Exhibit 99
LifePoint Hospitals Reports Fourth Quarter and Year-End 2004 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Feb. 9, 2005--LifePoint Hospitals, Inc.
(NASDAQ: LPNT) today announced results for the fourth quarter and year ended
December 31, 2004.
In commenting on the year-end results, Kenneth C. Donahey, chairman,
president and chief executive officer of LifePoint Hospitals, said, "The past
year has been one of the most productive and fulfilling in our company's
history. In addition to meeting or surpassing our operational and financial
objectives, we agreed to merge with Province Healthcare, which transaction we
now expect to complete in mid to late March. After visiting the Province
hospitals, I am more confident than ever about the significant benefits of this
acquisition and our ability to efficiently integrate the Province hospitals into
LifePoint. The joining of LifePoint and Province represents a nearly seamless
alignment of missions, philosophies, services and cultures. Instead of pursuing
this shared mission separately, we will be able to pursue it with even greater
strength, greater potential and greater benefit to more than 50 communities
throughout the United States. This is an exciting time to be part of our
company."
For the fourth quarter ended December 31, 2004, revenues from continuing
operations were $257.5 million, up 12.4% from $229.2 million for the same period
a year ago. Net income for the quarter increased 21.3% to $23.4 million, or
$0.59 per diluted share, compared with net income of $19.3 million, or $0.50 per
diluted share, for the prior-year period.
For the year ended December 31, 2004, revenues from continuing operations
were $996.9 million, up 13.9% from $875.6 million a year ago. Net income for the
year ended December 31, 2004, increased 25.1% to $85.7 million, or $2.17 per
diluted share, compared with net income of $68.5 million, or $1.76 per diluted
share, for the prior year.
The consolidated financial results for the fourth quarter ended December
31, 2004, reflect a 4.0% decrease in total admissions from continuing operations
and a 1.3% decrease in equivalent admissions from continuing operations compared
with the fourth quarter of 2003. On a same-hospital basis, total admissions from
continuing operations decreased 6.5% compared with the same period last year,
and equivalent admissions from continuing operations decreased 4.9% over the
prior-year period. As was consistent throughout the industry, volume indicators
were low as a result of a light flu season.
The consolidated financial results for the year ended December 31, 2004,
reflect a 3.5% increase in total admissions from continuing operations and a
4.8% increase in equivalent admissions from continuing operations compared with
the prior year. On a same-hospital basis, total admissions from continuing
operations increased 0.4% compared with 2003, and equivalent admissions from
continuing operations increased 0.6% over the prior year.
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Hospitals' year-end conference call will be available on line at
www.lifepointhospitals.com and www.fulldisclosure.com on February 10, 2005,
beginning at 10:00 a.m. Eastern Time.
LifePoint Hospitals, Inc. currently operates 30 hospitals in non-urban
communities. In most cases, the LifePoint Hospitals facility is the only
hospital in its community. LifePoint Hospitals' 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 9,900 employees.
Important Legal Information
In connection with the proposed transaction between LifePoint Hospitals and
Province Healthcare, Lakers Holding Corp. has filed with the Securities and
Exchange Commission (the "SEC") a joint proxy statement/prospectus, as part of a
Registration Statement on Form S-4, and other relevant materials. The definitive
joint proxy statement/prospectus will be mailed to the stockholders of LifePoint
Hospitals and Province Healthcare. Investors and security holders are advised to
read the joint proxy statement/prospectus and other relevant materials when they
become available, as well as any amendments or supplements to those documents,
because they will contain important information about LifePoint Hospitals,
Province Healthcare and the proposed transaction. In addition, the joint proxy
statement/prospectus and other relevant materials filed by Lakers Holding Corp.,
LifePoint Hospitals or Province Healthcare with the SEC may be obtained free of
charge at the SEC's web site at www.sec.gov. In addition, investors and security
holders may obtain free copies of the documents filed with the SEC by LifePoint
Hospitals by contacting Investor Relations, LifePoint Hospitals, Inc., 103
Powell Court, Suite 200, Brentwood, Tennessee, 37027, Phone: (615) 372-8500 and
by Province Healthcare by contacting Investor Relations, Province Healthcare
Company, 105 Westwood Place, Suite 400, Brentwood, Tennessee, 37027, Phone:
(615) 370-1377.
