Exhibit 99.1
LifePoint Hospitals Reports Third Quarter 2005 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Oct. 26, 2005--LifePoint Hospitals, Inc.
(NASDAQ: LPNT) today announced results for the third quarter and nine
months ended September 30, 2005. The Company's consolidated results
for the quarter and nine months ended September 30, 2005, include
results of operations of Province hospitals subsequent to the
combination date of April 15, 2005. The quarterly results include an
estimated adverse financial impact from Hurricanes Katrina and Rita of
$3.1 million loss before income taxes, or $0.03 per diluted share, as
well as $2.1 million of debt retirement costs, or $0.02 per diluted
share.
For the third quarter ended September 30, 2005, revenues from
continuing operations were $552.4 million, up 117.7% from $253.7
million for the same period a year ago. Income from continuing
operations for the quarter was $30.6 million, or $0.54 per diluted
share, compared with income from continuing operations of $20.1
million, or $0.51 per diluted share, for the prior-year period. Net
income for the quarter was $29.6 million, or $0.53 per diluted share,
compared with net income of $19.7 million, or $0.50 per diluted share,
for the prior-year period.
The consolidated financial results for the third quarter ended
September 30, 2005, reflect a 99.0% increase in total admissions from
continuing operations and a 90.7% increase in equivalent admissions
from continuing operations compared with the third quarter of 2004. On
a same-hospital basis, total admissions from continuing operations
decreased 0.9% compared with the same period last year, and equivalent
admissions from continuing operations decreased 2.4% over the
prior-year period.
For the nine months ended September 30, 2005, revenues from
continuing operations were $1,295.9 million, up 75.3% from $739.4
million for the same period in 2004. Income from continuing operations
for the nine months ended September 30, 2005, decreased 15.6% to $53.8
million, or $1.09 per diluted share, including pre-tax transaction
costs of $43.2 million, or $0.58 per diluted share, and pre-tax debt
retirement costs of $12.1 million, or $0.19 per diluted share,
primarily related to the Company's business combination with Province,
compared with income from continuing operations of $63.8 million, or
$1.61 per diluted share, for the prior-year period. Net income for the
nine months ended September 30, 2005, decreased 22.5% to $48.3
million, or $0.98 per diluted share, including the non-recurring
charges taken in the second quarter of 2005, compared with net income
of $62.3 million, or $1.58 per diluted share, for the same period in
2004.
The consolidated financial results for the nine months ended
September 30, 2005, reflect a 59.2% increase in total admissions from
continuing operations and a 56.0% increase in equivalent admissions
from continuing operations compared with the same period in 2004. On a
same-hospital basis, total admissions from continuing operations
increased 1.7% compared with the same period last year, and equivalent
admissions from continuing operations increased 0.2% over the
prior-year period.
In commenting on the third quarter results, Kenneth C. Donahey,
chairman, president and chief executive officer of LifePoint
Hospitals, said, "Despite a challenging quarter, which included
hurricanes, lower admissions and changes in reimbursement, our
financial performance reflected a significant improvement over last
year. Credit for our continued profitability and operating execution
goes to the many men and women at LifePoint, particularly those whose
sacrifice and dedication were evident during Hurricanes Katrina and
Rita. We are grateful to them for continuing to provide vital,
life-saving services against almost impossible odds. Truly, these
individuals are an inspiration to us all."
