-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ONjxwMWpQY5KWZzvNLjyEh5rcwvngVF5BkUB2PAbDS9URHOoK5KptROz7s+twyUd ovBclwPu/P79zDvb/E0v1A== 0001157523-03-005888.txt : 20031027 0001157523-03-005888.hdr.sgml : 20031027 20031027165552 ACCESSION NUMBER: 0001157523-03-005888 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031027 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIFEPOINT HOSPITALS INC CENTRAL INDEX KEY: 0001074772 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-GENERAL MEDICAL & SURGICAL HOSPITALS, NEC [8062] IRS NUMBER: 522165845 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29818 FILM NUMBER: 03958966 BUSINESS ADDRESS: STREET 1: 103 POWELL COURT STREET 2: SUITE 200 CITY: BRENTWOOD STATE: TN ZIP: 37027 BUSINESS PHONE: 6153728500 MAIL ADDRESS: STREET 1: 103 POWELL COURT STREET 2: SUITE 200 CITY: BRENTWOOD STATE: TN ZIP: 37027 FORMER COMPANY: FORMER CONFORMED NAME: LIFEPOINT HOSPITALS LLC DATE OF NAME CHANGE: 19981207 8-K 1 a4502667.txt LIFEPOINT HOSPITALS, INC. 8-K - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): October 27, 2003 ---------------- LIFEPOINT HOSPITALS, INC. ------------------------- (Exact Name of Registrant as Specified in its Charter) Delaware 0-29818 52-2165845 -------- --------- ---------- (State or Other (Commission File (I.R.S. Employer Jurisdiction of Number) Identification Incorporation) Number) 103 Powell Court, Suite 200 Brentwood, Tennessee 37027 -------------------------- (Address of Principal Executive Offices) (Zip Code) (615) 372-8500 -------------- (Registrant's Telephone Number, Including Area Code) Not applicable -------------- (Former Name or Former Address, if Changed Since Last Report) - -------------------------------------------------------------------------------- Page 1 of 4 pages Exhibit Index located on Page 4 Item 7. Financial Statements and Exhibits. (a) Financial statements of businesses acquired. None required (b) Pro forma financial information. None required (c) Exhibits. 99 Copy of press release issued by the Company on October 27, 2003. Item 12. Results of Operations and Financial Condition. LifePoint Hospitals, Inc. (the "Company") issued a press release on October 27, 2003. The press release announced that the Company reported third quarter 2003 results. See the press release attached as Exhibit 99. 2 SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LIFEPOINT HOSPITALS, INC. By: /s/Michael J. Culotta -------------------------------- Michael J. Culotta Senior Vice President and Chief Financial Officer Date: October 27, 2003 3 EXHIBIT INDEX Exhibit Number Description of Exhibits - ------- ----------------------- 99 Copy of press release issued by the Company on October 27, 2003. 4 EX-99 3 a4502667ex99.txt LIFEPOINT HOSPITALS, INC. PRESS RELEASE Exhibit 99.1 LifePoint Hospitals Reports Third Quarter 2003 Results BRENTWOOD, Tenn.--(BUSINESS WIRE)--Oct. 27, 2003--LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third quarter and nine months ended September 30, 2003. For the third quarter ended September 30, 2003, revenues were $227.3 million, up 24.7% from $182.2 million a year ago. During the quarter ended September 30, 2003, prior-year contractual adjustments increased revenues by $1.9 million, or $0.03 per diluted share, compared with $5.8 million, or $0.09 per diluted share, for the quarter ended September 30, 2002. Net income for the quarter totaled $16.2 million, or $0.42 per diluted share, versus net income of $12.7 million, or $0.33 per diluted share, for the prior-year period. Included in net income for the quarter ended September 30, 2002, was $4.2 million of pre-tax debt retirement costs, or $0.06 per diluted share. The consolidated financial results for the third quarter ended September 30, 2003, reflect an 18.5% increase in total admissions and a 22.8% increase in equivalent admissions compared with the third quarter of 2002. On a same-hospital basis, revenues per equivalent admission increased 4.2%, compared with the same period last year, and equivalent admissions increased 1.4% over the prior-year period. For the nine months ended September 30, 2003, revenues were $669.8 million, up 23.6% from $541.7 million a year ago. For the nine months ended September 30, 2003, prior-year contractual adjustments increased revenues by $6.2 million, or $0.08 per diluted share, compared with $7.9 million, or $0.11 per diluted share, for the nine months ended September 30, 2002. Net income for the nine months ended September 30, 2003, totaled $49.2 million, or $1.26 per diluted share, versus net income of $23.9 million, or $0.62 per diluted share, for the prior-year period. Included in net income for the nine months ended September 30, 2002, was $30.5 million of pre-tax debt retirement costs, or $0.49 per diluted share. The consolidated financial results for the nine months ended September 30, 2003, reflect a 17.6% increase in total admissions and a 22.0% increase in equivalent admissions compared with the same period in 2002. On a same-hospital basis, revenues per equivalent admission increased 4.6% compared with the same period last year on a 2.0% decrease in admissions and flat equivalent admissions. Effective October 1, 2003, the Company purchased 75-bed Spring View Hospital in Lebanon, Kentucky, from Norton Healthcare. The sale also included Spring View Nursing Home and Spring View Pediatrics. The revenues for Spring View Hospital and Spring View Nursing Home totaled approximately $21.3 million in fiscal year 2002. Kenneth C. Donahey, chairman and chief executive officer of LifePoint Hospitals, said, "Our financial results demonstrate our ability to combine a disciplined acquisition strategy with solid operating metrics, delivered through strong management performance at our facilities. The good news is that with all of the success we've achieved to date, there is still potential for improvement in our markets. We look forward to continuing to deliver impressive results as we stay focused on our strategy." A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals' third quarter conference call will be available on-line at www.lifepointhospitals.com and www.fulldisclosure.com on October 28, 2003, beginning at 10:00 a.m. Eastern Time. LifePoint Hospitals, Inc. operates 29 hospitals in non-urban communities. In most cases, the LifePoint facility is the only hospital in its community. LifePoint's non-urban operating strategy offers continued operational improvement by focusing on its five core values: delivering high quality patient care, supporting physicians, creating excellent workplaces for its employees, providing community value, and ensuring fiscal responsibility. Headquartered in Brentwood, Tennessee, LifePoint Hospitals is affiliated with over 9,000 employees. This release includes forward-looking statements based on current management expectations. Numerous factors exist which may cause results to differ from these expectations. Many of the factors that will determine our future results are beyond our ability to control or predict with accuracy. These statements are subject to various risks and uncertainties, including, without limitation, (i) reduction in payments to healthcare providers by government and commercial third party payors, as well as cost-containment efforts of insurers and other payors; (ii) the possibility of adverse changes in, and requirements of, applicable laws, regulations, policies and procedures, including those required by our corporate integrity agreement; (iii) our ability to manage healthcare risks and the lack of state and federal tort reform; (iv) uncertainty associated with compliance with HIPAA regulations; (v) our ability to enter into and renew payor arrangements on acceptable terms; (vi) our ability to maintain and increase patient volumes and control costs; (vii) the availability, cost and terms