-----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, TjiSb9/HeurwviekvV0FjMkqx2ZyA8QPmteSc9NidvfMw4AQgZ3U2OxVpj1wTWNN GdS1X1s86khMF79eeysrSg== 0001157523-04-001517.txt : 20040217 0001157523-04-001517.hdr.sgml : 20040216 20040217161518 ACCESSION NUMBER: 0001157523-04-001517 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040217 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040217 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: 04608886 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 a4574576.txt LIFEPOINT HOSPITALS 8-K UNITED STATES 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): February 17, 2004 ----------------- 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 February 17, 2004. Item 12. Results of Operations and Financial Condition. On February 17, 2004, LifePoint Hospitals, Inc. (the "Company") issued a press release with respect to results for its fourth quarter and year ended December 31, 2003. 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: February 17, 2004 3 EXHIBIT INDEX Exhibit Number Description of Exhibits - ------ ----------------------- 99 Copy of press release issued by the Company on February 17, 2004. 4 EX-99.1 3 a4574576ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 LifePoint Hospitals Reports Fourth Quarter and Year-End 2003 Results BRENTWOOD, Tenn.--(BUSINESS WIRE)--Feb. 17, 2004--LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the fourth quarter and year ended December 31, 2003. For the fourth quarter ended December 31, 2003, revenues were $237.3 million, up 17.5% from $201.9 million a year ago. Net income for the quarter totaled $19.3 million, or $0.50 per diluted share, versus net income of $17.6 million, or $0.44 per diluted share, for the prior-year period. The consolidated financial results for the fourth quarter ended December 31, 2003, reflect a 20.3% increase in total admissions and a 21.9% increase in equivalent admissions compared with the fourth quarter of 2002. On a same-hospital basis, total admissions increased 4.3%, compared with the same period last year, and equivalent admissions increased 4.6% over the prior-year period. For the year ended December 31, 2003, revenues were $907.1 million, up 22.0% from $743.6 million a year ago. For the year ended December 31, 2003, prior-year contractual adjustments increased revenues by $6.0 million, or $0.08 per diluted share, compared with $13.0 million, or $0.17 per diluted share, including related legal costs of $0.9 million, for the year ended December 31, 2002. Net income for the year ended December 31, 2003, totaled $68.5 million, or $1.76 per diluted share, versus net income of $41.5 million, or $1.07 per diluted share, for the prior-year period. Included in net income for the year ended December 31, 2002, was $31.0 million, or $0.50 per diluted share, of pre-tax debt retirement costs. The consolidated financial results for the year ended December 31, 2003, reflect an 18.3% increase in total admissions and a 21.9% increase in equivalent admissions compared with 2002. On a same-hospital basis, revenues per equivalent admission increased 3.1% compared with last year, with a 0.5% decrease in admissions and a 1.0% increase in equivalent admissions. Kenneth C. Donahey, chairman and chief executive officer of LifePoint Hospitals, said, "I am very proud of the accomplishments that our hospitals and our employees made in 2003. By focusing on our business plan and maintaining fiscal discipline, we were successful in achieving our financial goals. We are excited about the opportunities that we have in 2004. An improved reimbursement environment, continued success in physician recruitment and further expansion of our services in our hospital communities, among other things, make us optimistic about our prospects for 2004." A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals' fourth quarter and year-end conference call will be available on-line at www.lifepointhospitals.com and www.fulldisclosure.com