Exhibit 99.1
LifePoint Hospitals Reports First Quarter 2005 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--April 27, 2005--LifePoint
Hospitals, Inc. (NASDAQ: LPNT) today announced results for the first
quarter ended March 31, 2005.
In commenting on the first quarter results, Kenneth C. Donahey,
chairman, president and chief executive officer of LifePoint
Hospitals, said, "We are pleased with our solid results in the first
quarter, which we consider an excellent start to the year. In
addition, we expect the merger with Province Healthcare, which we
completed on April 15, 2005, will further enhance our performance in
2005. This merger increases our network to 50 hospitals, approximately
5,285 licensed beds and combined 2004 pro forma revenues of
approximately $1.9 billion. I am pleased to report that the
integration process is proceeding according to plan, and we have a
high degree of confidence that we will achieve our operational and
financial objectives as the year unfolds."
For the first quarter ended March 31, 2005, revenues from
continuing operations were $275.9 million, up 11.5% from $247.5
million for the same period a year ago. Income from continuing
operations for the quarter increased 7.2% to $26.0 million, or $0.64
per diluted share, compared with income from continuing operations of
$24.2 million, or $0.61 per diluted share, for the prior-year period.
Net income for the quarter increased 8.1% to $25.8 million, or $0.63
per diluted share, compared with net income of $23.9 million, or $0.60
per diluted share, for the prior-year period.
The consolidated financial results for the first quarter ended
March 31, 2005, reflect a 5.5% increase in total admissions from
continuing operations and a 5.3% increase in equivalent admissions
from continuing operations compared with the first quarter of 2004. On
a same-hospital basis, total admissions from continuing operations
increased 2.7% compared with the same period last year, and equivalent
admissions from continuing operations increased 1.9% over the
prior-year period.
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.earnings.com on April 28, 2005,
beginning at 2:00 p.m. Eastern Time.
LifePoint Hospitals, Inc. is a leading hospital company focused on
providing healthcare services in non-urban communities, with 50
hospitals, approximately 5,285 licensed beds and combined pro forma
revenues of approximately $1.9 billion in 2004. Of the combined 50
hospitals, 46 are in markets where LifePoint Hospitals is the sole
community hospital provider. 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
approximately 18,000 employees.
Important Legal Information
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 LifePoint Hospitals' future results are beyond
LifePoint Hospitals' ability to control or predict with accuracy. Such
forward-looking statements reflect the current expectations and
beliefs of the management of LifePoint Hospitals, are not guarantees
of performance of LifePoint Hospitals, 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 recent acquisition of Province
Healthcare by LifePoint Hospitals include, without limitation, the
possibility that (1) problems may arise in successfully integrating
the businesses of LifePoint Hospitals and Province Healthcare; (2) the
acquisition may involve unexpected costs; (3) the combined company may
be unable to achieve cost-cutting synergies; (4) the businesses may
suffer as a result of uncertainty surrounding the acquisition; and (5)
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 LifePoint Hospitals' corporate integrity agreement; (iii) the
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 LifePoint Hospitals' operations;
(viii) the ability to acquire hospitals on favorable terms; (ix) the
ability to operate and integrate newly acquired facilities
successfully; (x) the availability and terms of capital to fund
LifePoint Hospitals' business strategies; (xi) changes in LifePoint
Hospitals' 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 LifePoint
Hospitals' common stock; (xiv) changes in general economic conditions
in the markets LifePoint Hospitals serves; (xv) LifePoint Hospitals'
reliance on information technology systems maintained by HCA Inc.;
(xvi) the costs of complying with the Americans With Disabilities Act;
and (xvii) those risks and uncertainties described from time to time
in LifePoint Hospitals' filings with the Securities and Exchange
Commission (SEC), including those related to the acquisition.
