Board Authorizes Additional $2 Billion Share Repurchase Program
HCA Healthcare, Inc. (NYSE: HCA) today announced financial and operating
results for the third quarter ended September 30, 2017.
Key third quarter metrics (all percentage changes compare 3Q 2017
to 3Q 2016 unless noted):
-
Revenues increased 4.2 percent to $10.696 billion
-
Net income attributable to HCA Healthcare, Inc. totaled $426
million, or $1.15 per diluted share
-
Adjusted EBITDA totaled $1.776 billion
-
Cash flows from operations totaled $1.008 billion
-
Same facility equivalent admissions increased 0.3 percent, while
same facility admissions increased 0.6 percent
-
Same facility revenue per equivalent admission increased 2.0 percent
-
Same facility emergency room visits increased 0.3 percent
The HCA Healthcare, Inc. Board of Directors has authorized an additional
share repurchase program for up to $2 billion of the Company’s
outstanding common stock. Repurchases will be made in accordance with
applicable securities laws and may be made at management’s discretion
from time to time in the open market, through privately negotiated
transactions, or otherwise. The repurchase program has no time limit and
may be suspended for periods or discontinued at any time. Including both
this program and remaining amounts under the Company’s November 2016 $2
billion share repurchase authorization, as of October 31, 2017, the
Company has approximately $2.150 billion currently authorized for share
repurchases.
Revenues in the third quarter increased to $10.696 billion, compared to
$10.270 billion in the third quarter of 2016. Net income attributable to
HCA Healthcare, Inc. totaled $426 million, or $1.15 per diluted share,
compared to $618 million, or $1.59 per diluted share, in the third
quarter of 2016. The Company recognized tax benefits of $4 million, or
$0.01 per diluted share, and $11 million, or $0.03 per diluted share,
for the third quarters of 2017 and 2016, respectively, related to excess
tax benefits for employee equity award settlements.
Third quarter 2017 results also include gains on sales of facilities of
$7 million, or $0.01 per diluted share, and losses on retirement of debt
of $39 million, or $0.07 per diluted share. Third quarter 2016 results
included gains on sales of facilities of $3 million, or $0.01 per
diluted share, losses on retirement of debt of $4 million, or $0.01 per
diluted share, and legal claim costs of $11 million, or $0.02 per
diluted share. The Company recognized a reduction in the provision for
income taxes of $51 million, or $0.13 per diluted share, during the
third quarter of 2016, resulting from the completion of the IRS
examination of HCA’s 2011 and 2012 federal income tax returns.
Adjusted EBITDA totaled $1.776 billion in the third quarter of 2017
compared to $1.957 billion in the third quarter of 2016. Adjusted EBITDA
is a non-GAAP financial measure. A table reconciling net income
attributable to HCA Healthcare, Inc. to Adjusted EBITDA is included in
this release.
During the third quarter of 2017, the Company incurred additional
expenses and experienced losses of revenues estimated at approximately
$140 million, or $0.24 per diluted share, associated with hurricanes
Harvey and Irma’s impact on our Corpus Christi, Houston, Florida,
Georgia and South Carolina facilities. This amount is prior to any
insurance recoveries which the Company may receive. All facilities
impacted by Harvey and Irma have resumed normal operation, with the
exception of 131-bed East Houston Regional Medical Center that
experienced flooding.
Also, results for the third quarter of 2017 include a negative impact to
operating results related to the Texas Medicaid Waiver program of
approximately $50 million, or $0.08 per diluted share. This reflects
settlement amounts related to the program year ended September 30, 2017.
Same facility equivalent admissions increased 0.3 percent in the third
quarter of 2017 compared to the prior year period. Same facility
admissions increased 0.6 percent compared to the prior year period. Same
facility emergency room visits increased 0.3 percent in the third
quarter of 2017, compared to the prior year period. The Company
estimates that hurricanes had unfavorable impacts of 80 basis points on
same facility equivalent admissions growth, 30 basis points on same
facility admissions growth and 30 basis points on same facility
emergency visits growth during the third quarter. Same facility
inpatient surgeries declined 0.7 percent, while same facility outpatient
surgeries declined 4.2 percent in the third quarter of 2017 compared to
the same period of 2016. Same facility revenue per equivalent admission
increased 2.0 percent in the third quarter of 2017 compared to the third
quarter of 2016.
During the third quarter of 2017, salaries and benefits, supplies and
other operating expenses totaled $8.933 billion, or 83.5 percent of
revenues, compared to $8.335 billion, or 81.1 percent of revenues, in
the third quarter of 2016.
Nine Months Ended September 30, 2017
Revenues for the nine months ended September 30, 2017 totaled $32.052
billion compared to $30.849 billion in the same period of 2016. Net
income attributable to HCA Healthcare, Inc. was $1.742 billion, or $4.64
per diluted share, compared to $1.970 billion, or $4.93 per diluted
share, for the first nine months of 2016. Results for the nine months
ended September 30, 2017 include gains on sales of facilities of $10
million, or $0.02 per diluted share, and losses on retirement of debt of
$39 million, or $0.07 per diluted share. Results for the nine months
ended September 30, 2016 included gains on sales of facilities of $8
million, or $0.01 per diluted share, losses on retirement of debt of $4
million, or $0.01 per diluted share, and legal claim costs of $33
million, or $0.05 per diluted share. The Company recognized a reduction
in the provision for income taxes of $51 million, or $0.13 per diluted
share, during the nine months ended September 30, 2016, resulting from
the completion of the IRS examination of HCA’s 2011 and 2012 federal
income tax returns.
During the nine months ended September 30, 2017, the Company incurred
additional expenses and experienced losses of revenues estimated at
approximately $140 million, or $0.24 per diluted share, associated with
the impact of hurricanes. Also in the nine months ended September 30,
2017, the Company incurred a negative impact to results related to the
Texas Medicaid Waiver program of approximately $50 million, or $0.08 per
diluted share.
Balance Sheet and Cash Flows from Operations
As of September 30, 2017, HCA Healthcare, Inc.’s balance sheet reflected
cash and cash equivalents of $718 million, total debt of $32.953
billion, and total assets of $35.731 billion. During the third quarter
of 2017, capital expenditures totaled $729 million, excluding
acquisitions. Cash flows provided by operating activities in the third
quarter totaled $1.008 billion compared to $1.206 billion in the third
quarter of 2016. The decline in cash flow was primarily attributable to
the $215 million decline in net income.
As of September 30, 2017, HCA’s leverage ratio as measured by Total
Debt/Adjusted EBITDA was 4.08x, compared to 3.82x as of December 31,
2016.
During the third quarter of 2017, the Company repurchased 6.3 million
shares of its common stock at a cost of $509 million and during the nine
months ended September 30, 2017, repurchased 17.8 million shares of its
common stock at a cost of $1.475 billion.
As of September 30, 2017, HCA operated 177 hospitals and 119
freestanding surgery centers.
2017 Guidance
The financial impact of the hurricanes and the Texas Medicaid Waiver
program were not reflected in our previous guidance. The Company’s 2017
guidance ranges for the year have been updated from our July 25, 2017
second quarter release and are as follows:
|
|
|
|
|
|
|
2017 Updated Guidance Ranges
|
Revenues
|
|
|
$43.0 to $44.0 billion
|
Adjusted EBITDA
|
|
|
$8.00 to $8.15 billion
|
EPS (diluted)
|
|
|
$6.45 to $6.70 per diluted share
|
Capital Expenditures
|
|
|
Approximately $3.0 billion
|
The Company’s 2017 updated guidance contains a number of assumptions,
including:
-
2017 guidance for EPS (diluted) includes an estimated $90 million
income tax benefit, or $0.24 per diluted share, related to the
accounting standard 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.
-
2017 guidance includes expected full-year earnings for the Company’s
Oklahoma facilities which are under agreement to be sold. The Company
now estimates a closing date of December 31, 2017.
-
2017 guidance includes the impact of acquisitions completed as of
September 30, 2017.
-
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.
Adjusted EBITDA is a non-GAAP financial measure. A table reconciling net
income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is
included in this release.
The Company’s updated 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 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=1117305
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 or changes to its implementation, 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 Healthcare, Inc. and its affiliates.
|
HCA Healthcare, Inc.
|
Condensed Consolidated Comprehensive Income Statements
|
Third Quarter
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
$11,967
|
|
|
|
$11,110
|
|
|
|
Provision for doubtful accounts
|
|
1,271
|
|
|
|
840
|
|
|
|
Revenues
|
|
10,696
|
|
100.0
|
%
|
10,270
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
5,081
|
|
47.5
|
|
4,740
|
|
46.1
|
|
Supplies
|
|
1,777
|
|
16.6
|
|
1,699
|
|
16.5
|
|
Other operating expenses
|
|
2,075
|
|
19.4
|
|
1,896
|
|
18.5
|
|
Equity in earnings of affiliates
|
|
(13)
|
|
(0.1)
|
|
(22)
|
|
(0.2)
|
|
Depreciation and amortization
|
|
539
|
|
5.0
|
|
495
|
|
4.9
|
|
Interest expense
|
|
427
|
|
4.0
|
|
432
|
|
4.2
|
|
Gains on sales of facilities
|
|
(7)
|
|
(0.1)
|
|
(3)
|
|
-
|
|
Losses on retirement of debt
|
|
39
|
|
0.4
|
|
4
|
|
-
|
|
Legal claim costs
|
|
-
|
|
-
|
|
11
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,918
|
|
92.7
|
|
9,252
|
|
90.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
778
|
|
7.3
|
|
1,018
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
248
|
|
2.3
|
|
273
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
530
|
|
5.0
|
|
745
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
104
|
|
1.0
|
|
127
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Healthcare, Inc.
|
|
$426
|
|
4.0
|
|
$618
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$1.15
|
|
|
|
$1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
369.834
|
|
|
|
389.592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Healthcare, Inc.
|
|
$451
|
|
|
|
$621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCA Healthcare, Inc.
|
Condensed Consolidated Comprehensive Income Statements
|
For the Nine Months Ended September 30, 2017 and 2016
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Amount
|
|
Ratio
|
|
|
Amount
|
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
$35,156
|
|
|
|
|
$33,241
|
|
|
|
Provision for doubtful accounts
|
|
3,104
|
|
|
|
|
2,392
|
|
|
|
Revenues
|
|
32,052
|
|
100.0
|
%
|
|
30,849
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
14,878
|
|
46.4
|
|
|
14,133
|
|
45.8
|
|
Supplies
|
|
5,369
|
|
16.8
|
|
|
5,131
|
|
16.6
|
|
Other operating expenses
|
|
5,970
|
|
18.6
|
|
|
5,617
|
|
18.2
|
|
Equity in earnings of affiliates
|
|
(36)
|
|
(0.1)
|
|
|
(44)
|
|
(0.1)
|
|
Depreciation and amortization
|
|
1,581
|
|
4.9
|
|
|
1,463
|
|
4.8
|
|
Interest expense
|
|
1,257
|
|
3.9
|
|
|
1,275
|
|
4.1
|
|
Gains on sales of facilities
|
|
(10)
|
|
-
|
|
|
(8)
|
|
-
|
|
Losses on retirement of debt
|
|
39
|
|
0.1
|
|
|
4
|
|
-
|
|
Legal claim costs
|
|
-
|
|
-
|
|
|
33
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,048
|
|
90.6
|
|
|
27,604
|
|
89.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
3,004
|
|
9.4
|
|
|
3,245
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
902
|
|
2.8
|
|
|
898
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
2,102
|
|
6.6
|
|
|
2,347
|
|
7.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
360
|
|
1.2
|
|
|
377
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Healthcare, Inc.
|
|
$1,742
|
|
5.4
|
|
|
$1,970
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$4.64
|
|
|
|
|
$4.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
375.013
|
|
|
|
|
399.577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Healthcare, Inc.
