Exhibit 99.1
LifePoint Hospitals Reports Fourth Quarter and Year-End 2005 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Feb. 6, 2006--LifePoint Hospitals, Inc.
(NASDAQ: LPNT) today announced results for the fourth quarter and year ended
December 31, 2005. The Company's consolidated results include the operations of
Province hospitals subsequent to the combination date of April 15, 2005.
For the fourth quarter ended December 31, 2005, revenues from continuing
operations were $559.2 million, up 117.1% from $257.5 million for the same
period a year ago. Income from continuing operations for the quarter was $26.0
million, or $0.46 per diluted share, compared with income from continuing
operations of $23.0 million, or $0.58 per diluted share, for the prior-year
period. Net income for the quarter was $24.6 million, or $0.44 per diluted
share, compared with net income of $23.4 million, or $0.59 per diluted share,
for the prior-year period.
The consolidated financial results for the fourth quarter ended December
31, 2005, reflect a 99.6% increase in total admissions from continuing
operations and a 90.4% increase in equivalent admissions from continuing
operations compared with the fourth quarter of 2004. On a same-hospital basis,
total admissions from continuing operations decreased 0.7% compared with the
same period last year, and equivalent admissions from continuing operations
decreased 2.4% over the prior-year period.
For the year ended December 31, 2005, revenues from continuing operations
were $1,855.1 million, up 86.1% from $996.9 million for the same period in 2004.
Income from continuing operations for the year ended December 31, 2005,
decreased 8.1% to $79.8 million, or $1.56 per diluted share, including pre-tax
transaction costs of $43.2 million, or $0.56 per diluted share, and pre-tax debt
retirement costs of $12.2 million, or $0.18 per diluted share, primarily related
to the Company's business combination with Province, compared with income from
continuing operations of $86.8 million, or $2.20 per diluted share, for the
prior-year period. Net income for the year ended December 31, 2005, decreased
15.0% to $72.9 million, or $1.43 per diluted share, compared with net income of
$85.7 million, or $2.17 per diluted share, for the same period in 2004.
The consolidated financial results for the year ended December 31, 2005,
reflect a 69.2% increase in total admissions from continuing operations and a
64.6% 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 1.1% compared with the same period last year,
and equivalent admissions from continuing operations decreased 0.4% over the
prior-year period.
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Hospitals' fourth quarter and year-end conference call will be available on line
at www.lifepointhospitals.com and www.earnings.com on February 7, 2006,
beginning at 10:00 a.m. Eastern Time.
LifePoint's 2006 Annual Meeting of Stockholders will be held on May 8,
2006, at 3:00 p.m. local time, at 511 Union Street, Suite 2700, Nashville,
Tennessee. The record date for the meeting will be March 17, 2006.
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
December 31,
--------------------------------------
2005 2004
------------------ ------------------
Amount Ratio Amount Ratio
-------- -------- -------- --------
Revenues $559.2 100.0% $257.5 100.0%
Salaries and benefits 222.0 39.7 102.7 39.9
Supplies 78.2 14.0 33.7 13.1
Other operating expenses 95.1 17.0 42.9 16.6
Provision for
doubtful accounts 62.1 11.1 22.2 8.6
Depreciation and amortization 33.0 5.9 13.6 5.4