Therefore, LifePoint Hospitals' future results may differ materially
from those described in this release. LifePoint Hospitals undertakes
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 "LifePoint Hospitals" as used throughout this
release refer to LifePoint Hospitals, Inc. and its subsidiaries.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in millions, except per share amounts
Three Months Ended
March 31,
------------------------------
2005 2004
-------------- --------------
Amount Ratio Amount Ratio
Revenues $275.9 100.0% $247.5 100.0%
Salaries and benefits 108.6 39.3 96.9 39.2
Supplies 36.2 13.1 32.1 13.0
Other operating expenses 45.8 16.7 41.0 16.5
Provision for doubtful accounts 23.0 8.3 20.7 8.3
Depreciation and amortization 13.2 4.8 11.0 4.4
Interest expense, net 2.5 0.9 3.4 1.4
ESOP expense 2.7 1.0 2.3 0.9
------- ----- ------- -----
232.0 84.1 207.4 83.7
------- ----- ------- -----
Income from continuing
operations before minority
interests and income taxes 43.9 15.9 40.1 16.3
Minority interests in earnings
of consolidated entities 0.3 0.1 0.3 0.2
------- ----- ------- -----
Income from continuing
operations before income taxes 43.6 15.8 39.8 16.1
Provision for income taxes 17.6 6.4 15.6 6.3
------- ----- ------- -----
Income from continuing operations 26.0 9.4 24.2 9.8
Discontinued operations:
Income (loss) from discontinued
operations, net of income taxes 0.6 0.2 (0.3) (0.1)
Loss on sale of discontinued
hospital, net of income taxes (0.8) (0.3) -- --
------- ----- ------- -----
Net loss on discontinued operations (0.2) (0.1) (0.3) (0.1)
------- ----- ------- -----
Net income $25.8 9.3% $23.9 9.7%
======= ===== ======= =====
Earnings (loss) per share - basic:
Continuing operations $0.69 $0.66
Discontinued operations:
Income (loss) from discontinued
operations, net of income taxes 0.01 (0.01)
Loss on sale of discontinued
hospital, net of income taxes (0.02) --
------- -------
Net loss on discontinued operations (0.01) (0.01)
------- -------
Net income $0.68 $0.65
======= =======
Earnings (loss) per share - diluted:
Continuing operations $0.64 $0.61
Discontinued operations:
Income (loss) from discontinued
operations, net of income taxes 0.01 (0.01)
Loss on sale of discontinued
hospital, net of income taxes (0.02) --
------- -------
Net loss on discontinued operations (0.01) (0.01)
------- -------
Net income $0.63 $0.60
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LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS (LOSS) PER SHARE CALCULATION
Dollars and shares in millions, except per share amounts
Three Months Ended
March 31,
----------------
2005 2004
------- -------
Income from continuing operations $26.0 $24.2
Add: Interest on convertible notes,
net of income taxes 1.7 2.0
------- -------
Adjusted income from continuing operations 27.7 26.2
Net loss on discontinued operations (0.2) (0.3)
------- -------
$27.5 $25.9
======= =======
Weighted average number of shares - basic 37.8 36.6
Add: Shares for conversion of convertible notes 4.7 5.3
Other share equivalents 0.9 1.0
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Weighted average number of shares
and equivalents - diluted 43.4 42.9
======= =======
Earnings (loss) per share - basic:
Continuing operations $0.69 $0.66
Discontinued operations:
Income (loss) from discontinued
operations, net of income taxes 0.01 (0.01)
Loss on sale of discontinued hospital,
net of income taxes (0.02) --
------- -------
Net loss on discontinued operations (0.01) (0.01)
------- -------
Net income $0.68 $0.65
======= =======
Earnings (loss) per share - diluted:
Continuing operations $0.64 $0.61
Discontinued operations:
Income (loss) from discontinued
operations, net of income taxes 0.01 (0.01)
Loss on sale of discontinued
hospital, net of income taxes (0.02) --
------- -------
Net loss on discontinued operations (0.01) (0.01)
------- -------
Net income $0.63 $0.60
======= =======
LIFEPOINT HOSPITALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
March 31, Dec. 31,
2005 2004
------- -------
(Unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $94.2 $18.6
Accounts receivable, less allowances for doubtful
accounts of $108.7 and $103.6 at March 31, 2005
and December 31, 2004, respectively 120.8 112.0
Inventories 25.5 25.3
Assets held for sale -- 33.0
Income taxes receivable -- 7.5
Prepaid expenses 6.4 7.1
Deferred income taxes and other current assets 27.3 24.3
------- -------
274.2 227.8
Property and equipment:
Land 20.5 20.5
Buildings and improvements 396.8 385.4
Equipment 345.9 342.0
Construction in progress 58.0 48.6
------- -------
821.2 796.5
Accumulated depreciation (307.4) (295.4)
------- -------
513.8 501.1
Deferred loan costs, net 4.5 4.9
Intangible assets, net 3.1 3.3
Other 7.8 5.8
Goodwill 144.5 144.4
------- -------
$947.9 $887.3
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $28.9 $29.5
Accrued salaries 28.1 31.2
Liabilities held for sale -- 0.3
Income taxes payable 7.3 --
Other current liabilities 25.7 18.2
------- -------
90.0 79.2
Convertible notes 221.0 221.0
Deferred income taxes 49.0 47.9
Professional and general liability claims
and other liabilities 28.9 28.4
Minority interests in equity
of consolidated entities 1.3 1.3
Stockholders' equity:
Preferred stock -- --
Common stock 0.4 0.4
Capital in excess of par value 353.7 332.6
Unearned ESOP compensation (12.1) (12.9)
Unearned compensation on nonvested stock (4.0) (4.5)
Retained earnings 248.6 222.8