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Hospitals' third quarter conference call will be available on line at
www.lifepointhospitals.com and www.earnings.com on October 27, 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. Of the
Company's 52 hospitals, 49 are in communities 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 19,000 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. These forward-looking statements may also be subject to
other risks and uncertainties, including, without limitation, (i) the
possibility that problems may arise in successfully integrating the
businesses of LifePoint Hospitals and Province and achieving
cost-cutting synergies; (ii) 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; (iii) the possibility of adverse changes in, and
requirements of, applicable laws, regulations, policies and
procedures, including those required by LifePoint Hospitals' corporate
integrity agreement; (iv) the ability to manage healthcare risks,
including malpractice litigation, and the lack of state and federal
tort reform; (v) the availability, cost and terms of insurance
coverage; (vi) the highly competitive nature of the healthcare
business, including the competition to recruit and retain physicians
and other healthcare professionals; (vii) the ability to attract and
retain qualified management and personnel; (viii) the geographic
concentration of LifePoint Hospitals' operations; (ix) the ability to
acquire hospitals on favorable terms and complete budgeted capital
improvements successfully; (x) the ability to operate and integrate
newly acquired facilities successfully; (xi) the availability and
terms of capital to fund LifePoint Hospitals' business strategies;
(xii) changes in LifePoint Hospitals' liquidity or the amount or terms
of its indebtedness and in its credit ratings; (xiii) the potential
adverse impact of government investigations and litigation involving
the business practices of healthcare providers, including
whistleblowers investigations; (xiv) changes in or interpretations of
generally accepted accounting principles or practices; (xv) volatility
in the market value of LifePoint Hospitals' common stock; (xvi)
changes in general economic conditions in the markets LifePoint
Hospitals serves; (xvii) LifePoint Hospitals' reliance on information
technology systems maintained by HCA Inc.; (xviii) the costs of
complying with the Americans with Disabilities Act; and (xix) those
risks and uncertainties described from time to time in LifePoint
Hospitals' filings with the Securities and Exchange Commission.
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
For the Three Months Ended
September 30,
2005 2004
----------------- -----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $552.4 100.0% $253.7 100.0%
Salaries and benefits 217.9 39.4 102.1 40.3
Supplies 76.7 13.9 32.2 12.7
Other operating expenses 91.3 16.5 44.1 17.4
Provision for doubtful accounts 63.9 11.6 24.4 9.6
Depreciation and amortization 28.1 5.2 12.1 4.8
Interest expense, net 20.4 3.7 3.1 1.2
Debt retirement costs 2.1 0.4 -- --
Transaction costs (1.4) (0.3) -- --
ESOP expense 4.5 0.8 2.3 0.9
------- ------- ------- -------
503.5 91.2 220.3 86.9
------- ------- ------- -------
Income from continuing
operations before minority
interests and income taxes 48.9 8.8 33.4 13.1
Minority interests in earnings
of consolidated entities 0.3 -- 0.1 --
------- ------- ------- -------
Income from continuing
operations before
income taxes 48.6 8.8 33.3 13.1
Provision for income taxes 18.0 3.3 13.2 5.2
------- ------- ------- -------
Income from
continuing operations 30.6 5.5 20.1 7.9
Discontinued operations,
net of income taxes:
Income (loss) from
discontinued operations (0.8) (0.1) (0.4) (0.1)
Impairment of assets of
hospital held for sale (0.2) -- -- --
Loss on sale of hospital -- -- -- --
------- ------- ------- -------
Loss from
discontinued operations (1.0) (0.1) (0.4) (0.1)
------- ------- ------- -------
Net income $29.6 5.4% $19.7 7.8%
======= ======= ======= =======
Earnings per share - basic:
