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    October 29, 2019 Newswires No comments Views: 1

    HCA Reports Third Quarter 2019 Results

    Business Wire

    NASHVILLE, Tenn.--(BUSINESS WIRE)-- HCA Healthcare, Inc. (NYSE: HCA) today announced financial and operating results for the third quarter ended September 30, 2019.

    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 $12.694 billion, compared to $11.451 billion in the third quarter of 2018. Net income attributable to HCA Healthcare, Inc. totaled $612 million, or $1.76 per diluted share, compared to $759 million, or $2.15 per diluted share, in the third quarter of 2018. Results for the third quarter of 2019 include losses on retirement of debt of $211 million, or $0.47 per diluted share. Third quarter of 2018 results included gains on sales of facilities of $6 million, or $0.01 per diluted share, and losses on retirement of debt of $9 million, or $0.02 per diluted share.

    For the third quarter of 2019, Adjusted EBITDA totaled $2.285 billion, compared to $2.096 billion in the third quarter of 2018. Adjusted EBITDA is a non-GAAP financial measure. A table providing supplemental information on Adjusted EBITDA and reconciling net income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is included in this release.

    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 $10.413 billion, or 82.0 percent of revenues, in the third quarter of 2019, compared to $9.364 billion, or 81.8 percent of revenues, in the third quarter of 2018.

    Nine Months Ended September 30, 2019

    Revenues for the nine months ended September 30, 2019 totaled $37.813 billion, compared to $34.403 billion in the same period of 2018. Net income attributable to HCA Healthcare, Inc. was $2.434 billion, or $6.98 per diluted share, compared to $2.723 billion, or $7.65 per diluted share, for the first nine months of 2018. Results for the nine months ended September 30, 2019 include gains on sales of facilities of $17 million, or $0.04 per diluted share and losses on retirement of debt of $211 million, or $0.47 per diluted share. Results for the nine months ended September 30, 2018 included gains on sales of facilities of $420 million, or $0.89 per diluted share, and losses on retirement of debt of $9 million, or $0.02 per diluted share.

    Balance Sheet and Cash Flows from Operations

    As of September 30, 2019, HCA Healthcare, Inc.’s balance sheet reflected cash and cash equivalents of $559 million, total debt of $34.245 billion, and total assets of $43.912 billion. During the third quarter of 2019, capital expenditures totaled $1.139 billion, excluding acquisitions. Cash flows provided by operating activities in the third quarter totaled $2.126 billion, compared to $1.721 billion in the third quarter of 2018.

    During the third quarter of 2019, the Company redeemed certain senior secured notes and recognized pretax losses on retirement of debt totaling $211 million, or $0.47 per diluted share, for these redemptions.

    The Company repurchased 1.846 million shares of its common stock at a cost of $239 million during the third quarter of 2019. For the nine months ended September 30, 2019, the Company repurchased 5.880 million shares at a cost of $759 million. The Company had $1.513 billion remaining under its existing repurchase authorization as of the end of September 30, 2019.

    Dividend

    HCA today announced that its Board of Directors declared a quarterly cash dividend of $0.40 per share on the Company’s common stock. The dividend will be paid on December 27, 2019 to stockholders of record at the close of business on December 2, 2019.

    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:

     

             

    2019 Guidance Range

    Revenues

             

    $50.5 to $51.5 billion

    Adjusted EBITDA

             

    $9.65 to $9.85 billion

    EPS (diluted)

             

    $10.30 to $10.65 per diluted share

    Capital Expenditures

             

    Approximately $3.8 billion

               

    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 closed February 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 HCA Healthcare, Inc. to forecasted Adjusted EBITDA is included in this release.

    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 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: https://event.webcasts.com/starthere.jsp?ei=1234730&tp_key=ab2d64f271 or through the Company’s Investor Relations web page at www.hcahealthcare.com.

    About the Company

    As of September 30, 2019, HCA operated 184 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics, in 21 states and the United Kingdom.

