This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191029005221/en/
Key third quarter metrics (all percentage changes compare 3Q 2019 to 3Q 2018 unless otherwise noted):
- Revenues totaled
$12.694 billion - Net income attributable to
HCA Healthcare, Inc. totaled$612 million , or$1.76 per diluted share - Adjusted EBITDA totaled
$2.285 billion - Cash flows from operating activities totaled
$2.126 billion - Same facility equivalent admissions and same facility admissions increased 4.2 percent and 3.2 percent, respectively
Revenues in the third quarter of 2019 increased to
For the third quarter of 2019, Adjusted EBITDA totaled
Same facility admissions and equivalent admissions increased 3.2 percent and 4.2 percent, respectively, in the third quarter of 2019 compared to the prior year period. Same facility emergency room visits increased 4.1 percent in the third quarter of 2019, compared to the prior year period. Same facility inpatient surgeries increased 2.2 percent, and same facility outpatient surgeries increased 2.6 percent in the third quarter of 2019, compared to the same period of 2018. Same facility revenue per equivalent admission increased 2.0 percent in the third quarter of 2019, compared to the third quarter of 2018.
Salaries and benefits, supplies and other operating expenses totaled
Nine Months Ended
Revenues for the nine months ended
Balance Sheet and Cash Flows from Operations
As of
During the third quarter of 2019, the Company redeemed certain senior secured notes and recognized pretax losses on retirement of debt totaling
The Company repurchased 1.846 million shares of its common stock at a cost of
Dividend
HCA today announced that its Board of Directors declared a quarterly cash dividend of
The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations and contractual restrictions. Future dividends are expected to be funded by cash balances and future cash flows from operations.
2019 Revised Guidance
The 2019 revised guidance ranges for the year are as follows:
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2019 |
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Revenues |
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Adjusted EBITDA |
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EPS (diluted) |
|
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Capital Expenditures |
Approximately |
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The Company’s 2019 guidance contains a number of assumptions, including:
- 2019 guidance includes an estimated financial impact of the Company’s
Mission Health acquisition, which closedFebruary 1, 2019 . - 2019 guidance excludes the impact of items such as, but not limited to, gains or losses on sales of facilities, losses on retirement of debt, legal claim costs and impairments of long-lived assets.
Adjusted EBITDA is a non-GAAP financial measure. A table reconciling forecasted net income attributable to
The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below in the Company’s “Forward-Looking Statements.”
Earnings Conference Call
HCA will host a conference call for investors at
About the Company
As of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include the Company’s financial guidance for the year ending
All references to “Company” and “HCA” as used throughout this release refer to
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Condensed Consolidated Comprehensive Income Statements |
|||||||||||
Third Quarter |
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(Dollars in millions, except per share amounts) |
|||||||||||
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|
|
|
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|
2019 |
|
2018 |
|||||||
|
|
|
Amount |
Ratio |
|
Amount |
Ratio |
||||
Revenues |
|
|
100.0 |
% |
|
|
100.0 |
% |
|||
Salaries and benefits |
5,971 |
|
47.0 |
5,377 |
|
46.9 |
|
||||
Supplies |
2,090 |
|
16.5 |
1,890 |
|
16.5 |
|
||||
Other operating expenses |
2,352 |
|
18.5 |
2,097 |
|
18.4 |
|
||||
Equity in earnings of affiliates |