Continuing operations $0.55 $0.54
Discontinued operations (0.01) (0.01)
------- -------
Net income $0.54 $0.53
======= =======
Earnings per share - diluted:
Continuing operations $0.54 $0.51
Discontinued operations (0.01) (0.01)
------- -------
Net income $0.53 $0.50
======= =======
For the Nine Months Ended
September 30,
2005 2004
----------------- -----------------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $1,295.9 100.0% $739.4 100.0%
Salaries and benefits 508.5 39.2 296.7 40.1
Supplies 173.4 13.4 95.4 12.9
Other operating expenses 216.7 16.7 123.9 16.7
Provision for doubtful accounts 128.2 9.9 64.0 8.7
Depreciation and amortization 68.1 5.4 34.5 4.7
Interest expense, net 38.3 3.0 9.7 1.3
Debt retirement costs 12.1 0.9 1.5 0.2
Transaction costs 43.2 3.3 -- --
ESOP expense 11.0 0.8 7.1 1.0
------- ------- ------- -------
1,199.5 92.6 632.8 85.6
------- ------- ------- -------
Income from continuing
operations before minority
interests and income taxes 96.4 7.4 106.6 14.4
Minority interests in earnings
of consolidated entities 0.8 -- 0.7 0.1
------- ------- ------- -------
Income from continuing
operations before income taxes 95.6 7.4 105.9 14.3
Provision for income taxes 41.8 3.2 42.1 5.7
------- ------- ------- -------
Income from
continuing operations 53.8 4.2 63.8 8.6
Discontinued operations,
net of income taxes:
Income (loss) from
discontinued operations 0.1 -- (1.5) (0.2)
Impairment of assets of
hospital held for sale (4.9) (0.4) -- --
Loss on sale of hospital (0.7) (0.1) -- --
------- ------- ------- -------
Loss from
discontinued operations (5.5) (0.5) (1.5) (0.2)
------- ------- ------- -------
Net income $48.3 3.7 $62.3 8.4%
======= ======= ======= =======
Earnings per share - basic:
Continuing operations $1.11 $1.73
Discontinued operations (0.12) (0.04)
------- -------
Net income $0.99 $1.69
======= =======
Earnings per share - diluted:
Continuing operations $1.09 $1.61
Discontinued operations (0.11) (0.03)
------- -------
Net income $0.98 $1.58
======= =======
LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS PER SHARE CALCULATION
Dollars and shares in millions, except per share amounts
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2005 2004 2005 (1) 2004
------- ------- ------- -------
Income from
continuing operations $30.6 $20.1 $53.8 $63.8
Add: Interest on convertible
notes, net of taxes -- 1.7 -- 5.5
------- ------- ------- -------
Adjusted income from
continuing operations 30.6 21.8 53.8 69.3
Loss from
discontinued operations (1.0) (0.4) (5.5) (1.5)
------- ------- ------- -------
$29.6 $21.4 $48.3 $67.8
======= ======= ======= =======
Weighted average number
of shares - basic 55.3 37.2 48.4 36.9
Add: Shares for conversion
of convertible notes -- 4.7 -- 5.1
Other share equivalents 0.9 0.7 0.9 0.8
------- ------- ------- -------
Weighted average number
of shares and
equivalents - diluted 56.2 42.6 49.3 42.8
======= ======= ======= =======
Earnings per share - basic:
Continuing operations $0.55 $0.54 $1.11 $1.73
Discontinued operations:
Loss from
discontinued operations (0.01) (0.01) -- (0.04)
Impairment of assets of
hospital held for sale -- -- (0.10) --
Loss on sale of hospital -- -- (0.02) --
------- ------- ------- -------
Loss from
discontinued operations (0.01) (0.01) (0.12) (0.04)
------- ------- ------- -------
Net income $0.54 $0.53 $0.99 $1.69
======= ======= ======= =======
Earnings per share - diluted:
Continuing operations $0.54 $0.51 $1.09 $1.61
Discontinued operations:
Loss from
discontinued operations (0.01) (0.01) -- (0.03)
Impairment of assets of
hospital held for sale -- -- (0.10) --
Loss on sale of hospital -- -- (0.01) --
------- ------- ------- -------
Loss from
discontinued operations (0.01) (0.01) (0.11) (0.03)
------- ------- ------- -------
Net income $0.53 $0.50 $0.98 $1.58
======= ======= ======= =======
(1) The impact of 2.9 million potential weighted average shares of
common stock, if converted, and interest expense related to
convertible notes were not included in the computation of diluted
earnings per share because the effect would have been
anti-dilutive.
