Exhibit 99
LifePoint Hospitals Reports First Quarter 2004 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--April 27, 2004--LifePoint
Hospitals, Inc. (NASDAQ: LPNT) today announced results for the first
quarter ended March 31, 2004.
For the first quarter ended March 31, 2004, revenues were $256.6
million, up 16.2% from $220.9 million for the same period a year ago.
Net income for the quarter totaled $23.9 million, or $0.60 per diluted
share, versus net income of $17.7 million, or $0.45 per diluted share,
for the prior-year period.
The consolidated financial results for the first quarter ended
March 31, 2004, reflect an 8.5% increase in total admissions and an
8.8% increase in equivalent admissions compared with the first quarter
of 2003. On a same-hospital basis, total admissions increased 5.9%
compared with the same period last year, and equivalent admissions
increased 5.5% over the prior-year period.
Kenneth C. Donahey, president and chief executive officer of
LifePoint Hospitals, said, "We are pleased with our strong first
quarter performance, which is confirmation that our ongoing strategy
of physician recruitment and investing in our existing facilities is
effective. External factors such as an improving economy and stable
reimbursement environment are working to our advantage. In addition,
we continue to excel at expense management and integration of
acquisitions on a timely basis with a positive impact on
profitability. For all of these reasons, we have a high degree of
confidence about the continued success of our company."
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Hospitals' first quarter conference call will be available on line at
www.lifepointhospitals.com and www.fulldisclosure.com on April 28,
2004, beginning at 10:00 a.m. Eastern Time.
LifePoint Hospitals, Inc. operates 29 hospitals in non-urban
communities. 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 9,300
employees.
This release includes 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 our future results are beyond our ability to control or
predict with accuracy. These statements are subject to various risks
and uncertainties, including, without limitation, (i) reduction in
payments to healthcare providers by government and commercial
third-party payors, as well as cost-containment efforts of insurers
and other payors; (ii) the possibility of adverse changes in, and
requirements of, applicable laws, regulations, policies and
procedures, including those required by our corporate integrity
agreement; (iii) our ability to manage healthcare risks and the lack
of state and federal tort reform; (iv) uncertainty associated with
compliance with HIPAA regulations; (v) our ability to enter into and
renew payor arrangements on acceptable terms; (vi) our ability to
maintain and increase patient volumes and control costs; (vii) the
availability, cost and terms of insurance coverage; (viii) the highly
competitive nature of the healthcare business, including the
competition to recruit and retain physicians; (ix) the ability to
attract and retain qualified management and personnel; (x) the
geographic concentration of our operations; (xi) our ability to
acquire hospitals on favorable terms and to complete budgeted capital
improvements successfully; (xii) our ability to operate and integrate
newly acquired facilities successfully; (xiii) the availability and
terms of capital to fund our business strategy; (xiv) changes in our
liquidity or indebtedness; (xv) the potential adverse impact of
government investigations and litigation involving the business
practices of healthcare providers; (xvi) the successful development
and license of software and management information systems; (xvii)
changes in generally accepted accounting principles or practices;
(xviii) volatility in the market value of our common stock; (xix)
changes in general economic conditions and changes in the manner in
which employers provide healthcare coverage to their employees; (xx)
our reliance on information technology systems maintained by HCA,
Inc.; and (xxi) those risks and uncertainties described from time to
time in our filings with the Securities and Exchange Commission.
Therefore, our future results may differ materially from those
described in this release. We undertake 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.
All references to "Company" and "LifePoint" as used throughout
this release refer to LifePoint Hospitals, Inc. and its affiliates.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Dollars in millions (except per share amounts),
share amounts in thousands
For the Three Months Ended
March 31,
2004 2003
--------------- ---------------
Amount Ratio Amount Ratio
------ ------ ------ ------
Revenues (1) (2) $256.6 100.0% $220.9 100.0%
Salaries and benefits 100.7 39.2% 90.3 40.9%
Supplies 33.4 13.0% 28.5 12.9%
Other operating expenses 42.6 16.7% 38.6 17.5%
Provision for doubtful accounts 23.0 8.9% 17.5 7.9%
Depreciation and amortization 11.6 4.5% 11.2 5.1%
Interest expense, net 3.4 1.3% 3.3 1.5%
ESOP expense 2.3 0.9% 1.6 0.7%
------ ------ ------ ------
217.0 84.5% 191.0 86.5%
------ ------ ------ ------
Income before minority
interests and income taxes 39.6 15.5% 29.9 13.5%
Minority interests in earnings
of consolidated entities 0.3 0.2% -- --%
------ ------ ------ ------
Income before income taxes 39.3 15.3% 29.9 13.5%
Provision for income taxes 15.4 6.0% 12.2 5.5%
------ ------ ------ ------
Net income $23.9 9.3% $17.7 8.0%
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Earnings per share - basic $0.65 $0.47
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Earnings per share - diluted $0.60 $0.45
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Earnings Per Share Calculation:
Net income $23.9 $17.7
Add: Interest on convertible
notes, net of taxes 2.0 1.9
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Adjusted net income $25.9 $19.6
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Weighted average number
of shares - basic 36,582 37,878
Add: Shares for conversion of
convertible notes 5,279 5,279
Other share equivalents 1,020 755
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Weighted average number of
shares and equivalents - diluted 42,881 43,912
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Earnings per share - diluted $0.60 $0.45
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(1) Adjustments to estimated reimbursement amounts increased revenues
by $1.4 million for the three months ended March 31, 2004, and by
$2.9 million for the three months ended March 31, 2003.
