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Board Authorizes Additional $2 Billion Share Repurchase Program and Increases Quarterly Dividend

Tuesday, January 28, 2020 7:30 am CST

Dateline:

NASHVILLE, Tenn.

Public Company Information:

NYSE:
HCA

NASHVILLE, Tenn.--(BUSINESS WIRE)--HCA Healthcare, Inc. (NYSE: HCA) today announced financial and operating results for the fourth quarter ended December 31, 2019.

Key fourth quarter metrics (all percentage changes compare 4Q 2019 to 4Q 2018 unless otherwise noted):

  • Revenues totaled $13.523 billion
  • Net income attributable to HCA Healthcare, Inc. totaled $1.071 billion, or $3.09 per diluted share
  • Adjusted EBITDA totaled $2.738 billion
  • Cash flows from operating activities totaled $2.505 billion
  • Same facility admissions and same facility equivalent admissions increased 4.7 percent and 5.0 percent, respectively

Revenues in the fourth quarter of 2019 increased to $13.523 billion, compared to $12.274 billion in the fourth quarter of 2018. Net income attributable to HCA Healthcare, Inc. totaled $1.071 billion, or $3.09 per diluted share, compared to $1.064 billion, or $3.01 per diluted share, in the fourth quarter of 2018. Results for the fourth quarter of 2018 included gains on sales of facilities of $8 million, or $0.02 per diluted share. In the fourth quarter of 2018 we recorded a $67 million, or $0.19 per diluted share, favorable adjustment to our deferred tax assets and liabilities related to the impact of the Tax Cuts and Jobs Act.

For the fourth quarter of 2019, Adjusted EBITDA totaled $2.738 billion, compared to $2.508 billion in the fourth quarter of 2018. Adjusted EBITDA is a non-GAAP financial measure. A table providing supplemental information on Adjusted EBITDA and reconciling net income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is included in this release.

During the fourth quarter of 2018, the Company incurred additional expenses and experienced losses of revenues estimated at $31 million, or $0.07 per diluted share, associated with Hurricane Michael’s impact on our Florida panhandle facilities. This amount is prior to any potential insurance recoveries. Also, during the fourth quarter of 2018, the Company recorded a benefit of $49 million, or $0.11 per diluted share, from an insurance recovery related to Hurricane Harvey business interruption losses incurred during 2017.

Same facility admissions and same facility equivalent admissions increased 4.7 percent and 5.0 percent, respectively, in the fourth quarter of 2019 compared to the prior year period. Same facility emergency room visits increased 6.7 percent in the fourth quarter of 2019, compared to the prior year period. Same facility inpatient surgeries increased 2.1 percent, and same facility outpatient surgeries increased 1.8 percent in the fourth quarter of 2019, compared to the same period of 2018. Same facility revenue per equivalent admission increased 1.1 percent in the fourth quarter of 2019, compared to the fourth quarter of 2018.

Salaries and benefits, supplies and other operating expenses totaled $10.805 billion, or 79.8 percent of revenues, in the fourth quarter of 2019, compared to $9.770 billion, or 79.6 percent of revenues, in the fourth quarter of 2018.

Year Ended December 31, 2019

Revenues for the year ended December 31, 2019 totaled $51.336 billion, compared to $46.677 billion in the year ended December 31, 2018. Net income attributable to HCA Healthcare, Inc. was $3.505 billion, or $10.07 per diluted share, compared to $3.787 billion, or $10.66 per diluted share, for the year ended December 31, 2018. Results for the year ended December 31, 2019 include gains on sales of facilities of $18 million, or $0.04 per diluted share, and losses on retirement of debt of $211 million, or $0.47 per diluted share. Results for 2018 included gains on sales of facilities of $428 million, or $0.91 per diluted share, and losses on retirement of debt of $9 million, or $0.02 per diluted share.

For 2019, Adjusted EBITDA totaled $9.857 billion compared to $8.949 billion in 2018. Adjusted EBITDA is a non-GAAP financial measure. A table providing supplemental information on Adjusted EBITDA and reconciling net income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is included in this release.

Balance Sheet and Cash Flows from Operations

As of December 31, 2019, HCA Healthcare, Inc.’s balance sheet reflected cash and cash equivalents of $621 million, total debt of $33.722 billion, and total assets of $45.058 billion. During the fourth quarter of 2019, capital expenditures totaled $1.274 billion, excluding acquisitions. Cash flows provided by operating activities in the fourth quarter totaled $2.505 billion, compared to $2.175 billion in the fourth quarter of 2018.

During the fourth quarter of 2019, the Company repurchased 2.069 million shares of its common stock at a cost of $272 million, and during the year ended December 31, 2019, repurchased 7.949 million shares of its common stock at a cost of $1.031 billion. The Company had $1.241 billion remaining under its existing repurchase authorization as of December 31, 2019.

Share Repurchase Program

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.

Dividend

HCA today announced that its Board of Directors declared a quarterly cash dividend of $0.43 per share on the Company’s common stock. The dividend will be paid on March 31, 2020 to stockholders of record at the close of business on March 2, 2020.

The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations and contractual restrictions. Future dividends are expected to be funded by future cash flows from operations.

2020 Guidance

Today, HCA issued the following estimated guidance for 2020:

 

2020 Guidance Range

Revenues

$53.5 to $55.5 billion

Adjusted EBITDA

$10.25 to $10.65 billion

EPS (diluted)

$11.30 to $12.10 per diluted share

Capital Expenditures

$4.0 to $4.2 billion

The Company’s 2020 guidance contains a number of assumptions and excludes the impact of items such as, but not limited to, gains or losses on sales of facilities, losses on retirement of debt, legal claims costs and impairment of long-lived assets.

Adjusted EBITDA is a non-GAAP financial measure. A table reconciling forecasted net income attributable to HCA Healthcare, Inc. to forecasted 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.”

Annual Stockholders’ Meeting

The Company’s 2020 annual stockholders’ meeting will be held in Nashville, Tennessee on May 1, 2020 at 2:00 p.m. local time for stockholders of record as of March 9, 2020.

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=1279390&tp_key=c73d4ed596 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 the Company’s financial guidance for the year ending December 31, 2020, 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 of 2010 (collectively, the “Affordable Care Act”), including the effects of court challenges to, any repeal of, or changes to, the Affordable Care Act or additional 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, including single-payer proposals (often referred to as “Medicare for All”), (3) the effects related to the continued implementation of the sequestration spending reductions required under the Budget Control Act of 2011, 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 supplemental payment programs or Medicaid waiver programs, that may impact reimbursements to health care providers and insurers and the size of the uninsured or underinsured population, (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 third-party payer agreements, the ability to enter into and renew third-party payer provider agreements on acceptable terms and the impact of consumer-driven health plans and physician utilization trends and practices, (9) the efforts of health insurers, health care providers, large employer groups 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 of 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 the impact of interoperability requirements, (23) the impact of natural disasters, such as hurricanes and floods, or similar events beyond our control, (24) the effects of the 2017 Tax Cuts and Jobs Act, including potential legislation or interpretive guidance that may be issued by federal and state taxing authorities or other standard-setting bodies, and (25) other risk factors described in our annual report on Form 10-K for the year ended December 31, 2018 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
Fourth Quarter
(Dollars in millions, except per share amounts)
 

2019

2018

Amount

Ratio

Amount

Ratio

 
Revenues

$

13,523

 

100.0

%

$

12,274

 

100.0

%

 

 
Salaries and benefits

 

6,105

 

45.1

 

 

5,485

 

44.7

 

Supplies

 

2,232

 

16.5

 

 

2,002

 

16.3

 

Other operating expenses

 

2,468

 

18.2

 

 

2,283

 

18.6

 

Equity in earnings of affiliates

 

(20

)

(0.1

)

 

(4

)

-

 

Depreciation and amortization

 

694

 

5.2

 

 

581

 

4.8

 

Interest expense

 

438

 

3.2

 

 

446

 

3.6

 

Gains on sales of facilities

 

(1

)

-

 

 

(8

)

(0.1

)

 

 

11,916

 

88.1

 

 

10,785

 

87.9

 

 
Income before income taxes

 

1,607

 

11.9

 

 

1,489

 

12.1

 

 
Provision for income taxes

 

334

 

2.5

 

 

244

 

2.0

 

 
Net income

 

1,273

 

9.4

 

 

1,245

 

10.1

 

 
Net income attributable to noncontrolling interests

 

202

 

1.5

 

 

181

 

1.4

 

 
Net income attributable to HCA Healthcare, Inc.

$

1,071

 

7.9

 

$

1,064

 

8.7

 

 
Diluted earnings per share

$

3.09

 

$

3.01

 

 
Shares used in computing diluted earnings per share (millions)

 

346.791

 

 

352.876

 

 
Comprehensive income attributable to HCA Healthcare, Inc.

$

1,072

 

$

1,044

 

HCA Healthcare, Inc.
Condensed Consolidated Comprehensive Income Statements
For the Years Ended December 31, 2019 and 2018
(Dollars in millions, except per share amounts)
 

2019

2018

Amount

Ratio

Amount

Ratio

 
Revenues

$

51,336

 

100.0

%

$

46,677

 

100.0

%

 
Salaries and benefits

 

23,560

 

45.9

 

 

21,425

 

45.9

 

Supplies

 

8,481

 

16.5

 

 

7,724

 

16.5

 

Other operating expenses

 

9,481

 

18.5

 

 

8,608

 

18.5

 

Equity in earnings of affiliates

 

(43

)

(0.1

)

 

(29

)

(0.1

)

Depreciation and amortization

 

2,596

 

5.0

 

 

2,278

 

4.9

 

Interest expense

 

1,824

 

3.6

 

 

1,755

 

3.8

 

Gains on sales of facilities

 

(18

)

-

 

 

(428

)

(0.9

)

Losses on retirement of debt

 

211

 

0.4

 

 

9

 

-

 

 

 

46,092

 

89.8

 

 

41,342

 

88.6

 

 
Income before income taxes

 

5,244

 

10.2

 

 

5,335

 

11.4

 

 
Provision for income taxes

 

1,099

 

2.1

 

 

946

 

2.0

 

 
Net income

 

4,145

 

8.1

 

 

4,389

 

9.4

 

 
Net income attributable to noncontrolling interests

 

640

 

1.3

 

 

602

 

1.3

 

 
Net income attributable to HCA Healthcare, Inc.

$

3,505

 

6.8

 

$

3,787

 

8.1

 

 
Diluted earnings per share

$

10.07

 

$

10.66

 

 
Shares used in computing diluted earnings per share (millions)

 

348.226

 

 

355.303

 

 
Comprehensive income attributable to HCA Healthcare, Inc.

$

3,426

 

$

3,779

 

 
HCA Healthcare, Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
   
 

December 31,

September 30,

December 31,

 

2019

2019

2018

   
ASSETS  
Current assets:  
Cash and cash equivalents  

$

621

 

$

559

 

$

502

 

Accounts receivable  

 

7,380

 

 

 

7,131

 

 

 

6,789

 

 

Inventories  

 

1,849

 

 

1,769

 

 

1,732

 

Other  

 

1,346

 

 

1,310

 

 

1,190

 

Total current assets  

 

11,196

 

 

10,769

 

 

10,213

 

   
Property and equipment, at cost  

 

47,235

 

 

46,295

 

 

42,965

 

Accumulated depreciation  

 

(24,520

)

 

(24,293

)

