Triad Reports Results for Fourth Quarter and Year.Business Editors DALLAS--(BUSINESS WIRE)--Feb. 28, 2000 -- Core Admissions Up 6.9% for Year -- Core EBITDA Up 20.3% for Year -- Debt/EBITDA Ratio Reduced to 3.6:1.0 -- All Previously Announced Transactions Complete Triad Hospitals Triad Hospitals is a Fortune 500 company based in Plano, Texas. It operates 54 hospitals in the United States. In February 2007 it received a merger/buyout offer from another company, and then in March 2007 it received a superior merger/buyout offer from Community Health Systems of , Inc. (the "Company" or "Triad") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TRIH TRIH The Real Inspector Hound (short play by Tom Stoppard) ) today reported financial results for the three months and year ending December December: see month. 31, 1999. The Company reported continued improvement in the performance of its core operations over the previous year, including growth in admissions, revenues, margins and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation, amortization and certain other charges). For the quarter, the Company reported EBITDA of $39.5 million, an 83.9% increase over the prior year, and a loss per share of $(0.05) for its core operations, an improvement of $0.41 over the prior year. For the year, the Company reported EBITDA of $157.5 million, a 20.3% increase over the prior year, and a loss per share of $(0.19) for its core operations, an improvement of $0.55 over the prior year. The Company announced that it received on February February: see month. 28 a capital contribution of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $37 million owed by its co-owner in SouthCrest Hospital ("SouthCrest"). With this transaction, the Company has now completed all 11 of its previously announced asset sales and related transactions. From May 11, 1999 (the effective date of Triad's spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. as an independent company) through December 1999, the Company had already improved its balance sheet by selling non-core assets, repaying approximately $110 million of debt, increasing cash by approximately $71 million, increasing shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. from $410 million to $560 million, and completing $74 million in post-spin capital expenditures. "I am very pleased with our 1999 results," commented Triad Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. D. (Denny Denny may refer to:
1999 Core Operations Performance Triad reports its results on two bases: core operations and total operations. Core operations include only the facilities and operations that the Company intends to continue owning or operating long term. They exclude the facilities that the Company has sold or designated as held-for-sale, as well as certain other discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Beginning in the first quarter of 2000, the Company intends to report only one set of financial results.
Summary of Fourth Quarter Results (Core Operations, except where noted)
($ in millions, except where noted) 1999 1998 Improvement
------ ------ ----------
Admissions (same-facility) 30,357 28,130 7.9%
Admissions (including joint ventures) 32,707 29,504 10.9%
Adjusted admissions (same-facility) 51,844 48,011 8.0%
Net patient revenue per adjusted patient day $1,230.7 $1,160.6 6.0%
Net revenues $284.5 $255.3 11.4%
Salaries and benefits (% of revenue) 41.4% 43.1% 166 bps
Supplies (% of revenue) 15.8% 15.0% (82) bps
Bad debt (% of revenue) 8.2% 9.4% 115 bps
Other operating expenses (% of revenue) 20.4% 23.8% 338 bps
EBITDA margin 13.9% 8.4% 547 bps
EBITDA $39.5 $21.5 83.9%
Net loss $(1.6) $(14.1) 88.4%
Net loss per share ($0.05) ($0.46) 88.4%
Cash flow from operations (total) $23.0 $15.6 47.4%
Capital expenditures $36.9 $34.5 7.0%
Summary of Full Year Results (Core Operations, except where noted)
($ in millions, except where noted) 1999 1998 Improvement
------- ------- ----------
Admissions (same-facility) 119,201 111,510 6.9%
Admissions (including joint ventures) 126,975 117,447 8.1%
Adjusted admissions (same-facility) 202,733 189,290 7.1%
Net patient revenue per adjusted patient day $1,194.4 $1,146.1 4.2%
Net revenues $1,105.9 $1,037.7 6.6%
Salaries and benefits (% of revenue) 40.8% 40.9% 13 bps
Supplies (% of revenue) 14.9% 14.5% (43) bps
Bad debt (% of revenue) 8.6% 9.4% 80 bps
Other operating expenses (% of revenue) 21.2% 23.0% 179 bps
EBITDA margin 14.2% 12.6% 163 bps
EBITDA $157.5 $130.9 20.3%
Net loss $(5.8) ($22.5) 74.1%
Net loss per share ($0.19) ($0.74) 74.1%
Cash flow from operations (total) $155.2 $33.6 361.9%
Capital expenditures/1 $132.7 $114.9 15.5%
1/ For 1999 capital expenditures, $58.6 million was spent pre-spin,
and $74.1 million was spent post-spin.