LIFEPOINT HOSPITALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
Sept. 30, Dec. 31,
2005 2004
------- -------
ASSETS (Unaudited) (1)
Current assets:
Cash and cash equivalents $39.2 $18.6
Accounts receivable, less allowances for doubtful
accounts of $241.6 and $103.6 at September 30,
2005 and December 31, 2004, respectively 252.1 112.0
Inventories 54.4 25.3
Assets held for sale 19.3 33.0
Income taxes receivable 18.5 7.5
Prepaid expenses 13.9 7.1
Deferred income taxes and other current assets 20.6 24.3
------- -------
418.0 227.8
Property and equipment:
Land 69.7 20.5
Buildings and improvements 988.4 385.4
Equipment 505.9 342.0
Construction in progress 125.9 48.6
------- -------
1,689.9 796.5
Accumulated depreciation (351.9) (295.4)
------- -------
1,338.0 501.1
Deferred loan costs, net 36.6 4.9
Intangible assets, net 3.8 3.3
Other 6.5 5.8
Goodwill 1,370.7 144.4
------- -------
$3,173.6 $887.3
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $74.6 $29.5
Accrued salaries 57.6 31.2
Other current liabilities 55.2 18.5
Current maturities of long-term debt 0.5 --
------- -------
187.9 79.2
Long-term debt 1,561.0 221.0
Deferred income taxes 101.3 47.9
Professional and general liability
claims and other liabilities 60.0 28.4
Minority interests in equity
of consolidated entities 4.6 1.3
Stockholders' equity:
Preferred stock -- --
Common stock 0.6 0.4
Capital in excess of par value 1,050.2 332.6
Unearned ESOP compensation (10.0) (12.9)
Unearned compensation on nonvested stock (32.2) (4.5)
Retained earnings 250.2 222.8
Treasury stock -- (28.9)
------- -------
1,258.8 509.5
------- -------
$3,173.6 $887.3
======= =======
(1) Derived from audited financial statements.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2005 2004 2005 2004
------- ------- ------- -------
Cash flows from
operating activities:
Net income $29.6 $19.7 $48.3 $62.3
Adjustments to reconcile net
income to net cash provided
by operating activities:
Loss from
discontinued operations 1.0 0.4 5.5 1.5
Depreciation and
amortization 28.1 12.1 68.1 34.5
Debt retirement costs 2.1 -- 12.1 1.5
Transaction costs (1.4) -- 43.2 --
ESOP expense 4.5 2.3 11.0 7.1
Minority interests in
earnings of consolidated
entities 0.3 0.1 0.8 0.7
Deferred income
taxes (benefit) (14.7) -- 9.7 (0.9)
Reserve for professional
and general liability
claims, net (0.2) 1.6 1.8 2.1
Tax benefit from employee
stock plans 0.7 0.1 8.9 4.4
Increase (decrease) in cash
from operating assets and
liabilities, net of
effects from acquisitions
and divestitures:
Accounts receivable (12.2) (9.9) (20.5) (14.1)
Inventories and other
current assets 5.4 0.1 8.7 (3.1)
Accounts payable and
accrued expenses 5.3 9.6 5.9 15.9
Income taxes payable 16.0 6.4 (12.3) 1.3
Other 4.3 0.3 8.1 1.5
------- ------- ------- -------
Net cash provided by
operating activities -
continuing operations 68.8 42.8 199.3 114.7
Net cash provided by
operating activities -
discontinued operations 4.2 0.9 6.1 0.9
------- ------- ------- -------
Net cash provided by
operating activities 73.0 43.7 205.4 115.6
------- ------- ------- -------
Cash flows from
investing activities:
Purchase of property
and equipment (48.4) (21.3) (108.8) (56.7)
Acquisitions, net of
cash acquired (3.6) (1.3) (963.3) (27.8)
Proceeds from sale
of hospital -- -- 32.5 --
Other (0.2) (0.2) (0.8) (0.8)
------- ------- ------- -------
Net cash used in
investing activities (52.2) (22.8) (1,040.4) (85.3)
------- ------- ------- -------
Cash flows from
financing activities:
Proceeds from long-term debt 375.0 -- 1,967.0 30.0
Payments of borrowings (402.7) (30.0) (1,111.9) (79.9)
Proceeds from exercise
of stock options 1.7 0.2 43.3 7.7
Payment of debt issue costs (8.9) -- (40.7) --
Other 0.3 (0.2) (2.1) 0.6
------- ------- ------- -------
Net cash (used in)
provided by financing
activities (34.6) (30.0) 855.6 (41.6)
------- ------- ------- -------
Change in cash and
cash equivalents (13.8) (9.1) 20.6 (11.3)
Cash and cash equivalents at
beginning of period 53.0 18.4 18.6 20.6
------- ------- ------- -------
Cash and cash equivalents at
end of period $39.2 $9.3 $39.2 $9.3
======= ======= ======= =======
Interest payments $19.8 $0.4 $43.3 $7.1
======= ======= ======= =======
Capitalized interest $1.1 $0.2 $2.3 $0.6
======= ======= ======= =======
Income taxes paid, net $15.7 $6.6 $35.7 $36.6
======= ======= ======= =======
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended
September 30,
---------------------------
%
2005 2004 Change
------- ------- -------
Continuing Operations: (1)
Number of hospitals at end of period 49 29 69.0%
Admissions 44,743 22,480 99.0
Equivalent admissions (2) 88,457 46,378 90.7
Licensed beds at end of period 5,401 2,737 97.3
Weighted average licensed beds 5,401 2,737 97.3
Revenues ($ in millions) $552.4 $253.7 117.7
Revenues per equivalent admission $6,245 $5,470 14.2
Outpatient factor (2) 1.98 2.06 (4.1)
Emergency room visits 210,999 110,369 91.2
Inpatient surgeries 13,138 6,427 104.4
Outpatient surgeries 34,460 19,367 77.9
Average daily census 2,023 976 107.3
Average length of stay 4.2 4.0 5.0
Medicare case mix index 1.23 1.19 3.4
Same-Hospital: (3)
Number of hospitals at end of period 28 28 --
Admissions 21,621 21,827 (0.9)
Equivalent admissions (2) 43,769 44,866 (2.4)
Licensed beds at end of period 2,582 2,631 (1.9)
Weighted average licensed beds 2,582 2,631 (1.9)
Revenues ($ in millions) $255.5 $242.9 5.0
Revenues per equivalent admission $5,836 $5,420 7.7
Outpatient factor (2) 2.02 2.05 (1.3)
Emergency room visits 106,957 105,549 1.3
Inpatient surgeries 6,612 6,172 7.1
Outpatient surgeries 17,892 18,567 (3.6)
Average daily census 953 950 0.3
Average length of stay 4.1 4.0 2.5
Medicare case mix index 1.22 1.19 2.5
Nine Months Ended
September 30,
---------------------------
%
2005 2004 Change
------- ------- -------
Continuing Operations: (1)
Number of hospitals at end of period 49 29 69.0%
Admissions 109,832 69,003 59.2
Equivalent admissions (2) 215,381 138,075 56.0
Licensed beds at end of period 5,401 2,737 97.3
Weighted average licensed beds 4,243 2,683 58.1
Revenues ($ in millions) $1,295.9 $739.4 75.3
Revenues per equivalent admission $6,017 $5,355 12.4
Outpatient factor (2) 1.96 2.00 (2.0)
Emergency room visits 501,729 312,208 60.7
Inpatient surgeries 31,290 19,735 58.6
Outpatient surgeries 84,454 56,375 49.8
Average daily census 1,659 1,021 62.5
Average length of stay 4.1 4.1 --
Medicare case mix index 1.21 1.17 3.4
Same-Hospital: (3)
Number of hospitals at end of period 28 28 --
Admissions 69,494 68,350 1.7
Equivalent admissions (2) 136,834 136,563 0.2
Licensed beds at end of period 2,582 2,631 (1.9)
Weighted average licensed beds 2,582 2,647 (2.5)
Revenues ($ in millions) $776.4 $728.7 6.5
Revenues per equivalent admission $5,674 $5,338 6.3
Outpatient factor (2) 1.97 2.00 (1.6)
Emergency room visits 317,011 307,388 3.1
Inpatient surgeries 19,482 19,480 --
Outpatient surgeries 55,239 55,575 (0.6)
Average daily census 1,045 1,012 3.3
Average length of stay 4.1 4.1 --
Medicare case mix index 1.20 1.17 2.6
(1) Continuing operations excludes the operations of hospitals that
the Company classifies as discontinued operations.
(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 or sold after January 1, 2004.
LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars in millions
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2005 2004 2005 2004
------- ------- ------- -------
Components of transaction costs:
Adjustment to Province acquired
accounts receivable $-- $-- $26.4 $--
Adjustment to Province assumed
liabilities, primarily related
to professional and general
liability claims (1.4) -- 7.3 --
Retention bonuses paid to former
Province employees -- -- 4.2 --
Compensation expense, primarily
restricted stock vesting from
change in control -- -- 5.3 --
------- ------- ------- --------
$(1.4) $-- $43.2 $--
======= ======= ======= ========
Adjusted EBITDA is defined as earnings before depreciation and
amortization, interest expense, debt retirement costs, transaction
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 credit facilities use adjusted EBITDA, as defined, 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 U.S. generally accepted
accounting principles, 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 U.S. generally accepted
accounting principles 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
September 30,
-------------------------------------
2005 2004 2005 2004
------- ------- ------- -------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $552.4 100.0% $253.7 100.0%
Salaries and benefits 217.9 39.4 102.1 40.3
Supplies 76.7 13.9 32.2 12.7
Other operating expenses 91.3 16.5 44.1 17.4
Provision for doubtful accounts 63.9 11.6 24.4 9.6
------- ------- ------- -------
Adjusted EBITDA $102.6 18.6% $50.9 20.0%
======= ======= ======= =======
Nine Months Ended
September 30,
-------------------------------------
2005 2004 2005 2004
------- ------- ------- -------
Amount Ratio Amount Ratio
------- ------- ------- -------
Revenues $1,295.9 100.0% $739.4 100.0%
Salaries and benefits 508.5 39.2 296.7 40.1
Supplies 173.4 13.4 95.4 12.9
Other operating expenses 216.7 16.7 123.9 16.7
Provision for doubtful accounts 128.2 9.9 64.0 8.7
------- ------- ------- -------
Adjusted EBITDA $269.1 20.8% $159.4 21.6%
======= ======= ======= =======
The following table reconciles adjusted EBITDA as presented above to
net income as reflected in the unaudited condensed consolidated
statements of operations:
Three Months Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
2005 2004 2005 2004
------- ------- ------- -------
Adjusted EBITDA $102.6 $50.9 $269.1 $159.4
Less:
Depreciation and amortization 28.1 12.1 68.1 34.5
Interest expense, net 20.4 3.1 38.3 9.7
Debt retirement costs 2.1 -- 12.1 1.5
Transaction costs (1.4) -- 43.2 --
ESOP expense 4.5 2.3 11.0 7.1
Minority interests in earnings
of consolidated entities 0.3 0.1 0.8 0.7
Provision for income taxes 18.0 13.2 41.8 42.1
Loss from
discontinued operations 1.0 0.4 5.5 1.5
------- ------- ------- -------
Net income $29.6 $19.7 $48.3 $62.3
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CONTACT: LifePoint Hospitals, Inc.
Michael J. Culotta, 615-372-8512