HCA Holdings, Inc. (NYSE: HCA) today announced financial and operating
results for the first quarter ended March 31, 2017.
Key first quarter metrics (all percentage changes compare 1Q 2017
to 1Q 2016 unless noted):
-
Revenues increased 3.5 percent to $10.623 billion
-
Net income attributable to HCA Holdings, Inc. totaled $659 million,
or $1.74 per diluted share
-
Adjusted EBITDA totaled $2.005 billion
-
Cash flows from operations totaled $1.280 billion
-
Same facility equivalent admissions increased 1.6 percent, while
same facility admissions increased 1.2 percent
-
Same facility revenue per equivalent admission increased 1.7 percent
Revenues in the first quarter increased to $10.623 billion, compared to
$10.260 billion in the first quarter of 2016. Net income attributable to
HCA Holdings, Inc. totaled $659 million, or $1.74 per diluted share,
compared to $694 million, or $1.69 per diluted share, in the first
quarter of 2016. First quarter 2016 results included legal claim costs
of $12 million, or $0.02 per diluted share. Adjusted EBITDA totaled
$2.005 billion compared to $2.003 billion in the first quarter of 2016.
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.
Same facility equivalent admissions and admissions increased 1.6 and 1.2
percent, respectively, in the first quarter of 2017, compared to the
prior year period. Same facility emergency room visits increased 1.1
percent in the first quarter of 2017, compared to the prior year period.
Inpatient surgeries increased 0.9 percent, while outpatient surgeries
declined 0.5 percent in the first quarter of 2017 compared to the same
period of 2016, on a same facility basis. Same facility revenue per
equivalent admission increased 1.7 percent in the first quarter of 2017
compared to the first quarter of 2016.
During the first quarter of 2017, salaries and benefits, supplies and
other operating expenses totaled $8.628 billion, or 81.2 percent of
revenues, compared to $8.269 billion, or 80.6 percent of revenues, in
the first quarter of 2016.
Balance Sheet and Cash Flow
As of March 31, 2017, HCA Holdings, Inc.’s balance sheet reflected cash
and cash equivalents of $753 million, total debt of $31.514 billion, and
total assets of $33.795 billion. During the first quarter of 2017,
capital expenditures totaled $571 million, excluding acquisitions. Cash
flows provided by operating activities in the first quarter totaled
$1.280 billion compared to $1.399 billion in the prior year’s first
quarter. Cash flows for the first quarter of 2017 were negatively
impacted by a $188 million settlement payment related to the Health
Midwest contractual dispute. As of March 31, 2017, HCA’s leverage ratio
as measured by Total Debt/Adjusted EBITDA was 3.83x, compared to 3.82x
as of December 31, 2016.
The Company repurchased 5.1 million shares of its common stock at a cost
of $424 million during the first quarter of 2017. At March 31, 2017, the
Company had $1.429 billion remaining under the existing $2 billion
authorization. The Company had 368.7 million shares outstanding as of
March 31, 2017.
As of March 31, 2017, HCA operated 171 hospitals and 118 freestanding
surgery centers.
2017 Guidance
The 2017 guidance ranges for the year remain unchanged from our fourth
quarter release and are as follows:
|
|
|
2017 Guidance Range
|
Revenues
|
|
|
$43.0 to $44.0 billion
|
Adjusted EBITDA
|
|
|
$8.40 to $8.70 billion
|
EPS (diluted)
|
|
|
$ 7.20 to $7.60 per diluted share
|
Capital Expenditures
|
|
|
Approximately $2.9 billion
|
The Company’s 2017 guidance contains a number of assumptions, including:
-
2017 guidance includes full-year earnings for the Company’s Oklahoma
facilities which are under agreement to be sold. The Company cannot at
this time estimate a closing date.
-
2017 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.
-
2017 guidance for EPS (diluted) includes an estimated $150 million
income tax benefit, or $0.40 per diluted share, related to the
accounting standard adopted during 2016 which requires the recording
of excess tax benefits related to employee equity award settlements as
a component of the provision for income taxes. The timing and amounts
related to employee equity award settlements are difficult to project
and may vary from this estimate.
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.