"We've we've Contraction of we have. we've have made great improvements in our operating performance and are very pleased with our 1999 results," said Mr. Shelton. "We have also made strong early strides in laying the groundwork for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. volume growth and sustained performance by developing more robust, constructive (mathematics) constructive - A proof that something exists is "constructive" if it provides a method for actually constructing it. Cantor's proof that the real numbers are uncountable can be thought of as a *non-constructive* proof that irrational numbers exist. relationships with our physicians and communities." "Recently, there have been some concerns among a few observers of the hospital industry regarding possible pressures on operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the industry due to increased labor and supply costs," added Mr. Shelton. "However, we continue to believe that Triad has the potential to significantly improve its operating margins over the next few years. It is a specific objective of ours to do so in a deliberate Willful; purposeful; determined after thoughtful evaluation of all relevant factors; dispassionate. To act with a particular intent, which is derived from a careful consideration of factors that influence the choice to be made. , methodical me·thod·i·cal also me·thod·ic adj. 1. Arranged or proceeding in regular, systematic order. 2. Characterized by ordered and systematic habits or behavior. See Synonyms at orderly. manner that is consistent with our commitment to the physicians and communities." Balance Sheet Improvement Since its spin-off as an independent company in May 1999, Triad has improved its balance sheet through asset sales, debt reduction, and operating performance. The Company repaid $110 million of debt in its first seven months, well ahead of the obligation under its bank agreement to repay $97 million in the first 12 months, and it improved its cash position and shareholders' equity.
Summary Balance Sheet Information (Total Operations)
($ in millions, except where noted) At 12/31/99 At Spin-off Improvement
----------- ----------- -----------
Cash and Cash Equivalents $70.9 $0.0 $70.9
Shareholders' Equity 559.9 410.2/2 149.7
Debt Outstanding
Revolver/3 0.0 0.0 0.0
Bridge Loan 0.0 75.0 75.0
Bank Debt - Tranche A 35.4 65.0 29.6
Bank Debt - Tranche B 196.6 200.0 3.4
Hospital-level Debt 7.5 8.8 1.3
11% Senior Subordinated Notes/4 325.0 325.0 0.0
Total Debt Outstanding $564.5 $673.8 $109.3
Debt/Book Capital 50.6% 62.2% 11.6%
Debt/LTM EBITDA (Core) 3.6 times 4.9 times 1.3 times
2/ Shareholders' equity at 3/31/99.
3/ $125 million revolver remains fully available.
4/ Does not include a $9.1 million original issue discount.
The Company's $70.9 million cash position was subsequently reduced by approximately $26 million in January January: see month. through reduction in payables Payables Related: Accounts payable . However, cash and cash equivalents increased on February 28 by $37 million with the Company's receipt of a capital contribution from its co-owner in SouthCrest. Shareholders' equity has improved since spin-off, though it declined from the third to fourth quarter from $591.3 million to $559.9 million due largely to $30.7 million of non-cash asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges to non-core facilities in connection with the Company's decision to sell or close them and $26.0 million in operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. from non-core facilities in the fourth quarter. "We are excited about the balance sheet improvements that we've made," commented Mr. Shelton. "We were able to pay down debt further and sooner than we had anticipated, while improving our cash and shareholders' equity. We have continued to hold cash to ensure we have sufficient capital for potential acquisitions and development opportunities and to avoid penalties for early voluntary prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of our bank debt. We have been in discussions with our bank group regarding prepayment and other refinancing Refinancing An extension and/or increase in amount of existing debt. options, and we are evaluating the potential uses of our cash, which could include additional debt repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan , acquisitions, and development opportunities that meet our financial return criteria criteria (krītēr´ē  ),n. ." Asset Sales and Related Transactions Triad has completed 11 asset sales and related transactions. During the fourth quarter, the Company completed its previously announced sales of Phoenix Regional Medical Center and DeQueen De`queen´ v. t. 1. (Apiculture) To remove the queen from (a hive of bees). Regional Medical Center. On February 28, the Company received a capital contribution of approximately $37 million from Hillcrest hill·crest n. The summit line of a hill. HealthCare Systems ("Hillcrest"), its 50% co-owner in SouthCrest. SouthCrest is the Company's newest hospital, in Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006,[1] it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to , which opened in May 1999 and is still partly under development. The $37 million contribution was owed to Triad to fund Hillcrest's 50% share of initial development and operating costs operating costs npl → gastos mpl operacionales to date. Both parties will make subsequent additional investments during 2000 to fund completion of the project and related working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . "SouthCrest continues to generate strong admission growth well ahead of plan," said Mr. Shelton. "We look forward to maintaining our valued relationship with Hillcrest as our two organizations continue to serve the South Tulsa Tulsa (tŭl`sə), city (1990 pop. 367,302), seat of Tulsa co., NE Okla., on the Arkansas River east of its junction with the