Printer Friendly

HEALTHTRUST THIRD QUARTER EPS JUMPS 36 PERCENT TO 45 CENTS BEFORE EXTRAORDINARY CHARGES FOR EARLY REDEMPTION OF DEBT; SAME HOSPITALS REVENUE RISES 10.1 PERCENT AND NET OPERATING INCOME GAINS 17.5 PERCENT

 NASHVILLE, Tenn., June 23 /PRNewswire/ -- Healthtrust, Inc. -- The Hospital Company (NYSE: HTI) today reported that net income before extraordinary charges for the third quarter ended May 31, 1993, rose 34.8 percent to $37.4 million, or 45 cents per share, compared with $27.7 million, or 33 cents per share, last year. Extraordinary charges in both periods, related to the early redemption of debt, reduced reported net income to $24.7 million, or 30 cents per share, versus $21.4 million, or 26 cents per share in the prior year. Consolidated operating net revenue rose 5.2 percent to $596.7 million from $567.1 million.
 "HealthTrust continued to post strong earnings results in the third quarter, as we have since becoming a public company in December 1991," said R. Clayton McWhorter, chairman and chief executive officer. "We also continued to strengthen our capital structure using the $300 million raised in the March 1993 offering of subordinated debentures to replace $269.2 million of debt securities that were callable on June 1, 1993. The rate on the new debt is fixed at 8 3/4 percent, which will reduce our ongoing interest costs by approximately $8.0 million annually."
 For the nine months ended May 31, 1993, net income before extraordinary charges was $108.6 million, or $1.30 per share, versus $71.5 million, or 96 cents per share, for the same period a year ago, an increase of 35.4 percent. The operating results for 1992 exclude $24.6 million in preferred stock dividends. The extraordinary charges for the early extinguishment of debts were $12.7 million, or 15 cents per share, and $128.1 million, or $1.72 per share, for 1993 and 1992, respectively. Net operating revenue rose 5.2 percent to $1,786.4 million from $1,698.9 million last year.
 SAME HOSPITALS PERFORMANCE STRONG
 For the third quarter, same hospitals net operating revenue rose 10.1 percent to $591.5 million from $537.4 million. Net operating income gained 17.5 percent to reach $127.1 million from $108.2 million for the same quarter last year. The same hospitals operating margin was 21.5 percent compared with 20.1 percent a year ago.
 For the nine-month period, same hospitals net operating revenue was up 8.6 percent to $1,736.0 million from $1,598.8 million. Net operating income rose 13.8 percent to $381.5 million from $335.2 million. The same hospitals operating margin was 22.0 percent compared with 21.0 percent for the same period last year.
 McWhorter commented, "The 79 hospitals that were a part of the HealthTrust network in both periods recorded strong operating results. The margin improvement is an indication of the success of cost reduction programs that have been implemented at all of our affiliated hospitals."
 McWhorter continued, "In both periods, the increase in revenue was driven by inpatient revenue growth and continued very strong expansion of outpatient services. We are aware of the growing importance of outpatient services and our strategic planning and capital spending are focused on this area. Both our adjusted patient days and adjusted admissions (includes adjustment for outpatient services) rose in the quarter, reflecting our commitment to meeting all the needs of the communities served by our affiliate hospitals."
 Discussing one important means of managing costs, McWhorter said, "In an environment of fixed payments for each procedure or diagnosis, it is beneficial to reduce the average length of each stay in the hospital. Accordingly, the 2.5 percent decline in this measure in the third quarter is a reflection of our continued efforts to improve our operating efficiency."
 ACQUISITIONS AND AFFILIATIONS
 McWhorter added, "During fiscal 1993, HealthTrust entered into joint ventures in three markets with other health care providers. In addition to receiving $35.1 million in cash as a result of contributing assets to these joint ventures, the company has spent approximately $73.3 million to purchase three facilities in markets where the company had existing facilities.
 IN CONCLUSION
 McWhorter noted, "Due to the strength of our earnings, shareholders' equity rose to $629.1 million at May 31, 1993, up 18.5 percent from year-end. As a result, our net debt-to-capital ratio improved from 63.8 percent to 60.4 percent.
 McWhorter concluded, "These results reflect the enthusiasm of our employees and their dedication to delivering quality health care with increasing levels of efficiency. Based on the results for the first nine months of the year, we are well on the road to achieving our performance goals for fiscal 1993."
 HealthTrust, through its affiliates, is one of the largest providers of health care in the United States, owning and operating health care facilities in 21 southern and western states.
 HEALTHTRUST, INC.
 FINANCIAL HIGHLIGHTS
 (In thousands, except per share and percentage data)
 Statement of operations data:
 Three Months Ended Nine Months Ended
 May 31, May 31, Percent May 31, May 31, Percent
 1993 1992 Change 1993 1992 Change
 Net operating
 revenue $596,726 $567,054 5.2 $1,786,389 $1,698,888 5.2
 Hospital
 service
 costs 461,932 452,152 2.2 1,381,616 1,336,077 3.4
 134,794 114,902 17.3 404,773 362,811 11.6
 Interest
 expense 27,501 25,374 8.4 78,366 91,069 -13.9
 Income before
 income taxes
 and
 extraordinary
 charges 63,391 44,819 41.4 184,128 126,091 46.0
 Extraordinary
 charges (net
 of taxes) 12,710 6,372 99.5 12,710 128,119 -90.1
 Net income
 (loss) 24,678 21,369 15.5 95,935 (56,596) 269.5
 Dividends on
 preferred
 stock 0 0 0.0 0 24,582 -100.0
 Net income
 loss to
 common
 stockholders $24,678 $21,369 15.5 $95,935 $(81,178) 218.2
 Average shares
 and share
 equivalents 83,412 83,399 0.0 83,413 74,651 11.7
 Earnings (loss)
 per share:
 Before
 extraordinary
 charges $0.45 $0.33 36.4 $1.30 $0.63 106.3
 Extraordinary
 charges 0.15 0.07 114.3 0.15 1.72 -91.3
 Net income (loss)
 per common
 share $0.30 $0.26 15.4 $1.15 $(1.09) 205.5
 Same hospitals data
 Net operating
 revenue $591,518 $537,356 10.1 $1,736,013 $1,598,794 8.6
 Operating
 income
 (excludes
 interest
 income) $127,064 $108,175 17.5 $381,504 $335,219 13.8
 Operating
 margin
 (excludes
 interest
 income) 21.5pct. 20.1pct. 7.0 22.0pct. 21.0pct. 4.8
 Balance sheet data:
 May 31, Aug. 31,
 1993 1992
 Current assets $ 500,591 $ 584,097
 Property, plant and equipment (net) 1,597,118 1,554,158
 Excess of purchase price over net
 assets acquired 179,467 176,676
 Other assets 131,067 64,772
 TOTAL ASSETS $2,408,243 $2,379,703
 Current liabilities $ 264,658 $ 338,772
 Long term debt 1,024,626 1,033,946
 Other liabilities 489,817 476,149
 Stockholders' equity 629,142 530,836
 TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY $2,408,243 $2,379,703
 -0- 6/23/93
 /CONTACT: Merilyn Herbert of HealthTrust, Inc., 615-298-6261, or Paula Lovell of Lovell Communications, 615-297-7766, for HealthTrust, Inc./
 (HTI)