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 10:00 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=1117289
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 the Company’s
financial guidance for the year ending December 31, 2017, 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 (collectively, the “Health Reform
Law”), including the effects of any repeal of, or changes to, the Health
Reform Law, 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 (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
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, (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, and
(23) other risk factors described in our annual report on Form 10-K for
the year ended December 31, 2016 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
|
First Quarter
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
Amount
|
|
Ratio
|
|
|
Amount
|
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
$
|
11,383
|
|
|
|
|
|
$
|
11,050
|
|
|
|
|
Provision for doubtful accounts
|
|
|
760
|
|
|
|
|
|
|
790
|
|
|
|
|
Revenues
|
|
|
10,623
|
|
|
100.0
|
|
%
|
|
|
10,260
|
|
|
100.0
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
4,901
|
|
|
46.1
|
|
|
|
|
4,702
|
|
|
45.8
|
|
|
Supplies
|
|
|
1,797
|
|
|
16.9
|
|
|
|
|
1,714
|
|
|
16.7
|
|
|
Other operating expenses
|
|
|
1,930
|
|
|
18.2
|
|
|
|
|
1,853
|
|
|
18.1
|
|
|
Equity in earnings of affiliates
|
|
|
(10
|
)
|
|
(0.1
|
)
|
|
|
|
(12
|
)
|
|
(0.1
|
)
|
|
Depreciation and amortization
|
|
|
521
|
|
|
5.0
|
|
|
|
|
479
|
|
|
4.6
|
|
|
Interest expense
|
|
|
419
|
|
|
3.9
|
|
|
|
|
416
|
|
|
4.1
|
|
|
Losses (gains) on sales of facilities
|
|
|
(1
|
)
|
|
-
|
|
|
|
|
1
|
|
|
-
|
|
|
Legal claim costs
|
|
|
-
|
|
|
-
|
|
|
|
|
12
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,557
|
|
|
90.0
|
|
|
|
|
9,165
|
|
|
89.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
1,066
|
|
|
10.0
|
|
|
|
|
1,095
|
|
|
10.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
289
|
|
|
2.7
|
|
|
|
|
284
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
777
|
|
|
7.3
|
|
|
|
|
811
|
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
118
|
|
|
1.1
|
|
|
|
|
117
|
|
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
$
|
659
|
|
|
6.2
|
|
|
|
$
|
694
|
|
|
6.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.74
|
|
|
|
|
|
$
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
|
379.980
|
|
|
|
|
|
|
410.575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
|
|
$
|
677
|
|
|
|
|
|
$
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
753
|
|
|
$
|
646
|
|
Accounts receivable, less allowance for doubtful accounts of
$4,880 and $4,988
|
|
|
|
5,664
|
|
|
|
5,826
|
|
Inventories
|
|
|
|
1,501
|
|
|
|
1,503
|
|
Other
|
|
|
|
1,119
|
|
|
|
1,111
|
|
Total current assets
|
|
|
|
9,037
|
|
|
|
9,086
|
|
|
|
|
|
|
|
Property and equipment, at cost
|
|
|
|
37,588
|
|
|
|
37,055
|
|
Accumulated depreciation
|
|
|
|
(21,126
|
)
|
|
|
(20,703
|
)
|
|
|
|
|
16,462
|
|
|
|
16,352
|
|
|
|
|
|
|
|
Investments of insurance subsidiaries
|
|
|
|
349
|
|
|
|
336
|
|
Investments in and advances to affiliates
|
|
|
|
194
|
|
|
|
206
|
|
Goodwill and other intangible assets
|
|
|
|
6,754
|
|
|
|
6,704
|
|
Other
|
|
|
|
999
|
|
|
|
1,074
|
|
|
|
|
|
|
|
|
|
|
$
|
33,795
|
|
|
$
|
33,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
2,233
|
|
|
$
|
2,318
|
|
Accrued salaries
|
|
|
|
1,150
|
|
|
|
1,265
|
|
Other accrued expenses
|
|
|
|
1,868
|
|
|
|
2,035
|
|
Long-term debt due within one year
|
|
|
|
212
|
|
|
|
216
|
|
Total current liabilities
|
|
|
|
5,463
|
|
|
|
5,834
|
|
|
|
|
|
|
|
Long-term debt, less net debt issuance costs of $165 and $170
|
|
|
|
31,302
|
|
|
|
31,160
|
|
Professional liability risks
|
|
|
|
1,134
|
|
|
|
1,148
|
|
Income taxes and other liabilities
|
|
|
|
1,253
|
|
|
|
1,249
|
|
|
|
|
|
|
|
EQUITY (DEFICIT)
|
|
|
|
|
|
Stockholders' deficit attributable to HCA Holdings, Inc.