|
|
$1,812
|
|
|
|
|
$1,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCA Healthcare, Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$718
|
|
|
$705
|
|
|
$646
|
|
Accounts receivable, less allowance for doubtful accounts of
$5,416, $5,050 and $4,988
|
|
|
5,980
|
|
|
5,782
|
|
|
5,826
|
|
Inventories
|
|
|
1,546
|
|
|
1,544
|
|
|
1,503
|
|
Other
|
|
|
1,204
|
|
|
1,306
|
|
|
1,111
|
|
Total current assets
|
|
|
9,448
|
|
|
9,337
|
|
|
9,086
|
|
|
|
|
|
|
|
|
|
Property and equipment, at cost
|
|
|
39,262
|
|
|
38,306
|
|
|
37,055
|
|
Accumulated depreciation
|
|
|
(21,933
|
)
|
|
(21,538
|
)
|
|
(20,703
|
)
|
|
|
|
17,329
|
|
|
16,768
|
|
|
16,352
|
|
|
|
|
|
|
|
|
|
Investments of insurance subsidiaries
|
|
|
368
|
|
|
352
|
|
|
336
|
|
Investments in and advances to affiliates
|
|
|
201
|
|
|
197
|
|
|
206
|
|
Goodwill and other intangible assets
|
|
|
7,357
|
|
|
6,771
|
|
|
6,704
|
|
Other
|
|
|
1,028
|
|
|
1,141
|
|
|
1,074
|
|
|
|
|
|
|
|
|
|
|
|
|
$35,731
|
|
|
$34,566
|
|
|
$33,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$2,314
|
|
|
$2,245
|
|
|
$2,318
|
|
Accrued salaries
|
|
|
1,312
|
|
|
1,209
|
|
|
1,265
|
|
Other accrued expenses
|
|
|
1,783
|
|
|
2,104
|
|
|
2,035
|
|
Long-term debt due within one year
|
|
|
202
|
|
|
213
|
|
|
216
|
|
Total current liabilities
|
|
|
5,611
|
|
|
5,771
|
|
|
5,834
|
|
|
|
|
|
|
|
|
|
Long-term debt, less net debt issuance costs of $171, $179 and $170
|
|
|
32,751
|
|
|
31,448
|
|
|
31,160
|
|
Professional liability risks
|
|
|
1,179
|
|
|
1,144
|
|
|
1,148
|
|
Income taxes and other liabilities
|
|
|
1,256
|
|
|
1,282
|
|
|
1,249
|
|
|
|
|
|
|
|
|
|
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
Stockholders' deficit attributable to HCA Healthcare, Inc.
|
|
|
(6,780
|
)
|
|
(6,792
|
)
|
|
(7,302
|
)
|
Noncontrolling interests
|
|
|
1,714
|
|
|
1,713
|
|
|
1,669
|
|
Total deficit
|
|
|
(5,066
|
)
|
|
(5,079
|
)
|
|
(5,633
|
)
|
|
|
|
$35,731
|
|
|
$34,566
|
|
|
$33,758
|
|
|
|
|
|
|
|
|
|
|
HCA Healthcare, Inc.
|
Consolidated Statements of Cash Flows
|
For the Nine Months Ended September 30, 2017 and 2016
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$2,102
|
|
|
|
$2,347
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Increase (decrease) in cash from operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(3,174
|
)
|
|
|
(2,044
|
)
|
Provision for doubtful accounts
|
|
3,104
|
|
|
|
2,392
|
|
Accounts receivable, net
|
|
(70
|
)
|
|
|
348
|
|
Inventories and other assets
|
|
(50
|
)
|
|
|
(161
|
)
|
Accounts payable and accrued expenses
|
|
(169
|
)
|
|
|
(341
|
)
|
Depreciation and amortization
|
|
1,581
|
|
|
|
1,463
|
|
Income taxes
|
|
(9
|
)
|
|
|
8
|
|
Gains on sales of facilities
|
|
(10
|
)
|
|
|
(8
|
)
|
Losses on retirement of debt
|
|
39
|
|
|
|
4
|
|
Legal claim costs
|
|
-
|
|
|
|
33
|
|
Amortization of debt issuance costs
|
|
23
|
|
|
|
26
|
|
Share-based compensation
|
|
195
|
|
|
|
196
|
|
Other
|
|
60
|
|
|
|
39
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
3,692
|
|
|
|
3,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
(2,033
|
)
|
|
|
(1,884
|
)
|
Acquisition of hospitals and health care entities
|
|
(1,142
|
)
|
|
|
(468
|
)
|
Disposition of hospitals and health care entities
|
|
24
|
|
|
|
23
|
|
Change in investments
|
|
(15
|
)
|
|
|
78
|
|
Other
|
|
(6
|
)
|
|
|
17
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(3,172
|
)
|
|
|
(2,234
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Issuance of long-term debt
|
|
1,502
|
|
|
|
5,400
|
|
Net change in revolving credit facilities
|
|
650
|
|
|
|
(70
|
)
|
Repayment of long-term debt
|
|
(700
|
)
|
|
|
(4,424
|
)
|
Distributions to noncontrolling interests
|
|
(363
|
)
|
|
|
(342
|
)
|
Payment of debt issuance costs
|
|
(25
|
)
|
|
|
(40
|
)
|
Repurchase of common stock
|
|
(1,475
|
)
|
|
|
(2,213
|
)
|
Other
|
|
(37
|
)
|
|
|
(95
|
)
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
(448
|
)
|
|
|
(1,784
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
72
|
|
|
|
(64
|
)
|
Cash and cash equivalents at beginning of period
|
|
646
|
|
|
|
741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$718
|
|
|
|
$677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payments
|
|
$1,383
|
|
|
|
$1,339
|
|
Income tax payments, net
|
|
$911
|
|
|
|
$890
|
|
|
|
|
|
|
|
|
|
|
HCA Healthcare, Inc.