of insurance coverage; (viii) the highly competitive nature of the healthcare business, including the competition to recruit and retain physicians; (ix) the ability to attract and retain qualified management and personnel; (x) the geographic concentration of our operations; (xi) our ability to acquire hospitals on favorable terms and to complete budgeted capital improvements successfully; (xii) our ability to integrate newly acquired facilities successfully; (xiii) the availability and terms of capital to fund our business strategy; (xiv) changes in our liquidity or indebtedness; (xv) the potential adverse impact of government investigations and litigation involving the business practices of healthcare providers; (xvi) successful development or license of software and management information systems; (xvii) changes in generally accepted accounting principles or practices; (xviii) volatility in the market value of our common stock; (xix) changes in general economic conditions and changes in the manner in which employers provide healthcare coverage to their employees; (xx) our reliance on information technology systems maintained by HCA; and (xxi) those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission. Therefore, our future results may differ materially from those described in this release. We undertake no obligation to 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 "LifePoint" as used throughout this release refer to LifePoint Hospitals, Inc. and its affiliates. LIFEPOINT HOSPITALS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Dollars in millions (except per share amounts), share amounts in thousands For the Three Months Ended September 30, ------------------------------- 2003 2002 --------------- --------------- Amount Ratio Amount Ratio ------- ------ ------- ------ Revenues (1) $ 227.3 100.0% $ 182.2 100.0% Salaries and benefits 90.5 39.8% 71.0 39.0% Supplies 29.0 12.7% 22.6 12.4% Other operating expenses 40.3 17.9% 35.6 19.5% Provision for doubtful accounts 24.2 10.6% 12.5 6.9% Depreciation and amortization 10.8 4.8% 8.9 4.8% Interest expense, net 3.3 1.4% 3.0 1.7% Debt retirement costs - - % 4.2 2.3% ESOP expense 1.8 0.8% 2.2 1.2% ------- ------ ------- ------ 199.9 88.0% 160.0 87.8% ------- ------ ------- ------ Income before minority interest and income taxes 27.4 12.0% 22.2 12.2% Minority interest in earnings of consolidated entity 0.3 0.1% 0.7 0.4% ------- ------ ------- ------ Income before income taxes 27.1 11.9% 21.5 11.8% Provision for income taxes 10.9 4.8% 8.8 4.8% ------- ------ ------- ------ Net income $ 16.2 7.1% $ 12.7 7.0% ======= ====== ======= ====== Earnings per share - basic $ 0.43 $ 0.34 ======= ======= Earnings per share - diluted (2) $ 0.42 $ 0.33 ======= ======= Earnings Per Share Calculation: Net income $ 16.2 $ 12.7 Add: Interest on convertible notes, net of taxes 2.0 - ------- ------- Adjusted net income $ 18.2 $ 12.7 ======= ======= Weighted average number of shares - basic 37,242 37,616 Add: Shares for conversion of convertible notes 5,279 - Other share equivalents 901 1,004 ------- ------- Weighted average number of shares and equivalents - diluted 43,422 38,620 ======= ======= Earnings per share - diluted (2) $ 0.42 $ 0.33 ======= ======= For the Nine Months Ended September 30, -------------------------------- 2003 2002 --------------- --------------- Amount Ratio Amount Ratio ------- ------ ------- ------ Revenues (1) $ 669.8 100.0% $ 541.7 100.0% Salaries and benefits 271.6 40.6% 212.6 39.3% Supplies 86.2 12.9% 67.4 12.4% Other operating expenses 122.0 18.2% 101.1 18.6% Provision for doubtful accounts 58.6 8.7 % 38.8 7.2% Depreciation and amortization 33.4 5.0 % 28.0 5.2% Interest expense, net 9.9 1.5 % 9.9 1.8% Debt retirement costs - - % 30.5 5.6% ESOP expense 4.9 0.7 % 7.4 1.4% ------- ------ ------- ------ 586.6 87.6% 495.7 91.5% ------- ------ ------- ------ Income before minority interest and income taxes 83.2 12.4% 46.0 8.5% Minority interest in earnings of consolidated entity 0.5 0.1% 2.2 0.4% ------- ------ ------- ------ Income before income taxes 82.7 12.3% 43.8 8.1% Provision for income taxes 33.5 5.0% 19.9 3.7% ------- ------ ------- ------ Net income $ 49.2 7.3% $ 23.9 4.4% ======= ====== ======= ====== Earnings per share - basic $ 1.31 $ 0.64 ======= ======= Earnings per share - diluted (2) $ 1.26 $ 0.62 ======= ======= Earnings Per Share Calculation: Net income $ 49.2 $ 23.9 Add: Interest on convertible notes, net of taxes 5.9 - ------- ------- Adjusted net income $ 55.1 $ 23.9 ======= ======= Weighted average number of shares - basic 37,505 37,469 Add: Shares for conversion of convertible notes 5,279 - Other share equivalents 774 1,113 ------- ------- Weighted average number of shares and equivalents - diluted 43,558 38,582 ======= ======= Earnings per share - diluted (2) $ 1.26 $ 0.62 ======= ======= (1) Prior-year contractual adjustments increased revenues by $1.9 million, or $0.03 per diluted share, for the three months ended September 30, 2003, and by $6.2 million, or $0.08 per diluted share, for the nine months ended September 30, 2003. Prior-year contractual adjustments increased revenues by $5.8 million, or $0.09 per diluted share, for the three months ended September 30, 2002, and by $7.9 million, or $0.11 per diluted share, for the nine months ended September 30, 2002. (2) The impact of the 5.3 million potential weighted average shares of common stock, if converted, and interest expense related to the convertible notes was not included in the computation of diluted earnings per share for the three months ended September 30, 2002, because the effect would have been anti-dilutive. In addition, the impact of the 2.6 million potential weighted average shares of common stock, if converted, and interest expense related to the convertible notes was not included in the computation of diluted earnings per share for the nine months ended September 30, 2002, because the effect would have been anti-dilutive. LIFEPOINT HOSPITALS, INC. CONSOLIDATED BALANCE SHEETS In millions September 30, December 31, 2003 2002 ------------ ------------ (Unaudited) (1) ASSETS Current assets: Cash and cash equivalents $ 20.1 $ 23.0 Accounts receivable, less allowances for doubtful accounts of $108.7 and $109.1 at September 30, 2003 and December 31, 2002, respectively 93.1 85.0 Inventories 21.4 20.5 Income taxes receivable 9.0 - Deferred income taxes and other current assets 18.1 14.8 ---------- ---------- 161.7 143.3 Property and equipment: Land 12.4 11.3 Buildings and improvements 302.1 285.3 Equipment 320.1 295.5 Construction in progress 38.2 18.1 ---------- ---------- 672.8 610.2 Accumulated depreciation (267.1) (238.0) ---------- ---------- 405.7 372.2 Deferred loan costs, net 7.4 8.6 Unallocated purchase price 131.1 136.1 Intangible assets, net 3.3 3.8 Other - 0.3 Goodwill 76.2 69.2 ---------- ---------- $ 785.4 $ 733.5 ========== ========== LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 36.1 $ 28.5 Accrued salaries 23.0 24.4 Other current liabilities 22.5 14.3 Estimated third-party payor settlements 4.1 8.2 ---------- ---------- 85.7 75.4 Long-term debt 250.0 250.0 Deferred income taxes 32.0 24.9 Professional and general liability risks and other liabilities 29.4 25.6 Minority interest in equity of consolidated entity 1.5 - Stockholders' equity: Preferred stock - - Common stock 0.4 0.4 Capital in excess of par value 296.6 297.2 Unearned ESOP compensation (16.9) (19.3) Retained earnings 117.9 79.3 Treasury stock (11.2) - ---------- ---------- 386.8 357.6 ---------- ---------- $ 785.4 $ 733.5 ========== ========== (1) Derived from audited financial statements. LIFEPOINT HOSPITALS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS In millions Three Months Nine Months Ended Ended September 30, September 30, ---------------- ---------------- 2003 2002 2003 2002 ------- ------- ------- ------- Cash flows from operating activities: Net income $ 16.2 $ 12.7 $ 49.2 $ 23.9 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10.8 8.9 33.4 28.0 ESOP expense 1.8 2.2 4.9 7.4 Minority interest in earnings of consolidated entity 0.3 0.7 0.5 2.2 Deferred income taxes 5.0 1.4 7.1 0.6 Reserve for professional and general liability risks, net (0.5) 2.4 3.3 7.5 Debt retirement costs - 4.2 - 30.5 Tax benefit from stock option exercises 0.5 0.3 0.7 1.3 Increase (decrease) in cash from operating assets and liabilities, net of effects from acquisitions: Accounts receivable 1.1 3.4 (6.8) (14.8) Inventories and other current assets (1.0) 1.7 (4.4) (1.4) Accounts payable and accrued expenses 14.3 7.5 16.3 11.6 Income taxes payable (4.8) 2.4 (9.1) (0.1) Estimated third-party payor settlements (1.8) (7.0) (4.1) (2.6) Other 0.2 0.5 1.2 (0.2) ------- ------- ------- ------- Net cash provided by operating activities 42.1 41.3 92.2 93.9 Cash flows from investing activities: Purchases of property and equipment, net (16.2) (15.4) (54.2) (42.2) Purchases of facilities (15.7) - (16.3) - Maturity of short-term investments - 21.5 - - Other - (0.9) 1.0 (2.2) ------- ------- ------- ------- Net cash (used in) provided by investing activities (31.9) 5.2 (69.5) (44.4) Cash flows from financing activities: Repurchases of common stock (11.0) - (28.0) - Repurchase of senior subordinated notes - (22.8) - (173.1) Proceeds from issuance of convertible notes, net - (0.2) - 242.5 Proceeds from exercise of stock options 0.8 0.2 1.3 2.4 Proceeds from employee loans - 5.2 - 5.2 Other 0.6 (0.2) 1.1 0.1 ------- ------- ------- ------- Net cash (used in) provided by financing activities (9.6) (17.8) (25.6) 77.1 Change in cash and cash equivalents 0.6 28.7 (2.9) 126.6 Cash and cash equivalents at beginning of period 19.5 155.1 23.0 57.2 ------- ------- ------- ------- Cash and cash equivalents at end of period $ 20.1 $ 183.8 $ 20.1 $ 183.8 ======= ======= ======= ======= Interest payments $ 0.3 $ 0.6 $ 6.6 $ 9.0 ======= ======= ======= ======= Income taxes paid, net $ 10.1 $ 5.0 $ 34.8 $ 18.2 ======= ======= ======= ======= LIFEPOINT HOSPITALS, INC. UNAUDITED STATISTICS Three Months Ended Nine Months Ended September 30, September 30, ------------------------- -------------------------- % % 2003 2002 Change 2003 2002 Change -------- ------- ------ -------- -------- ------ Actual: Number of hospitals at end of period 28 23 21.7% 28 23 21.7% Licensed beds at end of period 2,624 2,196 19.5% 2,624 2,196 19.5% Weighted average licensed beds 2,624 2,191 19.8% 2,622 2,195 19.5% Average daily census 930 799 16.4% 994 853 16.5% Average length of stay 3.9 4.0 (2.5%) 4.0 4.1 (2.4%) Revenues ($ in millions) $ 227.3 $ 182.2 24.7% $ 669.8 $ 541.7 23.6% Revenues per equivalent admission $ 5,126 $ 5,049 1.5% $ 5,002 $ 4,934 1.4% Equivalent admissions (1) 44,344 36,097 22.8% 133,910 109,799 22.0% Outpatient factor (1) 2.04 1.97 3.6% 1.98 1.91 3.7% Outpatient surgeries 20,834 16,233 28.3% 58,918 48,478 21.5% Inpatient surgeries 6,896 5,513 25.1% 20,250 16,897 19.8% Emergency room visits 110,546 89,841 23.0% 316,589 262,931 20.4% Admissions 21,681 18,297 18.5% 67,495 57,396 17.6% Medicare case mix index 1.16 1.14 1.8% 1.14 1.15 (0.9%) Net outpatient revenues as a percentage of net revenues 51.2% 51.4% N/A 50.8% 50.1% N/A Same-Hospital:(2) Number of hospitals at end of period 23 23 - % 23 23 - % Licensed beds at end of period 2,203 2,196 0.3% 2,203 2,196 0.3% Weighted average licensed beds 2,203 2,191 0.5% 2,201 2,195 0.3% Average daily census 786 799 (1.6%) 836 853 (2.0%) Average length of stay 4.0 4.0 - % 4.1 4.1 - % Revenues ($ in millions) $ 192.6 $ 182.2 5.7% $ 565.9 $ 541.7 4.5% Revenues per equivalent admission $ 5,261 $ 5,048 4.2% $ 5,161 $ 4,933 4.6% Equivalent admissions (1) 36,602 36,097 1.4% 109,654 109,799 (0.1%) Outpatient factor (1) 2.01 1.97 1.8% 1.95 1.91 1.9% Outpatient surgeries 16,850 16,233 