Earnings In Line with Preview
HCA Holdings, Inc. (NYSE: HCA) today announced financial and operating
results for the second quarter ended June 30, 2014.
Key second quarter metrics (all percentage changes compare 2Q
2014 to 2Q 2013 unless noted):
-
Revenues increased 9.2 percent to $9.230 billion
-
Net income attributable to HCA Holdings, Inc. totaled $483 million, or
$1.07 per diluted share
-
Adjusted EBITDA increased 18.5 percent to $2.0 billion
-
Cash flows from operations increased 53.6 percent to $1.250 billion
-
Same facility equivalent admissions increased 2.2 percent while same
facility admissions increased 1.2 percent
-
Same facility revenue per equivalent admission increased 5.4 percent
Revenues in the second quarter increased to $9.230 billion, compared to
$8.450 billion in the second quarter of 2013. Net income attributable to
HCA Holdings, Inc. totaled $483 million, or $1.07 per diluted share,
compared to $423 million, or $0.91 per diluted share, in the second
quarter of 2013. Adjusted EBITDA totaled $2.0 billion compared to $1.689
billion in the second quarter of 2013. Adjusted EBITDA is a non-GAAP
financial measure. A table reconciling net income attributable to HCA
Holdings, Inc. to Adjusted EBITDA is included in this release.
During the second quarter the Company recorded a $142 million adjustment
to increase Medicaid revenues related to the receipt of reimbursements
in excess of our estimates for the indigent care component of the Texas
Medicaid Waiver Program for the program year ended September 30, 2013.
Second quarter 2014 results include losses on retirement of debt of $226
million, or $0.32 per diluted share, and gains on sales of facilities of
$11 million, or $0.02 per diluted share. Results for the second quarter
of 2013 include gains on sales of facilities of $4 million.
Same facility revenue per equivalent admission increased 5.4 percent in
the second quarter of 2014 compared to the second quarter of 2013,
reflecting the increase in Medicaid revenues, improved payor mix and
growth in case mix, or acuity, of 1.7 percent on a same facility basis
in the quarter.
Same facility equivalent admissions increased 2.2 percent in the second
quarter of 2014 compared to the prior year period. Same facility
admissions increased 1.2 percent compared to the prior year period. Same
facility emergency room visits increased 5.7 percent in the second
quarter of 2014, compared to the prior year period. Same facility
inpatient surgeries increased 1.0 percent while same facility outpatient
surgeries declined 0.3 percent in the second quarter of 2014 compared to
the same period of 2013.
During the second quarter of 2014, salaries and benefits, supplies and
other operating expenses totaled $7.274 billion, or 78.8 percent of
revenues, compared to $6.825 billion, or 80.7 percent of revenues, in
the second quarter of 2013.
During the second quarter of 2014, the Company repurchased $750 million,
or 14.5 million shares of its common stock from certain of its
stockholders, consisting primarily of affiliates or funds sponsored by,
Bain Capital Partners, LLC and Kohlberg Kravis Roberts & Co.
Six Months Ended June 30, 2014
Revenues for the six months ended June 30, 2014 totaled $18.062 billion
compared to $16.890 billion in the same period of 2013. Net income
attributable to HCA Holdings, Inc. was $830 million, or $1.82 per
diluted share, compared to $767 million, or $1.66 per diluted share, for
the first six months of 2013. Results for the six months ended June 30,
2014 include losses on retirement of debt of $226 million, or $0.31 per
diluted share, gains on sales of facilities of $32 million, or $0.04 per
diluted share, and legal claim costs of $78 million, or $0.11 per
diluted share. Results for the six months ended June 30, 2013 include
losses on sales of facilities of $12 million, or $0.02 per diluted
share, and losses on retirement of debt of $17 million, or $0.02 per
diluted share.
