Provides 2015 Guidance
Board Authorizes New $1 Billion Share Repurchase Program
HCA Holdings, Inc. (NYSE: HCA) today announced financial and operating
results for the fourth quarter ended December 31, 2014.
Key fourth quarter metrics (all percentage changes compare 4Q
2014 to 4Q 2013 unless noted):
-
Revenues totaled $9.636 billion, an increase of 9.1 percent
-
Net income attributable to HCA Holdings, Inc. totaled $527 million, or
$1.19 per diluted share
-
Adjusted EBITDA was $1.956 billion, an increase of 14.1 percent
-
Cash flows from operating activities totaled $1.627 billion, an
increase of 32.7 percent
-
Same facility equivalent admissions increased 5.6 percent, while same
facility admissions increased 5.0 percent
-
Same facility revenue per equivalent admission increased 2.5 percent
HCA Chairman and Chief Executive Officer, R. Milton Johnson, said, “We
are very pleased with the Company’s fourth quarter and full year 2014
results. We believe our focus on clinical excellence, strategic capital
deployment and operational execution has positioned the Company well for
the future.”
On February 2, 2015, HCA’s Board of Directors authorized a share
repurchase program for up to $1 billion of the Company’s outstanding
common stock. Repurchases will be made in accordance with applicable
securities laws from time to time in the open market, through privately
negotiated transactions, or otherwise.
Revenues in the fourth quarter totaled $9.636 billion, compared to
$8.836 billion in the fourth quarter of 2013. Fourth quarter 2014
results include a $68 million increase in Medicaid revenues related to
the reversal of the Texas Medicaid Waiver Program adjustment to reduce
revenues that was recorded in the third quarter of 2014.
Fourth quarter revenue growth was driven by strong volume and higher
revenue per equivalent admission, as same facility case mix, or acuity,
increased 0.7 percent compared to the prior year. Same facility
equivalent admissions increased 5.6 percent while same facility
admissions increased 5.0 percent in the fourth quarter of 2014 compared
to the fourth quarter of 2013. Same facility emergency room visits
increased 10.5 percent in the fourth quarter of 2014 compared to the
prior year period. The increase in admissions in the fourth quarter was
broad based across the Company’s markets and service lines.
Revenue per equivalent admission increased 2.7 percent in the fourth
quarter of 2014 (2.5 percent increase on a same facility basis),
primarily reflecting acuity and payor mix changes in the quarter. During
the fourth quarter same facility inpatient surgeries increased 2.4
percent while same facility outpatient surgeries declined 0.3 percent
compared to the prior year period.
The Company’s operating expense per equivalent admission, excluding
electronic health record (“EHR”) and equity income, increased 1.4
percent from the prior year’s fourth quarter. During the fourth quarter
of 2014, salaries and benefits, supplies and other operating expenses
totaled $7.719 billion, or 80.1 percent of revenues, compared to $7.172
billion, or 81.2 percent of revenues, in the fourth quarter of 2013.
Net income attributable to HCA Holdings, Inc. totaled $527 million, or
$1.19 per diluted share, compared to $424 million, or $0.92 per diluted
share, in the fourth quarter of 2013. Results for the fourth quarter of
2014 include gains on sales of facilities of $9 million, or $0.01 per
diluted share, and losses on retirement of debt of $109 million, or
$0.15 per diluted share.
Adjusted EBITDA for the fourth quarter of 2014 increased 14.1 percent to
$1.956 billion compared to $1.714 billion in the prior year period.
Adjusted EBITDA is a non-GAAP financial measure. A table providing
supplemental information on Adjusted EBITDA and reconciling net income
attributable to HCA Holdings, Inc. to Adjusted EBITDA is included in
this release.