Cimarron; inc. 1898. community together." The Company announced that it has decided to sell Community Medical Center of Sherman Sherman, city (1990 pop. 31,601), seat of Grayson co., N Tex., near the Red River; inc. 1858. Originally on a stagecoach route, it is a highway and railroad junction. Manufactures include electronic equipment, processed foods, military equipment, and metal products. in Sherman, Texas Sherman is a city in Grayson County, Texas, United States. The population was 35,082 at the 2000 census. The population had increased to an estimated 37,623 in July 2006. It is the county seat of Grayson County. ("Sherman"), and has designated the facility as held-for-sale. In 1999, Sherman contributed net revenues of approximately $29 million and EBITDA of approximately $3 million. In connection with its decision, the Company recorded a non-cash asset impairment charge of approximately $24 million during the fourth quarter. As previously announced, the Company closed Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. Community Medical Center in Roseburg, Oregon Roseburg is a city in the U.S. state of Oregon.GR6 It is the county seat of Douglas County. The population was 20,017 at the 2000 census. The 2006 estimate is 21,050 residents. ("Douglas"), on February 11, 2000, after it was unable to reach an agreement with a potential buyer. In 1999, Douglas contributed net revenues of approximately $22 million and EBITDA of approximately negative $3 million. The Company recorded a non-cash asset impairment charge of approximately $7 million during the fourth quarter in connection with its decision to close the facility. In the first quarter of 2000, the Company expects to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. closure and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs at Douglas. The Company continues to pursue a lawsuit lawsuit: see procedure; tort. against another hospital in the market, seeking damages for various causes of action, including breach of fiduciary duties Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary legal duty - acts which the law requires be done or forborne , interference interference, in physics, the effect produced by the combination or superposition of two systems of Waves, in which these waves reinforce, neutralize, or in other ways interfere with each other. with business advantage, and breach of contract, and it expects ultimately to sell the facility for real estate value. Change to Composition of Core Facilities The Company announced an update to the composition of its core facilities. Core facilities now exclude Douglas and Sherman. Core facilities now include Medical Park Hospital in Hope, Arkansas Hope is a small city in Hempstead County, Arkansas, United States. According to 2006 Census Bureau estimates, the population of the city is 10,467.[1] The city is the county seat of Hempstead CountyGR6. ("Hope), and Medical Center at Terrell Terrell (tĕr`əl), city (1990 pop. 12,490), Kaufman co., N Tex.; inc. 1883. In a farm area, cattle and horses are raised and there are nurseries; peaches, cotton, and wheat are grown. in Terrell, Texas Terrell is a city in Kaufman County, Texas, United States. As of the 2000 census, the city population was 13,606. Terrell is located 32 miles (52 km) east of Dallas. City web page: [1] ("Terrell"). The Company has closed Douglas and decided to sell Sherman. The Company had previously designated Hope and Terrell as held-for-sale but now intends to continue operating them. With these updates, core facilities currently include 28 hospitals and 14 ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery . It is on the basis of this current composition that the Company reported the financial results of its core operations for the three months and year ending December 31, 1999. Under the previous composition of core operations (including Douglas and Sherman, and excluding Hope and Terrell), 1999 net revenues for core operations would have been $1,112.8 million; 1999 EBITDA would have been $157.7 million before writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of inventory and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying at Douglas recorded in the fourth quarter in connection with the Company's decision to exit that market and $155.9 million after the writedown; 1999 earnings per share would have been $(0.20) before non-cash asset impairments at Douglas and Sherman and writedowns of inventory and accounts receivable at Douglas, all recorded in the fourth quarter in connection with the Company's decision to exit those markets, and $(0.84) after the non-cash impairments and writedowns. In order to provide a comparative history, the Company has also reported the financial results of core operations for all four quarters of 1999 and 1998 on the basis of the current composition. Beginning with the first quarter of 2000, with its asset sales substantially complete, the Company intends to report only one set of financial results. "We closed Douglas after we were unable to reach an agreement with a potential buyer. Although the decision to close Douglas was difficult for us to make for personal reasons, we believe the decision will benefit the Company," said Mr. Shelton. "It was the only hospital in core operations that generated negative EBITDA, so its closure should be accretive to our performance after the first quarter of 2000. We have decided to sell Sherman because we would need to make a large capital investment to remain competitive in the market, and we needed far stronger physician support in the market in order to justify such an investment. We intend instead to direct our capital toward other Triad facilities and markets that we believe represent better investment opportunities for the Company." Mr. Shelton added, "Hope and Terrell, on the other hand, have begun performing better as we have improved our relations with the physicians and the