Exhibit 99.1
LifePoint Hospitals Reports Third Quarter 2006 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Oct. 26, 2006--LifePoint
Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third
quarter and nine months ended September 30, 2006.
For the third quarter ended September 30, 2006, revenues from
continuing operations were $640.3 million, up 16.6% from $548.9
million for the same period a year ago. Income from continuing
operations for the quarter was $34.5 million, or $0.61 per diluted
share, compared with income from continuing operations for the third
quarter of 2005 of $30.3 million, or $0.54 per diluted share. Net
income for the quarter was $34.9 million, or $0.62 per diluted share,
compared with net income of $29.6 million, or $0.53 per diluted share,
for the prior-year period.
For the nine months ended September 30, 2006, revenues from
continuing operations were $1,799.1 million, up 40.0% from $1,285.3
million for the nine months ended September 30, 2005. Income from
continuing operations for the nine months ended September 30, 2006,
increased 97.5% to $104.7 million, or $1.86 per diluted share,
compared with income from continuing operations of $53.0 million, or
$1.08 per diluted share, for the prior-year period. Net income for the
nine months ended September 30, 2006, increased 123.3% to $107.8
million, or $1.92 per diluted share, compared with net income of $48.3
million, or $0.98 per diluted share, for the same period in 2005.
In commenting on the third quarter results, William F. Carpenter
III, president and chief executive officer of LifePoint Hospitals,
said, "We are pleased to announce strong results in what continues to
be a challenging operating environment. Our success this quarter was
the result of the focus by everyone throughout our organization on the
basics and of working with our physician partners to improve the scope
and quality of care in our communities. We remain committed to
delivering solid returns on the strong base of assets in our
communities throughout the United States."
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, 2006,
beginning at 10:00 a.m. Eastern Time.
LifePoint Hospitals, Inc. is a leading hospital company focused on
providing healthcare services in non-urban communities in 19 states.
Of the Company's 53 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
compassionate, high quality patient care, supporting physicians,
creating an outstanding environment for employees, providing unmatched
community value and ensuring fiscal responsibility. Headquartered in
Brentwood, Tennessee, LifePoint Hospitals is affiliated with
approximately 22,300 employees. More information about LifePoint
Hospitals can be found on its website, www.lifepointhospitals.com.
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 or the ability to acquire hospitals on
favorable terms and complete budgeted capital improvements
successfully; (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, including "high deductible" plans; (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) the geographic
concentration of LifePoint Hospitals' operations; (ix) changes in the
Company's operating or expansion strategy; (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 -
Information and Technology Systems, Inc.; (xviii) the costs of
complying with the Americans with Disabilities Act; (xix) possible
adverse rulings, judgments, settlements and other outcomes of pending
litigation; 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.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in millions, except per share amounts
Three Months Ended September 30,
-----------------------------------
2006 2005
---------------- -----------------
Amount Ratio Amount Ratio
--------- ------ ------- ----------
Revenues $640.3 100.0% $548.9 100.0%
Salaries and benefits 252.3 39.4 221.0 40.2
Supplies 88.9 13.9 76.4 13.9
Other operating expenses 111.5 17.4 90.5 16.5
Provision for doubtful accounts 70.1 10.9 63.5 11.6
Depreciation and amortization 30.4 4.8 28.0 5.2