|
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
|
|
|
|
|
|
Third Quarter
|
|
|
Ended September 30,
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Hospitals
|
|
177
|
|
|
169
|
|
|
177
|
|
|
169
|
Number of Freestanding Outpatient Surgery Centers
|
|
119
|
|
|
117
|
|
|
119
|
|
|
117
|
Licensed Beds at End of Period
|
|
46,250
|
|
|
44,226
|
|
|
46,250
|
|
|
44,226
|
Weighted Average Licensed Beds
|
|
45,887
|
|
|
44,188
|
|
|
44,957
|
|
|
44,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
482,557
|
|
|
469,764
|
|
|
1,441,492
|
|
|
1,416,550
|
% Change
|
|
2.7%
|
|
|
|
|
|
1.8%
|
|
|
|
Equivalent Admissions
|
|
818,887
|
|
|
799,120
|
|
|
2,440,446
|
|
|
2,389,720
|
% Change
|
|
2.5%
|
|
|
|
|
|
2.1%
|
|
|
|
Revenue per Equivalent Admission
|
|
$ 13,062
|
|
|
$ 12,851
|
|
|
$ 13,134
|
|
|
$ 12,909
|
% Change
|
|
1.6%
|
|
|
|
|
|
1.7%
|
|
|
|
Inpatient Revenue per Admission
|
|
$ 13,296
|
|
|
$ 12,997
|
|
|
$ 13,462
|
|
|
$ 13,020
|
% Change
|
|
2.3%
|
|
|
|
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient Days
|
|
2,360,112
|
|
|
2,276,826
|
|
|
7,070,131
|
|
|
6,965,519
|
% Change
|
|
3.7%
|
|
|
|
|
|
1.5%
|
|
|
|
Equivalent Patient Days
|
|
4,005,090
|
|
|
3,873,827
|
|
|
11,969,732
|
|
|
11,750,831
|
% Change
|
|
3.4%
|
|
|
|
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
137,187
|
|
|
135,013
|
|
|
405,081
|
|
|
400,921
|
% Change
|
|
1.6%
|
|
|
|
|
|
1.0%
|
|
|
|
Outpatient Surgery Cases
|
|
224,252
|
|
|
229,054
|
|
|
684,382
|
|
|
690,118
|
% Change
|
|
-2.1%
|
|
|
|
|
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
2,130,460
|
|
|
2,077,938
|
|
|
6,409,721
|
|
|
6,304,266
|
% Change
|
|
2.5%
|
|
|
|
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outpatient Revenues as a Percentage of Patient Revenues
|
|
38.1%
|
|
|
38.6%
|
|
|
37.5%
|
|
|
38.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Stay (days)
|
|
4.891
|
|
|
4.847
|
|
|
4.905
|
|
|
4.917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
55.9%
|
|
|
56.0%
|
|
|
57.6%
|
|
|
57.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
467,165
|
|
|
464,226
|
|
|
1,413,566
|
|
|
1,399,617
|
% Change
|
|
0.6%
|
|
|
|
|
|
1.0%
|
|
|
|
Equivalent Admissions
|
|
790,910
|
|
|
788,256
|
|
|
2,387,513
|
|
|
2,358,355
|
% Change
|
|
0.3%
|
|
|
|
|
|
1.2%
|
|
|
|
Revenue per Equivalent Admission
|
|
$ 13,163
|
|
|
$ 12,906
|
|
|
$ 13,194
|
|
|
$ 12,962
|
% Change
|
|
2.0%
|
|
|
|
|
|
1.8%
|
|
|
|
Inpatient Revenue per Admission
|
|
$ 13,438
|
|
|
$ 13,070
|
|
|
$ 13,542
|
|
|
$ 13,091
|
% Change
|
|
2.8%
|
|
|
|
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
132,726
|
|
|
133,660
|
|
|
397,853
|
|
|
397,328
|
% Change
|
|
-0.7%
|
|
|
|
|
|
0.1%
|
|
|
|
Outpatient Surgery Cases
|
|
217,572
|
|
|
227,223
|
|
|
671,359
|
|
|
685,224
|
% Change
|
|
-4.2%
|
|
|
|
|
|
-2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
2,053,759
|
|
|
2,047,800
|
|
|
6,254,899
|
|
|
6,212,413
|
% Change
|
|
0.3%
|
|
|
|
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HCA Healthcare, Inc.