|
|
|
|
(7,017
|
)
|
|
|
(7,302
|
)
|
Noncontrolling interests
|
|
|
|
1,660
|
|
|
|
1,669
|
|
Total deficit
|
|
|
|
(5,357
|
)
|
|
|
(5,633
|
)
|
|
|
|
$
|
33,795
|
|
|
$
|
33,758
|
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Consolidated Statements of Cash Flows
|
First Quarter
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
777
|
|
|
$
|
811
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Increase (decrease) in cash from operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
|
(592
|
)
|
|
|
(789
|
)
|
Provision for doubtful accounts
|
|
|
760
|
|
|
|
790
|
|
Accounts receivable, net
|
|
|
168
|
|
|
|
1
|
|
Inventories and other assets
|
|
|
3
|
|
|
|
14
|
|
Accounts payable and accrued expenses
|
|
|
(591
|
)
|
|
|
(371
|
)
|
Depreciation and amortization
|
|
|
521
|
|
|
|
479
|
|
Income taxes
|
|
|
292
|
|
|
|
360
|
|
Losses (gains) on sales of facilities
|
|
|
(1
|
)
|
|
|
1
|
|
Legal claim costs
|
|
|
-
|
|
|
|
12
|
|
Amortization of debt issuance costs
|
|
|
8
|
|
|
|
10
|
|
Share-based compensation
|
|
|
73
|
|
|
|
65
|
|
Other
|
|
|
30
|
|
|
|
17
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
1,280
|
|
|
|
1,399
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchase of property and equipment
|
|
|
(571
|
)
|
|
|
(509
|
)
|
Acquisition of hospitals and health care entities
|
|
|
(90
|
)
|
|
|
(9
|
)
|
Disposition of hospitals and health care entities
|
|
|
4
|
|
|
|
4
|
|
Change in investments
|
|
|
(19
|
)
|
|
|
11
|
|
Other
|
|
|
7
|
|
|
|
7
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(669
|
)
|
|
|
(496
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Issuance of long-term debt
|
|
|
-
|
|
|
|
3,000
|
|
Net change in revolving credit facilities
|
|
|
160
|
|
|
|
(930
|
)
|
Repayment of long-term debt
|
|
|
(43
|
)
|
|
|
(2,011
|
)
|
Distributions to noncontrolling interests
|
|
|
(145
|
)
|
|
|
(111
|
)
|
Payment of debt issuance costs
|
|
|
(2
|
)
|
|
|
(22
|
)
|
Repurchase of common stock
|
|
|
(424
|
)
|
|
|
(621
|
)
|
Other
|
|
|
(50
|
)
|
|
|
(97
|
)
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(504
|
)
|
|
|
(792
|
)
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
107
|
|
|
|
111
|
|
Cash and cash equivalents at beginning of period
|
|
|
646
|
|
|
|
741
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
753
|
|
|
$
|
852
|
|
|
|
|
|
|
|
|
|
|
|
Interest payments
|
|
$
|
540
|
|
|
$
|
490
|
|
Income tax refunds, net
|
|
$
|
(3
|
)
|
|
$
|
(76
|
)
|
HCA Holdings, Inc.
|
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
Number of Hospitals
|
|
|
171
|
|
|
|
168
|
|
|
Number of Freestanding Outpatient Surgery Centers
|
|
|
118
|
|
|
|
116
|
|
|
Licensed Beds at End of Period
|
|
|
44,374
|
|
|
|
43,817
|
|
|
Weighted Average Licensed Beds
|
|
|
44,362
|
|
|
|
43,780
|
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
Admissions
|
|
|
485,800
|
|
|
|
479,600
|
|
|
|
% Change
|
|
|
1.3
|
%
|
|
|
|
Equivalent Admissions
|
|
|
812,200
|
|
|
|
798,000
|
|
|
|
% Change
|
|
|
1.8
|
%
|
|
|
|
Revenue per Equivalent Admission
|
|
$
|
13,079
|
|
|
$
|
12,857
|
|
|
|
% Change
|
|
|
1.7
|
%
|
|
|
|
Inpatient Revenue per Admission
|
|
$
|
13,368
|
|
|
$
|
12,906
|
|
|
|
% Change
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Patient Days
|
|
|
2,402,900
|
|
|
|
2,395,500
|
|
|
|
% Change
|
|
|
0.3
|
%
|
|
|
|
Equivalent Patient Days
|
|
|
4,017,700
|
|
|
|
3,986,200
|
|
|
|
% Change
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
133,400
|
|
|
|
131,800
|
|
|
|
% Change
|
|
|
1.1
|
%
|
|
|
|
Outpatient Surgery Cases
|
|
|
225,900
|
|
|
|
226,500
|
|
|
|
% Change
|
|
|
-0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
2,163,100
|
|
|
|
2,133,300
|
|
|
|
% Change
|
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Outpatient Revenues as a
|
|
|
|
|
|
|
Percentage of Patient Revenues
|
|
|
37.0
|
%
|
|
|
37.7
|
%
|
|
|
|
|
|
|
|
|
Average Length of Stay
|
|
|
4.9
|
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
|
60.2
|
%
|
|
|
60.1
|
%
|
|
|
|
|
|
|
|
|
Same Facility:
|
|
|
|
|
|
Admissions
|
|
|
485,200
|
|
|
|
479,500
|
|
|
|
% Change
|
|
|
1.2
|
%
|
|
|
|
Equivalent Admissions
|
|
|
810,300
|
|
|
|
797,400
|
|
|
|
% Change
|
|
|
1.6
|
%
|
|
|
|
Revenue per Equivalent Admission
|
|
$
|
13,065
|
|
|
$
|
12,850
|
|
|
|
% Change
|
|
|
1.7
|
%
|
|
|
|
Inpatient Revenue per Admission
|
|
$
|
13,364
|
|
|
$
|
12,912
|
|
|
|
% Change
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
133,100
|
|
|
|
131,900
|
|
|
|
% Change
|
|
|
0.9
|
%
|
|
|
|
Outpatient Surgery Cases
|
|
|
224,700
|
|
|
|
225,900
|
|
|
|
% Change
|
|
|
-0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
2,157,500
|
|
|
|
2,133,300
|
|
|
|
% Change
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Supplemental Non-GAAP Disclosures
|
Operating Results Summary
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
10,623
|
|
|
$
|
10,260
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
$
|
659
|
|
|
$
|
694
|
Losses (gains) on sales of facilities (net of tax)
|
|
|
|
(1
|
)
|
|
|
2
|
Legal claim costs (net of tax)
|
|
|
|
-
|
|
|
|
7
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities and legal claim costs (a)
|
|
|
|
658
|
|
|
|
703
|
Depreciation and amortization
|
|
|
|
521
|
|
|
|
479
|
Interest expense
|
|
|
|
419
|
|
|
|
416
|
Provision for income taxes
|
|
|
|
289
|
|
|
|
288
|
Net income attributable to noncontrolling interests
|
|
|
|
118
|
|
|
|
117
|
|
|
|
|
|
|
Adjusted EBITDA (a)
|
|
|
$
|
2,005
|
|
|
$
|
2,003
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
$
|
1.74
|
|
|
$
|
1.69
|
Losses (gains) on sales of facilities
|
|
|
|
-
|
|
|
|
-
|
Legal claim costs
|
|
|
|
-
|
|
|
|
0.02
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities and legal claim costs(a)
|
|
|
$
|
1.74
|
|
|
$
|
1.71
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
|
|
379.980
|
|
|
|
410.575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Net income attributable to HCA Holdings, Inc., excluding
losses (gains) on sales of facilities 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 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 and legal
claim costs, and Adjusted EBITDA as 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 Holdings, Inc.,
excluding losses (gains) on sales of facilities 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 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 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 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 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.
|
Supplemental Non-GAAP Disclosures
|
2017 Operating Results Forecast
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ending
|
|
|
December 31, 2017
|
|
|
Low
|
|
High
|
|
|
|
|
|
Revenues
|
|
$
|
43,000
|
|
$
|
44,000
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc. (a)
|
|
$
|
2,710
|
|
$
|
2,860
|
Depreciation and amortization
|
|
|
2,030
|
|
|
2,070
|
Interest expense
|
|
|
1,690
|
|
|
1,730
|
Provision for income taxes
|
|
|
1,430
|
|
|
1,490
|
Net income attributable to noncontrolling interests
|
|
|
540
|
|
|
550
|
|
|
|
|
|
Adjusted EBITDA (a) (b)
|
|
$
|
8,400
|
|
$
|
8,700
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
$
|
7.20
|
|
$
|
7.60
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
|
376.500
|
|
|
376.500
|
|
|
|
|
|
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 since these
items are indeterminable at the time the 2017 forecast is provided.
|
|
(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 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.
|
|
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 Holdings, 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.
|
|
HCA Holdings, Inc.
INVESTOR CONTACT:
Mark Kimbrough, 615-344-2688
or
MEDIA CONTACT:
Ed Fishbough, 615-344-2810