    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 December 31, 2019, as well as other statements that do not relate solely to historical or current facts. Forward-looking statements can be identified by the use of words like “may,” “believe,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “initiative” or “continue.” These forward-looking statements are based on our current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond our control, which could significantly affect current plans and expectations and our future financial position and results of operations. These factors include, but are not limited to, (1) the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms, (2) the impact of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the “Health Reform Law”), including the effects of court challenges to, any repeal of, or changes to, the Health Reform Law or additional changes to its implementation, the possible enactment of additional federal or state health care reforms and possible changes to other federal, state or local laws or regulations affecting the health care industry, (3) the effects related to the continued implementation of the sequestration spending reductions required under the Budget Control Act of 2011, and related legislation extending these reductions, and the potential for future deficit reduction legislation that may alter these spending reductions, which include cuts to Medicare payments, or create additional spending reductions, (4) increases in the amount and risk of collectability of uninsured accounts and deductibles and copayment amounts for insured accounts, (5) the ability to achieve operating and financial targets, and attain expected levels of patient volumes and control the costs of providing services, (6) possible changes in Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs or Medicaid waiver programs, that may impact reimbursements to health care providers and insurers and the size of the uninsured or underinsured population, (7) the highly competitive nature of the health care business, (8) changes in service mix, revenue mix and surgical volumes, including potential declines in the population covered under third-party payer agreements, the ability to enter into and renew third-party payer provider agreements on acceptable terms and the impact of consumer-driven health plans and physician utilization trends and practices, (9) the efforts of health insurers, health care providers, large employer groups and others to contain health care costs, (10) the outcome of our continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures, (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 availability and terms of capital to fund the expansion of our business and improvements to our existing facilities, (13) changes in accounting practices, (14) changes in general economic conditions nationally and regionally in our markets, (15) the emergence of and effects related to infectious diseases, (16) future divestitures which may result in charges and possible impairments of long-lived assets, (17) changes in business strategy or development plans, (18) delays in receiving payments for services provided, (19) the outcome of pending and any future tax audits, disputes and litigation associated with our tax positions, (20) potential adverse impact of known and unknown government investigations, litigation and other claims that may be made against us, (21) the impact of potential cybersecurity incidents or security breaches, (22) our ongoing ability to demonstrate meaningful use of certified electronic health record technology, (23) the impact of natural disasters, such as hurricanes and floods, or similar events beyond our control, (24) the effects of the 2017 Tax Cuts and Jobs Act, including potential legislation or interpretive guidance that may be issued by federal and state taxing authorities or other standard-setting bodies, and (25) other risk factors described in our annual report on Form 10-K for the year ended December 31, 2018 and our 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 release refer to HCA Healthcare, Inc. and its affiliates.

     
     
     

    HCA Healthcare, Inc.

    Condensed Consolidated Comprehensive Income Statements

    Third Quarter

    (Dollars in millions, except per share amounts)

     

     

     

     

     

     

     

     

     

     

     

    2019

     

    2018

     

     

     

    Amount

    Ratio

     

    Amount

    Ratio

     
    Revenues  

    $12,694

     

    100.0

    %

    $11,451

     

    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 HCA Healthcare, Inc.

    $612

     

    4.8

    $759

     

    6.6

     

     
    Diluted earnings per share  

    $1.76

     

    $2.15

     

     
    Shares used in computing diluted earnings per share (millions)  

    347.487

     

    353.639

     

     
    Comprehensive income attributable to HCA Healthcare, Inc.  

    $582

     

    $754

     

     
     
     
     

    HCA Healthcare, Inc.

    Condensed Consolidated Comprehensive Income Statements

    For the Nine Months Ended September 30, 2019 and 2018

    (Dollars in millions, except per share amounts)

     

     

     

     

     

     

     

     

     

     

     

     

    2019

     

    2018

     

     

     

     

    Amount

    Ratio

     

    Amount

    Ratio

     

     
    Revenues  

    $37,813

     

    100.0

    %

    $34,403

     

    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 HCA Healthcare, Inc.

    $2,434

     

    6.4

     

    $2,723

     

    7.9

     

     
    Diluted earnings per share  

    $6.98

     

    $7.65

     

     
    Shares used in computing diluted earnings per share (millions)  

    348.712

     

    356.124

     

     
    Comprehensive income attributable to HCA Healthcare, Inc.  

    $2,354

     

    $2,735

     

       
       
       
       

    HCA Healthcare, Inc.

    Condensed Consolidated Balance Sheets

    (Dollars in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    September 30,

    June 30,

    December 31,

    2019

    2019

     

    2018

     
    ASSETS
    Current assets:
         Cash and cash equivalents  

    $559

     

    $2,430

     

    $502

     

         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

     

    Goodwill and other intangible assets  

    8,160

     

    8,140

     

    7,953

     

    Right-of-use operating lease assets  

            1,770

     

             1,787

     

                    -

     

    Other  

    611

     

    597

     

    690

     

        

    $43,912

     

    $45,449

     

    $39,207

     

     
     
     
    LIABILITIES AND STOCKHOLDERS' DEFICIT
    Current liabilities:
         Accounts payable  

    $2,610

     

    $2,609

     

    $2,577

     

         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 $244, $252 and $157  

    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 HCA Healthcare, Inc.

     

    (3,565

    )

     

    (3,902

    )

     

    (4,950

    )

     

    Noncontrolling interests  

    2,118

     

    2,132

     

    2,032

     

              Total deficit

     

    (1,447

    )

     

    (1,770

    )

     

    (2,918

    )

     

    $43,912

     

    $45,449

     

    $39,207

     

     
     
     
     
     

    HCA Healthcare, Inc.