(4 |
) |
- |
(9 |
) |
(0.1 |
) |
||||
Depreciation and amortization |
647 |
|
5.1 |
582 |
|
5.1 |
|
||||
Interest expense |
448 |
|
3.5 |
442 |
|
3.9 |
|
||||
Gains on sales of facilities |
- |
|
- |
(6 |
) |
(0.1 |
) |
||||
Losses on retirement of debt |
211 |
|
1.7 |
9 |
|
0.1 |
|
||||
11,715 |
|
92.3 |
10,382 |
|
90.7 |
|
|||||
Income before income taxes |
979 |
|
7.7 |
1,069 |
|
9.3 |
|
||||
Provision for income taxes |
215 |
|
1.7 |
173 |
|
1.5 |
|
||||
Net income |
764 |
|
6.0 |
896 |
|
7.8 |
|
||||
Net income attributable to noncontrolling interests |
152 |
|
1.2 |
137 |
|
1.2 |
|
||||
Net income attributable to |
|
|
4.8 |
|
|
6.6 |
|
||||
Diluted earnings per share |
|
|
|
|
|||||||
Shares used in computing diluted earnings per share (millions) |
347.487 |
|
353.639 |
|
|||||||
Comprehensive income attributable to |
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|
|
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|||||||||||||
Condensed Consolidated Comprehensive Income Statements |
|||||||||||||
For the Nine Months Ended |
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(Dollars in millions, except per share amounts) |
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|
|
2019 |
|
2018 |
|
||||||||
|
|
|
Amount |
Ratio |
|
Amount |
Ratio |
|
|||||
Revenues |
|
|
100.0 |
% |
|
|
100.0 |
% |
|||||
Salaries and benefits |
17,455 |
|
46.2 |
|
15,940 |
|
46.3 |
|
|||||
Supplies |
6,249 |
|
16.5 |
|
5,722 |
|
16.6 |
|
|||||
Other operating expenses |
7,013 |
|
18.6 |
|
6,325 |
|
18.5 |
|
|||||
Equity in earnings of affiliates |
(23 |
) |
(0.1 |
) |
(25 |
) |
(0.1 |
) |
|||||
Depreciation and amortization |
1,902 |
|
4.9 |
|
1,697 |
|
4.9 |
|
|||||
Interest expense |
1,386 |
|
3.7 |
|
1,309 |
|
3.8 |
|
|||||
Gains on sales of facilities |
(17 |
) |
- |
|
(420 |
) |
(1.2 |
) |
|||||
Losses on retirement of debt |
211 |
|
0.6 |
|
9 |
|
- |
|
|||||
34,176 |
|
90.4 |
|
30,557 |
|
88.8 |
|
||||||
Income before income taxes |
3,637 |
|
9.6 |
|
3,846 |
|
11.2 |
|
|||||
Provision for income taxes |
765 |
|
2.0 |
|
702 |
|
2.1 |
|
|||||
Net income |
2,872 |
|
7.6 |
|
3,144 |
|
9.1 |
|
|||||
Net income attributable to noncontrolling interests |
438 |
|
1.2 |
|
421 |
|
1.2 |
|
|||||
Net income attributable to |
|
|
6.4 |
|
|
|
7.9 |
|
|||||
Diluted earnings per share |
|
|
|
|
|||||||||
Shares used in computing diluted earnings per share (millions) |
348.712 |
|
356.124 |
|
|||||||||
Comprehensive income attributable to |
|
|
|
|
|
||||||||||||||||||||
Condensed Consolidated Balance Sheets |
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(Dollars in millions) |
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2019 |
2019 |
|
2018 |
|||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents |
|
|
|
|
|
|
||||||||||||||
Accounts receivable |
|
7,131 |
|
|
7,219 |
|
|
6,789 |
|
|
||||||||||
Inventories |
1,769 |
|
1,826 |
|
1,732 |
|
||||||||||||||
Other |
1,310 |
|
1,394 |
|
1,190 |
|
||||||||||||||
Total current assets |
10,769 |
|
12,869 |
|
10,213 |
|
||||||||||||||
Property and equipment, at cost |
46,295 |
|
45,369 |
|
42,965 |
|
||||||||||||||
Accumulated depreciation |
(24,293 |
) |
(23,902 |
) |
(23,208 |
) |
||||||||||||||
|
22,002 |
|
|
21,467 |
|
|
19,757 |
|
|
|||||||||||
Investments of insurance subsidiaries |
357 |
|
342 |
|
362 |
|
||||||||||||||
Investments in and advances to affiliates |
243 |
|
247 |
|
232 |
|
||||||||||||||
8,160 |
|
8,140 |
|
7,953 |
|
|||||||||||||||
Right-of-use operating lease assets |
1,770 |
|
1,787 |
|
- |
|
||||||||||||||
Other |
611 |
|
597 |
|
690 |
|
||||||||||||||
|
|
|
|
|
|
|||||||||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable |
|
|
|
|
|
|
||||||||||||||
Accrued salaries |
1,669 |
|
1,497 |
|
1,580 |
|
||||||||||||||
Other accrued expenses |
2,697 |
|
2,782 |
|
2,624 |
|
||||||||||||||
Long-term debt due within one year |
148 |
|
2,073 |
|
788 |
|
||||||||||||||
Total current liabilities |
7,124 |
|
8,961 |
|
7,569 |
|
||||||||||||||
Long-term debt, less debt issuance costs and discounts of |
34,097 |
|
|
34,120 |
|
|
32,033 |
|
|
|||||||||||
Professional liability risks |
1,349 |
|
1,354 |
|
1,275 |
|
||||||||||||||
Right-of-use operating lease obligations |
1,440 |
|
1,460 |
|
- |
|
||||||||||||||
Income taxes and other liabilities |
1,349 |
|
1,324 |
|
1,248 |
|
||||||||||||||
EQUITY (DEFICIT) | ||||||||||||||||||||
Stockholders' deficit attributable to |
|
(3,565 |
) |
|
(3,902 |
) |
|
(4,950 |
) |
|
||||||||||
Noncontrolling interests |
2,118 |
|
2,132 |
|
2,032 |
|
||||||||||||||
Total deficit |
|
(1,447 |
) |
|
(1,770 |
) |
|
(2,918 |
) |
|
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|||||||||||||||
|
|||||||||||||
Consolidated Statements of Cash Flows |
|||||||||||||
For the Nine Months Ended |
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(Dollars in millions) |
|||||||||||||
|
|
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|
|
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|
|||
|
|
|
|
|
|
|
2019 |
|
2018 |
||||
Cash flows from operating activities: | |||||||||||||
Net income |
|
|
|
|
|||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Increase (decrease) in cash from operating assets and liabilities: | |||||||||||||
Accounts receivable |
(93 |
) |
(161 |
) |
|||||||||
Inventories and other assets |
(95 |
) |
(136 |
) |
|||||||||
Accounts payable and accrued expenses |
(118 |
) |
150 |
|
|||||||||
Depreciation and amortization |
1,902 |
|
1,697 |
|
|||||||||
Income taxes |
51 |
|
- |
|
|||||||||
Gains on sales of facilities |
(17 |
) |
(420 |
) |
|||||||||
Losses on retirement of debt |
211 |
|
9 |
|
|||||||||
Amortization of debt issuance costs and discounts |
23 |
|
23 |
|
|||||||||
Share-based compensation |
263 |
|
204 |
|
|||||||||
Other |
98 |
|
76 |
|
|||||||||
Net cash provided by operating activities |
5,097 |
|
4,586 |
|
|||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of property and equipment |
(2,884 |
) |
(2,420 |
) |
|||||||||
Acquisition of hospitals and health care entities |
(1,592 |
) |
(1,056 |
) |
|||||||||
Disposition of hospitals and health care entities |
49 |
|
802 |
|
|||||||||
Change in investments |
35 |
|
65 |
|
|||||||||
Other |
17 |
|
(6 |
) |
|||||||||
Net cash used in investing activities |
(4,375 |
) |
(2,615 |
) |
|||||||||
Cash flows from financing activities: | |||||||||||||
Issuance of long-term debt |
6,451 |
|
2,000 |
|
|||||||||
Net change in revolving credit facilities |
(30 |
) |
(330 |
) |
|||||||||
Repayment of long-term debt |
(5,289 |
) |
(1,652 |
) |
|||||||||
Distributions to noncontrolling interests |
(404 |
) |
(315 |
) |
|||||||||
Payment of debt issuance costs |
(71 |
) |
(24 |
) |
|||||||||
Payment of cash dividends |
(414 |
) |
(366 |
) |
|||||||||
Repurchase of common stock |
(759 |
) |
(1,195 |
) |
|||||||||
Other |
(145 |
) |
(232 |
) |
|||||||||
Net cash used in financing activities |
(661 |
) |
(2,114 |
) |
|||||||||
Effect of exchange rate changes on cash and cash equivalents |
(4 |
) |
(11 |
) |
|||||||||
Change in cash and cash equivalents |
57 |
|
(154 |
) |
|||||||||
Cash and cash equivalents at beginning of period |
502 |
|
732 |
|
|||||||||
Cash and cash equivalents at end of period |
|
|
|
|
|||||||||
Interest payments |
|
|
|
|
|||||||||
Income tax payments, net |
|
|
|
|
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|
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Operating Statistics |
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|
Third Quarter |
For the Nine Months Ended |
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2019 |
2018 |
2019 |
2018 |
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|
Operations: | |||||||||||||||||||
Number of Hospitals |
184 |
|
179 |
|
184 |
|
179 |
|
||||||||||||
Number of Freestanding Outpatient Surgery Centers |
125 |
|
122 |
|
125 |
|
122 |
|
||||||||||||
Licensed Beds at End of Period |
48,588 |
|
47,060 |
|
48,588 |
|
47,060 |
|
||||||||||||
Weighted Average Licensed Beds |
48,535 |
|
46,909 |
|
48,335 |
|
46,755 |
|
||||||||||||
Reported: | ||||||||||||||||||||
Admissions |
527,284 |
|
497,899 |
|
1,568,733 |
|
1,500,382 |
|
||||||||||||
% Change |
5.9 |
% |
4.6 |
% |
||||||||||||||||
Equivalent Admissions |
918,964 |
|
854,940 |
|
2,712,339 |
|
2,555,151 |
|
||||||||||||
% Change |
7.5 |
% |
6.2 |
% |
||||||||||||||||
Revenue per Equivalent Admission |
$ 13,814 |
|
$ 13,394 |
|
$ 13,941 |
|
$ 13,464 |
|
||||||||||||
% Change |
3.1 |
% |
3.5 |
% |
||||||||||||||||
Inpatient Revenue per Admission |
$ 14,192 |
|
$ 13,642 |
|
$ 14,297 |
|
$ 13,716 |
|
||||||||||||
% Change |
4.0 |
% |
4.2 |
% |
||||||||||||||||
2,530,221 |
|
2,391,127 |
|
7,667,666 |
|
7,293,152 |
|
|||||||||||||
% Change |
5.8 |
% |
5.1 |
% |
||||||||||||||||
Equivalent |
4,410,715 |
|
4,106,404 |
|
13,257,395 |
|
12,420,238 |
|
||||||||||||
% Change |
7.4 |
% |
6.7 |
% |
||||||||||||||||
Inpatient Surgery Cases |
143,215 |
|
137,156 |
* |
421,051 |
|
409,595 |
* |
||||||||||||
% Change |
4.4 |
% |
2.8 |
% |
||||||||||||||||
Outpatient Surgery Cases |
249,177 |
|
236,801 |
* |
743,464 |
|
715,297 |
* |
||||||||||||
% Change |
5.2 |
% |
3.9 |
% |
||||||||||||||||
Emergency Room Visits |
2,269,364 |
|
2,139,375 |
|
6,810,141 |
|
6,589,825 |
|
||||||||||||
% Change |
6.1 |
% |
3.3 |
% |
||||||||||||||||
Outpatient Revenues as a | ||||||||||||||||||||
Percentage of Patient Revenues |
39.0 |
% |
38.7 |
% |
38.7 |
% |
38.2 |
% |
||||||||||||
Average Length of Stay (days) |
4.799 |
|
4.802 |
|
4.888 |
|
4.861 |
|
||||||||||||
Occupancy |
56.7 |
% |
55.4 |
% |
58.1 |
% |
57.1 |
% |
||||||||||||
Same Facility: | ||||||||||||||||||||
Admissions |
499,436 |
|
483,772 |
|
1,489,878 |
|
1,458,567 |
|
||||||||||||
% Change |
3.2 |
% |
2.1 |
% |
||||||||||||||||
Equivalent Admissions |
862,526 |
|
827,734 |
|
2,553,651 |
|
2,479,564 |
|
||||||||||||
% Change |
4.2 |
% |
3.0 |
% |
||||||||||||||||
Revenue per Equivalent Admission |
$ 13,721 |
|
$ 13,451 |
|
$ 13,858 |
|
$ 13,501 |
|
||||||||||||
% Change |
2.0 |
% |
2.6 |
% |
||||||||||||||||
Inpatient Revenue per Admission |
$ 14,243 |
|
$ 13,661 |
|
$ 14,344 |
|
$ 13,733 |
|
||||||||||||
% Change |
4.3 |
% |
4.4 |
% |
||||||||||||||||
Inpatient Surgery Cases |
135,379 |
|
132,509 |
|
398,215 |
|
395,679 |
|
||||||||||||
% Change |
2.2 |
% |
0.6 |
% |
||||||||||||||||
Outpatient Surgery Cases |
235,853 |
|
229,825 |
|
705,699 |
|
694,783 |
|
||||||||||||
% Change |
2.6 |
% |
1.6 |
% |
||||||||||||||||
Emergency Room Visits |
2,161,245 |
|
2,075,219 |
|
6,500,579 |
|
6,399,026 |
|
||||||||||||
% Change |
4.1 |
% |
1.6 |
% |
||||||||||||||||
* Reclassifications between inpatient surgery cases and outpatient surgery cases for 2018 have been made to conform to the 2019 presentation. |
|
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Supplemental Non-GAAP Disclosures |
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Operating Results Summary |
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(Dollars in millions, except per share amounts) |
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For the Nine Months |
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Third Quarter |
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Ended |
||||||||||
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|
2019 |
2018 |
|
2019 |
2018 |
||||||||
Revenues |
|
|
|
|
|
|
|
|
|||||||||||||||
Net income attributable to |
|
|
|
|
|
|
|
|
|||||||||||||||
Gains on sales of facilities (net of tax) |
- |
|
(5 |
) |
(13 |
) |
(318 |
) |
|||||||||||||||
Losses on retirement of debt (net of tax) |
162 |
|
7 |
|
162 |
|
7 |
|
|||||||||||||||
Net income attributable to |
774 |
|
761 |
|
2,583 |
|
2,412 |
|
|||||||||||||||
Depreciation and amortization |
647 |
|
582 |
|
1,902 |
|
1,697 |
|
|||||||||||||||
Interest expense |
448 |
|
442 |
|
1,386 |
|
1,309 |
|
|||||||||||||||
Provision for income taxes |
264 |
|
174 |
|
810 |
|
602 |
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Net income attributable to noncontrolling interests |
152 |
|
137 |
|
438 |
|
421 |