(2) Includes recognition of approximately $3.2 million of additional
revenues during the first quarter of 2004 related to a Medicare
disproportionate share designation confirmation by the Centers
for Medicare and Medicaid Services.
LIFEPOINT HOSPITALS, INC.
CONSOLIDATED BALANCE SHEETS
In millions
March 31, Dec. 31,
2004 2003
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(Unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $38.1 $20.6
Accounts receivable, less allowances
for doubtful accounts of $116.6 and $111.7
at March 31, 2004 and December 31, 2003,
respectively 110.2 101.4
Inventories 22.3 22.3
Income taxes receivable -- 7.4
Deferred income taxes and other current assets 20.8 19.5
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191.4 171.2
Property and equipment:
Land 19.3 19.0
Buildings and improvements 357.2 357.1
Equipment 338.4 337.2
Construction in progress 37.2 28.3
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752.1 741.6
Accumulated depreciation (284.8) (277.4)
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467.3 464.2
Deferred loan costs, net 6.6 7.0
Unallocated purchase price 17.9 16.4
Intangible assets, net 3.4 3.6
Goodwill 136.6 136.6
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$823.2 $799.0
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LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $25.8 $30.9
Accrued salaries 23.8 25.7
Other current liabilities 21.2 9.7
Income taxes payable 7.2 --
Estimated third-party payor settlements 2.4 2.5
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80.4 68.8
Long-term debt 250.0 270.0
Deferred income taxes 36.5 35.9
Professional and general liability claims
and other liabilities 31.3 28.6
Minority interests in equity
of consolidated entities 1.4 1.4
Stockholders' equity:
Preferred stock -- --
Common stock 0.4 0.4
Capital in excess of par value 311.9 301.7
Unearned ESOP compensation (15.3) (16.1)
Unearned compensation on nonvested stock (5.6) --
Retained earnings 161.1 137.2
Treasury stock (28.9) (28.9)
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423.6 394.3
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$823.2 $799.0
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(1) Derived from audited financial statements.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Three Months Ended
March 31,
2004 2003
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Cash flows from operating activities:
Net income $23.9 $17.7
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 11.6 11.2
ESOP expense 2.3 1.6
Minority interests in earnings
of consolidated entities 0.3 --
Deferred income taxes (benefit) (0.5) (0.1)
Reserve for professional and general
liability claims, net 2.7 1.2
Tax benefit from stock option exercises 0.5 --
Increase (decrease) in cash from operating assets
and liabilities, net of effects from acquisitions:
Accounts receivable (8.5) (11.1)
Inventories and other current assets (0.1) (2.8)
Accounts payable and accrued expenses 4.9 2.4
Income taxes payable 14.6 11.8
Estimated third-party payor settlements (0.1) 1.4
Other 0.6 0.9
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Net cash provided by operating activities 52.2 34.2
Cash flows from investing activities:
Purchase of property and equipment (15.1) (17.2)
Purchase of facilities (1.7) --
Other (0.3) (0.2)
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Net cash used in investing activities (17.1) (17.4)
Cash flows from financing activities:
Repayment under revolving credit facility (20.0) --
Proceeds from exercise of stock options 1.6 0.2
Other 0.8 0.3
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Net cash (used in) provided by
financing activities (17.6) 0.5
Change in cash and cash equivalents 17.5 17.3
Cash and cash equivalents at beginning of period 20.6 23.0
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Cash and cash equivalents at end of period $38.1 $40.3
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Interest payments $0.6 $0.2
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Income taxes paid, net $0.9 $0.4
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LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended
March 31,
%
2004 2003 Change
------- ------- -------
Consolidated:
Number of hospitals at end of period 29 28 3.6%
Licensed beds at end of period 2,727 2,624 3.9
Weighted average licensed beds 2,730 2,619 4.2
Average daily census 1,156 1,055 9.6
