Printer Friendly

COLUMBIA HEALTHCARE CORPORATION ANNOUNCES THIRD QUARTER OPERATING RESULTS INCOME BEFORE RESTRUCTURING AND NON-RECURRING CHARGES SHOWS MODEST GROWTH

 LOUISVILLE, Ky., Nov. 4 /PRNewswire/ -- Columbia Healthcare Corporation (NYSE: COL) today announced consolidated operating results for its third quarter ended September 30, 1993. Since the merger with Galen Health Care, Inc. (formerly NYSE: GHC) on September 1, 1993 was accounted for as a pooling of interests, operating results for all periods have been restated to include Columbia and Galen on a combined basis.
 Summarized operating results for the quarters and nine months ended September 30 follows (dollars in millions except per share amounts):
 Third Quarter Nine Months
 1993 1992 Pct. Chg 1993 1992 Perc. Chg
 Revenues $1,238 $1,182 4.8 $3,829 $3,572 7.2
 Operating income(a) $204 $187 9.3 $678 $650 4.5
 Net income (loss):
 Continuing operations:
 Excluding unusual
 items $58 $54 9.2 $218 $224 -2.5


Retroactive increase in
 federal income tax
 rates (5) - (5) -
 Restructuring charges
 (net of tax) (98) (86) (98) (86)
 Discontinued
 operations - (132) 16 (131)
 Loss on early
 extinguishment
 of long-term debt(70) - (70) -
 Change in accounting for
 income taxes - - - 51
 Net income
 (loss) ($115) ($164) $61 $58
 Earnings (loss) per common share:
 Continuing operations:
 Excluding unusual
 items $0.39 $0.36 8.3 $1.46 $1.56 -6.4
 Retroactive increase in
 federal income tax
 rates (0.03) - (0.03) -
 Restructuring
 charges (0.67) (0.60) (0.67) (0.60)
 Discontinued
 operations - (0.93) 0.10 (0.92)
 Loss on early
 extinguishment
 of long-term
 debt (0.46) - (0.46) -
 Change in accounting for
 income taxes - - - 0.36
 Net income
 (loss) ($0.77) ($1.17) $0.40 $0.40
 Shares used in earnings
 per share
 computations
 (000) 150,300 147,612 149,705 143,570
 Restructuring charges recorded in the third quarter of 1993 relate primarily to costs incurred in connection with the Galen merger transaction, a write-down of assets associated with the restructuring of the combined entity's operations, and a provision for loss on the planned sale of certain assets. Restructuring charges in the last year's third quarter resulted primarily from the spinoff of Galen by Humana Inc. (NYSE: HUM).
 Same-hospital admissions in this year's third quarter were relatively unchanged from a year ago, while admissions for hospitals owned in both nine month periods declined approximately 1 percent. "We are pleased with the improvement in operating income in the third quarter," commented David T. Vandewater and James D. Bohanon, Co-Chief Operating Officers of Columbia. "The improvement in operating margins reflects the progress Galen had made prior to the merger, and the positive response we have received in connection with the combination of both companies. There are still many opportunities for improvement, but we are on the right course."
 "It is very exciting to see the positive response to our merger with Galen from our employees, physicians and communities in which we operate," said Richard L. Scott, President and Chief Executive Officer of Columbia. "We are continuing to negotiate with managed care plans to increase our marketshare, and with other healthcare providers for potential acquisitions which add to our integrated networks." Columbia Healthcare Corporation is one of the largest healthcare services provider companies in the nation, operating 95 hospitals and complementary healthcare facilities in 18 states, with estimated annual revenues of over $5 billion. Columbia is building comprehensive healthcare networks comprising acute-care and specialty hospitals, as well as comprehensive outpatient facilities in its local markets. These networks share administrative costs, expensive medical equipment and personnel, and reduce excess capacity in order to deliver healthcare services efficiently.
 On October 2, 1993, Columbia announced that it had signed a definitive merger agreement with HCA - Hospital Corporation of America to form Columbia/HCA Healthcare Corporation. The companies expect to consummate the merger in the first quarter of 1994, at which time the combined entity would operate over 190 hospitals, with estimated annual revenues in excess of $10 billion.
 -0- 11/4/93
 /CONTACT: Lee A. Wood, 502-572-2115, or (Media) Lindy Richardson, 502-572-2153
 (COL HUM)


CO: Columbia Healthcare Corporation ST: Kentucky IN: HEA SU: ERN

MM -- CH004 -- 0526 11/04/93 08:53 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1993
Words:673
Previous Article:HOME NUTRITIONAL SERVICES, INC. ANNOUNCES NEW VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER
Next Article:BELL ATLANTIC MOBILE INTRODUCES PAGING SERVICE FIRST IN THE REGION TO OFFER PAGING WITH CELLULAR
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters