Navigation Links
HCA Reports Second Quarter 2008 Results
Date:7/31/2008

NASHVILLE, Tenn., July 31 /PRNewswire/ -- HCA today announced financial and operating results for its second quarter ended June 30, 2008.

Second Quarter Summary:

-- Revenues increased 3.7 percent to $6.980 billion.

-- Net income totaled $141 million, compared to $116 million in the prior

year's second quarter.

-- Adjusted EBITDA totaled $1.104 billion, compared to $1.180 billion in

the second quarter of 2007.

-- Salaries and benefits increased to $2.841 billion, from $2.654 billion

in the second quarter of 2007.

-- Provision for doubtful accounts increased to $813 million, from $753

million in the prior year.

-- Interest expense decreased to $494 million, from $557 million in the

prior year's second quarter.

-- Same facility admissions increased 1.3 percent, and same facility

equivalent admissions increased 2.0 percent.

-- Same facility revenue per equivalent admission increased 3.0 percent.

-- Surgeries on a same facility basis declined 0.6 percent.

Revenues for the second quarter totaled $6.980 billion, compared to $6.729 billion in the second quarter of 2007. Adjusted EBITDA in the quarter totaled $1.104 billion, compared to $1.180 billion in the previous year's second quarter. A table describing adjusted EBITDA and reconciling net income to adjusted EBITDA for these periods is included in this release. Net income for the second quarter of 2008 totaled $141 million, compared to $116 million in the prior year's second quarter. Results for the second quarter of 2008 include losses on sales of facilities of $11 million compared to gains of $11 million in the second quarter of 2007. Also, second quarter 2008 results include an impairment of long-lived assets of $9 million compared to a $24 million asset impairment in the same period of 2007.

Salaries and benefits increased to $2.841 billion, or 40.7 percent of revenues, in th (11,709) (11,402) (11,137)

11,436 11,381 11,442

Investments of insurance

subsidiary 1,526 1,634 1,669

Investments in and advances to

affiliates 833 738 688

Goodwill 2,630 2,633 2,629

Deferred loan costs 498 517 539

Other 858 1,088 853

$24,070 $24,492 $24,025

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

Accounts payable $1,214 $1,272 $1,370

Accrued salaries 785 732 780

Other accrued expenses 1,064 1,422 1,391

Long-term debt due within

one year 341 330 308

Total current liabilities 3,404 3,756 3,849

Long-term debt 27,274 27,159 27,000

Professional liability risks 1,160 1,242 1,233

Deferred taxes and other

liabilities 1,295 1,745 1,379

Minority interests in equity of

consolidated entities 959 953 938

Equity securities with contingent

redemption rights 163 163 164

Stockholders' deficit (10,185) (10,526) (10,538)

$24,070 $24,492 $24,025

HCA Inc.

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2008 and 2007

(Dollars in millions)

2008 2007

Cash flows from operating activities:

Net income $311 $296

Adjustments to reconcile net income to net

cash provided by operating activities:

Provision for doubtful accounts 1,701 1,444

Depreciation and amortization 712 716

Income taxes (376) (21)

Gains on sales of facilities (40) (16)

Impairment of long-lived assets 9 24

Change in operating assets and liabilities (1,994) (2,100)

Share-based compensation 19 11

Change in minority interests 15 16

Other 67 36

Net cash provided by operating activities 424 406

Cash flows from investing activities:

Purchase of property and equipment (717) (675)

Acquisition of hospitals and health care

entities (44) (10)

Disposal of hospitals and health care entities 110 65

Change in investments (11) 192

Other 13 10

Net cash used in investing activities (649) (418)

Cash flows from financing activities:

Net change in revolving bank credit facility 900 (210)

Repayment of long-term debt (703) (148)

Issuance of common stock - 100

Other 3 (14)

Net cash provided by (used in) financing

activities 200 (268)

Change in cash and cash equivalents (25) (280)

Cash and cash equivalents at beginning of period 393 634

Cash and cash equivalents at end of period $368 $354

Interest payments $1,007 $1,092

Income tax payments, net of refunds $532 $227

HCA Inc.

Operating Statistics

For the Six Months

Second Quarter Ended June 30,

2008 2007 2008 2007

Consolidating Hospitals:

Number of Hospitals 161 164 161 164

Weighted Average Licensed

Beds 38,419 39,222 38,413 39,245

Licensed Beds at End of

Period 38,448 39,175 38,448 39,175

Reported:

Admissions 382,600 383,200 784,300 787,000

% Change -0.2% -0.4%

Equivalent Admissions 587,600 582,500 1,188,900 1,183,700

% Change 0.9% 0.4%

Revenue per Equivalent

Admission $11,878 $11,552 $11,865 $11,325

% Change 2.8% 4.8%

Inpatient Revenue per

Admission $11,175 $10,900 $11,193 $10,638

% Change 2.5% 5.2%

Patient Days 1,887,600 1,899,500 3,912,200 3,921,000

Equivalent Patient

Days 2,900,100 2,887,100 5,930,900 5,897,100

Inpatient Surgery Cases 125,000 131,200 250,400 261,700

% Change -4.7% -4.3%

Outpatient Surgery Cases 202,100 204,200 399,000 408,400

% Change -1.0% -2.3%

Emergency Room Visits 1,297,600 1,258,700 2666,400 2,553,900

% Change 3.1% 4.4%

Outpatient Revenues as a

Percentage of Patient

Revenues 37.7% 36.8% 36.7% 36.4%

Average Length of Stay 4.9 5.0 5.0 5.0

Occupancy 54.0% 53.2% 56.0% 55.2%

Equivalent Occupancy 82.9% 80.9% 84.9% 83.0%

Same Facility:

Admissions 381,000 376,100 781,500 773,000

% Change 1.3% 1.1%

Equivalent Admissions 584,100 572,500 1,182,400 1,163,300

% Change 2.0% 1.6%

Revenue per Equivalent

Admission $11,852 $11,510 $11,840 $11,291

% Change 3.0% 4.9%

Inpatient Revenue per

Admission $11,179 $10,905 $11,197 $10,639

% Change 2.5% 5.2%

Inpatient Surgery Cases 124,800 125,500 249,700 251,200

% Change -0.5% -0.6%

Outpatient Surgery Cases 200,200 201,700 395,300 401,700

% Change -0.7% -1.6%

Emergency Room Visits 1,290,900 1,236,600 2,650,500 2,510,100

% Change 4.4% 5.6%

Number of Consolidating and

Nonconsolidating (Equity Joint

Ventures) Hospitals:

Consolidating 161 164 161 164

Nonconsolidating (Equity

Joint Ventures) 8 8 8 8

Total Number of Hospitals 169 172 169 172

e second quarter of 2008 from $2.654 billion, or 39.4 percent of revenues, in the second quarter of 2007. Salaries and benefits per equivalent admission increased 6.1 percent while revenue per equivalent admission increased 2.8 percent for the second quarter of 2008 compared to the second quarter of 2007.

The provision for doubtful accounts increased to $813 million, or 11.7 percent of revenues, in the second quarter of 2008 from $753 million, or 11.2 percent of revenues, in the second quarter of 2007. Same facility uninsured admissions increased 1.0 percent in the second quarter of 2008 compared to the prior year's second quarter.

We reached a settlement with the IRS Appeals Division regarding certain 2001 and 2002 issues during the second quarter of 2008 and the settlement resulted in a $38 million reduction to our provision for income taxes for the second quarter of 2008.

Interest expense decreased to $494 million in the second quarter of 2008, compared to $557 million in the same period of 2007, due to reductions in both our average debt balance and the average interest rate on our debt.

Same facility admissions increased 1.3 percent and same facility equivalent admissions increased 2.0 percent in the second quarter of 2008 compared to the prior year's second quarter. Same facility inpatient surgeries declined 0.5 percent and outpatient surgeries declined 0.7 percent in the second quarter. Same facility revenue per equivalent admission increased 3.0 percent in the second quarter of 2008 compared to the second quarter of 2007 due primarily to changes in service and payor mix.

Same facility charity and uninsured discounts totaled $869 million in the second quarter of 2008 compared to $707 million in the second quarter of 2007.

As of June 30, 2008, HCA's balance sheet reflected cash and cash equivalents of $368 million, total debt of $27.615 billion, and total assets of $24.070 billion. During the second quarter, capital expenditures totaled $409 million. HCA expects capital expenditures to approximate $1.65 billion in 2008.

Revenues for the six months ended June 30, 2008 totaled $14.107 billion compared to $13.406 billion for the same period of 2007. Adjusted EBITDA totaled $2.284 billion for the first half of 2008 compared to $2.456 billion for the same period of 2007. HCA's net income was $311 million for the six months ended June 30, 2008 compared to $296 million in the prior year. Results for the six months ended June 30, 2008 include gains on sales of facilities of $40 million compared to $16 million of gains on sales of facilities for the same period of 2007 and an impairment of long-lived assets of $9 million in the current year compared to a $24 million asset impairment in the first half of 2007.

As of June 30, 2008, HCA operated 169 hospitals and 107 freestanding surgery centers, including eight hospitals and eight freestanding surgery centers operated through equity method joint ventures.

Earnings Conference Call

HCA will host a conference call for investors at 9:00 a.m. Central Daylight Time today. All interested investors are invited to access a live audio broadcast of the call via webcast. The broadcast also will be available on a replay basis beginning this afternoon. The webcast can be accessed at: http://www.videonewswire.com/event.asp?id=49883 or through the Company's Investor Relations web page, http://www.hcahealthcare.com .

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on current management expectations. Those forward-looking statements include all statements other than those made solely with respect to historical fact. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. These factors include, but are not limited to, (1) the ability to recognize the benefits of the recapitalization; (2) the impact of the substantial indebtedness incurred to finance the recapitalization; (3) increases in the amount and risk of collectibility of uninsured accounts, and deductibles and copayment amounts for insured accounts; (4) the ability to achieve operating and financial targets, and attain expected levels of patient volumes and control the costs of providing services; (5) possible changes in the Medicare, Medicaid and other state programs, including Medicaid supplemental payments pursuant to upper payment limit programs, that may impact reimbursements to health care providers and insurers; (6) the highly competitive nature of the health care business; (7) changes in revenue mix and the ability to enter into and renew managed care provider agreements on acceptable terms; (8) the efforts of insurers, health care providers and others to contain health care costs; (9) the outcome of our continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures and our corporate integrity agreement with the government; (10) changes in federal, state or local laws or regulations affecting the health care industry; (11) increases in wages and the ability to attract and retain qualified management and personnel, including affiliated physicians, nurses and medical and technical support personnel; (12) the possible enactment of federal or state health care reform; (13) the availability and terms of capital to fund the expansion of our business and improvements to our existing facilities; (14) changes in accounting practices; (15) changes in general economic conditions nationally and regionally in our markets; (16) future divestitures which may result in charges; (17) changes in business strategy or development plans; (18) the outcome of pending and any future tax audits, appeals and litigation associated with our tax positions; (19) delays in receiving payment for services provided; (20) potential liabilities and other claims that may be asserted against us; (21) other risk factors described in our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Many of the factors that will determine our future results are beyond our ability to control or predict. In light of the significant uncertainties inherent in the forward-looking statements contained herein, readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake 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" and "HCA" as used throughout this document refer to HCA Inc. and its affiliates.

HCA Inc.