communities, so we have decided to continue operating these facilities. We believe that all of these transactions should enhance the Company's financial strength, operating performance and enterprise value in the long term." Total Operations Performance Total operations for 1999 include facilities that the Company has sold or designated as held-for-sale, as well as discontinued operations related to home health. Total operations for 1998 included additional assets that the Company no longer owned or operated during 1999. Losses reported in total operations in 1999 are primarily from facilities that the Company no longer owns or manages. For the three months ending December 31, 1999, the Company reported a loss from total operations of $(52.1) million, or $(1.68) per share, including losses on asset sales and charges for non-cash asset impairments related to sold and held-for-sale facilities. Prior year losses were $(50.1) million, or $(1.61) per share, from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the ; prior year losses were $(50.4) million, or $(1.63) per share, after discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: businesses. Losses for the three months ending December 31, 1999, include $8.3 million of losses on sales and $30.7 million of non-core asset impairment charges for Douglas and Sherman, as well as $26.0 million in operating losses at non-core facilities. As of December 31, 1999, Douglas and Sherman were the only non-core facilities still owned by the Company, and Douglas is the only facility still owned by the Company that contributed negative EBITDA for the quarter. Total EBITDA for the three months ending December 31, 1999 was $14.2 million, and total EBITDA for the prior year period was $20.1 million. EBITDA for the prior year period includes negative contributions from assets that the Company no longer owned or operated during 1999, and EBITDA for both periods includes negative contributions from assets the Company no longer owns or operates. For the year ending December 31, 1999, the Company reported losses from total operations of $(95.6) million, or $(3.12) per share, including gains on asset sales of $8.6 million, and charges for non-cash asset impairments of $69.2 million related to sold and held-for-sale facilities. Prior year losses were $(85.5) million, or $(2.80) per share, from continuing operations; prior year losses were $(87.1) million, or $(2.84) per share, after discontinued businesses. 1999 losses include $69.2 million of non-core asset impairment charges, as well as $34.4 million in operating losses at non-core facilities. As of December 31, 1999, Douglas and Sherman were the only non-core facilities still owned by the Company, and Douglas is the only facility still owned by the Company that contributed negative EBITDA for the year. Total EBITDA for the year ending December 31, 1999 was $124.5 million, and total EBITDA for the prior year period was $149.0 million. EBITDA for the prior year period includes negative contributions from assets that the Company no longer owned or operated during 1999, and EBITDA for both periods includes negative contributions from assets the Company no longer owns or operates. "We have substantially completed the clean-up clean-up n → nettoyage m clean-up clean n to give sth a clean-up → etw gründlich sauber machen clean-up n of our portfolio and operations," said Mr. Shelton, "and are ready now to focus entirely on our core portfolio of assets and other attractive growth opportunities." 2000 Financial Results "We remain excited about our future," said Mr. Shelton. "We expect to continue growing our admissions in 2000, and we remain comfortable with our annual financial objectives. Seasonality can be challenging to estimate for a company as new as Triad, but we would expect quarterly earnings going forward to follow a seasonal pattern commonly found in the hospital management industry, with first quarter results the strongest, followed by the fourth quarter, second quarter, and third quarter," added Mr. Shelton. The Company expects the effective tax rate that appears in its financial statements to continue to be negatively impacted by permanent differences between pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. for financial reporting and pretax income for income tax calculations, due primarily to goodwill amortization that is deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). for financial reporting but not deductible for tax purposes. The Company currently expects these permanent differences to increase in 2000 from about $7.5 million to about $9 million, plus the extent to which the market value of the Company's planned contribution of 300,000 shares to its Employee Stock Ownership Plan (ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ) exceeds their original cost of $11.50 per share. Beginning with the first quarter of 2000, the Company intends to report only one set of financial results and will no longer report core versus non-core information. Triad Hospitals, Inc., owns or manages 30 hospitals and 14 ambulatory surgery centers in small cities and selected high-growth urban markets in the south central, western and southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Of the 30 hospitals, two are identified as held-for-sale. The Company completed a spin-off and began operations as an independent company on May 11, 1999. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on current management expectations. Numerous factors, including those related to market conditions and those detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and, therefore, actual results may differ materially. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to revise or 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 "Company", "Triad", and "Triad Hospitals, Inc." as used throughout this document refer to Triad Hospitals, Inc. and its affiliates.
