ 0.31 $ 0.30
Impairment of long-lived assets ........................... (0.09) --
Restructuring of operations and investigation
related costs ....................................... (0.04) (0.03)
Discontinued operations:
Loss from operations of discontinued businesses ..... -- (0.04)
Loss on disposal of discontinued businesses ......... -- (0.11)
--------- --------
Net income ............................................... $ 0.18 $ 0.12
--------- --------
Shares used in computing diluted earnings per share (000) ..... 583,826 647,993
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COLUMBIA/HCA HEALTHCARE CORPORATION
CONSOLIDATED INCOME STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
1999 1998
---------------------- -----------------------
Amount Ratio Amount Ratio
------ ----- ------ -----
Revenues ...................................................... $ 8,816 100.0% $ 9,682 100.0%
Salaries and benefits ......................................... 3,536 40.1 4,011 41.4
Supplies ...................................................... 1,376 15.6 1,465 15.1
Other operating expenses ...................................... 1,718 19.4 1,901 19.7
Provision for doubtful accounts ............................... 667 7.6 683 7.1
Equity in earnings of affiliates .............................. (65) (0.7) (75) (0.8)
---------------------- -----------------------
7,232 82.0 7,985 82.5
---------------------- -----------------------
EBITDA .................................................... 1,584 18.0 1,697 17.5
Depreciation and amortization ................................. 574 6.5 620 6.4
Interest expense .............................................. 229 2.6 298 3.1
Gains on sales of facilities .................................. (257) (2.9) -- --
Impairment of long-lived assets ............................... 160 1.8 -- --
Restructuring of operations and investigation related costs ... 60 0.7 69 0.7
---------------------- -----------------------
Income from continuing operations before minority interests
and income taxes .......................................... 818 9.3 710 7.3
Minority interests in earnings of consolidated entities ....... 28 0.3 38 0.4
---------------------- -----------------------
Income from continuing operations before income taxes ......... 790 9.0 672 6.9
Provision for income taxes .................................... 362 4.1 280 2.8
---------------------- -----------------------
Income from continuing operations ............................. 428 4.9 392 4.1
Discontinued operations:
Loss from operations of discontinued businesses
(net of tax benefit) ................................ -- -- (44) (0.5)
Loss on disposal of discontinued businesses
(net of tax benefit) ................................ -- -- (73) (0.8)
---------------------- -----------------------
Net income ................................................ $ 428 4.9 $ 275 2.8
====================== =======================
Diluted earnings per share:
Income from continuing operations, excluding gains on
sales of facilities, impairment of long-lived
assets and restructuring and investigation
related costs ....................................... $ 0.74 $ 0.67
Gains on sales of facilities .............................. 0.24 --
Impairment of long-lived assets ........................... (0.21) --
Restructuring of operations and investigation related costs (0.07) (0.06)
Discontinued operations:
Loss from operations of discontinued businesses ..... -- (0.07)
Loss on disposal of discontinued businesses ......... -- (0.11)
--------- ---------
Net income ............................................... $ 0.70 $ 0.43
========= =========
Shares used in computing diluted earnings per share (000) ..... 614,249 646,467
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COLUMBIA/HCA HEALTHCARE CORPORATION
CONSOLIDATED BALANCE SHEET
(DOLLARS IN MILLIONS)
JUNE 30, MARCH 31, DECEMBER 31, JUNE 30,
1999 1999 1998 1998
------------ ----------- ------------- -----------
ASSETS
Current assets:
Cash and cash equivalents ........................ $ 83 $ 586 $ 297 $ 25
Accounts receivable, net ......................... 1,821 2,250 2,096 2,427
Other ............................................ 1,480 1,398 1,470 1,594
------------- ------------- ------------- -------------
Total current assets ........................ 3,384 4,234 3,863 4,046
Property and equipment, at cost ....................... 13,764 15,410 15,644 16,814
Accumulated depreciation .............................. (5,536) (6,261) (6,195) (6,442)
------------- ------------- ------------- -------------
8,228 9,149 9,449 10,372
Investments of insurance subsidiary ................... 1,578 1,533 1,614 1,508
Investments in and advances to affiliates ............. 793 865 1,275 1,371
Intangible assets, net ................................ 2,523 2,815 2,910 3,405
Other ................................................. 144 201 318 346
------------- ------------- ------------- -------------
$ 16,650 $ 18,797 $ 19,429 $ 21,048
============= ============= ============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................. $ 629 $ 748 $ 784 $ 727
Other current liabilities ........................ 1,456 1,681 1,707 1,623
Long-term debt due within one year ............... 942 763 1,068 2,669
------------- ------------- ------------- -------------
Total current liabilities ................... 3,027 3,192 3,559 5,019
Long-term debt ........................................ 5,718 5,566 5,685 5,693
Professional liability risks, deferred taxes and
other liabilities ................................ 1,703 1,788 1,839 1,926
Minority interests in equity of consolidated entities . 768 772 765 830
Stockholders' equity .................................. 5,434 7,479 7,581 7,580
------------- ------------- ------------- -------------
$ 16,650 $ 18,797 $ 19,429 $ 21,048
============= ============= ============= =============
Current ratio ......................................... 1.12 1.33 1.09 0.81
Ratio of debt to debt plus common and minority equity . 51.8% 43.4% 44.7% 49.9%
Shares Outstanding .................................... 564,038,500 623,577,100 642,578,300 644,961,300
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COLUMBIA/HCA HEALTHCARE CORPORATION
OPERATING STATISTICS
FOR THE SIX MONTHS
SECOND QUARTER ENDED JUNE 30,
------------------------ --------------------------
1999 1998 1999 1998
---- ---- ---- ----
CONSOLIDATED HOSPITALS:
Number of Hospitals 204 309 204 309
Weighted Average Licensed Beds 46,490 60,712 49,454 60,738
Licensed Beds at End of Period 43,969 60,418 43,969 60,418
Admissions 395,800 475,400 873,200 983,600
Equivalent Admissions 596,900 733,500 1,300,200 1,490,100
Patient Days 1,953,400 2,345,900 4,342,600 4,939,400
Equivalent Patient Days 2,947,000 3,621,600 6,466,200 7,483,300
Emergency Room Visits 1,159,800 1,415,600 2,559,200 2,827,700
Outpatient Revenues as a
Percentage of Patient Revenues 39.6% 39.3% 38.5% 38.0%
Surgery Cases 347,100 453,700 725,900 895,200
Average Length of Stay 4.9 4.9 5.0 5.0
Occupancy 46.2% 42.5% 48.5% 44.9%
Equivalent Occupancy 69.6% 65.6% 72.2% 68.0%
NUMBER OF CONSOLIDATED AND
NON-CONSOLIDATED (50/50 EQUITY
JOINT VENTURES) HOSPITALS:
Consolidated 204 309 204 309
Non-Consolidated (50/50 Equity
Joint Ventures) 16 26 16 26
--------- --------- --------- ---------
Total Number of Hospitals 220 335 220 335
========= ========= ========= =========
================================================================================
1999 GROUP RESULTS
SECOND QUARTER
(DOLLARS IN MILLIONS)
ASSETS SOLD
CORE OR HELD
ASSETS SPIN-OFFS FOR SALE
------ --------- --------
REVENUES......................................... $3,856 $164 $ 141
EBITDA........................................... $ 685 $ 20 $ 1
% MARGIN......................................... 17.8% 12.3% 0.4%
SAME FACILITY ADMISSIONS......................... 1.1% -- -14.4%
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