Interest expense, net 22.0 3.9 2.9 1.1
Debt retirement costs 0.1 -- -- --
Transaction costs -- -- -- --
ESOP expense 3.8 0.7 2.3 0.9
-------- -------- -------- --------
516.3 92.3 220.3 85.6
-------- -------- -------- --------
Income from continuing
operations before minority
interests and income taxes 42.9 7.7 37.2 14.4
Minority interests in earnings
of consolidated entities 0.3 0.1 0.3 0.1
-------- -------- -------- --------
Income from continuing
operations before income taxes 42.6 7.6 36.9 14.3
Provision for income taxes 16.6 3.0 13.9 5.3
-------- -------- -------- --------
Income from
continuing operations 26.0 4.6 23.0 9.0
Discontinued operations,
net of income taxes:
Income (loss) from
discontinued operations (0.5) (0.1) 0.4 0.1
Impairment of assets (0.9) (0.1) -- --
Loss on sale of hospital -- -- -- --
-------- -------- -------- --------
Income (loss) from
discontinued operations (1.4) (0.2) 0.4 0.1
-------- -------- -------- --------
Net income $24.6 4.4% $23.4 9.1%
======== ======== ======== ========
Earnings (loss) per
share - basic:
Continuing operations $0.47 $0.62
Discontinued operations (0.03) 0.01
-------- --------
Net income $0.44 $0.63
======== ========
Earnings (loss) per
share - diluted:
Continuing operations $0.46 $0.58
Discontinued operations (0.02) 0.01
-------- --------
Net income $0.44 $0.59
======== ========
For the Year Ended
December 31,
--------------------------------------
2005 2004
------------------ ------------------
Amount Ratio Amount Ratio
-------- -------- -------- --------
Revenues $1,855.1 100.0% $996.9 100.0%
Salaries and benefits 730.5 39.4 399.4 40.1
Supplies 251.6 13.6 129.1 12.9
Other operating expenses 311.8 16.7 166.8 16.7
Provision for
doubtful accounts 190.3 10.3 86.2 8.7
Depreciation and amortization 101.1 5.5 48.1 4.9
Interest expense, net 60.3 3.2 12.6 1.3
Debt retirement costs 12.2 0.7 1.5 0.1
Transaction costs 43.2 2.3 -- --
ESOP expense 14.8 0.8 9.4 0.9
-------- -------- -------- --------
1,715.8 92.5 853.1 85.6
-------- -------- -------- --------
Income from continuing
operations before minority
interests and income taxes 139.3 7.5 143.8 14.4
Minority interests in earnings
of consolidated entities 1.1 0.1 1.0 0.1
-------- -------- -------- --------
Income from continuing
operations before income taxes 138.2 7.4 142.8 14.3
Provision for income taxes 58.4 3.1 56.0 5.6
-------- -------- -------- --------
Income from
continuing operations 79.8 4.3 86.8 8.7
Discontinued operations,
net of income taxes:
Income (loss) from
discontinued operations (0.4) -- (1.1) (0.1)
Impairment of assets (5.8) (0.4) -- --
Loss on sale of hospital (0.7) -- -- --
-------- -------- -------- --------
Income (loss) from
discontinued operations (6.9) (0.4) (1.1) (0.1)
-------- -------- -------- --------
Net income $72.9 3.9% $85.7 8.6%
======== ======== ======== ========
Earnings (loss) per
share - basic:
Continuing operations $1.59 $2.34
Discontinued operations (0.14) (0.03)
-------- --------
Net income $1.45 $2.31
======== ========
Earnings (loss) per
share - diluted:
Continuing operations $1.56 $2.20
Discontinued operations (0.13) (0.03)
-------- --------
Net income $1.43 $2.17
======== ========
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,
------------------ ------------------
2005 2004 2005 2004
-------- -------- -------- --------
Income from
continuing operations $26.0 $23.0 $79.8 $86.8
Add: Interest on convertible
notes, net of taxes -- 1.8 3.3 7.3
-------- -------- -------- --------
Adjusted income from
continuing operations 26.0 24.8 83.1 94.1