 

(23,208

)

 

 

22,715

 

 

 

22,002

 

 

 

19,757

 

 

   
Investments of insurance subsidiaries  

 

315

 

 

357

 

 

362

 

Investments in and advances to affiliates  

 

249

 

 

243

 

 

232

 

Goodwill and other intangible assets  

 

8,269

 

 

8,160

 

 

7,953

 

Right-of-use operating lease assets  

 

1,834

 

 

1,770

 

 

-

 

Other  

 

480

 

 

611

 

 

690

 

   
 

$

45,058

 

$

43,912

 

$

39,207

 

   
   
   
LIABILITIES AND STOCKHOLDERS' DEFICIT  
Current liabilities:  
Accounts payable  

$

2,905

 

$

2,610

 

$

2,577

 

Accrued salaries  

 

1,775

 

 

1,669

 

 

1,580

 

Other accrued expenses  

 

2,932

 

 

2,697

 

 

2,624

 

Long-term debt due within one year  

 

145

 

 

148

 

 

788

 

Total current liabilities  

 

7,757

 

 

7,124

 

 

7,569

 

   
Long-term debt, less debt issuance costs and discounts of $239, $244 and $157  
 

 

33,577

 

 

 

34,097

 

 

 

32,033

 

 

Professional liability risks  

 

1,370

 

 

1,349

 

 

1,275

 

Right-of-use operating lease obligations  

 

1,499

 

 

1,440

 

 

-

 

Income taxes and other liabilities  

 

1,420

 

 

1,349

 

 

1,248

 

   
EQUITY (DEFICIT)  
Stockholders' deficit attributable to HCA Healthcare, Inc.  

 

(2,808

)

 

 

(3,565

)

 

 

(4,950

)

 

Noncontrolling interests  

 

2,243

 

 

2,118

 

 

2,032

 

Total deficit  

 

(565

)

 

 

(1,447

)

 

 

(2,918

)

 

 

$

45,058

 

$

43,912

 

$

39,207

 

   
HCA Healthcare, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2019 and 2018
(Dollars in millions)
   
 

2019

2018

   
Cash flows from operating activities:  
Net income  

$

4,145

 

$

4,389

 

Adjustments to reconcile net income to net cash provided by operating activities:  
Increase (decrease) in cash from operating assets and liabilities:  
Accounts receivable  

 

(326

)

 

(423

)

Inventories and other assets  

 

(158

)

 

(242

)

Accounts payable and accrued expenses  

 

396

 

 

698

 

Depreciation and amortization  

 

2,596

 

 

2,278

 

Income taxes  

 

250

 

 

74

 

Gains on sales of facilities  

 

(18

)

 

(428

)

Losses on retirement of debt  

 

211

 

 

9

 

Amortization of debt issuance costs and discounts  

 

30

 

 

31

 

Share-based compensation  

 

347

 

 

268

 

Other  

 

129

 

 

107

 

   
Net cash provided by operating activities  

 

7,602

 

 

6,761

 

   
   
Cash flows from investing activities:  
Purchase of property and equipment  

 

(4,158

)

 

(3,573

)

Acquisition of hospitals and health care entities  

 

(1,682

)

 

(1,253

)

Disposition of hospitals and health care entities  

 

61

 

 

808

 

Change in investments  

 

25

 

 

57

 

Other  

 

34

 

 

60

 

   
Net cash used in investing activities  

 

(5,720

)

 

(3,901

)

   
   
Cash flows from financing activities:  
Issuance of long-term debt  

 

6,451

 

 

2,000

 

Net change in revolving credit facilities  

 

(560

)

 

(640

)

Repayment of long-term debt  

 

(5,324

)

 

(1,704

)

Distributions to noncontrolling interests  

 

(542

)

 

(441

)

Payment of debt issuance costs  

 

(73

)

 

(25

)

Payment of dividends  

 

(550

)

 

(487

)

Repurchase of common stock  

 

(1,031

)

 

(1,530

)

Other  

 

(142

)

 

(248

)

   
Net cash used in financing activities  

 

(1,771

)

 

(3,075

)

   
Effect of exchange rate changes on cash and cash equivalents  

 

8

 

 

(15

)

   
Change in cash and cash equivalents  

 

119

 

 

(230

)

Cash and cash equivalents at beginning of period  

 

502

 

 

732

 

   
   
Cash and cash equivalents at end of period  

$

621

 

$

502

 

   
   
Interest payments  

$

1,914

 

$

1,744

 

Income tax payments, net  

$

849

 

$

872

 

   
HCA Healthcare, Inc.
Operating Statistics
 
For the Years
Fourth Quarter Ended December 31,

2019

2018

2019

2018

 
Operations:
Number of Hospitals

 

184

 

 

179

 

 

184

 

 

179

 

Number of Freestanding Outpatient Surgery Centers

 

123

 

 

123

 

 

123

 

 

123

 

Licensed Beds at End of Period

 

49,035

 

 

47,199

 

 

49,035

 

 

47,199

 

Weighted Average Licensed Beds

 

48,911

 

 

47,159

 

 

48,480

 

 

46,857

 

 
Reported:
Admissions

 

540,194

 

 

503,371

 

 

2,108,927

 

 

2,003,753

 

% Change

 

7.3

%

 

5.2

%

Equivalent Admissions

 

933,996

 

 

865,255

 

 

3,646,335

 

 

3,420,406

 

% Change

 

7.9

%

 

6.6

%

Revenue per Equivalent Admission

$

14,478

 

$

14,186

 

$

14,079

 

$

13,647

 

% Change

 

2.1

%

 

3.2

%

Inpatient Revenue per Admission

$

14,842

 

$

14,555

 

$

14,436

 

$

13,927

 

% Change

 

2.0

%

 

3.7

%

 
Patient Days

 

2,601,233

 

 

2,438,963

 

 

10,268,899

 

 

9,732,115

 

% Change

 

6.7

%

 

5.5

%

Equivalent Patient Days

 

4,497,531

 

 

4,192,482

 

 

17,754,926

 

 

16,612,720

 

% Change

 

7.3

%

 

6.9

%

 
Inpatient Surgery Cases

 

145,584

 

 

138,625

 

 

566,635

 

 

548,220

 

% Change

 

5.0

%

 

3.4

%

Outpatient Surgery Cases

 

266,483

 

 

256,240

 

 

1,009,947

 

 

971,537

 

% Change

 

4.0

%

 

4.0

%

 
Emergency Room Visits

 

2,350,988

 

 

2,174,606

 

 

9,161,129

 

 

8,764,431

 

% Change

 

8.1

%

 

4.5

%

 
Outpatient Revenues as a
Percentage of Patient Revenues

 

38.7

%

 

38.2

%

 

38.7

%

 

38.2

%

 
Average Length of Stay (days)

 

4.815

 

 

4.845

 

 

4.869

 

 

4.857

 

 
Occupancy

 

57.8

%

 

56.2

%

 

58.0

%

 

56.9

%

 
Same Facility:
Admissions

 

511,928

 

 

488,870

 

 

2,002,001

 

 

1,947,437

 

% Change

 

4.7

%

 

2.8

%

Equivalent Admissions

 

878,468

 

 

836,457

 

 

3,431,430

 

 

3,316,485

 

% Change

 

5.0

%

 

3.5

%

Revenue per Equivalent Admission

$

14,343

 

$

14,183

 

$

13,979

 

$

13,664

 

% Change

 

1.1

%

 

2.3

%

Inpatient Revenue per Admission

$

14,859

 

$

14,610

 

$

14,469

 

$

13,945

 

% Change

 

1.7

%

 

3.8

%

 
Inpatient Surgery Cases

 

137,263

 

 

134,471

 

 

535,727

 

 

530,148

 

% Change

 

2.1

%

 

1.1

%

Outpatient Surgery Cases

 

251,693

 

 

247,362

 

 

954,207

 

 

938,865

 

% Change

 

1.8

%

 

1.6

%

 
Emergency Room Visits

 

2,245,196

 

 

2,104,915

 

 

8,745,775

 

 

8,503,941

 

% Change

 

6.7

%

 

2.8

%

 
HCA Healthcare, Inc.
Supplemental Non-GAAP Disclosures
Operating Results Summary
(Dollars in millions, except per share amounts)
 
For the Years
Fourth Quarter Ended December 31,

2019

2018

2019

2018

 
Revenues

$

13,523

 

$

12,274

 

$

51,336

 

$

46,677

 

 
Net income attributable to HCA Healthcare, Inc.

$

1,071

 

$

1,064

 

$

3,505

 

$

3,787

 

Gains on sales of facilities (net of tax)

 

-

 

 

(6

)

 

(13

)

 

(324

)

Losses on retirement of debt (net of tax)

 

-

 

 

-

 

 

162

 

 

7

 

Net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt (a)

 

 

1,071

 

 

1,058

 

 

3,654

 

 

3,470

 

Depreciation and amortization

 

694

 

 

581

 

 

2,596

 

 

2,278

 

Interest expense

 

438

 

 

446

 

 

1,824

 

 

1,755

 

Provision for income taxes

 

333

 

 

242

 

 

1,143

 

 

844

 

Net income attributable to noncontrolling interests

 

202

 

 

181

 

 

640

 

 

602

 

 
Adjusted EBITDA (a)

$

2,738

 

$

2,508

 

$

9,857

 

$

8,949

 

 
Adjusted EBITDA margin (a)

 

20.3

%

 

20.4

%

 

19.2

%

 

19.2

%

 
Diluted earnings per share:
Net income attributable to HCA Healthcare, Inc.

$

3.09

 

$

3.01

 

$

10.07

 

$

10.66

 

Gains on sales of facilities

 

-

 

 

(0.02

)

 

(0.04

)

 

(0.91

)

Losses on retirement of debt

 

-

 

 

-

 

 

0.47

 

 

0.02

 

Net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt (a)

$

3.09

 

$

2.99

 

$

10.50

 

$

9.77

 

 
Shares used in computing diluted earnings per share (millions)

 

346.791

 

 

352.876

 

 

348.226

 

 

355.303

 

 
 
 

(a)

Net income attributable to HCA Healthcare, Inc., excluding gains on sales of facilities and losses on retirement of debt, 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 and losses on retirement of debt, 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 and losses on retirement of debt, 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 and losses on retirement of debt, 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 and losses on retirement of debt 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 and losses on retirement of debt, 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 and losses on retirement of debt, 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 and losses on retirement of debt, 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
2020 Operating Results Forecast
(Dollars in millions, except per share amounts)
 
For the Year Ending
December 31, 2020
Low   High
 
Revenues

$

53,500

 

$

55,500

 
Net income attributable to HCA Healthcare, Inc. (a)

$

3,875

 

$

4,150

Depreciation and amortization

 

2,790

 

 

2,820

Interest expense

 

1,760

 

 

1,780

Provision for income taxes

 

1,160

 

 

1,225

Net income attributable to noncontrolling interests

 

665

 

 

675

 
Adjusted EBITDA (a) (b)

$

10,250

 

$

10,650

 
Diluted earnings per share:  
Net income attributable to HCA Healthcare, Inc.

$

11.30

 

$

12.10

 
Shares used in computing diluted earnings per share (millions)

 

342.200

 

 

342.200

 
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.

 

Contact:

INVESTOR CONTACT:
Mark Kimbrough
615-344-2688

MEDIA CONTACT:
Harlow Sumerford
615-344-1851

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