Interest expense, net 28.5 4.4 20.4 3.7
Debt retirement costs - - 2.1 0.4
Transaction costs - - (1.4) (0.3)
------ ------ ------- ----------
581.7 90.8 500.5 91.2
------ ------ ------ ----------
Income from continuing operations
before minority interests and
income taxes 58.6 9.2 48.4 8.8
Minority interests in earnings of
consolidated entities 0.4 0.1 0.3 -
------ ------ ------ ----------
Income from continuing operations
before income taxes 58.2 9.1 48.1 8.8
Provision for income taxes 23.7 3.7 17.8 3.3
------ ------ ------ ----------
Income from continuing operations 34.5 5.4 30.3 5.5
------ ------ ------ ----------
Discontinued operations, net of
income taxes:
Income (loss) from
discontinued operations (0.2) - (0.5) (0.1)
Impairment of assets of
hospital held for sale - - (0.2) -
Net gain (loss) on sale of
hospitals 0.6 0.1 - -
------ ------ ------- ----------
Income (loss) from discontinued
operations 0.4 0.1 (0.7) (0.1)
------ ------ ------ ----------
Cumulative effect of change in
accounting principle, net of
income taxes - - - -
------ ------ ------- ----------
Net income $ 34.9 5.5 % $ 29.6 5.4%
====== ====== ====== ==========
Basic earnings (loss) per share:
Continuing operations $ 0.62 $ 0.55
Discontinued operations 0.01 (0.01)
Cumulative effect of change in
accounting principle - -
--------- -------
Net income $ 0.63 $ 0.54
====== ======
Diluted earnings (loss) per share:
Continuing operations $ 0.61 $ 0.54
Discontinued operations 0.01 (0.01)
Cumulative effect of change in
accounting principle - -
--------- -------
Net income $ 0.62 $ 0.53
====== ======
Nine Months Ended September 30,
--------------------------------------
2006 2005
----------------- --------------------
Amount Ratio Amount Ratio
--------- ------- --------- ----------
Revenues $1,799.1 100.0% $1,285.3 100.0%
Salaries and benefits 712.2 39.6 515.0 40.1
Supplies 249.5 13.9 172.4 13.4
Other operating expenses 309.0 17.1 214.1 16.7
Provision for doubtful
accounts 197.5 11.0 127.5 9.9
Depreciation and amortization 78.3 4.4 67.8 5.2
Interest expense, net 76.2 4.2 38.2 3.0
Debt retirement costs - - 12.1 0.9
Transaction costs - - 43.2 3.4
--------- ------- --------- ----------
1,622.7 90.2 1,190.3 92.6
-------- ------ -------- ----------
Income from continuing
operations before minority
interests and income taxes 176.4 9.8 95.0 7.4
Minority interests in earnings
of consolidated entities 1.1 0.1 0.8 0.1
-------- ------ -------- ----------
Income from continuing
operations before income
taxes 175.3 9.7 94.2 7.3
Provision for income taxes 70.6 3.9 41.2 3.2
-------- ------ -------- ----------
Income from continuing
operations 104.7 5.8 53.0 4.1
-------- ------ -------- ----------
Discontinued operations, net
of income taxes:
Income (loss) from
discontinued operations (1.7) (0.1) 0.9 0.1
Impairment of assets of
hospital held for sale - - (4.9) (0.4)
Net gain (loss) on sale
of hospitals 4.1 0.3 (0.7) -
-------- ------ -------- ----------
Income (loss) from
discontinued operations 2.4 0.2 (4.7) (0.3)
-------- ------ -------- ----------
Cumulative effect of change in
accounting principle, net of
income taxes 0.7 - - -
-------- ------ --------- ----------
Net income $ 107.8 6.0% $ 48.3 3.8%
======== ====== ======== ==========
Basic earnings (loss) per
share:
Continuing operations $ 1.88 $1.09
Discontinued operations 0.05 (0.10)
Cumulative effect of change
in accounting principle 0.01 -
-------- ---------
Net income $ 1.94 $0.99
======== =========
Diluted earnings (loss) per
share:
Continuing operations $ 1.86 $1.08
Discontinued operations 0.05 (0.10)
Cumulative effect of change
in accounting principle 0.01 -
-------- ---------
Net income $ 1.92 $0.98
======== =========
LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS (LOSS) PER SHARE CALCULATION
Dollars and shares in millions, except per share amounts
Three Months Nine Months
Ended Ended
September 30, September 30,
-------------- ----------------
2006 2005 2006 2005(1)
------ ------- ------- --------
Income from continuing operations $34.5 $ 30.3 $104.7 $ 53.0
Income (loss) from discontinued