CORE OPERATIONS (PRO FORMA)
(Dollars in millions, except earnings per share)
For the three months ended
1999 1998
-------------------- -----------------
Amount Percentage Amount Percentage
--------- --------- ------- --------
Revenues $284.5 100.0% $255.3 100.0%
Operating expenses:
Salaries and
benefits 117.8 41.4% 110.0 43.1%
Supplies 44.9 15.8% 38.2 15.0%
Other operating
expenses 58.0 20.4% 60.7 23.8%
Provision for
doubtful accounts 23.3 8.2% 23.9 9.4%
Depreciation and
amortization 20.8 7.3% 21.8 8.5%
Interest expense 14.6 5.1% 17.4 6.8%
ESOP expense 1.1 0.4% 1.1 0.4%
--------- --------- ------- --------
280.7 98.6% 273.1 107.0%
--------- --------- ------- --------
Income (loss) from
continuing operations
before minority
interest, equity in
earnings (losses) and
income taxes 3.9 1.4% (17.8) (7.0%)
Minority interests (1.6) (0.6%) (2.5) (1.0%)
Equity in (earnings)
loss of affiliates (0.9) (0.3%) (1.1) (0.4%)
--------- --------- ------- --------
Income (loss) from
continuing operations
before income taxes 1.3 0.5% (21.4) (8.4%)
Income tax (provision)
benefit (3.0) (1.0%) 7.2 2.8%
--------- --------- ------- --------
Loss from continuing
operations $(1.6) (0.6%) $(14.1) (5.5%)
========= ========= ======= ========
Loss per common share
from continuing
operations $(0.05) $(0.46)
Pro forma EBITDA $39.5 $21.5
Number of hospitals:
Owned and managed 24 24
Joint ventures 2 1
Leased to others 2 2
--------- -------
Total 28 27
--------- -------
Available beds 3,002 3,013
Admissions
Owned and managed 30,357 28,130
Joint ventures 2,350 1,374
--------- -------
Total 32,707 29,504
Adjusted admissions 51,844 48,011
Patient days 131,501 126,251
Adjusted patient days 224,580 215,478
Outpatient visits 206,064 195,616
Emergency room visits 102,867 94,483
Total outpatient
visits 308,931 290,099
Average length of stay 4.3 4.5
Average daily census 1,429.4 1,372.3
Occupancy rate 47.6% 45.5%
Net patient revenue per
adjusted patient day $1,230.7 $1,160.6
Gross inpatient revenue $367.8 $310.1
Gross outpatient
revenue $260.3 $219.2
Gross outpatient
revenue percentage 41.4% 41.4%
Net inpatient revenue $133.8 $118.5
Net outpatient revenue $142.6 $131.6
Net outpatient revenue
percentage 51.6% 52.6%
Net inpatient revenue
per patient days $1,017.8 $938.6
Net outpatient revenue
per total outpatient
visits $461.4 $453.6
Total operating
expenses per adjusted
patient days $1,087.0 $1,080.4
Total salaries and
benefits per FTE $10,921.8 $9,642.8
FTE's 10,789 11,407
CORE OPERATIONS (PRO FORMA)
(Dollars in millions, except earnings per share)
For the years ended
1999 1998
-------------------------------------
Amount Percentage Amount Percentage
-------------------------------------
Revenues $ 1,105.9 100.0% $ 1,037.7 100.0%
Operating expenses:
Salaries and benefits 451.1 40.8% 424.7 40.9%
Supplies 164.9 14.9% 150.3 14.5%
Other operating expenses 234.1 21.2% 238.2 23.0%
Provision for doubtful accounts 94.6 8.6% 97.0 9.3%
Depreciation and amortization 79.7 7.2% 79.7 7.7%
Interest expense 67.6 6.1% 69.6 6.7%
ESOP expense 4.4 0.4% 4.4 0.4%
--------- ------ ---------- ------
1,096.4 99.1% 1,063.9 102.5%
--------- ------ ---------- ------
Income (loss) from continuing
operations before minority
interest, equity in earnings
(losses) and income taxes 9.5 0.9% (26.2) (2.5%)
Minority interests (8.3) (0.8%) (9.9) (1.0%)
Equity in (earnings) loss of
affiliates (3.7) (0.3%) 3.4 0.3%
--------- ------ ---------- ------
Income (loss) from continuing
operations before income taxes (2.5) (0.2%) (32.7) (3.1%)
Income tax (provision) benefit (3.3) (0.3%) 10.1 1.0%
--------- ------ ---------- ------
Loss from continuing operations $ (5.8) (0.5%) $ (22.5) (2.2%)
========= ====== ========== ======
Loss per common share from
continuing operations $ (0.19) $ (0.74)
Pro forma EBITDA $ 157.5 $ 130.9
Number of hospitals:
Owned and managed 24 24
Joint ventures 2 1
Leased to others 2 2
--------- ----------
Total 28 27
Licensed beds 3,444 3,484
Available beds 3,002 3,013
Admissions
Owned and managed 119,201 111,510
Joint ventures 7,774 5,937
