operating performance of its hospital facilities and their management
teams.
Management and investors review both the overall performance
(including; net income, excluding gains on sales of facilities,
impairment of long-lived assets and transaction costs, and GAAP net
income) and operating performance (adjusted EBITDA) of our health
care facilities. Adjusted EBITDA and the adjusted EBITDA margin
(adjusted EBITDA divided by revenues) are utilized by management and
investors to compare our current operating results with the
corresponding periods during the previous year and to compare our
operating results with other companies in the health care industry.
It is reasonable to expect that gains on sales of facilities and
impairments of long-lived assets will occur in future periods, but
the amounts recognized can vary significantly from quarter to
quarter, do not directly relate to the ongoing operations of our
health care facilities and complicate quarterly comparisons of our
results of operations and operations comparisons with other health
care companies.
Net income, excluding gains on sales of facilities, impairment of
long-lived assets and transaction costs, and adjusted EBITDA are not
measures of financial performance under accounting principles
generally accepted in the United States, and should not be considered
as alternatives to net income as measures of operating performance or
alternatives to cash flows from operating, investing and financing
activities as measures of liquidity. Because net income, excluding
gains on sales of facilities, impairment of long-lived assets and
transaction costs, and adjust
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