|
|
Supplemental Non-GAAP Disclosures
|
|
Operating Results Summary
|
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months
|
|
|
|
|
|
|
Third Quarter
|
|
Ended September 30,
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$10,696
|
|
|
$10,270
|
|
|
$32,052
|
|
|
$30,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Healthcare, Inc.
|
|
$426
|
|
|
$618
|
|
|
$1,742
|
|
|
$1,970
|
|
|
Gains on sales of facilities (net of tax)
|
|
(4
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
Losses on retirement of debt (net of tax)
|
|
25
|
|
|
2
|
|
|
25
|
|
|
2
|
|
|
Legal claim costs (net of tax)
|
|
-
|
|
|
7
|
|
|
-
|
|
|
21
|
|
|
Net income attributable to HCA Healthcare, Inc., excluding gains
on sales of facilities, losses on retirement of debt and legal
claim costs (a)
|
|
447
|
|
|
625
|
|
|
1,761
|
|
|
1,989
|
|
|
Depreciation and amortization
|
|
539
|
|
|
495
|
|
|
1,581
|
|
|
1,463
|
|
|
Interest expense
|
|
427
|
|
|
432
|
|
|
1,257
|
|
|
1,275
|
|
|
Provision for income taxes
|
|
259
|
|
|
278
|
|
|
912
|
|
|
908
|
|
|
Net income attributable to noncontrolling interests
|
|
104
|
|
|
127
|
|
|
360
|
|
|
377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a)
|
|
$1,776
|
|
|
$1,957
|
|
|
$5,871
|
|
|
$6,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin (a)
|
|
16.6
|
%
|
|
19.1
|
%
|
|
18.3
|
%
|
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Healthcare, Inc.
|
|
$1.15
|
|
|
$1.59
|
|
|
$4.64
|
|
|
$4.93
|
|
|
Gains on sales of facilities
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
Losses on retirement of debt
|
|
0.07
|
|
|
0.01
|
|
|
0.07
|
|
|
0.01
|
|
|
Legal claim costs
|
|
-
|
|
|
0.02
|
|
|
-
|
|
|
0.05
|
|
|
Net income attributable to HCA Healthcare, Inc., excluding gains
on sales of facilities, losses on retirement of debt and legal
claim costs(a)
|
|
$1.21
|
|
|
$1.61
|
|
|
$4.69
|
|
|
$4.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
369.834
|
|
|
389.592
|
|
|
375.013
|
|
|
399.577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Net income attributable to HCA Healthcare, Inc., excluding 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 Healthcare, Inc., excluding 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 Healthcare, Inc., excluding 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 health care facilities and
their management teams.
|
|
|
|
Management and investors review both the overall performance
(including net income attributable to HCA Healthcare, Inc.,
excluding gains on sales of facilities, losses on retirement of debt
and legal claim costs, and GAAP net income attributable to HCA
Healthcare, 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 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 Healthcare, Inc., excluding 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 Healthcare, 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 Healthcare, Inc., excluding 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 Healthcare, Inc., excluding 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 Healthcare, 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 Healthcare, Inc. (a)
|
|
$2,400
|
|
$2,495
|
|
Depreciation and amortization
|
|
2,110
|
|
2,120
|
|
Interest expense
|
|
1,690
|
|
1,700
|
|
Provision for income taxes
|
|
1,290
|
|
1,325
|
|
Net income attributable to noncontrolling interests
|
|
510
|
|
510
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a) (b)
|
|
$8,000
|
|
$8,150
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
Net income attributable to HCA Healthcare, Inc.
|
|
$6.45
|
|
$6.70
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
372.400
|
|
372.400
|
|
|
|
|
|
|
|
|
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.
|
|
|
(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 Healthcare, 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 Healthcare, 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 Healthcare, Inc.
Investor Contact:
Mark Kimbrough, 615-344-2688
or
Media Contact:
Ed Fishbough, 615-344-2810