Balance Sheet and Cash Flows from Operations
As of June 30, 2014, HCA Holdings, Inc.’s balance sheet reflected cash
and cash equivalents of $658 million, total debt of $28.988 billion, and
total assets of $29.822 billion. During the second quarter of 2014,
capital expenditures totaled $513 million, excluding acquisitions. Cash
flows provided by operating activities in the quarter totaled $1.250
billion compared to $814 million in the second quarter of 2013. The $436
million increase in cash flows from operating activities related
primarily to the combined impact of a $199 million increase in net
income attributable to HCA Holdings, Inc., excluding gains on sales of
facilities and losses on retirement of debt, and a $156 million increase
from changes in working capital items in the second quarter of 2014
compared to the second quarter of 2013.
As of June 30, 2014, HCA’s leverage ratio as measured by Total
Debt/Adjusted EBITDA was 4.16x, compared to 4.32x as of December 31,
2013. As of June 30, 2014, HCA operated 165 hospitals and 115
freestanding surgery centers.
2014 Guidance
The Company on July 16, 2014 updated its previously issued financial
guidance ranges for 2014.
|
|
|
Original 2014 Guidance
|
|
Revised 2014 Guidance
|
|
|
|
|
|
|
|
Revenues
|
|
$35.50 - $36.50 billion
|
|
$36.00 - $36.50 billion
|
|
Adjusted EBITDA
|
|
$6.60 - $6.85 billion
|
|
$7.00 - $7.15 billion
|
|
Adjusted EPS (diluted)
|
|
$3.45- $3.75
|
|
$4.00- $4.25
|
|
Capital Expenditures
|
|
Approximately $2.2 billion
|
|
no change
|
The revised guidance assumes a benefit to Adjusted EBITDA from the
Patient Protection and Affordable Care Act (Health Reform Law) in 2014
of approximately 2 to 3 percent of Adjusted EBITDA (original guidance
was 1 to 2 percent), and the second quarter Medicaid revenues from the
indigent care component of the Texas Medicaid Waiver Program. Both the
original and revised guidance also include estimated electronic health
record incentive income assumptions in a range of $110-$130 million and
EHR expenses in a range of $110-$130 million. The guidance reflects
estimated increases in share-based compensation expense to approximately
$160 million (original guidance was $168 million), from $113 million in
2013. Guidance excludes the impact of items, if applicable, that are
non-operational in nature including items such as, but not limited to,
gains or losses on sales of facilities and businesses, gains or losses
on early debt retirement and impairments of long-lived assets. This
guidance is also subject to certain risks including those as 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=1038329
or through the Company’s Investor Relations web page, www.hcahealthcare.com.
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 statements that do not
relate solely to historical 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
effects related to the implementation of the Patient Protection and
Affordable Care Act, as amended by the Health Care and Education
Reconciliation Act (collectively, the “Health Reform Law”), possible
delays in or complications related to implementation of the Health
Reform Law, the possible enactment of additional federal or state health
care reforms and possible changes to the Health Reform Law and 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 (the “BCA”), 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 the Medicare, Medicaid and other state programs, including
Medicaid upper payment limit programs or waiver programs, that may
impact reimbursements to health care providers and insurers, (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 managed care agreements, the
ability to enter into and renew managed care provider agreements on
acceptable terms and the impact of consumer driven health plans and
physician utilization trends and practices, (9) the efforts of insurers,
health care providers 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) future divestitures which may result in charges and possible
impairments of long-lived assets, (16) changes in business strategy or
development plans, (17) delays in receiving payments for services
provided, (18) the outcome of pending and any future tax audits, appeals
and litigation associated with our tax positions, (19) potential adverse
impact of known and unknown government investigations, litigation and
other claims that may be made against us, (20) our ongoing ability to
demonstrate meaningful use of certified electronic health record
technology and recognize income for the related Medicare or Medicaid
incentive payments, and (21) other risk factors described in our annual
report on Form 10-K for the year ended December 31, 2013 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 Holdings, Inc. and its affiliates.
|
|
|
HCA Holdings, Inc.