Average length of stay 4.1 4.0 2.5
Revenues ($ in millions) $256.6 $220.9 16.2
Revenues per equivalent admission $5,255 $4,919 6.8
Equivalent admissions (1) 48,842 44,912 8.8
Outpatient factor (1) 1.92 1.91 0.5
Outpatient surgeries 20,044 18,859 6.3
Inpatient surgeries 7,420 6,663 11.4
Emergency room visits 105,754 99,738 6.0
Admissions 25,465 23,477 8.5
Medicare case mix index 1.15 1.18 (2.5)
Net outpatient revenues
as a percentage of net revenues 49.7% 50.2% N/M (2)
Same-Hospital: (3)
Number of hospitals at end of period 28 28 --%
Licensed beds at end of period 2,614 2,624 (0.4)
Weighted average licensed beds 2,617 2,619 (0.1)
Average daily census 1,131 1,055 7.2
Average length of stay 4.1 4.0 2.5
Revenues ($ in millions) $250.0 $220.9 13.2
Revenues per equivalent admission $5,279 $4,919 7.3
Equivalent admissions (1) 47,364 44,912 5.5
Outpatient factor (1) 1.91 1.91 --
Outpatient surgeries 19,340 18,859 2.6
Inpatient surgeries 7,213 6,663 8.3
Emergency room visits 102,528 99,738 2.8
Admissions 24,863 23,477 5.9
Medicare case mix index 1.16 1.18 (1.7)
Net outpatient revenues
as a percentage of net revenues 49.4% 50.2% N/M (2)
(1) Management and investors use equivalent admissions as a general
measure of combined inpatient and outpatient volume. Equivalent
admissions is computed by multiplying admissions (inpatient
volumes) by the outpatient factor (the sum of gross inpatient
revenue and gross outpatient revenue and then dividing the
resulting amount by gross inpatient revenue). The equivalent
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.
(2) Not meaningful.
(3) Same-hospital information excludes the operations of hospitals
that the Company acquired after January 1, 2003.
LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars in millions
Adjusted EBITDA is defined as income before depreciation and
amortization, interest expense, ESOP expense, minority interests in
earnings of consolidated entities and income taxes. Our management
uses adjusted EBITDA to evaluate our operating performance and as a
measure of performance for incentive compensation purposes. Our bank
credit facility uses adjusted EBITDA for numerous financial covenants.
We believe adjusted EBITDA is a measure of performance used by some
investors, equity analysts and others to make informed investment
decisions. In addition, multiples of current or projected adjusted
EBITDA are used to estimate current or prospective enterprise value.
Adjusted EBITDA should not be considered as a measure of financial
performance under accounting principles generally accepted in the
United States, and the items excluded from adjusted EBITDA are
significant components in understanding and assessing financial
performance. Adjusted EBITDA should not be considered in isolation or
as an alternative to net income, cash flows generated by operating,
investing or financing activities or other financial statement data
presented in the consolidated financial statements as an indicator of
financial performance or liquidity. Because adjusted EBITDA is not a
measurement determined in accordance with accounting principles
generally accepted in the United States and is susceptible to varying
calculations, adjusted EBITDA as presented may not be comparable to
other similarly titled measures of other companies.
For the Three Months Ended
March 31,
2004 2003
---------------- ----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $256.6 100.0% $220.9 100.0%
Salaries and benefits 100.7 39.2% 90.3 40.9%
Supplies 33.4 13.0% 28.5 12.9%
Other operating expenses 42.6 16.7% 38.6 17.5%
Provision for doubtful accounts 23.0 8.9% 17.5 7.9%
------- ------- ------- -------
Adjusted EBITDA $56.9 22.2% $46.0 20.8%
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The following table reconciles adjusted EBITDA as presented above to
net income as reflected in the unaudited consolidated statements of
income (in millions):
Three Months Ended
March 31,
2004 2003
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Adjusted EBITDA $56.9 $46.0
Less:
Depreciation and amortization 11.6 11.2
Interest expense, net 3.4 3.3
ESOP expense 2.3 1.6
Minority interests in earnings
of consolidated entities 0.3 --
Provision for income taxes 15.4 12.2
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Net income $23.9 $17.7
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CONTACT: LifePoint Hospitals Inc., Brentwood
Michael J. Culotta, 615-372-8512