Twelve Months Ended December 31, 2014
Revenues for the year ended December 31, 2014 totaled $36.918 billion
compared to $34.182 billion for 2013. Net income attributable to HCA
Holdings, Inc. for 2014 was $1.875 billion, or $4.16 per diluted share,
compared to $1.556 billion, or $3.37 per diluted share, for the year
ended December 31, 2013. Results for the year ended December 31, 2014
include gains on sales of facilities of $29 million, or $0.04 per
diluted share, losses on retirement of debt of $335 million, or $0.47
per diluted share, and legal claims costs of $78 million, or $0.11 per
diluted share. Results for 2013 include losses on sales of facilities of
$10 million, or $0.02 per diluted share, and losses on retirement of
debt of $17 million, or $0.02 per diluted share. Adjusted EBITDA for
2014 increased 13.0 percent to $7.428 billion compared to $6.574 billion
in 2013. Adjusted EBITDA is a non-GAAP financial measure. A table
providing supplemental information on Adjusted EBITDA and reconciling
net income attributable to HCA Holdings, Inc. to Adjusted EBITDA is
included in this release.
Balance Sheet and Cash Flow
As of December 31, 2014, HCA Holdings, Inc.’s balance sheet reflected
cash and cash equivalents of $566 million, total debt of $29.645
billion, and total assets of $31.199 billion. During the fourth quarter
of 2014, capital expenditures totaled $694 million, excluding
acquisitions. During the fourth quarter of 2014, the Company repurchased
approximately 14 million shares of its common stock, completing its
October 2014 $1.0 billion share repurchase authorization. The Company
had approximately 420,477,900 shares outstanding as of December 31,
2014. Net cash provided by operating activities in the fourth quarter of
2014 totaled $1.627 billion compared to $1.226 billion in the prior
year’s fourth quarter.
As of December 31, 2014, HCA operated 166 hospitals and 113 freestanding
surgery centers.
2015 Guidance
Today, HCA issued the following estimated guidance for 2015:
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2015 Guidance Range
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Revenues
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$38.5 to $39.5 billion
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Adjusted EBITDA
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$7.35 to $7.65 billion
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Adjusted EPS (diluted)
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$4.55 to $4.95
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Capital Expenditures
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Approximately $2.4 billion
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The Company’s 2015 guidance contains a number of assumptions, including:
-
The Company estimates approximately 6 to 7 percent of Adjusted EBITDA
is attributable to the Patient Protection and Affordable Care Act
(Health Reform Law);
-
EHR incentive income of $40-$50 million and EHR expenses in a range of
$30-$40 million, as compared to EHR incentive income of $125 million
and EHR expenses of $112 million in 2014;
-
An increase in share-based compensation expense to approximately $224
million from $163 million in 2014;
-
2015 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; and
-
2015 guidance does not include any anticipated contribution in 2015
from certain items which positively impacted 2014 Adjusted EBITDA,
including: (i) a $142 million increase to Medicaid revenues reflecting
payments in excess of our estimates for the indigent care component of
the Texas Medicaid Waiver Program for the program year ended September
30, 2013, and recorded in the 2nd quarter of 2014, (ii) $70
million less of Medicaid revenues related to the Texas Medicaid Waiver
Program and (iii) $90 million in Medicare revenues recorded in 3Q 2014
in settlement for certain claims denied by Recovery Audit Contractors
(“RAC”).
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.”
The Company’s 2015 annual stockholders’ meeting will be held in
Nashville, Tennessee on April 30, 2015 at 2:00 p.m. local time for
stockholders of record as of March 6, 2015.
Earnings Conference Call
HCA will host a conference call for investors at 9:00 a.m. Central
Standard 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=1051959
or through the Company’s Investor Relations web page at 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, court challenges, 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) the emergence
and effects related to infectious diseases, including Ebola; (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, appeals 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) 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 (22) 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.