LifePoint Hospitals and Province Healthcare, and their respective directors
and executive officers, may be deemed to be participants in the solicitation of
proxies from their respective stockholders with respect to the transactions
contemplated by the merger agreement. Information about the directors and
executive officers of LifePoint Hospitals, and their interests in the
transactions contemplated by the merger agreement, including their ownership of
LifePoint Hospitals common stock, is set forth in the proxy statement for
LifePoint Hospitals' 2004 annual meeting, which was filed with the SEC on April
28, 2004, and in the joint proxy statement/prospectus. Information about the
directors and executive officers of Province Healthcare, and their interests in
the transactions contemplated by the merger agreement, including their ownership
of Province Healthcare common stock, is set forth in the proxy statement for
Province Healthcare's 2004 annual meeting, which was filed with the SEC on April
20, 2004, and in the joint proxy statement/prospectus. Investors and security
holders may obtain additional information regarding the interests of such
potential participants by reading the joint proxy statement/prospectus and the
other relevant documents filed with the SEC.
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. Such
forward-looking statements, particularly those statements regarding the effects
of the merger, reflect management's current expectations and beliefs, are not
guarantees of performance of LifePoint Hospitals or the combined entity
following completion of the Province transaction and are subject to a number of
risks, uncertainties, assumptions and other factors that could cause actual
results to differ from those described in the forward-looking statements. For
example, such risks, uncertainties, assumptions and other factors relating to
the proposed Province transaction include, without limitation, the possibility
that (1) the companies may be unable to obtain the required stockholder
approvals; (2) problems may arise in successfully integrating the businesses of
the two companies; (3) the acquisition may involve unexpected costs; (4) the
combined company may be unable to achieve cost-cutting synergies; (5) the
businesses may suffer as a result of uncertainty surrounding the acquisition;
and (6) the combined company may be subject to future regulatory or legislative
actions. These forward-looking statements are also subject to other risks and
uncertainties, including, without limitation, (i) reduction in payments to
healthcare providers by government and commercial third-party payors, as well as
changes in the manner in which employers provide healthcare coverage to their
employees; (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, including malpractice litigation, and the lack of state and federal tort
reform; (iv) the availability, cost and terms of insurance coverage; (v) the
highly competitive nature of the healthcare business, including the competition
to recruit and retain physicians and other healthcare professionals; (vi) the
ability to attract and retain qualified management and personnel; (vii) the
geographic concentration of our operations; (viii) our ability to acquire
hospitals on favorable terms; (ix) our ability to operate and integrate newly
acquired facilities successfully; (x) the availability and terms of capital to
fund our business strategy; (xi) changes in our liquidity or indebtedness; (xii)
the potential adverse impact of government investigations and litigation
involving the business practices of healthcare providers, including
whistleblowers investigations; (xiii) volatility in the market value of our
common stock; (xiv) changes in general economic conditions in the markets we
serve; (xv) our reliance on information technology systems maintained by HCA