operations 0.4 (0.7) 2.4 (4.7)
Cumulative effect of change in
accounting principle - - 0.7 -
------ ------- ------- --------
$34.9 $ 29.6 $107.8 $ 48.3
====== ======= ======= ========
Basic weighted average number of
shares 55.7 55.3 55.6 48.4
Other share equivalents 0.7 0.9 0.6 0.9
------ ------- ------- --------
Diluted weighted average number of
shares and equivalents 56.4 56.2 56.2 49.3
====== ======= ======= ========
Basic earnings (loss) per share:
Continuing operations $0.62 $ 0.55 $ 1.88 $ 1.09
Discontinued operations:
Income (loss) from discontinued
operations - (0.01) (0.03) 0.02
Impairment of assets of hospital
held for sale - - - (0.10)
Net gain (loss) on sale of
hospital 0.01 - 0.08 (0.02)
------ ------- ------ --------
Income (loss) from discontinued
operations 0.01 (0.01) 0.05 (0.10)
Cumulative effect of change in
accounting principle - - 0.01 -
------ ------- ------ --------
Net income $0.63 $ 0.54 $ 1.94 $ 0.99
====== ======= ====== ========
Diluted earnings (loss) per share:
Continuing operations $0.61 $ 0.54 $ 1.86 $ 1.08
Discontinued operations:
Income (loss) from discontinued
operations - (0.01) (0.03) 0.02
Impairment of assets of hospital
held for sale - - - (0.10)
Net gain (loss) on sale of
hospital 0.01 - 0.08 (0.02)
------ ------- ------ --------
Income (loss) from discontinued
operations 0.01 (0.01) 0.05 (0.10)
Cumulative effect of change in
accounting principle - - 0.01 -
------ ------- ------ --------
Net income $0.62 $ 0.53 $ 1.92 $ 0.98
====== ======= ======= ========
(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,
2006 2005(1)
------------ -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $47.2 $30.4
Accounts receivable, less allowances for
doubtful accounts of $304.8 and $252.9 at
September 30, 2006 and December 31, 2005,
respectively 336.5 256.8
Inventories 64.9 56.9
Assets held for sale 90.4 22.0
Prepaid expenses 17.3 12.0
Deferred tax assets 55.7 44.2
Other current assets 22.1 11.0
------------ -----------
634.1 433.3
Property and equipment:
Land 80.0 64.4
Buildings and improvements 1,067.7 986.9
Equipment 580.5 540.3
Construction in progress 60.2 77.8
------------ -----------
1,788.4 1,669.4
Accumulated depreciation (445.7) (373.1)
------------ -----------
1,342.7 1,296.3
Deferred loan costs, net 32.4 35.4
Intangible assets, net 33.2 4.2
Other 4.5 5.5
Goodwill 1,601.4 1,449.9
------------ -----------
$3,648.3 $3,224.6
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $102.0 $85.6
Accrued salaries 68.3 58.7
Other current liabilities 139.7 85.3
Current maturities of long-term debt 0.9 0.5
------------ -----------
310.9 230.1
Long-term debt 1,759.8 1,515.8
Deferred income taxes 73.5 124.0
Professional and general liability claims and
other liabilities 84.9 60.3
Minority interests in equity of consolidated
entities 15.0 6.6
Stockholders' equity:
Preferred stock - -
Common stock 0.6 0.6
Capital in excess of par value 1,038.8 1,053.1
Unearned ESOP compensation (7.2) (9.7)
Unearned compensation on nonvested stock - (31.0)
Accumulated other comprehensive loss (10.6) -
Retained earnings 382.6 274.8
------------ -----------
1,404.2 1,287.8
------------ -----------
$3,648.3 $3,224.6
============ ===========
(1) Derived from audited financial statements.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- --------------------
2006 2005 2006 2005
------- -------- -------- -----------
Cash flows from operating
activities:
Net income $ 34.9 $ 29.6 $ 107.8 $ 48.3
Adjustments to reconcile net
income to net cash provided
by operating activities:
Loss (income) from
discontinued operations (0.4) 0.7 (2.4) 4.7
Cumulative effect of
change in accounting
principle, net of
income taxes - - (0.7) -
Stock-based compensation 3.7 2.0 9.5 4.2
ESOP expense (non-cash
portion) 2.1 4.5 7.1 11.0
Depreciation and
amortization 30.4 28.0 78.3 67.8
Amortization of deferred
loan costs 1.3 1.1 4.0 2.7
Debt retirement costs - 2.1 - 12.1
Transaction costs - (1.4) - 43.2
Minority interests in
earnings of
consolidated entities 0.4 0.3 1.1 0.8
Deferred income taxes