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HCA Holdings, Inc.
|
Condensed Consolidated Comprehensive Income Statements
|
Fourth Quarter
|
(Dollars in millions, except per share amounts)
|
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|
|
|
|
|
|
|
|
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|
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|
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|
|
|
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|
|
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|
2014
|
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2013
|
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|
Amount
|
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|
Ratio
|
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|
Amount
|
|
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
|
|
$
|
10,468
|
|
|
|
|
|
|
$
|
9,962
|
|
|
|
|
Provision for doubtful accounts
|
|
|
|
|
832
|
|
|
|
|
|
|
|
1,126
|
|
|
|
|
Revenues
|
|
|
|
|
9,636
|
|
|
|
100.0
|
%
|
|
|
|
8,836
|
|
|
|
100.0
|
%
|
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|
|
|
|
|
|
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|
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|
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Salaries and benefits
|
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4,282
|
|
|
|
44.4
|
|
|
|
|
3,965
|
|
|
|
44.9
|
|
Supplies
|
|
|
|
|
1,659
|
|
|
|
17.2
|
|
|
|
|
1,564
|
|
|
|
17.7
|
|
Other operating expenses
|
|
|
|
|
1,778
|
|
|
|
18.5
|
|
|
|
|
1,643
|
|
|
|
18.6
|
|
Electronic health record incentive income
|
|
|
|
|
(28
|
)
|
|
|
(0.3
|
)
|
|
|
|
(50
|
)
|
|
|
(0.6
|
)
|
Equity in earnings of affiliates
|
|
|
|
|
(11
|
)
|
|
|
(0.1
|
)
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
|
|
459
|
|
|
|
4.7
|
|
|
|
|
461
|
|
|
|
5.2
|
|
Interest expense
|
|
|
|
|
429
|
|
|
|
4.5
|
|
|
|
|
456
|
|
|
|
5.2
|
|
Gains on sales of facilities
|
|
|
|
|
(9
|
)
|
|
|
(0.1
|
)
|
|
|
|
(3
|
)
|
|
|
-
|
|
Losses on retirement of debt
|
|
|
|
|
109
|
|
|
|
1.1
|
|
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|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,668
|
|
|
|
89.9
|
|
|
|
|
8,036
|
|
|
|
91.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
968
|
|
|
|
10.1
|
|
|
|
|
800
|
|
|
|
9.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
292
|
|
|
|
3.1
|
|
|
|
|
246
|
|
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
676
|
|
|
|
7.0
|
|
|
|
|
554
|
|
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
149
|
|
|
|
1.5
|
|
|
|
|
130
|
|
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
527
|
|
|
|
5.5
|
|
|
|
$
|
424
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
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|
$
|
1.19
|
|
|
|
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (000)
|
|
|
|
|
443,866
|
|
|
|
|
|
|
|
458,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
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|
|
|
$
|
410
|
|
|
|
|
|
|
$
|
541
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Condensed Consolidated Comprehensive Income Statements