Income (loss) from
discontinued operations,
net of income taxes (1.4) 0.4 (6.9) (1.1)
-------- -------- -------- --------
$24.6 $25.2 $76.2 $93.0
======== ======== ======== ========
Weighted average number
of shares - basic 55.4 37.4 50.1 37.0
Add: Shares for conversion of
convertible notes -- 4.7 2.2 5.0
Other share equivalents 0.7 0.7 0.9 0.8
-------- -------- -------- --------
Weighted average number
of shares and
equivalents - diluted 56.1 42.8 53.2 42.8
======== ======== ======== ========
Earnings (loss) per
share - basic:
Continuing operations $0.47 $0.62 $1.59 $2.34
Discontinued operations:
Income (loss) from
discontinued operations (0.01) 0.01 (0.01) (0.03)
Impairment of assets (0.02) -- (0.11) --
Loss on sale of hospital -- -- (0.02) --
-------- -------- -------- --------
Income (loss) from
discontinued operations (0.03) 0.01 (0.14) (0.03)
-------- -------- -------- --------
Net income $0.44 $0.63 $1.45 $2.31
======== ======== ======== ========
Earnings (loss) per
share - diluted:
Continuing operations $0.46 $0.58 $1.56 $2.20
Discontinued operations
Income (loss) from
discontinued operations (0.01) 0.01 (0.01) (0.03)
Impairment of assets (0.01) -- (0.11) --
Loss on sale of hospital -- -- (0.01) --
-------- -------- -------- --------
Income (loss) from
discontinued operations (0.02) 0.01 (0.13) (0.03)
-------- -------- -------- --------
Net income $0.44 $0.59 $1.43 $2.17
======== ======== ======== ========
LIFEPOINT HOSPITALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
Dec. 31, Dec. 31,
2005 2004
-------- --------
ASSETS (Unaudited) (1)
Current assets:
Cash and cash equivalents $30.4 $18.6
Accounts receivable, less allowances for doubtful
accounts of $252.9 and $103.6 at December 31,
2005 and December 31, 2004, respectively 256.8 115.1
Inventories 57.2 25.3
Assets held for sale 10.0 33.0
Income taxes receivable -- 7.5
Prepaid expenses 12.0 7.1
Deferred tax assets 44.2 17.9
Other current assets 11.0 6.4
-------- --------
421.6 230.9
Property and equipment:
Land 64.7 20.5
Buildings and improvements 992.4 385.4
Equipment 547.1 342.0
Construction in progress 78.4 48.6
-------- --------
1,682.6 796.5
Accumulated depreciation (380.3) (295.4)
-------- --------
1,302.3 501.1
Deferred loan costs, net 35.4 4.9
Intangible assets, net 4.2 3.3
Other 5.5 5.8
Goodwill 1,455.6 144.4
-------- --------
$3,224.6 $890.4
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $85.6 $29.5
Accrued salaries 58.8 31.2
Other current liabilities 71.5 21.6
Income taxes payable 13.7 --
Current maturities of long-term debt 0.5 --
-------- --------
230.1 82.3
Long-term debt 1,515.8 221.0
Deferred income taxes 124.0 47.9
Professional and general liability claims
and other liabilities 60.3 28.4
Minority interests in equity
of consolidated entities 6.6 1.3
Stockholders' equity:
Preferred stock -- --
Common stock 0.6 0.4
Capital in excess of par value 1,053.1 332.6
Unearned ESOP compensation (9.7) (12.9)
Unearned compensation on nonvested stock (31.0) (4.5)
Retained earnings 274.8 222.8
Treasury stock -- (28.9)
-------- --------
1,287.8 509.5
-------- --------
$3,224.6 $890.4
======== ========
(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,
------------------ ------------------
2005 2004 2005 2004
-------- -------- -------- --------
Cash flows from
operating activities:
Net income $24.6 $23.4 $72.9 $85.7
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Loss (income) from
discontinued operations,
net of income taxes 1.4 (0.4) 6.9 1.1
Stock-based compensation 2.3 0.5 6.7 1.8
Depreciation and
amortization 33.0 13.6 101.1 48.1
Debt retirement costs 0.1 -- 12.2 1.5
Transaction costs -- -- 43.2 --
ESOP expense
(non-cash portion) 1.0 2.3 12.0 9.4
Minority interests in
earnings of consolidated
entities 0.3 0.3 1.1 1.0
Deferred income taxes
(benefit) (12.9) 5.3 (3.2) 4.4
Reserve for professional
and general liability
claims, net -- (2.3) 1.8 (0.2)
Tax benefit from employee
stock plans -- 1.8 8.9 6.2
Increase (decrease) in cash
from operating assets and
liabilities, net of
effects from acquisitions
and divestitures:
Accounts receivable (2.6) 3.2 (25.4) (11.1)
Inventories and other
current assets 0.8 (3.5) 9.5 (6.6)
Accounts payable and
accrued expenses 17.3 (7.0) 23.2 8.9
Income taxes payable 32.6 (1.4) 20.3 (0.1)
Other (0.8) (1.9) 5.2 (1.5)
-------- -------- -------- --------
Net cash provided by
operating activities -
continuing operations 97.1 33.9 296.4 148.6
Net cash (used in)
provided by operating
activities -
discontinued operations (1.1) (0.1) 5.0 0.8
-------- -------- -------- --------
Net cash provided by
operating activities 96.0 33.8 301.4 149.4
-------- -------- -------- --------
Cash flows from
investing activities:
Purchase of property
and equipment (61.3) (25.3) (170.1) (82.0)
Acquisitions, net of
cash acquired (0.3) (2.7) (963.6) (30.5)
Proceeds from sale
of hospital -- -- 32.5 --
Other 1.1 (0.3) 0.3 (1.1)
-------- -------- -------- --------
Net cash used in
investing activities (60.5) (28.3) (1,100.9) (113.6)
Cash flows from
financing activities:
Proceeds from long-term debt -- -- 1,967.0 30.0
Payments of borrowings (45.0) -- (1,156.9) (79.9)
Proceeds from exercise
of stock options 0.3 2.5 43.6 10.2
Payment of debt issue costs -- -- (40.7) --
Other 0.4 1.3 (1.7) 1.9
-------- -------- -------- --------
Net cash (used in)
provided by financing
activities (44.3) 3.8 811.3 (37.8)
Change in cash and
cash equivalents (8.8) 9.3 11.8 (2.0)
Cash and cash equivalents at
beginning of period 39.2 9.3 18.6 20.6
-------- -------- -------- --------
Cash and cash equivalents at
end of period $30.4 $18.6 $30.4 $18.6
======== ======== ======== ========
Interest payments $12.4 $5.0 $55.7 $12.1
======== ======== ======== ========
Capitalized interest $0.7 $0.5 $3.0 $1.1
======== ======== ======== ========
Income taxes (received)
paid, net $(3.7) $8.0 $32.0 $44.6
======== ======== ======== ========
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended
December 31,
----------------------------
%
2005 2004 Change
-------- -------- --------
Continuing Operations: (1)
Number of hospitals at end of period 50 29 72.4%
Admissions 45,447 22,769 99.6
Equivalent admissions (2) 87,102 45,744 90.4
Licensed beds at end of period 5,396 2,688 100.7
Weighted average licensed beds 5,417 2,720 99.2
Revenues ($ in millions) $559.2 $257.5 117.1
Revenues per equivalent admission $6,420 $5,630 14.0
Outpatient factor (2) 1.92 2.01 (4.5)
Emergency room visits 203,089 103,852 95.6
Inpatient surgeries 13,426 6,500 106.6
Outpatient surgeries 32,961 19,133 72.3
Average daily census 2,100 990 112.1
Average length of stay 4.3 4.0 7.5
Medicare case mix index 1.24 1.20 3.3
Same-Hospital: (3)
Number of hospitals at end of period 28 28 --
Admissions 21,930 22,094 (0.7)
Equivalent admissions (2) 42,997 44,054 (2.4)
Licensed beds at end of period 2,589 2,582 0.3
Weighted average licensed beds 2,593 2,582 0.4
Revenues ($ in millions) $257.6 $247.1 4.4
Revenues per equivalent admission $5,992 $5,603 6.9
Outpatient factor (2) 1.96 2.00 (2.0)
Emergency room visits 101,575 99,331 2.3
Inpatient surgeries 6,411 6,212 3.2
Outpatient surgeries 17,002 18,179 (6.5)
Average daily census 999 963 3.7
Average length of stay 4.2 4.0 5.0
Medicare case mix index 1.21 1.19 1.7
Year Ended
December 31,
----------------------------
%
2005 2004 Change
-------- -------- --------
Continuing Operations: (1)
Number of hospitals at end of period 50 29 72.4%
Admissions 155,279 91,772 69.2
Equivalent admissions (2) 302,483 183,819 64.6
Licensed beds at end of period 5,396 2,688 100.7
Weighted average licensed beds 4,539 2,692 68.6
Revenues ($ in millions) $1,855.1 $996.9 86.1
Revenues per equivalent admission $6,133 $5,423 13.1
Outpatient factor (2) 1.95 2.00 (2.5)
Emergency room visits 704,818 416,060 69.4
Inpatient surgeries 44,716 26,235 70.4
Outpatient surgeries 117,415 75,508 55.5
Average daily census 1,770 1,013 74.7
Average length of stay 4.2 4.0 5.0
Medicare case mix index 1.22 1.18 3.4
Same-Hospital: (3)
Number of hospitals at end of period 28 28 --
Admissions 91,424 90,444 1.1
Equivalent admissions (2) 179,831 180,617 (0.4)
Licensed beds at end of period 2,589 2,582 0.3
Weighted average licensed beds 2,670 2,635 1.3
Revenues ($ in millions) $1,034 $975.8 6.0
Revenues per equivalent admission $5,750 $5,402 6.4
Outpatient factor (2) 1.97 2.00 (1.5)
Emergency room visits 418,586 406,719 2.9
Inpatient surgeries 25,893 25,692 0.8
Outpatient surgeries 72,241 73,754 (2.1)
Average daily census 1,033 1,000 3.3
Average length of stay 4.1 4.0 2.5
Medicare case mix index 1.20 1.18 1.7
(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
Year Ended
December 31,
------------------
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 7.3 --
Retention bonuses paid to
former Province employees 4.2 --
Compensation expense, primarily
restricted stock vesting from
change in control 5.3 --
-------- --------
$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
December 31,
--------------------------------------
2005 2004
------------------ ------------------
Amount Ratio Amount Ratio
-------- -------- -------- --------
Revenues $559.2 100.0% $257.5 100.0%
Salaries and benefits 222.0 39.7 102.7 39.9
Supplies 78.2 14.0 33.7 13.1
Other operating expenses 95.1 17.0 42.9 16.6
Provision for doubtful accounts 62.1 11.1 22.2 8.6
-------- -------- -------- --------
Adjusted EBITDA $101.8 18.2% $56.0 21.8%
======== ======== ======== ========
Year Ended
December 31,
--------------------------------------
2005 2004
------------------ ------------------
Amount Ratio Amount Ratio
-------- -------- -------- --------
Revenues $1,855.1 100.0% $996.9 100.0%
Salaries and benefits 730.5 39.4 399.4 40.1
Supplies 251.6 13.6 129.1 12.9
Other operating expenses 311.8 16.7 166.8 16.7
Provision for doubtful accounts 190.3 10.3 86.2 8.7
-------- -------- -------- --------
Adjusted EBITDA $370.9 20.0% $215.4 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 Year Ended
December 31, December 31,
------------------ ------------------
2005 2004 2005 2004
-------- -------- -------- --------
Adjusted EBITDA $101.8 $56.0 $370.9 $215.4
Less:
Depreciation and amortization 33.0 13.6 101.1 48.1
Interest expense, net 22.0 2.9 60.3 12.6
Debt retirement costs 0.1 -- 12.2 1.5
Transaction costs -- -- 43.2 --
ESOP expense 3.8 2.3 14.8 9.4
Minority interests in earnings
of consolidated entities 0.3 0.3 1.1 1.0
Provision for income taxes 16.6 13.9 58.4 56.0
Loss (income) from
discontinued operations,
net of income taxes 1.4 (0.4) 6.9 1.1
-------- -------- -------- --------
Net income $24.6 $23.4 $72.9 $85.7
======== ======== ======== ========
CONTACT: LifePoint Hospitals, Inc.
Michael J. Culotta, 615-372-8512