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Adjusted EBITDA (a) |
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Adjusted EBITDA margin (a) |
18.0 |
% |
18.3 |
% |
18.8 |
% |
18.7 |
% |
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Diluted earnings per share: | |||||||||||||||||||||||
Net income attributable to |
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Gains on sales of facilities |
- |
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(0.01 |
) |
(0.04 |
) |
(0.89 |
) |
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Losses on retirement of debt |
0.47 |
|
0.02 |
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0.47 |
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0.02 |
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Net income attributable to |
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Shares used in computing diluted earnings per share (millions) |
347.487 |
|
353.639 |
|
348.712 |
|
356.124 |
|
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(a) |
Net income attributable to |
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Management and investors review both the overall performance (including net income attributable to |
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Net income attributable to |
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Supplemental Non-GAAP Disclosures |
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2019 Operating Results Forecast |
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(Dollars in millions, except per share amounts) |
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For the Year Ending |
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Low |
High |
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Revenues |
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Net income attributable to |
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Depreciation and amortization |
2,550 |
2,575 |
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Interest expense |
1,825 |
1,850 |
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Provision for income taxes |
1,090 |
1,115 |
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Net income attributable to noncontrolling interests |
590 |
590 |
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Adjusted EBITDA (a) (b) |
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Diluted earnings per share: | ||||||||||||||
Net income attributable to |
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|
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Shares used in computing diluted earnings per share (millions) |
349.200 |
349.200 |
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The Company's forecasted guidance range is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks. | ||||||||||||||
(a) | The Company does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of debt, legal claim costs (benefits) and impairments of long-lived assets because the Company does not believe that it can forecast these items with sufficient accuracy. | |||||||||||||
(b) | Adjusted EBITDA should not be considered a measure of financial performance under generally accepted accounting principles ("GAAP"). We believe Adjusted EBITDA is an important measure that supplements discussions and analysis of our results of operations. We believe it is useful to investors to provide disclosures of our results of operations on the same basis used by management. Management relies upon Adjusted EBITDA as a primary measure to review and assess operating performance of its health care facilities and their management teams. | |||||||||||||
Management and investors review both the overall performance (including net income attributable to |
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Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income attributable to |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20191029005221/en/
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