(benefit) (5.2) (14.7) (5.4) 9.7
Reserve for professional
and general liability
claims, net 3.2 (0.2) 7.3 1.8
Excess tax benefits from
employee stock plans - 0.7 - 8.9
Increase (decrease) in
cash from operating
assets and liabilities,
net of effects from
acquisitions and
divestitures:
Accounts receivable (60.6) (12.7) (64.5) (18.6)
Inventories and
other current
assets (9.9) 5.3 (15.7) 8.7
Accounts payable
and accrued
expenses 38.4 5.3 34.1 2.8
Income taxes
payable 21.6 16.0 12.6 (12.3)
Other 2.1 1.1 2.6 1.1
------ ------- ------- ---------
Net cash provided
by operating
activities -
continuing
operations 62.0 67.7 175.7 196.9
Net cash (used in)
provided by
operating
activities -
discontinued
operations (12.6) 5.3 (12.8) 8.5
------ ------- ------- ---------
Net cash provided
by operating
activities 49.4 73.0 162.9 205.4
------ ------- ------- ---------
Cash flows from investing
activities:
Purchase of property and
equipment (39.5) (47.6) (134.5) (108.0)
Acquisitions, net of cash
acquired (20.4) (3.6) (281.0) (963.3)
Other (0.1) (0.2) (0.7) (0.8)
------ ------- ------- ---------
Net cash used in
investing activities
- continuing
operations (60.0) (51.4) (416.2) (1,072.1)
Net cash provided by
(used in) investing
activities -
discontinued
operations 1.0 (0.8) 28.6 31.7
------ ------- ------- ---------
Net cash used in
investing activities (59.0) (52.2) (387.6) (1,040.4)
------ ------- ------- ---------
Cash flows from financing
activities:
Proceeds from borrowings - 375.0 260.0 1,967.0
Payments of borrowings - (402.6) (20.0) (1,111.8)
Proceeds from exercise of
stock options - 1.7 0.3 43.3
Proceeds from employee stock
purchase plans 1.3 0.3 3.0 1.4
Payment of debt issue costs (0.6) (8.9) (1.0) (40.7)
Other (0.2) (0.1) (0.8) (3.6)
------ ------- ------- ---------
Net cash provided by
(used in) financing
activities 0.5 (34.6) 241.5 855.6
------ ------- ------- ---------
Change in cash and cash
equivalents (9.1) (13.8) 16.8 20.6
Cash and cash equivalents at
beginning of period 56.3 53.0 30.4 18.6
------ ------- ------- ---------
Cash and cash equivalents at
end of period $ 47.2 $ 39.2 $ 47.2 $ 39.2
====== ======= ======= =========
Supplemental disclosure of cash
flow information:
Interest payments $ 19.0 $ 19.8 $ 64.0 $ 43.3
====== ======= ======= =========
Capitalized interest $ 0.5 $ 1.1 $ 0.8 $ 2.3
====== ======= ======= =========
Income taxes paid, net $ 7.1 $ 15.7 $ 63.3 $ 35.7
====== ======= ======= =========
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended
September 30,
-----------------------------
2006 2005 %Change
-------- -------- ---------
Continuing Operations: (1)
Number of hospitals at end of period 51 48 6.3%
Admissions 48,952 44,450 10.1
Equivalent admissions (2) 96,664 87,741 10.2
Licensed beds at end of period 5,705 5,338 6.9
Weighted average licensed beds 5,755 5,338 7.8
Revenues ($ in millions) $ 640.3 $ 548.9 16.6
Revenues per equivalent admission $ 6,623 $ 6,256 5.9
Outpatient factor (2) 1.97 1.97 -
Emergency room visits 225,378 209,738 7.5
Inpatient surgeries 14,918 13,108 13.8
Outpatient surgeries 36,654 34,323 6.8
Average daily census 2,236 2,007 11.4
Average length of stay 4.2 4.2 -
Medicare case mix index 1.21 1.23 (1.6)
Same-Hospital: (3)
Number of hospitals at end of period 49 48 2.1
Admissions 44,392 44,450 (0.1)
Equivalent admissions (2) 88,708 87,741 1.1
Licensed beds at end of period 5,205 5,338 (2.5)
Weighted average licensed beds 5,209 5,338 (2.4)
Revenues ($ in millions) $ 595.5 $ 548.9 8.5
Revenues per equivalent admission $ 6,714 $ 6,256 7.3
Outpatient factor (2) 2.00 1.97 1.5
Emergency room visits 209,075 209,738 (0.3)
Inpatient surgeries 13,593 13,108 3.7
Outpatient surgeries 34,062 34,323 (0.8)
Average daily census 2,029 2,007 1.1
Average length of stay 4.2 4.2 -
Medicare case mix index 1.22 1.23 (0.8)
Nine Months Ended
September 30,
----------------------------
2006 2005 %Change
-------- -------- --------
Continuing Operations: (1)
Number of hospitals at end of period 51 48 6.3%
Admissions 140,978 108,796 29.6
Equivalent admissions (2) 275,471 213,023 29.3