Consolidated Income Statements

Second Quarter

(Dollars in millions)

2008 2007

Amount Ratio Amount Ratio

Revenues $6,980 100.0% $6,729 100.0%

Salaries and benefits 2,841 40.7 2,654 39.4

Supplies 1,149 16.5 1,096 16.3

Other operating expenses 1,136 16.2 1,101 16.4

Provision for doubtful

accounts 813 11.7 753 11.2

Gains on investments (1) - (7) (0.1)

Equity in earnings of

affiliates (62) (0.9) (48) (0.7)

Depreciation and amortization 355 5.0 361 5.3

Interest expense 494 7.1 557 8.3

Losses (gains) on sales of

facilities 11 0.2 (11) (0.2)

Impairment of long-lived

assets 9 0.1 24 0.4

6,745 96.6 6,480 96.3

Income before minority

interests and income taxes 235 3.4 249 3.7

Minority interests in earnings

of consolidated entities 56 0.8 55 0.8

Income before income taxes 179 2.6 194 2.9

Provision for income taxes 38 0.6 78 1.2

Net income $141 2.0 $116 1.7

HCA Inc.

Consolidated Income Statements

For the Six Months Ended June 30, 2008 and 2007

(Dollars in millions)

2008 2007

Amount Ratio Amount Ratio

Revenues $14,107 100.0% $13,406 100.0%

Salaries and benefits 5,680 40.3 5,301 39.5

Supplies 2,322 16.5 2,199 16.4

Other operating expenses 2,250 15.8 2,118 15.8

Provision for doubtful

accounts 1,701 12.1 1,444 10.8

Gains on investments (1) - (7) -

Equity in earnings of

affiliates (129) (0.9) (105) (0.8)

Depreciation and amortization 712 5.0 716 5.3

Interest expense 1,024 7.3 1,114 8.3

Gains on sales of facilities (40) (0.3) (16) (0.1)

Impairment of long-lived

assets 9 0.1 24 0.2

13,528 95.9 12,788 95.4

Income before minority

interests and income taxes 579 4.1 618 4.6

Minority interests in earnings

of consolidated entities 112 0.8 116 0.9

Income before income taxes 467 3.3 502 3.7

Provision for income taxes 156 1.1 206 1.5

Net income $311 2.2 $296 2.2

HCA Inc.

Supplemental Operating Results Summary

(Dollars in millions)

For the Six Months

Second Quarter Ended June 30,

2008 2007 2008 2007

Revenues $6,980 $6,729 $14,107 $13,406

Net income $141 $116 $311 $296

Losses (gains) on

sales of facilities

(net of tax) 6 (8) (24) (10)

Impairment of long-

lived assets

(net of tax) 6 15 6 15

Net income, excluding

losses (gains) on sales

of facilities and

impairment of long-lived

assets 153 123 293 301

Depreciation and

amortization 355 361 712 716

Interest expense 494 557 1,024 1,114

Minority interests in

earnings of

consolidated

entities 56 55 112 116

Provision for income

taxes 46 84 143 209

Adjusted EBITDA(a) $1,104 $1,180 $2,284 $2,456

(a) Net income, excluding losses (gains) on sales of facilities and impairment of long-lived assets and adjusted EBITDA are non-GAAP financial measures. We believe that net income, excluding losses (gains) on sales of facilities and impairment of long-lived assets and adjusted EBITDA are important measures that supplement discussions and analysis of our results of operations. We believe that it is useful to investors to provide disclosures of our results of operations on the same basis as that used by management. Management relies upon net income, excluding losses (gains) on sales of facilities and impairment of long-lived assets and adjusted EBITDA as the primary measures to review and assess operating performance of its hospital facilities and their management teams.

Management and investors review both the overall performance (including; net income, excluding losses (gains) on sales of facilities and impairment of long-lived assets 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 losses (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 losses (gains) on sales of facilities and impairment of long-lived assets 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 a measure of operating performance or cash flows from operating, investing and financing activities as a measure of liquidity. Because net income, excluding losses (gains) on sales of facilities and impairment of long-lived assets and adjusted EBITDA are not measurements determined in accordance with generally accepted accounting principles and are susceptible to varying calculations, net income, excluding losses (gains) on sales of facilities and impairment of long-lived assets and adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies.