CO: HealthTrust, Inc. ST: Tennessee IN: HEA SU: ERN

SB -- CH001 -- 4938 06/23/93 10:39 EDT
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:Jun 23, 1993
Words:1225
Previous Article:AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
Next Article:VALUE MERCHANTS SEEKS EXTENDED PAYMENT TERMS FROM LANDLORDS AND TRADE CREDITORS TO MEET REQUIREMENTS OF PROPOSED CREDIT FACILITY
Topics:


Related Articles
ADVANTAGEHEALTH SECOND QUARTER OPERATING EPS 24 CENTS VS. 10 CENTS
HEALTHTRUST, INC. ANNOUNCES THIRD QUARTER AND NINE-MONTH RESULTS
HEALTH MANAGEMENT ASSOCIATES, INC. REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER AND YEAR ENDED SEPT. 30, 1992
HEALTHTRUST FY92 SAME HOSPITALS REVENUE RISES 13.6 PERCENT TO $2.25 BILLION; PRO FORMA EPS JUMPS 58.5 PERCENT TO $1.30; OPERATING PERFORMANCE GAINS...
HCA - HOSPITAL CORPORATION OF AMERICA ANNOUNCES FOURTH QUARTER AND YEAR END 1992 RESULTS
HEALTHTRUST REPORTS RECORD OPERATING RESULTS; FY 93 EPS $1.68 BEFORE EXTRAORDINARY CHARGES AND HIGHER TAX RATE
BELL ATLANTIC REPORTS THIRD-QUARTER 1993 EARNINGS
J. C. PENNEY REPORTS RECORD THIRD QUARTER OPERATING RESULTS, WHICH RISE 26 PERCENT
CHASE BRASS INDUSTRIES REPORTS RECORD THIRD QUARTER, NINE-MONTH EARNINGS
OLD REPUBLIC REPORTS GAINS IN 1996'S 2ND QUARTER; NET OPERATING INCOME UP 38.1 PERCENT; $56.2 MILLION VS. $40.7 MILLION:

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