Inc.; (xiv) the costs of complying with the Americans With Disabilities Act; and
(xvi) those risks and uncertainties described from time to time in our filings
with the SEC, including those related to the proposed transaction between
LifePoint Hospitals and Province Healthcare. 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 Hospitals" as used throughout
this release refer to LifePoint Hospitals, Inc. and its affiliates.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in millions, except per share amounts
For the Three Months Ended
December 31,
2004 2003
---------------- ----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues (1) $257.5 100.0% $229.2 100.0%
Salaries and benefits 102.7 39.9 90.1 39.3
Supplies 33.7 13.1 30.9 13.5
Other operating expenses 42.9 16.6 39.3 17.1
Provision for doubtful accounts 22.2 8.6 20.8 9.1
Depreciation and amortization 13.6 5.4 11.6 5.1
Interest expense, net 2.9 1.1 2.9 1.3
Debt retirement costs -- -- -- --
ESOP expense 2.3 0.9 2.0 0.8
------- ------- ------- -------
220.3 85.6 197.6 86.2
------- ------- ------- -------
Income from continuing
operations before minority
interests and income taxes 37.2 14.4 31.6 13.8
Minority interests in earnings
of consolidated entities 0.3 0.1 0.2 0.1
------- ------- ------- -------
Income from continuing
operations before income taxes 36.9 14.3 31.4 13.7
Provision for income taxes 13.9 5.3 11.7 5.1
------- ------- ------- -------
Income from continuing operations 23.0 9.0 19.7 8.6
Income (loss) from discontinued
operations, net of income taxes 0.4 0.1 (0.4) (0.1)
------- ------- ------- -------
Net income $23.4 9.1% $19.3 8.5%
======= ======= ======= =======
Earnings (loss) per
share - basic:
Continuing operations $0.62 $0.54
Discontinued operations 0.01 (0.01)
------- -------
Net income $0.63 $0.53
======= =======
Earnings (loss) per
share - diluted:
Continuing operations $0.58 $0.51
Discontinued operations 0.01 (0.01)
------- -------
Net income $0.59 $0.50
======= =======
For the Year Ended
December 31,
2004 2003
---------------- ----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues (1) $996.9 100.0% $875.6 100.0%
Salaries and benefits 399.4 40.1 352.3 40.2
Supplies 129.1 12.9 114.2 13.0
Other operating expenses 166.8 16.7 155.4 17.8
Provision for doubtful accounts 86.2 8.7 74.1 8.5
Depreciation and amortization 48.1 4.9 43.1 4.8
Interest expense, net 12.6 1.3 12.8 1.5
Debt retirement costs 1.5 0.1 -- --
ESOP expense 9.4 0.9 6.9 0.8
------- ------- ------- -------
853.1 85.6 758.8 86.6
------- ------- ------- -------
Income from continuing
operations before minority
interests and income taxes 143.8 14.4 116.8 13.4
Minority interests in earnings
of consolidated entities 1.0 0.1 0.7 0.1
------- ------- ------- -------
Income from continuing
operations before income taxes 142.8 14.3 116.1 13.3
Provision for income taxes 56.0 5.6 45.9 5.3
------- ------- ------- -------
Income from continuing operations 86.8 8.7 70.2 8.0
Income (loss) from discontinued
operations, net of income taxes (1.1) (0.1) (1.7) (0.2)
------- ------- ------- -------
Net income $85.7 8.6% $68.5 7.8%
======= ======= ======= =======
Earnings (loss) per
share - basic:
Continuing operations $23.4 $1.89
Discontinued operations (0.03) (0.05)
------- -------
Net income $2.31 $1.84
======= =======
Earnings (loss) per
share - diluted:
Continuing operations $2.20 $1.80
Discontinued operations (0.03) (0.04)
------- -------
Net income $2.17 $1.76
======= =======
(1) Revenues for the year ended December 31, 2004 include 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. The Company reduced revenues by $3.0 million
and $0.2 million during the third and fourth quarters of 2003,
respectively, representing the three-year difference in
reimbursement from this change in designation.
LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS (LOSS) PER SHARE CALCULATION
Dollars and shares in millions, except per share amounts
Three Months Ended Year Ended
December 31, December 31,
---------------- ----------------
2004 2003 2004 2003
------- ------- ------- -------
Income from continuing operations $23.0 $19.7 $86.8 $70.2
Add: Interest on convertible
notes, net of income taxes 1.8 1.9 7.3 7.8
------- ------- ------- -------
Adjusted income from
continuing operations 24.8 21.6 94.1 78.0
Income (loss) from discontinued
operations, net of income taxes 0.4 (0.4) (1.1) (1.7)
------- ------- ------- -------
$25.2 $21.2 $93.0 $76.3
======= ======= ======= =======
Weighted average number
of shares - basic 37.4 36.4 37.0 37.2
Add: Shares for conversion of
convertible notes 4.7 5.3 5.0 5.3
Other share equivalents 0.7 0.8 0.8 0.8
------- ------- ------- -------
Weighted average number of shares
and equivalents - diluted 42.8 42.5 42.8 43.3
======= ======= ======= =======
Earnings (loss) per
share - basic:
Continuing operations $0.62 $0.54 $2.34 $1.89
Discontinued operations 0.01 (0.01) (0.03) (0.05)
------- ------- ------- -------
Net income $0.63 $0.53 $2.31 $1.84
======= ======= ======= =======
Earnings (loss) per
share - diluted:
Continuing operations $0.58 $0.51 $2.20 $1.80
Discontinued operations 0.01 (0.01) (0.03) (0.04)
------- ------- ------- -------
Net income $0.59 $0.50 $2.17 $1.76
======= ======= ======= =======
LIFEPOINT HOSPITALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
Dec. 31, Dec. 31,
2004 2003
------- -------
ASSETS (Unaudited) (1)
Current assets:
Cash and cash equivalents $18.6 $20.6
Accounts receivable, less allowances for doubtful
accounts of $103.6 and $111.7 at December 31, 2004
and December 31, 2003, respectively 112.0 101.4
Inventories 25.3 21.7
Assets held for sale 33.0 34.7
Income taxes receivable 7.5 7.4
Deferred income taxes and other current assets 31.4 19.5
------- -------
227.8 205.3
Property and equipment:
Land 20.5 18.5
Buildings and improvements 385.4 347.2
Equipment 342.0 315.7
Construction in progress 48.6 28.2
------- -------
796.5 709.6
Accumulated depreciation (295.4) (265.7)
------- -------
501.1 443.9
Deferred loan costs, net 4.9 7.0
Intangible assets, net 3.3 4.2
Other 5.8 --
Goodwill 144.4 138.6
------- -------
$887.3 $799.0
======= =======
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $29.5 $30.9
Accrued salaries 31.2 25.4
Liabilities held for sale 0.3 0.3
Other current liabilities 18.2 12.2
------- -------
79.2 68.8
Revolving credit facility -- 20.0
Convertible notes 221.0 250.0
Deferred income taxes 47.9 35.9
Professional and general liability
claims and other liabilities 28.4 28.6
Minority interests in equity
of consolidated entities 1.3 1.4
Stockholders' equity:
Preferred stock -- --
Common stock 0.4 0.4
Capital in excess of par value 332.6 301.7
Unearned ESOP compensation (12.9) (16.1)
Unearned compensation on nonvested stock (4.5) --
Retained earnings 222.8 137.2
Treasury stock (28.9) (28.9)
------- -------
509.5 394.3
------- -------
$887.3 $799.0
======= =======
(1) Derived from audited financial statements.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Three Months Ended Year Ended
December 31, December 31,
---------------- ----------------
2004 2003 2004 2003
------- ------- ------- -------
Cash flows from continuing
operating activities:
Net income $23.4 $19.3 $85.7 $68.5
Adjustments to reconcile net
income to net cash provided by
continuing operating activities:
Loss (income) from
discontinued operations, net
of income taxes (0.4) 0.4 1.1 1.7
Depreciation and amortization 13.6 11.6 48.1 43.1
Debt retirement costs -- -- 1.5 --
ESOP expense 2.3 2.0 9.4 6.9
Minority interests in earnings
of consolidated entities 0.3 0.2 1.0 0.7
Deferred income taxes 5.3 1.8 4.4 8.9