    Consolidated Statements of Cash Flows

    For the Nine Months Ended September 30, 2019 and 2018

    (Dollars in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2019

     

    2018

     
    Cash flows from operating activities:
    Net income

    $2,872

     

    $3,144

     

    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  

    $559

     

    $578

     

     
     
    Interest payments  

    $1,492

     

    $1,422

     

    Income tax payments, net  

    $714

     

    $702

     

     
     
     
     

    HCA Healthcare, Inc.

    Operating Statistics

     

     

     

     

     

     

     

     

     

     

     

     

    Third Quarter

     

    For the Nine Months

    Ended September 30, 

    2019

    2018

     

    2019

    2018

     

    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

    %

       
    Patient Days  

    2,530,221

     

    2,391,127

     

     

    7,667,666

     

    7,293,152

     

          % Change  

    5.8

    %

     

    5.1

    %

    Equivalent Patient Days  

    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.
     
     
     
     

    HCA Healthcare, Inc.

    Supplemental Non-GAAP Disclosures

    Operating Results Summary

    (Dollars in millions, except per share amounts)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    For the Nine Months

     

     

     

     

     

     

     

     

     

     

     

    Third Quarter

     

    Ended September 30,

     

     

     

     

     

     

     

     

     

     

     

    2019

    2018

     

    2019

    2018

     
    Revenues  

    $12,694

     

    $11,451

     

     

    $37,813

     

    $34,403

     

     
    Net income attributable to HCA Healthcare, Inc.   

    $612

     

    $759

     

     

    $2,434

     

    $2,723

     

    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 HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt (a)

              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

     

    Net income attributable to noncontrolling interests  

              152

     

              137

     

     

              438

     

              421

     

     
    Adjusted EBITDA (a)  

    $2,285

     

    $2,096

     

     

    $7,119

     

    $6,441

     

     
    Adjusted EBITDA margin (a)  

    18.0

    %

    18.3

    %

     

    18.8

    %

    18.7

    %

     
    Diluted earnings per share:
    Net income attributable to HCA Healthcare, Inc.   

    $1.76

     

    $2.15

     

     

    $6.98

     

    $7.65

     

    Gains on sales of facilities  

                   -

     

           (0.01

    )

     

           (0.04

    )

           (0.89

    )

    Losses on retirement of debt  

             0.47

     

             0.02

     

     

             0.47

     

             0.02

     

     Net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt (a)  

    $2.23

     

    $2.16

     

     

    $7.41

     

    $6.78

     

       
    Shares used in computing diluted earnings per share (millions)  

      347.487

     

      353.639

     

     

      348.712

     

      356.124

     

       
           
     

    (a)

    Net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and Adjusted EBITDA should not be considered as measures of financial performance under generally accepted accounting principles ("GAAP").  We believe net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and Adjusted EBITDA are important measures that supplement 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 net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and Adjusted EBITDA as the primary measures 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 HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and GAAP net income attributable to HCA Healthcare, Inc.) 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 losses on retirement of debt will occur in future periods, but the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our health care facilities and complicate period comparisons of our results of operations and operations comparisons with other health care companies.
     
    Net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and Adjusted EBITDA are not measures of financial performance under GAAP, and should not be considered as alternatives to net income attributable to HCA Healthcare, Inc. as a measure of operating performance or cash flows from operating, investing and financing activities as a measure of liquidity.  Because net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and Adjusted EBITDA are not measurements determined in accordance with GAAP and are susceptible to varying calculations, net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, and Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies.
     
     

    HCA Healthcare, Inc.

    Supplemental Non-GAAP Disclosures

    2019 Operating Results Forecast

    (Dollars in millions, except per share amounts)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    For the Year Ending

     

     

     

     

     

     

     

     

     

     

     

    December 31, 2019

     

     

     

     

     

     

     

     

     

     

     

    Low

    High

    Revenues  

    $50,500

    $51,500

    Net income attributable to HCA Healthcare, Inc. (a)  

    $3,595

    $3,720

    Depreciation and amortization  

          2,550

          2,575

    Interest expense  

          1,825

          1,850

    Provision for income taxes  

          1,090

          1,115

    Net income attributable to noncontrolling interests  

              590

              590

    Adjusted EBITDA (a) (b)  

    $9,650

    $9,850

    Diluted earnings per share:
    Net income attributable to HCA Healthcare, Inc.   

    $10.30

    $10.65

     
    Shares used in computing diluted earnings per share (millions)

      349.200

      349.200

     
    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 HCA Healthcare, Inc.) 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.
    Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income attributable to HCA Healthcare, Inc. as a measure of operating performance or cash flows from operating, investing and financing activities as a measure of liquidity.  Because Adjusted EBITDA is not a measurement determined in accordance with GAAP and is susceptible to varying calculations, Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies.
     

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20191029005221/en/

    INVESTOR CONTACT:

    Mark Kimbrough
    615-344-2688

    MEDIA CONTACT:

    Ed Fishbough
    615-344-2810

    Source: HCA Healthcare, Inc.

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