|
For the Years Ended December 31, 2014 and 2013
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
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|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
2014
|
|
|
2013
|
|
|
|
|
Amount
|
|
|
Ratio
|
|
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Amount
|
|
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Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
|
|
$
|
40,087
|
|
|
|
|
|
|
$
|
38,040
|
|
|
|
|
Provision for doubtful accounts
|
|
|
|
|
3,169
|
|
|
|
|
|
|
|
3,858
|
|
|
|
|
Revenues
|
|
|
|
|
36,918
|
|
|
|
100.0
|
%
|
|
|
|
34,182
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
|
|
16,641
|
|
|
|
45.1
|
|
|
|
|
15,646
|
|
|
|
45.8
|
|
Supplies
|
|
|
|
|
6,262
|
|
|
|
17.0
|
|
|
|
|
5,970
|
|
|
|
17.5
|
|
Other operating expenses
|
|
|
|
|
6,755
|
|
|
|
18.2
|
|
|
|
|
6,237
|
|
|
|
18.2
|
|
Electronic health record incentive income
|
|
|
|
|
(125
|
)
|
|
|
(0.3
|
)
|
|
|
|
(216
|
)
|
|
|
(0.6
|
)
|
Equity in earnings of affiliates
|
|
|
|
|
(43
|
)
|
|
|
(0.1
|
)
|
|
|
|
(29
|
)
|
|
|
(0.1
|
)
|
Depreciation and amortization
|
|
|
|
|
1,820
|
|
|
|
5.0
|
|
|
|
|
1,753
|
|
|
|
5.1
|
|
Interest expense
|
|
|
|
|
1,743
|
|
|
|
4.7
|
|
|
|
|
1,848
|
|
|
|
5.4
|
|
Losses (gains) on sales of facilities
|
|
|
|
|
(29
|
)
|
|
|
(0.1
|
)
|
|
|
|
10
|
|
|
|
-
|
|
Losses on retirement of debt
|
|
|
|
|
335
|
|
|
|
0.9
|
|
|
|
|
17
|
|
|
|
0.1
|
|
Legal claim costs
|
|
|
|
|
78
|
|
|
|
0.2
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,437
|
|
|
|
90.6
|
|
|
|
|
31,236
|
|
|
|
91.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
3,481
|
|
|
|
9.4
|
|
|
|
|
2,946
|
|
|
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
1,108
|
|
|
|
3.0
|
|
|
|
|
950
|
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
2,373
|
|
|
|
6.4
|
|
|
|
|
1,996
|
|
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
498
|
|
|
|
1.3
|
|
|
|
|
440
|
|
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
1,875
|
|
|
|
5.1
|
|
|
|
$
|
1,556
|
|
|
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
$
|
4.16
|
|
|
|
|
|
|
$
|
3.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (000)
|
|
|
|
|
450,352
|
|
|
|
|
|
|
|
461,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
1,809
|
|
|
|
|
|
|
$
|
1,756
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Supplemental Non-GAAP Disclosures
|
Operating Results Summary
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
9,636
|
|
|
|
$
|
8,836
|
|
|
|
$
|
36,918
|
|
|
|
$
|
34,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
527
|
|
|
|
$
|
424
|
|
|
|
$
|
1,875
|
|
|
|
$
|
1,556
|
|
Losses (gains) on sales of facilities (net of tax)
|
|
|
|
|
(7
|
)
|
|
|
|
(2
|
)
|
|
|
|
(18
|
)
|
|
|
|
7
|
|
Losses on retirement of debt (net of tax)
|
|
|
|
|
68
|
|
|
|
|
-
|
|
|
|
|
211
|
|
|
|
|
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)
|
|
|
|
|
588
|
|
|
|
|
422
|
|
|
|
|
2,117
|
|
|
|
|
1,574
|
|
Depreciation and amortization
|
|
|
|
|
459
|
|
|
|
|
461
|
|
|
|
|
1,820
|
|
|
|
|
1,753
|
|
Interest expense
|
|
|
|
|
429
|
|
|
|
|
456
|
|
|
|
|
1,743
|
|
|
|
|
1,848
|
|
Provision for income taxes
|
|
|
|
|
331
|
|
|
|
|
245
|
|
|
|
|
1,250
|
|
|
|
|
959
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
149
|
|
|
|
|
130
|
|
|
|
|
498
|
|
|
|
|
440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(a)
|
|
|
|
$
|
1,956
|
|
|
|
$
|
1,714
|
|
|
|
$
|
7,428
|
|
|
|
$
|
6,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
1.19
|
|
|
|
$
|
0.92
|
|
|
|
$
|
4.16
|
|
|
|
$
|
3.37
|
|
Losses (gains) on sales of facilities
|
|
|
|
|
(0.01
|
)
|
|
|
|
-
|
|
|
|
|
(0.04
|
)
|
|
|
|
0.02
|
|
Losses on retirement of debt
|
|
|
|
|
0.15
|
|
|
|
|
-
|
|
|
|
|
0.47
|
|
|
|
|
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)
|
|
|
|
$
|
1.33
|
|
|
|
$
|
0.92
|
|
|
|
$
|
4.70
|
|
|
|
$
|
3.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (000)
|
|
|
|
|
443,866
|
|
|
|
|
458,535
|
|
|
|
|
450,352
|
|
|
|
|
461,913
|
______________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
(gains) 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
566
|
|
|
|
$
|
515
|
|
|
|
$
|
414
|
|
Accounts receivable, net
|
|
|
|
|
5,694
|
|
|
|
|
5,524
|
|
|
|
|
5,208
|
|
Inventories
|
|
|
|
|
1,279
|
|
|
|
|
1,258
|
|
|
|
|
1,179
|
|
Deferred income taxes
|
|
|
|
|
366
|
|
|
|
|
320
|
|
|
|
|
489
|
|
Other
|
|
|
|
|
1,025
|
|
|
|
|
910
|
|
|
|
|
747
|
|
Total current assets
|
|
|
|
|
8,930
|
|
|
|
|
8,527
|
|
|
|
|
8,037
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, at cost
|
|
|
|
|
32,980
|
|
|
|
|
32,301
|
|
|
|
|
31,073
|
|
Accumulated depreciation
|
|
|
|
|
(18,625
|
)
|
|
|
|
(18,423
|
)
|
|
|
|
(17,454
|
)
|
|
|
|
|
|
14,355
|
|
|
|
|
13,878
|
|
|
|
|
13,619
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments of insurance subsidiaries
|
|
|
|
|
494
|
|
|
|
|
441
|
|
|
|
|
448
|
|
Investments in and advances to affiliates
|
|
|
|
|
165
|
|
|
|
|
167
|
|
|
|
|
121
|
|
Goodwill and other intangible assets
|
|
|
|
|
6,416
|
|
|
|
|
5,899
|
|
|
|
|
5,903
|
|
Deferred loan costs
|
|
|
|
|
219
|
|
|
|
|
221
|
|
|
|
|
237
|
|
Other
|
|
|
|
|
620
|
|
|
|
|
692
|
|
|
|
|
466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
31,199
|
|
|
|
$
|
29,825
|
|
|
|
$
|
28,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
2,035
|
|
|
|
$
|
1,787
|
|
|
|
$
|
1,803
|
|
Accrued salaries
|
|
|
|
|
1,370
|
|
|
|
|
1,238
|
|
|
|
|
1,193
|
|
Other accrued expenses
|
|
|
|
|
1,737
|
|
|
|
|
1,563
|
|
|
|
|
1,913
|
|
Long-term debt due within one year
|
|
|
|
|
338
|
|
|
|
|
1,044
|
|
|
|
|
786
|
|
Total current liabilities
|
|
|
|
|
5,480
|
|
|
|
|
5,632
|
|
|
|
|
5,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
29,307
|
|
|
|
|
27,426
|
|
|
|
|
27,590
|
|
Professional liability risks
|
|
|
|
|
1,078
|
|
|
|
|
1,045
|
|
|
|
|
949
|
|
Income taxes and other liabilities
|
|
|
|
|
1,832
|
|
|
|
|
1,740
|
|
|
|
|
1,525
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit attributable to HCA Holdings, Inc.
|
|
|
|
|
(7,894
|
)
|
|
|
|
(7,384
|
)
|
|
|
|
(8,270
|
)
|
Noncontrolling interests
|
|
|
|
|
1,396
|
|
|
|
|
1,366
|
|
|
|
|
1,342
|
|
Total deficit
|
|
|
|
|
(6,498