|
|
Condensed Consolidated Comprehensive Income Statements
|
|
Second Quarter
|
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
$
|
9,958
|
|
|
|
$
|
9,473
|
|
|
|
Provision for doubtful accounts
|
|
|
728
|
|
|
|
|
1,023
|
|
|
|
Revenues
|
|
|
9,230
|
|
100.0
|
|
%
|
|
8,450
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
4,098
|
|
44.4
|
|
|
|
3,848
|
|
45.5
|
|
|
Supplies
|
|
|
1,532
|
|
16.6
|
|
|
|
1,470
|
|
17.4
|
|
|
Other operating expenses
|
|
|
1,644
|
|
17.8
|
|
|
|
1,507
|
|
17.8
|
|
|
Electronic health record incentive income
|
|
|
(35
|
)
|
(0.4
|
)
|
|
|
(52
|
)
|
(0.6
|
)
|
|
Equity in earnings of affiliates
|
|
|
(9
|
)
|
(0.1
|
)
|
|
|
(12
|
)
|
(0.1
|
)
|
|
Depreciation and amortization
|
|
|
454
|
|
4.9
|
|
|
|
425
|
|
5.1
|
|
|
Interest expense
|
|
|
427
|
|
4.6
|
|
|
|
462
|
|
5.5
|
|
|
Gains on sales of facilities
|
|
|
(11
|
)
|
(0.1
|
)
|
|
|
(4
|
)
|
(0.1
|
)
|
|
Losses on retirement of debt
|
|
|
226
|
|
2.5
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,326
|
|
90.2
|
|
|
|
7,644
|
|
90.5
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
904
|
|
9.8
|
|
|
|
806
|
|
9.5
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
272
|
|
3.0
|
|
|
|
269
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
632
|
|
6.8
|
|
|
|
537
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
149
|
|
1.6
|
|
|
|
114
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
$
|
483
|
|
5.2
|
|
|
$
|
423
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.07
|
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (000)
|
|
|
453,009
|
|
|
|
|
463,184
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
|
|
$
|
516
|
|
|
|
$
|
472
|
|
|
|
|
|
HCA Holdings, Inc.
|
|
Condensed Consolidated Comprehensive Income Statements
|
|
For the Six Months Ended June 30, 2014 and 2013
|
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
$
|
19,641
|
|
|
|
$
|
18,667
|
|
|
|
|
Provision for doubtful accounts
|
|
|
1,579
|
|
|
|
|
1,777
|
|
|
|
|
Revenues
|
|
|
18,062
|
|
100.0
|
|
%
|
|
16,890
|
|
100.0
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
8,148
|
|
45.1
|
|
|
|
7,765
|
|
46.0
|
|
|
|
Supplies
|
|
|
3,064
|
|
17.0
|
|
|
|
2,949
|
|
17.5
|
|
|
|
Other operating expenses
|
|
|
3,289
|
|
18.2
|
|
|
|
3,030
|
|
17.8
|
|
|
|
Electronic health record incentive income
|
|
|
(65
|
)
|
(0.4
|
)
|
|
|
(91
|
)
|
(0.5
|
)
|
|
|
Equity in earnings of affiliates
|
|
|
(18
|
)
|
(0.1
|
)
|
|
|
(20
|
)
|
(0.1
|
)
|
|
|
Depreciation and amortization
|
|
|
901
|
|
5.0
|
|
|
|
849
|
|
5.0
|
|
|
|
Interest expense
|
|
|
887
|
|
4.9
|
|
|
|
934
|
|
5.5
|
|
|
|
Losses (gains) on sales of facilities
|
|
|
(32
|
)
|
(0.2
|
)
|
|
|
12
|
|
0.1
|
|
|
|
Losses on retirement of debt
|
|
|
226
|
|
1.3
|
|
|
|
17
|
|
0.1
|
|
|
|
Legal claim costs
|
|
|
78
|
|
0.4
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,478
|
|
91.2
|
|
|
|
15,445
|
|
91.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
1,584
|
|
8.8
|
|
|
|
1,445
|
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
498
|
|
2.8
|
|
|
|
470
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
1,086
|
|
6.0
|
|
|
|
975
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
256
|
|
1.4
|
|
|
|
208
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
$
|
830
|
|
4.6
|
|
|
$
|
767
|
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.82
|
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (000)
|
|
|
455,220
|
|
|
|
|
462,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
|
|
$
|
888
|
|
|
|
$
|
798
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
|
Supplemental Non-GAAP Disclosures
|
|
Operating Results Summary
|
