Exhibit 99.1
LifePoint Hospitals Reports First
Quarter 2007 Results
BRENTWOOD, Tenn.--(BUSINESS WIRE)--April 26, 2007--LifePoint
Hospitals, Inc. (NASDAQ: LPNT) today announced results for the first
quarter ended March 31, 2007.
For the first quarter ended March 31, 2007, revenues from
continuing operations were $669.3 million, up 14.1% from $586.6
million for the same period a year ago. Income from continuing
operations for the quarter was $37.8 million, or $0.67 per diluted
share, compared with income from continuing operations for the first
quarter of 2006 of $34.0 million, or $0.61 per diluted share. Net
income for the quarter was $29.8 million, or $0.53 per diluted share,
compared with net income of $38.1 million, or $0.68 per diluted share,
for the prior-year period.
During the first quarter of 2007, the Company committed to a plan
to terminate its lease agreement related to Colorado River Medical
Center, a 25-bed critical-access hospital in Needles, California. As a
result of the disposal plan, the Company has reflected this hospital
as discontinued operations and recognized a first quarter 2007
impairment charge of $7.9 million, net of income taxes, or $0.14 per
diluted share.
In commenting on the results, William F. Carpenter III, president
and chief executive officer of LifePoint Hospitals, said, "Our
strategy of investing in our communities continues to help us generate
excellent financial results for the Company and stronger relationships
in our markets. We believe that our unrelenting focus on providing
value to the communities in which we operate, combined with the
implementation of our company-wide strategic initiatives, will not
only benefit our company and our communities, but will enhance
shareholder value for the long term."
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 27, 2007,
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 51 hospitals, 47 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 21,000 employees. More information about LifePoint
Hospitals can be found on its website, www.lifepointhospitals.com.
Important Legal Information
Certain statements contained in this release are based on current
management expectations and are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and are intended to qualify for the safe harbor protections from
liability provided by the Private Securities Litigation Reform Act of
1995. Numerous factors exist which may cause results to differ from
these expectations. Many of the factors that will determine
LifePoint's future results are beyond LifePoint's ability to control
or predict with accuracy. Such forward-looking statements reflect the
current expectations and beliefs of the management of LifePoint, are
not guarantees of performance 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)
efforts by government and commercial third-party payors to reduce
healthcare spending, including changes in the manner in which amounts
that payors reimburse healthcare provided to covered individuals,
including "high deductible" plans, increased co-pays and deductibles;
(ii) possible changes or reductions in Medicare and Medicaid
reimbursement payments; (iv) the possibility of adverse changes in or
requirements of state and federal laws, regulations, policies and
procedures applicable to the Company; (v) the highly competitive
nature of the healthcare business, including competition from
outpatient facilities, physicians on the medical staffs of our
hospitals, physician offices and facilities in larger towns and
cities; (vi) our ability to recruit and retain physicians, other
healthcare professionals and management personnel; (vii) changes in
the Company's operating or expansion strategy and, if made, our
ability to successfully execute such changed strategies;(viii) the
availability and terms of capital and liquidity to fund LifePoint's
business strategies; (ix) the Company's substantial indebtedness and
changes in interest rates, our credit ratings and the amount or terms
of our indebtedness; (x) the ability to manage healthcare risks,
including those that could result in losses to us because we are
significantly self-insured, as well as the availability, cost and
terms of insurance coverage, malpractice litigation and governmental
investigations; and (xi) those other risks and uncertainties described
from time to time in LifePoint's filings with the Securities and
Exchange Commission. Therefore, LifePoint's future results may differ
materially from those described in this release. LifePoint 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," "LifePoint Hospitals" and the
"Company" 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,
------------------------------
2007 2006
-------------- --------------
Amount Ratio Amount Ratio
------- ------ ------- ------