3.8% 48,998 48,478 1.1% Inpatient surgeries 5,883 5,513 6.7% 17,232 16,897 2.0% Emergency room visits 89,079 89,841 (0.8%) 259,732 262,931 (1.2%) Admissions 18,205 18,297 (0.5%) 56,233 57,396 (2.0%) Medicare case mix index 1.17 1.14 2.6% 1.19 1.15 3.5% Net outpatient revenues as a percentage of net revenues 51.4% 51.4% N/A 50.3% 50.1% N/A (1) Equivalent admissions is used by management and investors as a general measure of combined inpatient and outpatient volume. Equivalent admissions is computed by multiplying admissions (inpatient volumes) by the outpatient factor (sum of gross inpatient revenue and gross outpatient revenue and then dividing the resulting amount by gross inpatient revenue.) The equivalent admissions computation "equates" outpatient revenue to the volume measure (admissions) used to measure inpatient volume resulting in a general measure of combined inpatient and outpatient volume. (2) Same-hospital information excludes the operations of hospitals that the Company acquired during the periods presented. The costs of corporate overhead are included in same-hospital information. LIFEPOINT HOSPITALS, INC. UNAUDITED SUPPLEMENTAL INFORMATION Dollars in millions Adjusted EBITDA is defined as income before depreciation and amortization, interest expense, debt retirement costs, ESOP expense, minority interest in earnings of consolidated entity and income taxes. Our management uses adjusted EBITDA to evaluate our operating performance and as a measure of performance for incentive compensation purposes. We believe adjusted EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. In addition, multiples of current or projected adjusted EBITDA are used to estimate current or prospective enterprise value. Adjusted EBITDA should not be considered as a measure of financial performance under accounting principles generally accepted in the United States, and the items excluded from adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. Because adjusted EBITDA is not a measurement determined in accordance with accounting principles generally accepted in the United States and is susceptible to varying calculations, adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies. For the Three Months Ended For the Nine Months Ended September 30, September 30, ----------------------------- ----------------------------- 2003 2002 2003 2002 -------------- -------------- -------------- -------------- Amount Ratio Amount Ratio Amount Ratio Amount Ratio ------ ------ ------ ------ ------ ------ ------ ------ Revenues $227.3 100.0% $182.2 100.0% $669.8 100.0% $541.7 100.0% Salaries and benefits 90.5 39.8% 71.0 39.0% 271.6 40.6% 212.6 39.3% Supplies 29.0 12.7% 22.6 12.4% 86.2 12.9% 67.4 12.4% Other operating expenses 40.3 17.9% 35.6 19.5% 122.0 18.2% 101.1 18.6% Provision for doubtful accounts 24.2 10.6% 12.5 6.9% 58.6 8.7% 38.8 7.2% ------ ------ ------ ------ ------ ------ ------ ------ Adjusted EBITDA $ 43.3 19.0% $ 40.5 22.2% $131.4 19.6% $121.8 22.5% ====== ====== ====== ====== ====== ====== ====== ====== The following table reconciles adjusted EBITDA as presented above to net income as reflected in the unaudited consolidated statements of income and in accordance with generally accepted accounting principles (in millions): Three Months Nine Months Ended Ended September 30, September 30, -------------- -------------- 2003 2002 2003 2002 ------ ------ ------ ------ Adjusted EBITDA $ 43.3 $ 40.5 $131.4 $121.8 Less: Depreciation and amortization 10.8 8.9 33.4 28.0 Interest expense, net 3.3 3.0 9.9 9.9 Debt retirement costs - 4.2 - 30.5 ESOP expense 1.8 2.2 4.9 7.4 Minority interest in earnings of consolidated entity 0.3 0.7 0.5 2.2 Provision for income taxes 10.9 8.8 33.5 19.9 ------ ------ ------ ------ Net income $ 16.2 $ 12.7 $ 49.2 $ 23.9 ====== ====== ====== ====== CONTACT: LifePoint Hospitals Inc., Brentwood Michael J. Culotta, 615-372-8512 -----END PRIVACY-ENHANCED MESSAGE-----