HCA (NYSE: HCA) today announced that preliminary results for its first
quarter indicate that net income per diluted share is expected to range
from $0.88 to $0.93 for the quarter ending March 31, 2005, compared to
$0.69 per diluted share for the prior year's first quarter. Operating
results for the quarter are expected to benefit from the combined impact
of increased patient volume, effective expense management, improved bad
debt trends (slowing rate of increase in uninsured admissions compared
to the first quarter of 2004 and a continued moderation in the growth
rate associated with the uncollectibility of self-pay receivables) and a
reduction in shares outstanding due to the completion of a modified
"Dutch" auction tender offer in the fourth quarter of 2004.
The Company will address specifics of the quarter along with revised
2005 earnings guidance when actual results for the first quarter are
reported on or about April 21.
HCA also announced its intention to divest 10 acute care hospitals
located in six states. The 10 hospitals are located primarily in rural
and small urban markets, in contrast to the majority of the Company's
remaining hospitals which are located in large urban or suburban markets.
"The divestitures will allow the Company to redeploy capital to support
our hospitals in growing urban markets," stated Jack O. Bovender, Jr.,
HCA's Chairman and CEO. "These facilities are viable community assets.
We believe that increased focus and attention and the ability to
continue to successfully compete for capital should provide these
facilities the best opportunity for success in the future. Many of the
facilities to be divested have been a part of HCA for several years and,
although it was a difficult decision, we believe the divestitures are in
the best long-term interests of the Company, the affected hospitals and
their local communities."
As a group, the 10 hospitals to be divested had 2004 net revenues of
$654 million.
Hospital divestiture list:
1. Clinch Valley Medical Center, Richlands, VA 200 beds
2. Grandview Medical Center, Jasper, TN 70 beds
3. River Park Hospital, McMinnville, TN 127 beds
4. St. Joseph's Hospital, Parkersburg, WV 325 beds
5. Saint Francis Hospital, Charleston, WV 155 beds
6. Raleigh General Hospital, Beckley, WV 369 beds
7. Putnam General Hospital, Hurricane, WV 68 beds
8. North Monroe Medical Center, Monroe, LA 255 beds
9. Southwestern Medical Center, Lawton, OK 212 beds
10. Capital Medical Center, Olympia, WA 119 beds
The Company believes the divestitures will not have a material effect on
its future financial position or results of operations.
The Company expects the planned disposition of the 10 facilities to be
substantially complete by the fourth quarter of 2005, and it will work
to ensure a smooth transition for all the divested facilities. The
Company has retained Merrill Lynch as its adviser to assist with the
divestitures.
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,
including those relating to the Company's preliminary results for the
first quarter of 2005 and the Company's intended divestitures of
hospitals and their anticipated impact on the Company's financial
statements and results of operations. 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 (i) the finalization of the Company's financial
statements for the first quarter; (ii) the ability of the Company to
successfully effect the planned divestitures; (iii) the ability of the
Company to smoothly transition the divested hospitals; and (iv) 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. 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.
"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.
Investors, Mark Kimbrough, +1-615-344-2688, or
Media, Jeff Prescott, +1-615-344-5708