Reserve for professional and
general liability claims, net (2.3) (0.9) (0.2) 2.4
Tax benefit from employee
stock plans 1.8 1.6 6.2 2.3
Increase (decrease) in cash
from operating assets and
liabilities, net of effects
from acquisitions:
Accounts receivable 3.2 (8.6) (11.1) (15.5)
Inventories and other
current assets (3.5) (0.4) (6.6) (4.8)
Accounts payable and
accrued expenses (9.5) (16.2) 6.6 (3.5)
Income taxes payable (1.4) 1.6 (0.1) (7.5)
Other 1.1 0.6 2.6 1.8
------- ------- ------- -------
Net cash provided by continuing
operating activities 33.9 13.0 148.6 105.0
Cash flows from continuing
investing activities:
Purchase of property
and equipment (25.3) (15.9) (82.0) (68.3)
Acquisitions, net of
cash acquired (2.7) (0.2) (30.5) (16.5)
Other (0.3) (0.4) (1.1) 0.6
------- ------- ------- -------
Net cash used in continuing
investing activities (28.3) (16.5) (113.6) (84.2)
Cash flows from continuing
financing activities:
Repurchase of convertible notes -- -- (29.9) --
Repurchase of common stock -- (17.7) -- (45.7)
Borrowing under revolving
credit facility -- 20.0 30.0 20.0
Repayment under revolving
credit facility -- -- (50.0) --
Proceeds from exercise
of stock options 2.5 2.4 10.2 3.7
Other 1.3 (0.1) 1.9 1.0
------- ------- ------- -------
Net cash provided by (used in)
continuing financing activities 3.8 4.6 (37.8) (21.0)
Net cash provided by (used in)
continuing operations 9.4 1.1 (2.8) (0.2)
Net cash provided by (used in)
discontinued operations (0.1) (0.6) 0.8 (2.2)
------- ------- ------- -------
Change in cash and
cash equivalents 9.3 0.5 (2.0) (2.4)
Cash and cash equivalents
at beginning of period 9.3 20.1 20.6 23.0
------- ------- ------- -------
Cash and cash equivalents
at end of period $18.6 $20.6 $18.6 $20.6
======= ======= ======= =======
Interest payments $5.0 $5.8 $12.1 $12.4
======= ======= ======= =======
Income taxes paid, net $8.0 $6.6 $44.6 $41.4
======= ======= ======= =======
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended
December 31,
-------------------------
%
2004 2003 Change
------- ------- -------
Continuing Operations: (1)
Number of hospitals
at end of period 29 28 3.6%
Licensed beds at end of period 2,688 2,681 0.3
Weighted average licensed beds 2,720 2,681 1.5
Average daily census 990 1,041 (4.9)
Average length of stay 4.0 4.0 --
Revenues ($ in millions) $257.5 $229.2 12.4
Revenues per equivalent admission $5,630 $4,946 13.8
Equivalent admissions (2) 45,744 46,338 (1.3)
Outpatient factor (2) 2.01 1.96 2.6
Outpatient surgeries 19,133 18,277 4.7
Inpatient surgeries 6,500 6,281 3.5
Emergency room visits 103,852 110,842 (6.3)
Admissions 22,769 23,722 (4.0)
Medicare case mix index 1.20 1.17 2.6
Outpatient revenues as a
percentage of total revenues 52.3% 47.3% N/M (3)
Same-Hospital: (4)
Number of hospitals
at end of period 27 27 --
Licensed beds at end of period 2,507 2,568 (2.4)
Weighted average licensed beds 2,539 2,568 (1.1)
Average daily census 946 1,014 (6.7)
Average length of stay 4.0 4.0 --
Revenues ($ in millions) $241.0 $222.7 8.2
Revenues per equivalent admission $5,641 $4,961 13.7
Equivalent admissions (2) 42,721 44,912 (4.9)
Outpatient factor (2) 1.98 1.94 2.1
Outpatient surgeries 17,582 17,610 (0.2)
Inpatient surgeries 6,063 6,115 (0.9)
Emergency room visits 95,763 107,289 (10.7)
Admissions 21,621 23,135 (6.5)
Medicare case mix index 1.19 1.16 2.6
Outpatient revenues as a
percentage of total revenues 49.9% 47.0% N/M (3)
Year Ended
December 31,
-------------------------
%
2004 2003 Change
------- ------- -------
Continuing Operations: (1)
Number of hospitals at end of period 29 28 3.6%
Licensed beds at end of period 2,688 2,681 0.3
Weighted average licensed beds 2,692 2,595 3.7
Average daily census 1,013 980 3.4
Average length of stay 4.0 4.0 --
Revenues ($ in millions) $996.9 $875.6 13.9
Revenues per equivalent admission $5,423 $4,991 8.7
Equivalent admissions (2) 183,819 175,439 4.8
Outpatient factor (2) 2.00 1.98 1.0
Outpatient surgeries 75,508 71,488 5.6
Inpatient surgeries 26,235 24,528 7.0
Emergency room visits 416,060 408,321 1.9
Admissions 91,772 88,695 3.5
Medicare case mix index 1.18 1.17 0.9
Outpatient revenues as a
percentage of total revenues 51.5% 50.4% N/M (3)
Same-Hospital: (4)
Number of hospitals at end of period 27 27 --
Licensed beds at end of period 2,507 2,568 (2.4)
Weighted average licensed beds 2,638 2,567 2.8
Average daily census 981 973 0.8
Average length of stay 4.1 4.0 2.5
Revenues ($ in millions) $951.7 $869.1 9.5
Revenues per equivalent admission $5,436 $4,995 8.8
Equivalent admissions (2) 175,064 174,013 0.6
Outpatient factor (2) 1.98 1.98 --
Outpatient surgeries 71,077 70,821 0.4
Inpatient surgeries 25,030 24,362 2.7
Emergency room visits 392,422 404,768 (3.1)
Admissions 88,461 88,108 0.4
Medicare case mix index 1.18 1.17 0.9
Outpatient revenues as a
percentage of total revenues 50.2% 50.3% N/M (3)
(1) Continuing operations excludes the operations of Bartow Memorial
Hospital, which the Company plans to sell and is classified as
held for sale.
(2) 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.
(3) Not meaningful.
(4) Same-hospital information excludes the operations of hospitals
that the Company acquired after January 1, 2003, and Bartow
Memorial Hospital, which the Company plans to sell and is
classified as held for sale.
LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars in millions
Adjusted EBITDA is defined as earnings before depreciation and
amortization, interest expense, debt retirement costs, ESOP expense,
minority interests in earnings of consolidated entities, income taxes
and discontinued operations. Our management and Board of Directors use
adjusted EBITDA to evaluate our operating performance and as a measure
of performance for incentive compensation purposes. Our revolving
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
December 31,
----------------------------------
2004 2003
---------------- ----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $257.5 100.0% $229.2 100.0%
Salaries and benefits 102.7 39.9 90.1 39.3
Supplies 33.7 13.1 30.9 13.5
Other operating expenses 42.9 16.6 39.3 17.1
Provision for doubtful accounts 22.2 8.6 20.8 9.1
------- ------- ------- -------
Adjusted EBITDA $56.0 21.8% $48.1 21.0%
======= ======= ======= =======
For the Year Ended
December 31,
----------------------------------
2004 2003
---------------- ----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $996.9 100.0% $875.6 100.0%
Salaries and benefits 399.4 40.1 352.3 40.2
Supplies 129.1 12.9 114.2 13.0
Other operating expenses 166.8 16.7 155.4 17.8
Provision for doubtful accounts 86.2 8.7 74.1 8.5
------- ------- ------- -------
Adjusted EBITDA $215.4 21.6% $179.6 20.5%
======= ======= ======= =======
The following table reconciles adjusted EBITDA as presented above to
net income as reflected in the unaudited consolidated statements of
operations:
Three Months Ended Year Ended
December 31, December 31,
---------------- ----------------
2004 2003 2004 2003
------- ------- ------- -------
Adjusted EBITDA $56.0 $48.1 $215.4 $179.6
Less:
Depreciation and amortization 13.6 11.6 48.1 43.1
Interest expense, net 2.9 2.9 12.6 12.8
Debt retirement costs -- -- 1.5 --
ESOP expense 2.3 2.0 9.4 6.9
Minority interests in earnings
of consolidated entities 0.3 0.2 1.0 0.7
Provision for income taxes 13.9 11.7 56.0 45.9
Loss (income) from discontinued
operations, net of income taxes (0.4) 0.4 1.1 1.7
------- ------- ------- -------
Net income $23.4 $19.3 $85.7 $68.5
======= ======= ======= =======
CONTACT: LifePoint Hospitals
Michael J. Culotta, 615-372-8512