--------- ----------
Total 126,975 117,447
Adjusted admissions 202,733 189,290
Patient days 527,732 518,205
Adjusted patient days 897,547 879,663
Outpatient visits 811,874 758,419
Emergency room visits 399,515 386,688
Total outpatient visits 1,211,389 1,145,108
Average length of stay 4.4 4.6
Average daily census 1,445.8 1,419.7
Occupancy rate 48.2% 47.1%
Net patient revenue per
adjusted patient day $ 1,194.4 $ 1,146.1
Gross inpatient revenue $ 1,394.0 $ 1,229.0
Gross outpatient revenue $ 976.9 $ 857.3
Gross outpatient revenue
percentage 41.2% 41.1%
Net inpatient revenue $ 522.1 $ 471.0
Net outpatient revenue $ 549.9 $ 537.2
Net outpatient revenue
percentage 51.3% 53.3%
Net inpatient revenue per
patient days $ 989.4 $ 909.0
Net outpatient revenue per
total outpatient visits $ 453.9 $ 469.1
Total operating expenses per
adjusted patient days $ 1,052.5 $ 1,034.7
Total salaries and benefits
per FTE $41,813.1 $37,434.2
FTE's 10,789 11,344
1999 CORE OPERATIONS (PRO FORMA)
(Dollars in millions, except earnings per share)
For the quarters ended
--------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
1999 1999 1999 1999
--------- --------- --------- ---------
Revenues $281.7 $271.7 $268.0 $284.5
Operating expenses:
Salaries and benefits 113.1 111.9 108.3 117.8
Supplies 40.6 39.0 40.4 44.9
Other operating
expenses 60.0 59.2 56.8 58.0
Provision for
doubtful accounts 23.6 24.1 23.6 23.3
Depreciation and
amortization 20.4 19.7 18.7 20.8
Interest expense 17.3 16.9 18.8 14.6
ESOP expense 1.1 1.1 1.1 1.1
--------- --------- --------- ---------
276.0 272.0 267.7 280.7
Income (loss) from
continuing operations
before minority
interest, equity in
earnings (losses) and
income taxes 5.6 (0.2) 0.3 3.9
Minority interests (2.1) (2.4) (2.2) (1.6)
Equity in earnings of
affiliates 0.2 (2.1) (0.9) (0.9)
--------- --------- --------- ---------
Income (loss) from
continuing operations
before income taxes 3.7 (4.7) (2.8) 1.3
Income tax (provision)
benefit (2.1) 1.2 0.5 (3.0)
--------- --------- --------- ---------
Loss from continuing
operations $1.6 $(3.5) $(2.3) $(1.6)
========= ========= ========= =========
Loss per common share
from continuing
operations $0.05 $(0.12) $(0.08) $(0.05)
Pro forma EBITDA $44.7 $35.4 $38.0 $39.5
Number of hospitals:
Owned and managed 24 24 24 24
Joint ventures 1 2 2 2
Leased to others 2 2 2 2
--------- --------- --------- ---------
Total 27 28 28 28
Licensed beds 3,406 3,465 3,444 3,444
Available beds 2,995 3,125 3,016 3,002
Admissions
Owned and managed 32,272 28,556 28,017 30,357
Joint ventures 1,525 1,750 2,149 2,350
--------- --------- --------- ---------
Total 33,797 30,306 30,166 32,707
Adjusted admissions 53,011 48,999 48,784 51,844
Patient days 147,174 127,409 121,648 131,501
Adjusted patient days 241,758 218,624 211,818 224,580
Outpatient visits 205,335 199,281 201,194 206,064
Emergency room visits 104,688 96,511 95,448 102,867
Total outpatient visits 310,024 295,792 296,642 308,931
Average length of stay 4.6 4.5 4.3 4.3
Average daily census 1,635.3 1,400.1 1,322.3 1,429.4
Occupancy rate 54.6% 44.8% 43.8% 47.6%
Net patient revenue per
adjusted patient day $1,129.9 $1,202.7 $1,225.1 $1,230.7
Gross inpatient revenue $362.5 $331.8 $331.9 $367.8
Gross outpatient
revenue $233.0 $237.6 $246.0 $260.3
Gross outpatient
revenue percentage 39.1% 41.7% 42.6% 41.4%
Net inpatient revenue $137.3 $126.6 $124.3 $133.8
Net outpatient revenue $135.8 $136.3 $135.2 $142.6
Net outpatient revenue
percentage 49.7% 51.8% 52.1% 51.6%
Net inpatient revenue
per patient days $933.2 $994.0 $1,021.9 $1,017.8
Net outpatient revenue
per total outpatient
visits $438.1 $460.8 $455.7 $461.4
Total operating
expenses per adjusted
patient days $981.2 $1,071.4 $1,081.6 $1,087.0
Total salaries and
benefits per FTE $10,586.7 $10,740.0 $10,393.3 $10,921.8
FTE's 10,680 10,421 10,420 10,789
1998 CORE OPERATIONS (PRO FORMA)
(Dollars in millions, except earnings per share)
For the quarters ended
March 31, June 30, Sept. 30, Dec. 31,
1998 1998 1998 1998
-------- -------- -------- --------
Revenues $ 266.5 $ 260.6 $ 255.2 $ 255.3
Operating expenses:
Salaries and benefits 107.1 105.1 102.5 110.0
Supplies 37.8 35.6 38.7 38.2
Other operating expenses 60.1 59.6 57.8 60.7
Provision for doubtful accounts 25.6 24.7 22.8 23.9
Depreciation and amortization 18.9 19.0 20.0 21.8
Interest expense 17.4 17.4 17.4 17.4
ESOP expense 1.1 1.1 1.1 1.1
-------- -------- -------- --------
267.9 262.4 260.4 273.1
Income (loss) from continuing
operations before minority
interest, equity in earnings
(losses) and income taxes (1.4) (1.8) (5.2) (17.8)
Minority interests (3.5) (2.1) (1.7) (2.5)
Equity in earnings of
affiliates 1.4 1.1 2.0 (1.1)
-------- -------- -------- --------
Income (loss) from continuing
operations before income taxes (3.5) (2.8) (4.9) (21.4)
Income tax (provision) benefit 0.9 0.5 1.5 7.2
-------- -------- -------- --------
Loss from continuing operations $ (2.6) $ (2.3) $ (3.5) $ (14.1)
======== ======== ======== ========
Loss per common share from
continuing operations $ (0.09) $ (0.08) $ (0.11) $ (0.46)
Pro forma EBITDA $ 37.3 $ 36.8 $ 35.3 $ 21.5
Number of hospitals:
Owned and managed 24 24 24 24
Joint ventures 1 1 1 1
Leased to others 2 2 2 2
-------- -------- -------- --------
Total 27 27 27 27
Licensed beds 3,505 3,488 3,488 3,484
Available beds 3,129 3,023 3,017 3,013
Admissions
Owned and managed 29,760 27,292 26,823 28,130
Joint ventures 1,645 1,509 1,409 1,374
-------- -------- -------- --------
Total 31,405 28,801 28,232 29,504
Adjusted admissions 48,262 47,154 46,746 48,011
Patient days 144,188 126,202 121,564 126,251
Adjusted patient days 233,827 218,052 211,857 215,478
Outpatient visits 178,145 189,459 195,200 195,616
Emergency room visits 98,725 97,455 96,024 94,483
Total outpatient visits 276,870 286,915 291,224 290,099
Average length of stay 4.8 4.6 4.5 4.5
Average daily census 1,602.1 1,386.8 1,321.3 1,372.3
Occupancy rate 51.2% 45.9% 43.8% 45.5%
Net patient revenue per
adjusted patient day $1,091.9 $1,155.0 $1,184.4 $1,160.6
Gross inpatient revenue $ 330.3 $ 297.1 $ 291.5 $ 310.1
Gross outpatient revenue $ 205.3 $ 216.3 $ 216.5 $ 219.2
Gross outpatient revenue
percentage 38.3% 42.1% 42.6% 41.4%
Net inpatient revenue $ 129.5 $ 112.2 $ 110.8 $ 118.5
Net outpatient revenue $ 125.8 $ 139.6 $ 140.1 $ 131.6
Net outpatient revenue
percentage 49.3% 55.4% 55.8% 52.6%
Net inpatient revenue per
patient days $ 898.2 $ 889.3 $ 911.5 $ 938.6
Net outpatient revenue per
total outpatient visits $ 454.4 $ 486.6 $ 481.2 $ 453.6
Total operating expenses per
adjusted patient days $ 986.0 $1,031.5 $1,047.3 $1,080.4
Total salaries and benefits
per FTE $9,537.9 $9,632.5 $9,388.5 $9,642.8
FTE's 11,225 10,907 10,921 11,407
TOTAL OPERATIONS
(Dollars in millions, except earnings per share)
For the three months ended
---------------------------------
1999 1998
---------------------------------
Amount Percent- Amount Percent-
age age
----- ----- ----- -------
Revenues $ 300.1 100.0% $ 385.3 100.0%
Operating expenses:
Salaries and benefits 132.6 44.2% 177.9 46.2%
Supplies 48.8 16.3% 58.6 15.2%
Other operating expenses 68.3 22.8% 93.0 24.1%
Provision for doubtful accounts 35.4 11.8% 34.6 9.0%
Depreciation and amortization 19.7 6.6% 29.3 7.6%
Interest expense allocated
from Columbia/HCA - 0.0% 17.4 4.5%
Interest expense 14.5 4.8% 1.1 0.3%
ESOP expense 1.6 0.5% - 0.0%
(Gain) loss on sale of assets 8.3 2.8% - 0.0%
Management fees allocated from
Columbia/HCA - 0.0% 7.2 1.9%
Impairment of long lived assets 30.7 10.2% 35.8 9.3%
----- ----- ----- ----
359.9 119.9% 454.8 118.0%
------ ------ ------ ------
Income (loss) from continuing
operations before minority
interest, equity in earnings
(losses) and income taxes (59.8) (19.9%) (69.5) (18.0%)
Minority interests (1.8) (0.6%) (2.6) (0.7%)
Equity in earnings of affiliates (0.8) (0.3%) (1.1) (0.3%)
----- ------ ----- ------
Loss from continuing operations
before income taxes (62.4) (20.8%) (73.2) (19.0%)
Provision for income taxes 10.3 3.4% 23.1 6.0%
----- ---- ----- ----
Loss from continuing operations $ (52.1) (17.4%) $ (50.1) (13.0%)
======== ------- ======== -------