Revenues $669.3 100.0% $586.6 100.0%
Salaries and benefits 260.0 38.8 229.8 39.2
Supplies 93.0 13.9 82.5 14.1
Other operating expenses 116.7 17.5 94.9 16.1
Provision for doubtful accounts 75.6 11.3 67.8 11.6
Depreciation and amortization 33.3 4.9 31.5 5.4
Interest expense, net 26.7 4.0 23.1 3.9
------- ------ ------- ------
605.3 90.4 529.6 90.3
------- ------ ------- ------
Income from continuing operations
before minority interests and income
taxes 64.0 9.6 57.0 9.7
Minority interests in earnings of
consolidated entities 0.3 0.1 0.3 -
------- ------ ------- ------
Income from continuing operations
before income taxes 63.7 9.5 56.7 9.7
Provision for income taxes 25.9 3.8 22.7 3.9
------- ------ ------- ------
Income from continuing operations 37.8 5.7 34.0 5.8
Discontinued operations, net of income
taxes:
Loss from discontinued operations - - (0.4) (0.1)
Impairment of assets (7.9) (1.2) - -
Net gain (loss) on sale of hospitals (0.1) - 3.8 0.6
------- ------ ------- ------
Income (loss) from discontinued
operations (8.0) (1.2) 3.4 0.5
Cumulative effect of change in
accounting principle, net of income
taxes - - 0.7 0.1
------- ------ ------- ------
Net income $29.8 4.5% $38.1 6.4 %
======= ====== ======= ======
Basic earnings (loss) per share:
Continuing operations $0.67 $0.62
Discontinued operations (0.14) 0.06
Cumulative effect of change in
accounting principle - 0.01
------- -------
Net income $0.53 $0.69
======= =======
Diluted earnings (loss) per share:
Continuing operations $0.67 $0.61
Discontinued operations (0.14) 0.06
Cumulative effect of change in
accounting principle - 0.01
------- -------
Net income $0.53 $0.68
======= =======
LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS (LOSS) PER SHARE CALCULATION
Dollars and shares in millions, except per share amounts
Three Months Ended
March 31,
------------------
2007 2006
-------- --------
Income from continuing operations $37.8 $34.0
Income (loss) from discontinued operations (8.0) 3.4
Cumulative effect of change in accounting principle - 0.7
-------- --------
$29.8 $38.1
======== ========
Basic weighted average number of shares 55.8 55.5
Other share equivalents 1.0 0.6
-------- --------
Diluted weighted average number of shares and
equivalents 56.8 56.1
======== ========
Basic earnings (loss) per share:
Continuing operations $0.67 $0.62
Discontinued operations:
Loss from discontinued operations - (0.01)
Impairment of assets (0.14) -
Net gain on sale of hospitals - 0.07
-------- --------
Income (loss) from discontinued operations (0.14) 0.06
Cumulative effect of change in accounting
principle - 0.01
-------- --------
Net income $0.53 $0.69
======== ========
Diluted earnings (loss) per share:
Continuing operations $0.67 $0.61
Discontinued operations:
Loss from discontinued operations - (0.01)
Impairment of assets (0.14) -
Net gain on sale of hospitals - 0.07
-------- --------
Income (loss) from discontinued operations (0.14) 0.06
Cumulative effect of change in accounting
principle - 0.01
-------- --------
Net income $0.53 $0.68
======== ========
LIFEPOINT HOSPITALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
March 31, Dec. 31,
2007 2006(1)
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $32.9 $12.2
Accounts receivable, less allowances for
doubtful accounts of $381.0 and $326.2 at
March 31, 2007 and December 31, 2006,
respectively 318.7 321.8
Inventories 67.4 66.6
Assets held for sale 73.4 124.7
Prepaid expenses 13.3 13.0
Income taxes receivable - 11.2
Deferred tax assets 118.4 49.2
Other current assets 29.1 20.6
--------- ---------
653.2 619.3
Property and equipment:
Land 78.4 79.5
Buildings and improvements 1,098.6 1,080.8
Equipment 619.6 609.0
Construction in progress 66.6 72.1
--------- ---------
1,863.2 1,841.4
Accumulated depreciation (501.5) (472.9)
--------- ---------
1,361.7 1,368.5
Deferred loan costs, net 29.8 31.1
Intangible assets, net 36.3 33.7
Other 4.5 4.5
Goodwill 1,586.8 1,581.3
--------- ---------
$3,672.3 $3,638.4
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $87.9 $108.4
Accrued salaries 61.6 68.7
Income taxes payable 27.4 -
Other current liabilities 85.1 126.7
Current maturities of long-term debt 0.5 0.5
--------- ---------
262.5 304.3
Long-term debt 1,655.7 1,668.4
Deferred income taxes 118.3 120.5
Professional and general liability claims and
other liabilities 83.9 82.3
Long-term income tax liability 53.0 -
Minority interests in equity of consolidated
entities 13.0 12.9
Stockholders' equity:
Preferred stock - -
Common stock 0.6 0.6
Capital in excess of par value 1,051.3 1,044.4
Unearned ESOP compensation (5.6) (6.4)
Accumulated other comprehensive loss (11.0) (9.6)
Retained earnings 450.6 421.0
--------- ---------
1,485.9 1,450.0
--------- ---------
$3,672.3 $3,638.4
========= =========
(1) Derived from audited financial statements.
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In millions
Three Months Ended
March 31,
------------------
2007 2006
-------- --------
Cash flows from operating activities:
Net income $29.8 $38.1
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss (income) from discontinued operations 8.0 (3.4)
Cumulative effect of change in accounting
principle, net of income taxes - (0.7)
Stock-based compensation 3.6 3.2
ESOP expense (non-cash portion) 2.2 2.4
Depreciation and amortization 33.3 31.5
Amortization of deferred loan costs 1.3 1.3
Minority interests in earnings of consolidated
entities 0.3 0.3
Deferred income tax benefit (18.4) (3.1)
Reserve for professional and general liability
claims, net (0.5) 1.8
Increase (decrease) in cash from operating
assets and liabilities, net of effects from
acquisitions and divestitures:
Accounts receivable (4.1) (9.5)
Inventories and other current assets (11.4) (3.2)
Accounts payable and accrued expenses (33.2) (16.9)
Income taxes receivable/payable 41.7 12.9
Other 1.1 0.6
-------- --------
Net cash provided by operating activities -
continuing operations 53.7 55.3
Net cash provided by (used in) operating
activities - discontinued operations 10.1 (0.1)
-------- --------
Net cash provided by operating activities 63.8 55.2
-------- --------
Cash flows from investing activities:
Purchase of property and equipment (32.0) (50.1)
Acquisitions, net of cash acquired - (3.5)
Other (0.2) (0.3)
-------- --------
Net cash used in investing activities -
continuing operations (32.2) (53.9)
Net cash provided by investing activities -
discontinued operations 0.1 19.9
-------- --------
Net cash used in investing activities (32.1) (34.0)
-------- --------
Cash flows from financing activities:
Proceeds from borrowings 40.0 10.0
Payments of borrowings (52.4) (10.0)
Proceeds from exercise of stock options 1.0 0.3
Proceeds from employee stock purchase plans 0.7 1.7
Other (0.3) (0.5)
-------- --------
Net cash (used in) provided by financing
activities (11.0) 1.5
-------- --------
Change in cash and cash equivalents 20.7 22.7
Cash and cash equivalents at beginning of period 12.2 30.4
-------- --------
Cash and cash equivalents at end of period $32.9 $53.1
======== ========
Supplemental disclosure of cash flow information:
Interest payments $28.8 $25.1
======== ========
Capitalized interest $0.7 $0.1
======== ========
Income taxes paid, net $2.4 $12.7
======== ========
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
Three Months Ended March 31,
----------------------------
%
2007 2006 Change
-------- -------- --------
Continuing Operations: (1)
Number of hospitals at end of period 49 48 2.1%
Admissions 52,601 47,664 10.4
Equivalent admissions (2) 100,521 90,752 10.8
Licensed beds at end of period 5,707 5,195 9.9
Weighted average licensed beds 5,707 5,230 9.1
Revenues ($ in millions) $669.3 $586.6 14.1
Revenues per equivalent admission $6,658 $6,463 3.0
Outpatient factor (2) 1.91 1.90 0.5
Emergency room visits 226,124 202,416 11.7
Inpatient surgeries 15,086 13,534 11.5
Outpatient surgeries 37,262 34,010 9.6
Average daily census 2,517 2,289 10.0
Average length of stay 4.3 4.3 -
Medicare case mix index 1.24 1.25 (0.8)
Same-Hospital: (3)
Number of hospitals at end of period 47 48 (2.1)
Admissions 47,864 47,664 0.4
Equivalent admissions (2) 92,425 90,752 1.8
Licensed beds at end of period 5,207 5,195 0.2
Weighted average licensed beds 5,207 5,230 (0.4)
Revenues ($ in millions) $620.9 $586.6 5.9
Revenues per equivalent admission $6,718 $6,463 3.9
Outpatient factor (2) 1.93 1.90 1.6
Emergency room visits 210,319 202,416 3.9
Inpatient surgeries 13,709 13,534 1.3
Outpatient surgeries 34,450 34,010 1.3
Average daily census 2,286 2,289 (0.1)
Average length of stay 4.3 4.3 -
Medicare case mix index 1.26 1.25 0.8
(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 47 and 48 hospitals operated
during the three months ended March 31, 2007 and 2006, respectively.
Same-hospital information for the three months ended March 31, 2006,
includes the operations of Guyan Valley Hospital, which LifePoint
voluntarily closed and ceased operations effective December 29, 2006.
Discontinued operations are excluded from same-hospital information.
LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATIO
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.
Three Months Ended March 31,
--------------------------------------
2007 2006
------------------ ------------------
Amount Ratio Amount Ratio
-------- -------- -------- --------
Revenues $669.3 100% $586.6 100.0 %
Salaries and benefits 260.0 38.8 229.8 39.2
Supplies 93.0 13.9 82.5 14.1
Other operating expenses 116.7 17.5 94.9 16.1
Provision for doubtful accounts 75.6 11.3 67.8 11.6
-------- -------- -------- --------
545.3 81.5 475.0 81.0
-------- -------- -------- --------
Adjusted EBITDA $124.0 18.5% $111.6 19.0 %
======== ======== ======== ========
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
March 31,
------------------
2007 2006
-------- --------
Adjusted EBITDA $124.0 $111.6
Less:
Depreciation and amortization 33.3 31.5
Interest expense, net 26.7 23.1
Minority interests in earnings of consolidated
entities 0.3 0.3
Provision for income taxes 25.9 22.7
Loss (income) from discontinued operations 8.0 (3.4)
Cumulative effect of change in accounting
principle, net of income taxes - (0.7)
-------- --------
Net income $29.8 $38.1
======== ========
CONTACT: LifePoint Hospitals, Inc.
Penny L. Brake, 615-372-8532
Vice President of Finance