|
)
|
|
|
|
(6,018
|
)
|
|
|
|
(6,928
|
)
|
|
|
|
|
$
|
31,199
|
|
|
|
$
|
29,825
|
|
|
|
$
|
28,831
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
For the Years Ended December 31, 2014 and 2013
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
2,373
|
|
|
|
$
|
1,996
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities
|
|
|
|
(3,433
|
)
|
|
|
|
(4,272
|
)
|
|
|
Provision for doubtful accounts
|
|
|
|
3,169
|
|
|
|
|
3,858
|
|
|
|
Depreciation and amortization
|
|
|
|
1,820
|
|
|
|
|
1,753
|
|
|
|
Income taxes
|
|
|
|
(83
|
)
|
|
|
|
143
|
|
|
|
Losses (gains) sales of facilities
|
|
|
|
(29
|
)
|
|
|
|
10
|
|
|
|
Losses on retirement of debt
|
|
|
|
335
|
|
|
|
|
17
|
|
|
|
Legal claim costs
|
|
|
|
78
|
|
|
|
|
-
|
|
|
|
Amortization of deferred loan costs
|
|
|
|
42
|
|
|
|
|
55
|
|
|
|
Share-based compensation
|
|
|
|
163
|
|
|
|
|
113
|
|
|
|
Other
|
|
|
|
13
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
4,448
|
|
|
|
|
3,680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(2,176
|
)
|
|
|
|
(1,943
|
)
|
|
Acquisition of hospitals and health care entities
|
|
|
|
(766
|
)
|
|
|
|
(481
|
)
|
|
Disposition of hospitals and health care entities
|
|
|
|
51
|
|
|
|
|
33
|
|
|
Change in investments
|
|
|
|
(37
|
)
|
|
|
|
36
|
|
|
Other
|
|
|
|
10
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
(2,918
|
)
|
|
|
|
(2,346
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
|
5,502
|
|
|
|
|
-
|
|
|
Net change in revolving credit facilities
|
|
|
|
440
|
|
|
|
|
970
|
|
|
Repayment of long-term debt
|
|
|
|
(5,164
|
)
|
|
|
|
(1,662
|
)
|
|
Distributions to noncontrolling interests
|
|
|
|
(442
|
)
|
|
|
|
(435
|
)
|
|
Payment of debt issuance costs
|
|
|
|
(73
|
)
|
|
|
|
(5
|
)
|
|
Repurchase of common stock
|
|
|
|
(1,750
|
)
|
|
|
|
(500
|
)
|
|
Distributions to stockholders
|
|
|
|
(7
|
)
|
|
|
|
(16
|
)
|
|
Income tax benefits
|
|
|
|
134
|
|
|
|
|
113
|
|
|
Other
|
|
|
|
(18
|
)
|
|
|
|
(90
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
(1,378
|
)
|
|
|
|
(1,625
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
|
152
|
|
|
|
|
(291
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
414
|
|
|
|
|
705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
566
|
|
|
|
$
|
414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payments
|
|
|
$
|
1,758
|
|
|
|
$
|
1,832
|
|
Income tax payments, net
|
|
|
$
|
1,057
|
|
|
|
$
|
694
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended
|
|
|
|
|
|
Fourth Quarter
|
|
|
December 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Hospitals
|
|
|
|
|
166
|
|
|
|
|
165
|
|
|
|
|
166
|
|
|
|
|
165
|
|
|
Number of Freestanding Outpatient Surgery Centers
|
|
|
|
|
113
|
|
|
|
|
115
|
|
|
|
|
113
|
|
|
|
|
115
|
|
|
Licensed Beds at End of Period
|
|
|
|
|
43,356
|
|
|
|
|
42,896
|
|
|
|
|
43,356
|
|
|
|
|
42,896
|
|
|
Weighted Average Licensed Beds
|
|
|
|
|
43,321
|
|
|
|
|
42,809
|
|
|
|
|
43,132
|
|
|
|
|
42,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
|
|
|
458,000
|
|
|
|
|
434,300
|
|
|
|
|
1,795,300
|
|
|
|
|
1,744,100
|
|
|
% Change
|
|
|
|
|
5.5