HCA Inc.

Condensed Consolidated Balance Sheets

(Dollars in millions)

June 30, March 31, December 31,

2008 2008 2007

ASSETS

Current assets:

Cash and cash equivalents $368 $471 $393

Accounts receivable, less

allowance for doubtful

accounts 3,922 4,134 3,895

Inventories 715 705 710

Deferred income taxes 727 693 592

Other 557 498 615

Total current assets 6,289 6,501 6,205

Property and equipment, at cost 23,145 22,783 22,579

Accumulated depreciation
'/>"/>

SOURCE HCA
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. New Study Reports High Injury Rates for Hotel Workers, Even Higher Rates for Women and Nonwhites
2. Haemacure Reports Third Quarter 2007 Results
3. First-Ever List of the 5,000 Fastest-Growing Businesses Reports Total Revenue of $194.5 Billion
4. Consumer Reports Analysis: Drugs for Nerve Pain, Fibromyalgia Effective, But Not Always Best
5. MDS Reports Third Quarter 2007 Results
6. Allied Healthcare Reports Strong Fourth Quarter, Flat Net Income for Fiscal 2007 vs. 2006
7. AtriCure Reports First Human Implant of the Cosgrove-Gillinov Left Atrial Appendage Occlusion System
8. NMHC Reports Fourth Quarter and Fiscal Year 2007 Financial Results
9. Blue Cross and Blue Shield of Florida Reports Eighteenth Consecutive Year of Positive Performance
10. ReBuilder Medical Technologies, Inc. Reports International Sales Expansion
11. AdCare Health Systems, Inc. Reports Discontinuation of Definitive Merger Agreement with Family Home Health Services, Inc.
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... ... June 25, 2016 , ... "With 30 hand-drawn hand gesture animations, FCPX ... Austin - CEO of Pixel Film Studios. , ProHand Cartoon’s package transforms over ... Cut Pro X . Simply select a ProHand generator and drag it above media ...
(Date:6/25/2016)... ... ... Conventional wisdom preaches the benefits of moderation, whether it’s a matter of indulgence ... high can result in disappointment, perhaps even self-loathing. However, those who set the bar ... from PsychTests.com reveals that behind the tendency to set low expectations is ...
(Date:6/24/2016)... ... 24, 2016 , ... The Pulmonary Hypertension Association (PHA) learned ... receive two significant new grants to support its work to advance research and ... by recognizing patients, medical professionals and scientists for their work in fighting pulmonary ...
(Date:6/24/2016)... Plano, TX (PRWEB) , ... June 24, 2016 , ... ... taking part in Genome magazine’s Code Talker Award, an essay contest in which patients ... for an award to be presented at the 2016 National Society of Genetic Counselors ...
(Date:6/24/2016)... ... June 24, 2016 , ... National recruitment firm Slone Partners ... extensive sequencing and genomics experience, as Vice President of North American Capital Sales at ... responsible for leading the sales team in the commercialization of the HTG EdgeSeq system ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... , June 23, 2016 Research and ... News Issue 52" report to their offering. ... influenza treatment creates a favourable commercial environment for MedImmune to ... patient base that will serve to drive considerable growth for ... would serve to cap sales considerably, but development is still ...
(Date:6/23/2016)... 2016  Astellas today announced the establishment of Astellas Farma Colombia (AFC), a new affiliate with operations headquartered in ... America . ... ... ... ...
(Date:6/23/2016)... June 23, 2016 Research and ... Procedure Volumes: Global Analysis (United States, China, Japan, Brazil, ... report to their offering. ... for healthcare business planners, provides surgical procedure volume data ... trends with an in-depth analysis of growth drivers and ...
Breaking Medicine Technology: