Exhibit 99.1
LifePoint Hospitals Announces 2006 Guidance
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Jan. 9, 2006--LifePoint
Hospitals, Inc. (NASDAQ:LPNT) today announced the following guidance
for 2006.
(dollars in millions, First Second
except diluted EPS) Quarter Quarter
--------------- ---------------
Estimated revenues:
Former LifePoint $280.0 - $284.8 $277.2 - $282.0
Former Province 241.6 - 245.8 238.9 - 243.1
2005 Acquisitions (1) 57.8 - 58.8 55.5 - 56.5
------ ------ ------ ------
Total $579.4 - $589.4 $571.6 - $581.6
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Estimated EBITDA: (2)
Former LifePoint $ 62.4 - $ 65.0 $ 63.8 - $ 65.4
Former Province 45.9 - 48.1 49.3 - 51.6
2005 Acquisitions 8.0 - 8.2 7.1 - 7.3
Corporate Office Expense (15.8)- (15.8) (18.0)- (18.0)
------ ------ ------ ------
Total $100.5 - $105.5 $102.2 - $106.3
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Estimated diluted EPS $0.50 - $0.55 $0.50 - $0.54
====== ====== ====== ======
Estimated diluted shares
(in millions) 56.9 57.5
====== ======
Third Fourth
Quarter Quarter
--------------- ---------------
Estimated revenues:
Former LifePoint $277.6 - $282.4 $283.1 - $287.9
Former Province 244.0 - 248.2 248.5 - 252.7
2005 Acquisitions (1) 54.8 - 55.8 54.9 - 55.8
------ ------ ------ ------
Total $576.4 - $586.4 $586.5 - $596.4
====== ====== ====== ======
Estimated EBITDA: (2)
Former LifePoint $ 63.5 - $ 65.5 $ 66.2 - $ 68.2
Former Province 56.1 - 57.9 56.2 - 57.9
2005 Acquisitions 6.7 - 6.9 7.8 - 8.0
Corporate Office Expense (17.0)- (17.0) (16.5)- (16.5)
------ ------ ------ ------
Total $109.3 - $113.3 $113.7 - $117.6
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Estimated diluted EPS $0.57 - $0.61 $0.61 - $0.65
====== ====== ====== ======
Estimated diluted shares
(in millions) 57.7 57.8
====== ======
Year
-------------------
Estimated revenues:
Former LifePoint $1,117.9 - $1,137.1
Former Province 973.0 - 989.8
2005 Acquisitions (1) 223.0 - 226.9
-------- --------
Total $2,313.9 - $2,353.8
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Estimated revenue growth:
Former LifePoint 4.2% - 6.0%
Former Province 3.4% - 5.2%
Estimated EBITDA: (2)
Former LifePoint $ 255.9 - $ 264.1
Former Province 207.5 - 215.5
2005 Acquisitions 29.6 - 30.4
Corporate Office Expense (67.3)- (67.3)
-------- --------
Total $ 425.7 - $ 442.7
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Estimated diluted EPS $2.18 - $2.35
======== ========
Estimated diluted shares
(in millions) 57.5
========
(1) Includes Wytheville and Danville only.
(2) 2006 EBITDA includes ESOP expense and FAS #123(R) in salaries and
benefits expense.
Other assumptions (dollars in millions, except per share data):
Average cash balance $20.0 - $40.0
Days in accounts receivable 42 - 46
Inventories, as a % of quarterly net revenue 2.0% - 3.0%
Prepaid expenses, as a % of
quarterly net revenue 0.5% - 1.0%
Other current assets, as a % of
quarterly net revenue 1.0% - 2.0%
Days in accounts payable 12 - 14
Accrued salaries, as a % of
quarterly net revenue 2.0% - 3.0%
Other current liabilities, as a %
of quarterly net revenue 2.0% - 3.0%
Interest rate on variable debt LIBOR + 1.625%
Interest rate on variable debt
inclusive of LIBOR through 5/15/06 6.185%
Weighted average interest rate
inclusive of LIBOR for the year 6.559%
Balance of Term B Debt at
December 31, 2005 (1) $1,281.9
Amortization of deferred loan costs $6.6 - $7.0
Capital expenditures $180.0 - $210.0
Capitalized interest $6.0 - $6.5
Consolidated salaries and benefits
expense, as a % of revenues (2) 39.0% - 40.0%
ESOP expense (included in
salaries and benefits) 2.5% of salaries
FAS #123(R) expense (included in $20.6 ($0.22
salaries and benefits) dilutive to EPS)
Consolidated supply expense,
as a % of revenues 13.6% - 14.3%
Consolidated bad debt expense,
as a % of revenues 11.0% - 12.0%
Charity care, as a % of revenues
(not included in bad debt expense) 1.5% - 2.5%
Consolidated other operating
expenses, as a % of revenues 16.5% - 17.2%
IS conversion cost $3.0 - $5.0 ($0.03 -
$0.05 dilutive to EPS)
Total physician recruiting cost $35.2
Physician recruiting costs $18.8 ($0.20
capitalized, net (3) accretive to EPS)
Admitting physicians to be recruited 183
Professional and general liability expense $34.5
Depreciation and amortization expense $125.0 - $130.0
Minority interest expense $1.5 - $2.0
Tax rate 39.8% - 40.0%
Tax payments, as a % of total tax provision 85.0% - 90.0%
Admission growth (same
facilities, respectively) 1% - 3%
Adjusted admission growth
(same facilities, respectively) 1% - 3%
Net revenue per adjusted admission growth
(same facilities, respectively) 2.0% - 3.5%
(1) Please refer to third quarter 10-Q for a detail of other
fixed-rate debt.
(2) Includes ESOP expense and FAS #123(R) stock-based compensation.
(3) Impact of required adoption of FSP-FIN 45-3.
Kenneth C. Donahey, chairman, president and chief executive
officer of LifePoint Hospitals, said, "We have acquired some great
assets in great communities. Our year will be focused on laying the
foundation for future growth and opportunities. As we have previously
stated, the integration of the former Province facilities and our
other recent acquisitions will take time, but we are up to the
challenge of capitalizing on these great opportunities."
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Hospitals' conference call to discuss this release will be available
on line at www.lifepointhospitals.com and www.earnings.com on January
9, 2006, beginning at 5:00 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 50 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 its recent acquisitions and
achieving cost-cutting synergies; (ii) reduction in payments to
healthcare providers by federal and state governments 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; (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)
competition from other providers and physician services; (ix) the
geographic concentration of LifePoint Hospitals' operations; (x) the
ability to acquire other hospitals on favorable terms and complete
budgeted capital improvements successfully; (ix) the ability to
operate and integrate newly acquired facilities successfully; (xii)
the availability and terms of capital to fund LifePoint Hospitals'
business strategies; (xiii) changes in LifePoint Hospitals' liquidity
or the amount or terms of its indebtedness and in its credit ratings;
(xiv) the potential adverse impact of government investigations and
litigation involving the business practices of healthcare providers,
including whistleblowers investigations; (xv) changes in or
interpretations of generally accepted accounting principles or
practices; (xvi) volatility in the market value of LifePoint
Hospitals' common stock; (xvii) changes in general economic conditions
in the markets LifePoint Hospitals serves; (xviii) LifePoint
Hospitals' reliance on information technology systems maintained by
HCA Inc. and other providers; (xix) the costs of complying with the
Americans with Disabilities Act; and (xx) 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.
CONTACT: LifePoint Hospitals, Inc., Brentwood
Michael J. Culotta, 615-372-8512