EX-99.1 3 g82354exv99w1.txt EX-99.1 PRESS RELEASE EXHIBIT 99.1 (PROVINCE HEALTHCARE LOGO) NEWS RELEASE FOR IMMEDIATE RELEASE CONTACT: MERILYN H. HERBERT VICE PRESIDENT, INVESTOR RELATIONS (615) 370-1377 PROVINCE HEALTHCARE REPORTS FIRST QUARTER RESULTS Brentwood, TN, April 23, 2003 - Province Healthcare Company (NYSE:PRV) today announced results consistent with its previously disclosed expectations for the first quarter ended March 31, 2003. Diluted earnings per share (EPS) for the quarter were $0.20 compared with $0.23 in the prior year's first quarter. Net operating revenues for the first quarter increased 17.4% to $194.4 million, compared with $165.6 million in the same period of 2002. Earnings before income taxes, depreciation and amortization, interest, minority interests and gain or loss on sale of assets (EBITDA) were $31.6 million, compared with $31.3 million in the previous year. Net income for the first quarter of 2003 was $9.9 million compared with $11.7 million in the prior year. Cash flow from operations for the first quarter increased to $36.0 million compared with $23.5 million reported last year and accounts receivable days outstanding improved from 58 days at December 31, 2002 to 53 days at March 31, 2003. Province ended the first quarter of 2003 with 20 owned or leased hospitals, of which 18 are same-store hospitals. Excluded from same-store results are Memorial Hospital of Martinsville and Henry County in Martinsville, Virginia, acquired on May 1, 2002, and Los Alamos Medical Center in Los Alamos, New Mexico, acquired on June 1, 2002. In line with expectations, total same-store hospital admissions decreased 2.5% compared with the first quarter of last year, but adjusted admissions increased 2.3%. Net patient service revenue decreased 2.5%, while gross outpatient revenue increased 14.9%. Adjusting for units closed in 2002, same-store hospital admissions declined 1.7% and same-store revenue declined 1.9%. Martin S. Rash, Chairman and Chief Executive Officer of Province Healthcare, said, "Our results in the quarter were exactly in line with our previously disclosed expectations for the first quarter of 2003. We saw improving volume trends in our same-store hospitals, as well as substantial improvement in expense control where we are actually seeing more rapid improvement than we had forecast originally. In addition, surgery volume improved from the 8.6% decline seen in the fourth quarter last year to only 0.4% decline in the first quarter this year. As the physicians recruited in 2002 continue to build their practices successfully, we expect same-store volumes to return to the Company's traditional levels: admission increases in the 1% to 3% range and revenue increases of 3% to 6% for the year 2003." The Company owns or leases 20 general acute care hospitals in 13 states with a total of 2,281 licensed beds. The Company also provides management services to 37 non-urban hospitals in 14 states with a total of 2,955 licensed beds. Certain statements contained in this release, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include projections of revenues, income or loss, capital expenditures, capital structure, or other financial items, statements regarding the plans and objectives of management for future operations, statements of future economic performance, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact. These statements are based on current estimates of future events, and the Company has no obligation to update or correct these estimates unless considered material to the Company. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with general economic and business conditions, the effect of future governmental regulations, changes in reimbursement levels by government programs, including Medicare and Medicaid or other third party payors,the Company's continued ability to recruit and retain physicians and the Company's ability to successfully complete and integrate acquisitions. Those and other risks are described in the Company's reports and filings with the Securities and Exchange Commission. CONTACT: Merilyn H. Herbert, Province Healthcare Company (PRV) at (615) 370-1377 - TABLES TO FOLLOW - PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