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
|
|
|
|
Second Quarter
|
|
Ended June 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
9,230
|
|
|
$
|
8,450
|
|
|
$
|
18,062
|
|
|
$
|
16,890
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
$
|
483
|
|
|
$
|
423
|
|
|
$
|
830
|
|
|
$
|
767
|
|
Losses (gains) on sales of facilities (net of tax)
|
|
|
(7
|
)
|
|
|
(3
|
)
|
|
|
(20
|
)
|
|
|
8
|
|
Losses on retirement of debt (net of tax)
|
|
|
143
|
|
|
|
-
|
|
|
|
143
|
|
|
|
11
|
|
Legal claim costs (net of tax)
|
|
|
-
|
|
|
|
-
|
|
|
|
49
|
|
|
|
-
|
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities, losses
|
|
|
|
|
|
|
|
|
|
on retirement of debt and legal claim costs (a)
|
|
|
619
|
|
|
|
420
|
|
|
|
1,002
|
|
|
|
786
|
|
Depreciation and amortization
|
|
|
454
|
|
|
|
425
|
|
|
|
901
|
|
|
|
849
|
|
Interest expense
|
|
|
427
|
|
|
|
462
|
|
|
|
887
|
|
|
|
934
|
|
Provision for income taxes
|
|
|
351
|
|
|
|
268
|
|
|
|
598
|
|
|
|
480
|
|
Net income attributable to noncontrolling interests
|
|
|
149
|
|
|
|
114
|
|
|
|
256
|
|
|
|
208
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a)
|
|
$
|
2,000
|
|
|
$
|
1,689
|
|
|
$
|
3,644
|
|
|
$
|
3,257
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
$
|
1.07
|
|
|
$
|
0.91
|
|
|
$
|
1.82
|
|
|
$
|
1.66
|
|
Losses (gains) on sales of facilities
|
|
|
(0.02
|
)
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
|
0.02
|
|
Losses on retirement of debt
|
|
|
0.32
|
|
|
|
-
|
|
|
|
0.31
|
|
|
|
0.02
|
|
Legal claim costs
|
|
|
-
|
|
|
|
-
|
|
|
|
0.11
|
|
|
|
-
|
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities,
|
|
|
|
|
|
|
|
|
|
losses on retirement of debt and legal claim costs(a)
|
|
$
|
1.37
|
|
|
$
|
0.91
|
|
|
$
|
2.20
|
|
|
$
|
1.70
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (000)
|
|
|
453,009
|
|
|
|
463,184
|
|
|
|
455,220
|
|
|
|
462,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Net income attributable to HCA Holdings, Inc., excluding
losses (gains) on sales of facilities, losses on retirement of
debt and legal claim costs, 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 Holdings, Inc., excluding losses (gains) on
sales of facilities, losses on retirement of debt and legal claim
costs, 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 Holdings, Inc., excluding
losses (gains) on sales of facilities, losses on retirement of
debt and legal claim costs, 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 attributable to HCA Holdings, Inc.,
excluding losses (gains) on sales of facilities, losses on
retirement of debt and legal claim costs, and GAAP net income
attributable to HCA Holdings, 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 losses (gains) on sales of facilities, losses on retirement
of debt and legal claim costs 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 Holdings, Inc., excluding losses on
sales of facilities, losses on retirement of debt and legal claim
costs, and Adjusted EBITDA are not measures of financial performance
under GAAP, and should not be considered as alternatives to net
income attributable to HCA Holdings, 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 Holdings, Inc., excluding losses (gains) on
sales of facilities, losses on retirement of debt and legal claim
costs, and Adjusted EBITDA are not measurements determined in
accordance with GAAP and are susceptible to varying calculations,
net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities, losses on retirement of debt and
legal claim costs, and Adjusted EBITDA, as presented, may not be
comparable to other similarly titled measures presented by other
companies.