|
%
|
|
|
|
|
|
|
2.9
|
%
|
|
|
|
|
Equivalent Admissions
|
|
|
|
|
760,200
|
|
|
|
|
716,200
|
|
|
|
|
2,958,700
|
|
|
|
|
2,844,700
|
|
|
% Change
|
|
|
|
|
6.1
|
%
|
|
|
|
|
|
|
4.0
|
%
|
|
|
|
|
Revenue per Equivalent Admission
|
|
|
|
$
|
12,676
|
|
|
|
$
|
12,337
|
|
|
|
$
|
12,478
|
|
|
|
$
|
12,016
|
|
|
% Change
|
|
|
|
|
2.7
|
%
|
|
|
|
|
|
|
3.8
|
%
|
|
|
|
|
Inpatient Revenue per Admission
|
|
|
|
$
|
12,461
|
|
|
|
$
|
12,124
|
|
|
|
$
|
12,327
|
|
|
|
$
|
11,829
|
|
|
% Change
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient Days
|
|
|
|
|
2,216,700
|
|
|
|
|
2,085,200
|
|
|
|
|
8,699,800
|
|
|
|
|
8,341,200
|
|
|
% Change
|
|
|
|
|
6.3
|
%
|
|
|
|
|
|
|
4.3
|
%
|
|
|
|
|
Equivalent Patient Days
|
|
|
|
|
3,679,000
|
|
|
|
|
3,438,600
|
|
|
|
|
14,337,200
|
|
|
|
|
13,604,600
|
|
|
% Change
|
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
|
|
132,600
|
|
|
|
|
128,700
|
|
|
|
|
518,900
|
|
|
|
|
508,800
|
|
|
% Change
|
|
|
|
|
3.0
|
%
|
|
|
|
|
|
|
2.0
|
%
|
|
|
|
|
Outpatient Surgery Cases
|
|
|
|
|
233,400
|
|
|
|
|
233,000
|
|
|
|
|
891,600
|
|
|
|
|
881,900
|
|
|
% Change
|
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
|
|
1,949,200
|
|
|
|
|
1,754,300
|
|
|
|
|
7,450,700
|
|
|
|
|
6,968,100
|
|
|
% Change
|
|
|
|
|
11.1
|
%
|
|
|
|
|
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outpatient Revenues as a Percentage of Patient Revenues
|
|
|
|
|
38.9
|
%
|
|
|
|
38.8
|
%
|
|
|
|
38.1
|
%
|
|
|
|
37.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Stay
|
|
|
|
|
4.8
|
|
|
|
|
4.8
|
|
|
|
|
4.8
|
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
|
|
|
55.6
|
%
|
|
|
|
52.9
|
%
|
|
|
|
55.3
|
%
|
|
|
|
54.2
|
%
|
|
Equivalent Occupancy
|
|
|
|
|
92.3
|
%
|
|
|
|
87.1
|
%
|
|
|
|
91.1
|
%
|
|
|
|
88.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
|
|
|
450,500
|
|
|
|
|
428,900
|
|
|
|
|
1,770,800
|
|
|
|
|
1,734,700
|
|
|
% Change
|
|
|
|
|
5.0
|
%
|
|
|
|
|
|
|
2.1
|
%
|
|
|
|
|
Equivalent Admissions
|
|
|
|
|
744,100
|
|
|
|
|
704,700
|
|
|
|
|
2,907,700
|
|
|
|
|
2,825,900
|
|
|
% Change
|
|
|
|
|
5.6
|
%
|
|
|
|
|
|
|
2.9
|
%
|
|
|
|
|
Revenue per Equivalent Admission
|
|
|
|
$
|
12,677
|
|
|
|
$
|
12,363
|
|
|
|
$
|
12,475
|
|
|
|
$
|
12,011
|
|
|
% Change
|
|
|
|
|
2.5
|
%
|
|
|
|
|
|
|
3.9
|
%
|
|
|
|
|
Inpatient Revenue per Admission
|
|
|
|
$
|
12,525
|
|
|
|
$
|
12,205
|
|
|
|
$
|
12,392
|
|
|
|
$
|
11,854
|
|
|
% Change
|
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
|
|
130,800
|
|
|
|
|
127,700
|
|
|
|
|
513,600
|
|
|
|
|
506,700
|
|
|
% Change
|
|
|
|
|
2.4
|
%
|
|
|
|
|
|
|
1.3
|
%
|
|
|
|
|
Outpatient Surgery Cases
|
|
|
|
|
228,200
|
|
|
|
|
228,900
|
|
|
|
|
873,400
|
|
|
|
|
874,300
|
|
|
% Change
|
|
|
|
|
-0.3
|
%
|
|
|
|
|
|
|
-0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
|
|
1,909,700
|
|
|
|
|
1,728,300
|
|
|
|
|
7,317,300
|
|
|
|
|
6,915,300
|
|
|
% Change
|
|
|
|
|
10.5
|
%
|
|
|
|
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150203005738/en/
HCA Holdings, Inc.
Investor Contact:
Mark Kimbrough, 615-344-2688
or
Media Contact:
Ed Fishbough, 615-344-2810