HCA (NYSE: HCA) today announced it has accelerated the vesting of all
unvested options awarded to employees and officers under the Company's
2000 Equity Incentive Plan which had exercise prices greater than the
closing price at December 14, 2004 of $40.89 per share. Options to
purchase approximately 19.1 million shares became exercisable
immediately as a result of the vesting acceleration. Of these 19.1
million options, 12.4 million were scheduled to vest over the next 14
months.
"We believe the accelerated vesting will result in the Company not being
required to recognize any compensation expense associated with these
option grants in the current year and is also expected to result in the
Company not being required to recognize approximately $83 million, net
of taxes, of compensation expense in future periods. We believe this is
the appropriate decision and in the best interest of the Company and its
shareholders," stated Jack O. Bovender, Jr., HCA's Chairman and CEO.
Assuming the Financial Accounting Standard Board (the "FASB") proposed
statement "Share-Based Payment" ("FAS 123R") is adopted as expected, the
action announced today would potentially result in the Company not being
required to recognize share-based compensation expense, net of taxes, of
approximately $26 million in 2005, $36 million in 2006, $19 million in
2007, and $2 million in 2008, based on valuation calculations using the
Black- Scholes methodology. The estimated $26 million amount for 2005 is
based on the assumption that the Company will elect to apply the expense
recognition provisions of FAS 123R beginning July 1, 2005.
This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include all
statements regarding the accounting treatment for stock options, the
estimated impact of the acceleration of vesting and 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, the possibility that FAS123R
will not be issued and implemented according to the FASB's stated plans
and other risk factors detailed in the Company's filings with the SEC.
Many of the factors that will determine the Company's future results are
beyond the ability of the Company 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. The Company undertakes 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.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding HCA's business
which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in the
Company's Annual Report or Form 10-K for the most recently ended fiscal
year.
http://www.hcahealthcare.com
Investors, Mark Kimbrough, +1-615-344-2688, or
Media, Jeff Prescott, +1-615-344-5708,
both of HCA