|
|
HCA Holdings, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
658
|
|
|
$
|
850
|
|
|
$
|
414
|
|
|
Accounts receivable, net
|
|
5,472
|
|
|
|
5,489
|
|
|
|
5,208
|
|
|
Inventories
|
|
1,211
|
|
|
|
1,187
|
|
|
|
1,179
|
|
|
Deferred income taxes
|
|
500
|
|
|
|
492
|
|
|
|
489
|
|
|
Other
|
|
931
|
|
|
|
859
|
|
|
|
747
|
|
|
Total current assets
|
|
8,772
|
|
|
|
8,877
|
|
|
|
8,037
|
|
|
|
|
|
|
|
|
|
Property and equipment, at cost
|
|
31,841
|
|
|
|
31,369
|
|
|
|
31,073
|
|
|
Accumulated depreciation
|
|
(18,120
|
)
|
|
|
(17,757
|
)
|
|
|
(17,454
|
)
|
|
|
|
13,721
|
|
|
|
13,612
|
|
|
|
13,619
|
|
|
|
|
|
|
|
|
|
Investments of insurance subsidiaries
|
|
426
|
|
|
|
453
|
|
|
|
448
|
|
|
Investments in and advances to affiliates
|
|
150
|
|
|
|
142
|
|
|
|
121
|
|
|
Goodwill and other intangible assets
|
|
5,909
|
|
|
|
5,910
|
|
|
|
5,903
|
|
|
Deferred loan costs
|
|
230
|
|
|
|
271
|
|
|
|
237
|
|
|
Other
|
|
614
|
|
|
|
544
|
|
|
|
466
|
|
|
|
|
|
|
|
|
|
|
$
|
29,822
|
|
|
$
|
29,809
|
|
|
$
|
28,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
$
|
1,717
|
|
|
$
|
1,735
|
|
|
$
|
1,803
|
|
|
Accrued salaries
|
|
1,140
|
|
|
|
1,052
|
|
|
|
1,193
|
|
|
Other accrued expenses
|
|
1,992
|
|
|
|
2,063
|
|
|
|
1,913
|
|
|
Long-term debt due within one year
|
|
1,046
|
|
|
|
1,041
|
|
|
|
786
|
|
|
Total current liabilities
|
|
5,895
|
|
|
|
5,891
|
|
|
|
5,695
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
27,942
|
|
|
|
27,883
|
|
|
|
27,590
|
|
|
Professional liability risks
|
|
1,019
|
|
|
|
978
|
|
|
|
949
|
|
|
Income taxes and other liabilities
|
|
1,554
|
|
|
|
1,524
|
|
|
|
1,525
|
|
|
|
|
|
|
|
|
|
EQUITY (DEFICIT)
|
|
|
|
|
|
|
Stockholders' deficit attributable to HCA Holdings, Inc.