Loss per common share from
continuing operations (1.68) (1.61)
EBITDA $ 14.2 $ 20.1
Number of hospitals:
Owned and managed 26 38
Joint ventures 2 1
Leased to others 2 -
------- ------
Total 30 39
Licensed beds 3,722 5,902
Available beds 3,280 5,199
Admissions
Owned and managed 32,363 41,904
Joint ventures 2,350 1,374
------- ------
Total 34,713 43,278
Adjusted admissions 55,158 69,535
Patient days 141,671 198,209
Adjusted patient days 241,459 328,906
Outpatient visits 226,932 302,360
Emergency room visits 110,478 137,253
Total outpatient visits 337,410 439,613
Average length of stay 4.4 4.7
Average daily census 1,539.9 2,154.4
Occupancy rate 46.9% 41.4%
Net patient revenue per adjusted
patient day $ 1,205.7 $ 1,144.7
Gross inpatient revenue $ 390.7 $ 502.0
Gross outpatient revenue $ 275.2 $ 331.0
Gross outpatient revenue
percentage 41.3% 39.7%
Net inpatient revenue $ 140.2 $ 185.9
Net outpatient revenue $ 150.9 $ 190.6
Net outpatient revenue percentage 51.8% 50.6%
Net inpatient revenue per
patient days $ 989.7 $ 937.9
Net outpatient revenue per total
outpatient visits $ 447.3 $ 433.6
Total operating expenses per
adjusted patient days $ 1,180.7 $ 1,106.8
Total salaries and benefits
per FTE $ 11,745.9 $ 10,343.5
FTE's 11,289 17,195
TOTAL OPERATIONS
(Dollars in millions, except earnings per share)
For the years ended
1999 1998
-------------------------------------
Amount Percentage Amount Percentage
-------------------------------------
Revenues $ 1,329.1 100.0% $ 1,588.7 100.0%
Operating expenses:
Salaries and benefits 570.9 43.0% 700.5 44.1%
Supplies 200.1 15.1% 241.6 15.2%
Other operating expenses 301.5 22.7% 362.6 22.8%
Provision for doubtful accounts 129.0 9.7% 138.4 8.7%
Depreciation and amortization 98.5 7.4% 109.6 6.9%
Interest expense allocated
from Columbia/HCA 22.5 1.7% 66.2 4.2%
Interest expense 42.7 3.2% 2.7 0.2%
ESOP expense 3.7 0.3% -- 0.0%
(Gain) loss on sale of assets (8.6) (0.6%) -- 0.0%
Management fees allocated
from Columbia/HCA 8.9 0.7% 29.4 1.8%
Impairment of long lived assets 69.2 5.2% 55.1 3.5%
---------- ------ ---------- ------
1,438.4 108.2% 1,706.0 107.4%
---------- ------ ---------- ------
Income (loss) from continuing
operations before minority
interest, equity in earnings
(losses) and income taxes (109.3) (8.2%) (117.3) (7.4%)
Minority interests (8.7) (0.7%) (11.0) (0.7%)
Equity in earnings of
affiliates (3.1) (0.2%) 3.4 0.2%
---------- ------ ---------- ------
Loss from continuing operations
before income taxes (121.1) (9.1%) (124.9) (7.9%)
Provision for income taxes 25.5 1.9% 39.4 2.5%
---------- ------ ---------- ------
Loss from continuing operations $ (95.6) (7.2%) $ (85.5) (5.4%)
========== ====== ========== ======
Loss per common share from
continuing operations (3.12) (2.80)
EBITDA $ 124.5 $ 149.0
Number of hospitals:
Owned and managed 26 38
Joint ventures 2 1
Leased to others 2 --
---------- ----------
Total 30 39
Licensed beds 3,722 5,902
Available beds 3,280 5,199
Admissions
Owned and managed 145,889 170,159
Joint ventures 7,774 5,937
---------- ----------
Total 153,663 176,096
Adjusted admissions 241,547 277,717
Patient days 663,675 826,095
Adjusted patient days 1,098,841 1,348,271
Outpatient visits 971,529 1,199,967
Emergency room visits 490,721 559,448
Total outpatient visits 1,462,250 1,759,415
Average length of stay 4.5 4.9
Average daily census 1,818.3 2,263.3
Occupancy rate 55.4% 43.5%
Net patient revenue per
adjusted patient day $ 1,172.2 $ 1,149.3
Gross inpatient revenue $ 1,775.2 $ 2,060.2
Gross outpatient revenue $ 1,164.0 $ 1,302.2
Gross outpatient revenue
percentage 39.6% 38.7%
Net inpatient revenue $ 651.8 $ 788.9
Net outpatient revenue $ 636.3 $ 760.6
Net outpatient revenue
percentage 49.4% 49.1%
Net inpatient revenue per
patient days $ 982.1 $ 955.0
Net outpatient revenue per
total outpatient visits $ 435.2 $ 432.3
Total operating expenses per
adjusted patient days $ 1,093.4 $ 1,070.3
Total salaries and benefits
per FTE $ 50,281.8 $ 40,736.0
FTE's 11,354 17,195
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