Licensed beds at end of period 5,705 5,338 6.9
Weighted average licensed beds 5,411 4,180 29.4
Revenues ($ in millions) $1,799.1 $1,285.3 40.0
Revenues per equivalent admission $ 6,531 $ 6,034 8.2
Outpatient factor (2) 1.95 1.96 (0.6)
Emergency room visits 637,410 497,978 28.0
Inpatient surgeries 41,930 31,214 34.3
Outpatient surgeries 105,490 84,008 25.6
Average daily census 2,197 1,640 34.0
Average length of stay 4.3 4.1 4.9
Medicare case mix index 1.22 1.21 0.8
Same-Hospital: (3)
Number of hospitals at end of period
Admissions
Equivalent admissions (2)
Licensed beds at end of period
Weighted average licensed beds
Revenues ($ in millions)
Revenues per equivalent admission
Outpatient factor (2)
Emergency room visits
Inpatient surgeries
Outpatient surgeries
Average daily census
Average length of stay
Medicare case mix index
(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 48 hospitals operated during
the three months ended September 30, 2006 and 2005. Same-hospital
information also includes the operations of Valley View Medical
Center, which was opened during November 2005 and replaced Colorado
River Medical Center, which was converted to a critical access
hospital. The costs of corporate overhead and discontinued operations
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, debt retirement costs, transaction
costs, minority interests in earnings of consolidated entities, income
taxes, discontinued operations and cumulative effect of change in
accounting principle. LifePoint's management and Board of Directors
use adjusted EBITDA to evaluate the Company's operating performance
and as a measure of performance for incentive compensation purposes.
LifePoint's credit facilities use adjusted EBITDA for numerous
financial covenants. The Company believes 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.
Effective January 1, 2006, the Company reclassified its ESOP expense
into salaries and benefits expense due to its ESOP expense now
partially consisting of cash payments. ESOP expense for all prior
periods has been reclassified to conform to the 2006 presentation.
Three Months Ended
September 30,
-----------------------------------
2006 2005
---------------- ------------------
Amount Ratio Amount Ratio
--------- ------ ---------- -------
Revenues $ 640.3 100.0% $ 548.9 100.0%
Salaries and benefits 252.3 39.4 221.0 40.2
Supplies 88.9 13.9 76.4 13.9
Other operating expenses 111.5 17.4 90.5 16.5
Provision for doubtful accounts 70.1 10.9 63.5 11.6
-------- ------ --------- -------
Adjusted EBITDA $ 117.5 18.4% $ 97.5 17.8%
======== ====== ========= =======
Nine Months Ended
September 30,
---------------------------------
2006 2005
---------------- ----------------
Amount Ratio Amount Ratio
--------- ------ --------- ------
Revenues $1,799.1 100.0% $1,285.3 100.0%
Salaries and benefits 712.2 39.6 515.0 40.1
Supplies 249.5 13.9 172.4 13.4
Other operating expenses 309.0 17.1 214.1 16.7
Provision for doubtful accounts 197.5 11.0 127.5 9.9
-------- ------ -------- ------
Adjusted EBITDA $ 330.9 18.4% $ 256.3 19.9%
======== ====== ======== ======
The following table reconciles adjusted EBITDA as presented above to
net income as reflected in the unaudited condensed consolidated
statements of operations:
Three Months Nine Months
Ended Ended
September 30, September 30,
-------------- ---------------
2006 2005 2006 2005
------ ----- ------ ------
Adjusted EBITDA $117.5 $97.5 $330.9 $256.3
Less:
Depreciation and amortization 30.4 28.0 78.3 67.8
Interest expense, net 28.5 20.4 76.2 38.2
Debt retirement costs - 2.1 - 12.1
Transaction costs - (1.4) - 43.2
Minority interests in earnings of
consolidated entities 0.4 0.3 1.1 0.8
Provision for income taxes 23.7 17.8 70.6 41.2
Loss (income) from discontinued
operations (0.4) 0.7 (2.4) 4.7
Cumulative effect of change in
accounting principle - - (0.7) -
------- ------ ------ -------
Net income $ 34.9 $29.6 $107.8 $ 48.3
====== ===== ====== ======
CONTACT: LifePoint Hospitals, Inc.
Michael J. Culotta, Chief Financial Officer, 615-372-8512