|
|
(7,990
|
)
|
|
|
(7,828
|
)
|
|
|
(8,270
|
)
|
|
Noncontrolling interests
|
|
1,402
|
|
|
|
1,361
|
|
|
|
1,342
|
|
|
Total deficit
|
|
(6,588
|
)
|
|
|
(6,467
|
)
|
|
|
(6,928
|
)
|
|
|
$
|
29,822
|
|
|
$
|
29,809
|
|
|
$
|
28,831
|
|
|
HCA Holdings, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
For the Six Months Ended June 30, 2014 and 2013
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
1,086
|
|
|
$
|
975
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Changes in operating assets and liabilities
|
|
|
(2,151
|
)
|
|
|
(2,335
|
)
|
|
Provision for doubtful accounts
|
|
|
1,579
|
|
|
|
1,777
|
|
|
Depreciation and amortization
|
|
|
901
|
|
|
|
849
|
|
|
Income taxes
|
|
|
(94
|
)
|
|
|
183
|
|
|
Losses (gains) sales of facilities
|
|
|
(32
|
)
|
|
|
12
|
|
|
Loss on retirement of debt
|
|
|
226
|
|
|
|
17
|
|
|
Legal claim costs
|
|
|
78
|
|
|
|
-
|
|
|
Amortization of deferred loan costs
|
|
|
23
|
|
|
|
28
|
|
|
Share-based compensation
|
|
|
77
|
|
|
|
51
|
|
|
Other
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
1,693
|
|
|
|
1,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(913
|
)
|
|
|
(896
|
)
|
|
Acquisition of hospitals and health care entities
|
|
|
(27
|
)
|
|
|
(23
|
)
|
|
Disposition of hospitals and health care entities
|
|
|
32
|
|
|
|
31
|
|
|
Change in investments
|
|
|
43
|
|
|
|
102
|
|
|
Other
|
|
|
1
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(864
|
)
|
|
|
(790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
3,502
|
|
|
|
-
|
|
|
Net change in revolving credit facilities
|
|
|
340
|
|
|
|
(20
|
)
|
|
Repayment of long-term debt
|
|
|
(3,482
|
)
|
|
|
(768
|
)
|
|
Distributions to noncontrolling interests
|
|
|
(197
|
)
|
|
|
(196
|
)
|
|
Payment of debt issuance costs
|
|
|
(49
|
)
|
|
|
(5
|
)
|
|
Repurchase of common stock
|
|
|
(750
|
)
|
|
|
-
|
|
|
Distributions to stockholders
|
|
|
(7
|
)
|
|
|
(10
|
)
|
|
Income tax benefits
|
|
|
75
|
|
|
|
61
|
|
|
Other
|
|
|
(17
|
)
|
|
|
(69
|
)
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(585
|
)
|
|
|
(1,007
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
244
|
|
|
|
(243
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
414
|
|
|
|
705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
658
|
|
|
$
|
462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payments
|
|
$
|
899
|
|
|
$
|
909
|
|
|
Income tax payments, net
|
|
$
|
517
|
|
|
$
|
226
|
|
|
HCA Holdings, Inc.
|
|
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
|
|
|
|
Second Quarter
|
|
Ended June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
Number of Hospitals
|
|
|
165
|
|
|
|
161
|
|
|
|
165
|
|
|
|
161
|
|
|
Number of Freestanding Outpatient Surgery Centers
|
|
|
115
|
|
|
|
114
|
|
|
|
115
|
|
|
|
114
|
|
|
Licensed Beds at End of Period
|
|
|
43,025
|
|
|
|
41,792
|
|
|
|
43,025
|
|
|
|
41,792
|
|
|
Weighted Average Licensed Beds
|
|
|
43,020
|
|
|
|
41,842
|
|
|
|
42,989
|
|
|
|
41,855
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