Treasury stock (28.9) (28.9)
------- -------
557.7 509.5
------- -------
$947.9 $887.3
======= =======
(1) Derived from audited financial statements.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Three Months Ended
March 31,
----------------
2005 2004
------- -------
Cash flows from operating activities:
Net income $25.8 $23.9
Adjustments to reconcile net income to net cash
provided by operating activities:
Net loss on discontinued operations 0.2 0.3
Depreciation and amortization 13.2 11.0
ESOP expense 2.7 2.3
Minority interests in earnings
of consolidated entities 0.3 0.3
Deferred income taxes (benefit) 0.9 (0.5)
Reserve for professional and general
liability claims, net 0.4 2.7
Tax benefit from employee stock plans 2.3 0.5
Increase (decrease) in cash from operating
assets and liabilities, net of effects from
acquisitions and divestitures:
Accounts receivable (8.1) (7.4)
Inventories and other current assets 2.9 --
Accounts payable and accrued expenses 5.6 4.8
Income taxes payable 14.1 14.6
Other 0.8 0.6
------- -------
Net cash provided by operating
activities - continuing operations 61.1 53.1
Net cash used in operating
activities - discontinued operations -- (0.9)
------- -------
Net cash provided by operating activities 61.1 52.2
------- -------
Cash flows from investing activities:
Purchase of property and equipment (27.1) (15.1)
Acquisitions (2.0) (1.7)
Proceeds from sale of discontinued hospital 32.5 --
Other (0.4) (0.3)
------- -------
Net cash provided by
(used in) investing activities 3.0 (17.1)
Cash flows from financing activities:
Repayment under revolving credit facility -- (20.0)
Proceeds from exercise of stock options 10.6 1.6
Other 0.9 0.8
------- -------
Net cash provided by
(used in) financing activities 11.5 (17.6)
Change in cash and cash equivalents 75.6 17.5
Cash and cash equivalents at beginning of period 18.6 20.6
------- -------
Cash and cash equivalents at end of period $94.2 $38.1
======= =======
Interest payments $0.5 $0.6
======= =======
Income taxes paid, net $0.6 $0.9
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LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended
March 31,
-------------------------
%
2005 2004 Change
------- ------- -------
Continuing Operations: (1)
Number of hospitals at end of period 29 28 3.6%
Licensed beds at end of period 2,688 2,671 0.6
Weighted average licensed beds 2,688 2,674 0.5
Average daily census 1,180 1,117 5.6
Average length of stay 4.1 4.1 --
Revenues ($ in millions) $275.9 $247.5 11.5
Revenues per equivalent admission $5,551 $5,245 5.8
Equivalent admissions (2) 49,709 47,188 5.3
Admissions 25,863 24,526 5.5
Outpatient factor (2) 1.92 1.92 --
Outpatient surgeries 19,344 18,604 4.0
Inpatient surgeries 6,610 6,650 (0.6)
Emergency room visits 111,320 98,882 12.6
Medicare case mix index 1.19 1.16 2.6
Same-Hospital: (3)
Number of hospitals at end of period 28 28 --
Licensed beds at end of period 2,582 2,671 (3.3)
Weighted average licensed beds 2,582 2,674 (3.4)
Average daily census 1,152 1,117 3.1
Average length of stay 4.1 4.1 --
Revenues ($ in millions) $265.5 $247.5 7.2
Revenues per equivalent admission $5,523 $5,245 5.3
Equivalent admissions (2) 48,061 47,188 1.9
Admissions 25,176 24,526 2.7
Outpatient factor (2) 1.91 1.92 (0.5)
Outpatient surgeries 18,554 18,604 (0.3)
Inpatient surgeries 6,368 6,650 (4.2)
Emergency room visits 106,463 98,882 7.7
Medicare case mix index 1.18 1.16 1.7
(1) Continuing operations excludes the operations of Bartow Memorial
Hospital, which the Company classified as held for sale during
the third and fourth quarters of 2004. The hospital was sold in
March 2005.
(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 divided 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) Same-hospital information includes 28 hospitals operated
throughout both periods and excludes the operations of hospitals
that the Company acquired after January 1, 2004, and Bartow
Memorial Hospital, which the Company sold in March 2005. The
costs of corporate overhead are excluded from same-hospital
information.
LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars in millions
Adjusted EBITDA is defined as earnings before depreciation and
amortization, interest expense, 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.
Three Months Ended
March 31,
------------------------------
2005 2004
-------------- --------------
Amount Ratio Amount Ratio
------- ----- ------- -----
Revenues $275.9 100.0% $247.5 100.0%
Salaries and benefits 108.6 39.3 96.9 39.2
Supplies 36.2 13.1 32.1 13.0
Other operating expenses 45.8 16.7 41.0 16.5
Provision for doubtful accounts 23.0 8.3 20.7 8.3
------- ----- ------- -----
213.6 77.4 190.7 77.0
------- ----- ------- -----
Adjusted EBITDA $62.3 22.6% $56.8 23.0%
======= ===== ======= =====
The following table reconciles adjusted EBITDA as presented above to
net income as reflected in the unaudited consolidated statements of
operations:
Three Months Ended
March 31,
----------------
2005 2004
------- -------
Adjusted EBITDA $62.3 $56.8
Less:
Depreciation and amortization 13.2 11.0
Interest expense, net 2.5 3.4
ESOP expense 2.7 2.3
Minority interests in earnings
of consolidated entities 0.3 0.3
Provision for income taxes 17.6 15.6
Net loss on discontinued operations 0.2 0.3
------- -------
Net income $25.8 $23.9
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CONTACT: LifePoint Hospitals Inc., Brentwood
Michael J. Culotta, 615-372-8512