March 31, December 31, 2003 2002 --------- ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 15,891 $ 14,417 Accounts receivable, less allowance for doubtful accounts of $73,447 in 2003 and $68,158 in 2002 118,858 117,431 Inventories 19,728 19,835 Prepaid expenses and other 20,285 14,071 --------- --------- 174,762 165,754 Property, plant and equipment, net 453,508 447,379 Goodwill 319,390 319,390 Unallocated purchase price 469 466 Other assets 39,135 38,722 --------- --------- Total assets $ 987,264 $ 971,711 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 32,106 $ 20,162 Accrued salaries and benefits 25,261 25,380 Accrued expenses 22,313 13,198 Current portion of long-term debt 1,612 1,668 --------- --------- 81,292 60,408 Long-term debt, less current portion 441,276 461,576 Other liabilities 37,824 33,913 Minority interests 2,656 2,612 Stockholders' equity: Preferred stock - $0.01 par value, 100,000 shares authorized, none issued and outstanding -- -- Common stock - $0.01 par value; 150,000,000 shares authorized at March 31, 2003 and December 31, 2002, issued and outstanding 48,720,594 shares and 48,581,549 shares at March 31, 2003 and December 31, 2002, respectively 487 486 Additional paid-in-capital 305,264 304,102 Retained earnings 119,418 109,567 Accumulated other comprehensive loss (953) (953) --------- --------- Total stockholders' equity 424,216 413,202 --------- --------- Total liabilities and stockholders' equity $ 987,264 $ 971,711 ========= =========
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended March 31, ------------------------------ 2003 2002 ----------- ----------- Revenue: Net patient service revenue $ 187,559 $ 159,780 Other 6,841 5,821 ----------- ----------- Net operating revenue 194,400 165,601 Expenses: Salaries, wages and benefits 75,330 62,152 Purchases services 17,784 17,091 Supplies 24,747 19,745 Provision for doubtful accounts 17,194 14,738 Other operating expenses 25,287 18,396 Rentals and leases 2,433 2,152 ----------- ----------- 162,775 134,274 EBITDA (*) 31,625 31,327 Depreciation and amortization 9,277 7,581 Interest expense 5,859 4,196 Minority interests 67 59 Loss on sale of assets 3 5 ----------- ----------- Income before provision for income taxes 16,419 19,486 Income taxes 6,568 7,794 ----------- ----------- Net income $ 9,851 $ 11,692 =========== =========== Net income per common share: Basic $ 0.20 $ 0.25 =========== =========== Diluted $ 0.20 $ 0.23 =========== =========== Weighted average common shares: Basic 48,681,000 47,550,000 Diluted 48,758,000 61,194,000
(*) EBITDA for 2003 and 2002, respectively, represents the sum of income before provision for income taxes, depreciation and amortization, interest, minority interests and gain or loss on sale of assets. EBITDA serves as a measure of leverage capacity and debt service ability, and is commonly used as an analytical indicator within the healthcare industry. EBITDA, however, is not a measure of financial performance under accounting principles generally accepted in the United States, and should not be considered an alternative to net income as a measure of operating performance or to cash flows from operating, investing or financing activities as a measure of liquidity. Because EBITDA is not a measurement determined in accordance with accounting principles generally accepted in the United States and is susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES SELECTED OPERATING STATISTICS (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Actual Same Store(a) ------ ------------- Three Months Ended Three Months Ended March 31, March 31, 2003 2002 2003 2002 -------- -------- -------- -------- CONSOLIDATED HOSPITALS: Number of hospitals at end of period 20 18 18 18 Licensed beds at end of period 2,281 2,156 1,997 2,156 Beds in service at end of period 1,994 1,831 1,795 1,831 Inpatient admissions 19,768 17,999 17,541 17,999 Adjusted admissions 34,692 29,097 29,771 29,097 Patient days 84,132 80,329 74,206 80,239 Adjusted patient days 147,683 129,896 125,967 129,896 Average length of stay (days) 4.3 4.5 4.2 4.5 Net patient service revenue $187,559 $159,780 $155,606 $159,637 Gross revenue: Inpatient $242,061 $215,389 $218,795 $215,389 Outpaitent 182,790 132,867 152,603 132,867 -------- -------- -------- -------- $424,851 $348,256 $371,398 $348,256 ======== ======== ======== ======== NET PATIENT REVENUE BY PAYOR: Medicare 38.2% 43.4% 39.7% 43.4% Medicaid 11.5% 14.1% 13.2% 14.1% Other 50.3% 42.5% 47.1% 42.5% -------- -------- -------- -------- Total 100.0% 100.0% 100.0% 100.0% ======== ======== ======== ========
Three Months Ended March 31, ---------------------------- 2003 2002 ----------- ----------- DILUTED EARNINGS PER SHARE CALCULATION: Net income $ 9,851 $ 11,692 Add convertible notes interest, net of tax (b) -- 2,407 ----------- ----------- Adjusted net income $ 9,851 $ 14,099 =========== =========== Basic shares plus stock options 48,758,000 49,295,000 Convertible shares (b) -- 11,899,000 ----------- ----------- Diluted shares outstanding 48,758,000 61,194,000 =========== =========== Diluted earnings per share $ 0.20 $ 0.23 =========== ===========
(a) Represents eighteen hospitals owned during both periods (b) Convertible notes are anti-dilutive for the three months ended March 31, 2003, thus not included in diluted earnings per share calculation