|
442,800
|
|
|
|
433,000
|
|
|
|
887,900
|
|
|
|
877,200
|
|
|
% Change
|
|
|
2.3
|
%
|
|
|
|
|
1.2
|
%
|
|
|
|
Equivalent Admissions
|
|
|
734,200
|
|
|
|
708,700
|
|
|
|
1,447,200
|
|
|
|
1,416,700
|
|
|
% Change
|
|
|
3.6
|
%
|
|
|
|
|
2.2
|
%
|
|
|
|
Revenue per Equivalent Admission
|
|
$
|
12,570
|
|
|
$
|
11,924
|
|
|
$
|
12,480
|
|
|
$
|
11,922
|
|
|
% Change
|
|
|
5.4
|
%
|
|
|
|
|
4.7
|
%
|
|
|
|
Inpatient Revenue per Admission
|
|
$
|
12,529
|
|
|
$
|
11,811
|
|
|
$
|
12,308
|
|
|
$
|
11,765
|
|
|
% Change
|
|
|
6.1
|
%
|
|
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient Days
|
|
|
2,135,600
|
|
|
|
2,049,600
|
|
|
|
4,332,800
|
|
|
|
4,222,800
|
|
|
% Change
|
|
|
4.2
|
%
|
|
|
|
|
2.6
|
%
|
|
|
|
Equivalent Patient Days
|
|
|
3,542,500
|
|
|
|
3,355,700
|
|
|
|
7,062,500
|
|
|
|
6,819,900
|
|
|
% Change
|
|
|
5.6
|
%
|
|
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
128,700
|
|
|
|
126,500
|
|
|
|
255,000
|
|
|
|
251,200
|
|
|
% Change
|
|
|
1.7
|
%
|
|
|
|
|
1.5
|
%
|
|
|
|
Outpatient Surgery Cases
|
|
|
225,000
|
|
|
|
222,200
|
|
|
|
435,500
|
|
|
|
433,300
|
|
|
% Change
|
|
|
1.3
|
%
|
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
1,849,800
|
|
|
|
1,726,400
|
|
|
|
3,614,800
|
|
|
|
3,475,700
|
|
|
% Change
|
|
|
7.1
|
%
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outpatient Revenues as a
|
|
|
|
|
|
|
|
|
|
Percentage of Patient Revenues
|
|
|
38.0
|
%
|
|
|
37.7
|
%
|
|
|
37.5
|
%
|
|
|
37.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Stay
|
|
|
4.8
|
|
|
|
4.7
|
|
|
|
4.9
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
|
54.6
|
%
|
|
|
53.8
|
%
|
|
|
55.7
|
%
|
|
|
55.7
|
%
|
|
Equivalent Occupancy
|
|
|
90.5
|
%
|
|
|
88.1
|
%
|
|
|
90.8
|
%
|
|
|
90.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility:
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
|
437,900
|
|
|
|
432,700
|
|
|
|
878,300
|
|
|
|
876,000
|
|
|
% Change
|
|
|
1.2
|
%
|
|
|
|
|
0.3
|
%
|
|
|
|
Equivalent Admissions
|
|
|
723,800
|
|
|
|
708,300
|
|
|
|
1,427,200
|
|
|
|
1,413,800
|
|
|
% Change
|
|
|
2.2
|
%
|
|
|
|
|
0.9
|
%
|
|
|
|
Revenue per Equivalent Admission
|
|
$
|
12,556
|
|
|
$
|
11,910
|
|
|
$
|
12,465
|
|
|
$
|
11,921
|
|
|
% Change
|
|
|
5.4
|
%
|
|
|
|
|
4.6
|
%
|
|
|
|
Inpatient Revenue per Admission
|
|
$
|
12,608
|
|
|
$
|
11,807
|
|
|
$
|
12,381
|
|
|
$
|
11,769
|
|
|
% Change
|
|
|
6.8
|
%
|
|
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
127,900
|
|
|
|
126,600
|
|
|
|
253,100
|
|
|
|
251,000
|
|
|
% Change
|
|
|
1.0
|
%
|
|
|
|
|
0.9
|
%
|
|
|
|
Outpatient Surgery Cases
|
|
|
221,000
|
|
|
|
221,700
|
|
|
|
427,900
|
|
|
|
432,400
|
|
|
% Change
|
|
|
-0.3
|
%
|
|
|
|
|
-1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
1,820,400
|
|
|
|
1,722,900
|
|
|
|
3,559,300
|
|
|
|
3,464,300
|
|
|
% Change
|
|
|
5.7
|
%
|
|
|
|
|
2.7
|
%
|
|
|
HCA Holdings, Inc.
INVESTOR CONTACT:
Mark Kimbrough, 615-344-2688
or
MEDIA CONTACT:
Ed Fishbough, 615-344-2810