Columbia/HCA Reports First Quarter 1999 EPS From Continuing Operations of $0.42 Excluding Non-recurring Items
Board Authorizes Spin-Off, Sets Record Date of April 30
NASHVILLE, Tenn., April 21 /PRNewswire/ -- Columbia/HCA Healthcare
Corporation (NYSE: COL) today announced operating results for the first
quarter ended March 31, 1999.
For the first quarter, revenues from continuing operations totaled
$4.7 billion compared to $4.9 billion in the first 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 $271 million or $0.42 per diluted share
for the first quarter of 1999 compared to $241 million or $0.37 per diluted
share in the first quarter of 1998. Net income for the first quarter totaled
$322 million or $0.50 per diluted share compared to $197 million or $0.31 per
diluted share in the first quarter of 1998.
The Company sold 7 hospitals and certain other non-core assets during the
quarter resulting in a pretax gain of $249 million ($151 million net of tax),
or $0.24 per diluted share. The Company also recorded asset impairment
charges of approximately $106 million ($80 million net of tax), or $0.13 per
diluted share during the quarter.
During the quarter, the Company's remaining core assets had 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 $0.44 per diluted share; assets sold or being
held for sale experienced a net loss of ($0.02) per diluted share, while
assets to be distributed to shareholders broke even during the quarter.
For the quarter ended March 31, 1999, same-facility admissions increased
by 3.5 percent. Same-facility equivalent admissions, which reflect inpatient
and outpatient volumes, increased 3.6 percent.
At March 31, 1999, the Company's balance sheet reflected total debt of
approximately $6.3 billion, stockholders' equity of $7.5 billion and total
assets of $18.8 billion. Capital expenditures for the quarter totaled
$301 million. The Company's total debt-to-capital ratio was to 43 percent at
March 31, 1999 compared to 45 percent at December 31, 1998 and 52 percent at
March 31, 1998.
Subject to certain financing arrangements and regulatory approvals, the
Company's Board of Directors has authorized the spin-offs of LifePoint
Hospitals, Inc. and Triad Hospitals, Inc. (America and Pacific Groups,
respectively) to the stockholders of Columbia/HCA. The spin-off will be
accomplished through a distribution of one share of LifePoint and one share of
Triad common stock for every 19 shares of Columbia/HCA common stock
outstanding on the record date, which will be April 30, 1999. The effective
date of the spin-off will be on or about May 7, 1999.
The Internal Revenue Service has ruled that the spin-off generally will be
tax-free to the Company's stockholders (except for any cash received in lieu
of fractional shares of LifePoint and Triad common stock). Further details
concerning the spin-off will be provided to stockholders in an information
statement to be distributed by the Company prior to the effective date of the
spin-off.
The Company has recently settled forward purchase contracts associated
with the July 1998, $1 billion share repurchase program representing
27.1 million shares at a cost of approximately $580 million. In accordance
with the terms of the forward purchase contracts, the shares remained issued
and outstanding until the contracts were settled by the Company. The
remaining forward purchase contracts, totaling 12.3 million shares and
approximately $305 million, are expected to be settled early during the second
quarter. Shares valued in excess of $100 million were purchased by the
Company in the open market.
In February 1999, the Board authorized a second $1 billion share
repurchase program. As of April 20, 1999, Columbia/HCA has repurchased
6.9 million shares of its common stock for approximately $131 million.
Columbia/HCA's annual shareholders meeting will be held on May 27, 1999 in
Nashville, Tennessee, for shareholders of record as of April 5, 1999.
This press release contains forward-looking statements based on current
management expectations. Numerous factors, including those detailed from
time-to-time in the Company's filings with the Securities and Exchange
Commission, may cause results to differ materially from those anticipated in
the forward-looking statements. Many of the factors that will determine the
Company's future results are beyond the ability of the Company to control or
predict. These statements are subject to risks and uncertainties and,
therefore, actual results may differ materially. |
