Columbia/HCA Reports Second Quarter 1999 EPS From Continuing Operations of $0.31 Excluding Non-recurring Items
Same Facility Revenue Per Equivalent Admission Increases 3.9% Excluding
Hospitals Held for Sale
NASHVILLE, Tenn., July 27 /PRNewswire/ -- Columbia/HCA Healthcare
Corporation (NYSE: COL) today announced operating results for the second
quarter and six months ended June 30, 1999.
For the second quarter of 1999, revenues totaled $4.2 billion compared to
$4.8 billion in the second quarter of 1998. Net income from continuing
operations, excluding gains on sales of facilities, impairment of long-lived
assets and restructuring of operations and investigation related costs,
totaled $182 million or $0.31 per diluted share for the second quarter of
1999, compared to $191 million or $0.30 per diluted share in the second
quarter of 1998. Net income for the second quarter of 1999 totaled
$106 million or $0.18 per diluted share, compared to $78 million or $0.12 per
diluted share in the second quarter of 1998.
For the quarter ended June 30, 1999, same facility revenues, excluding
hospitals sold or being held for sale, increased 4.3 percent while same
facility revenue per equivalent admission increased 3.9 percent. Same
facility admissions for the Company's hospitals increased by 1.1 percent
during the quarter.
The Company recorded asset impairment charges of approximately $54 million
($51 million net of tax), or $0.09 per diluted share during the second quarter
of 1999. In the second quarter of 1998, the Company incurred losses from
discontinued operations and the disposal of discontinued businesses totaling
$95 million after tax, or $0.15 per diluted share.
During the second quarter of 1999, the Company's remaining core assets had
a combined net income from continuing operations, excluding gains on sales of
facilities, impairment of long-lived assets and restructuring of operations
and investigation related costs, of $0.33 per diluted share; assets sold or
being held for sale experienced a net loss of $0.02 per diluted share during
the quarter.
Revenues for the six months ended June 30, 1999, totaled $8.8 billion
compared to $9.7 billion in the first six months of 1998. Net income from
continuing operations, before gains on sales of facilities, impairment of
long-lived assets and restructuring and investigation related costs, totaled
$453 million or $0.74 per diluted share in the first half of 1999, compared to
$432 million or $0.67 per diluted share for the six months ended June 30,
1998. Net income totaled $428 million or $0.70 per diluted share in 1999,
versus $275 million or $0.43 per diluted share in 1998.
Several factors continue to affect the Company's financial results during
the first half of 1999. These factors include reduced Medicare reimbursement
mandated by the Balanced Budget Act of 1997; increased supply expense due to
the increasing costs of new technology and pharmaceuticals; and increased bad
debt expense.
As of June 30, 1999, the Company operated 220 hospitals and 85 ambulatory
surgery centers (including 16 hospitals and 4 ASCs owned through 50/50 equity
joint ventures), compared to 335 hospitals and 144 ambulatory surgery centers
(including 26 hospitals and 5 ASCs owned through equity joint ventures) at
June 30, 1998.
On May 11, 1999, the Company completed the tax-free spin-offs to
Columbia/HCA shareholders of LifePoint Hospitals, Inc. (Nasdaq: LPNT) and
Triad Hospitals, Inc. (Nasdaq: TRIH). Columbia/HCA received approximately
$900 million, tax-free from the spin-off transaction. The results of
operations for LifePoint and Triad, for periods prior to the spin-offs, are
included in the Company's consolidated financial results. The Company also
sold its investments in 8 hospitals and certain other non-core assets during
the second quarter of 1999 for approximately $160 million, net of tax.
During the second quarter of 1999, the Company completed the repurchase of
approximately 62 million shares of its common stock for approximately
$1.5 billion. Since August 1998, the Company has repurchased approximately
85 million shares of its common stock for approximately $2 billion. As of
June 30, 1999, the Company had approximately 564 million shares issued and
outstanding.
At June 30, 1999, the Company's balance sheet reflected total debt of
approximately $6.7 billion, stockholders' equity of approximately $5.4 billion
and total assets of approximately $16.7 billion. Capital expenditures for the
quarter totaled approximately $389 million. The Company's total debt-to-
capital ratio was 52 percent at June 30, 1999, compared to 50 percent at
June 30, 1998. |