on February 18, 2004, 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) the successful development and 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 December 31, 2003 2002 ---------------- ---------------- Amount Ratio Amount Ratio ------- ------- ------- ------- Revenues (1) $237.3 100.0% $201.9 100.0% Salaries and benefits 93.4 39.3% 78.8 39.0% Supplies 31.9 13.4% 24.8 12.3% Other operating expenses 40.8 17.2% 36.0 17.9% Provision for doubtful accounts 22.9 9.7% 16.4 8.1% Depreciation and amortization 12.3 5.3% 9.9 4.9% Interest expense, net 2.9 1.2% 3.4 1.7% Debt retirement costs -- -- % 0.5 0.3% ESOP expense 2.0 0.8% 2.3 1.1% ------- ------- ------- ------- 206.2 86.9% 172.1 85.3% ------- ------- ------- ------- Income before minority interest and income taxes 31.1 13.1% 29.8 14.7% Minority interest in earnings of consolidated entity 0.2 0.1% -- -- % ------- ------- ------- ------- Income before income taxes 30.9 13.0% 29.8 14.7% Provision for income taxes 11.6 4.9% 12.2 6.0% ------- ------- ------- ------- Net income $19.3 8.1% $17.6 8.7% ======= ======= ======= ======= Earnings per share - basic $0.53 $0.47 ======= ======= Earnings per share - diluted (2) $0.50 $0.44 ======= ======= Earnings Per Share Calculation: Net income $19.3 $17.6 Add: Interest on convertible notes, net of taxes 1.9 1.9 ------- ------- Adjusted net income $21.2 $19.5 ======= ======= Weighted average number of shares - basic 36,360 37,736 Add: Shares for conversion of convertible notes 5,279 5,279 Other share equivalents 881 995 ------- ------- Weighted average number of shares and equivalents - diluted 42,450 44,010 ======= ======= Earnings per share - diluted (2) $0.50 $0.44 ======= ======= For the Year Ended December 31, 2003 2002 ---------------- ---------------- Amount Ratio Amount Ratio ------- ------- ------- ------- Revenues (1) $907.1 100.0% $743.6 100.0% Salaries and benefits 365.0 40.2% 291.4 39.2% Supplies 118.1 13.0% 92.2 12.4% Other operating expenses 162.8 18.0% 137.1 18.4% Provision for doubtful accounts 81.5 9.0% 55.2 7.4% Depreciation and amortization 45.7 5.0% 37.9 5.1% Interest expense, net 12.8 1.4% 13.3 1.8% Debt retirement costs -- -- % 31.0 4.2% ESOP expense 6.9 0.8% 9.7 1.3% ------- ------- ------- ------- 792.8 87.4% 667.8 89.8% ------- ------- ------- ------- Income before minority interest and income taxes 114.3 12.6% 75.8 10.2% Minority interest in earnings of consolidated entity 0.7 0.1% 2.2 0.3% ------- ------- ------- ------- Income before income taxes 113.6 12.5% 73.6 9.9% Provision for income taxes 45.1 4.9% 32.1 4.3% ------- ------- ------- ------- Net income $68.5 7.6% $41.5 5.6% ======= ======= ======= ======= Earnings per share - basic $1.84 $1.11 ======= ======= Earnings per share - diluted (2) $1.76 $1.07 ======= ======= Earnings Per Share Calculation: Net income $68.5 $41.5 Add: Interest on convertible notes, net of taxes 7.8 -- ------- ------- Adjusted net income $76.3 $41.5 ======= ======= Weighted average number of shares - basic 37,216 37,536 Add: Shares for conversion of convertible notes 5,279 -- Other share equivalents 793 1,091 ------- ------- Weighted average number of shares and equivalents - diluted 43,288 38,627 ======= ======= Earnings per share - diluted (2) $1.76 $1.07 ======= ======= (1) Prior-year contractual adjustments increased revenues by $5.1 million, or $0.07 per diluted share, for the three months ended December 31, 2002. Prior-year contractual adjustments increased revenues by $6.0 million, or $0.08 per diluted share, for the year ended December 31, 2003, and by $13.0 million, or $0.17 per diluted share, including related costs of $0.9 million, for the year ended December 31, 2002. (2) The impact of 3.3 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 year ended December 31, 2002, because the effect would have been anti-dilutive. LIFEPOINT HOSPITALS, INC. CONSOLIDATED BALANCE SHEETS In millions Dec. 31, Dec. 31, 2003 2002 ------- ------- (Unaudited) (1) ASSETS Current assets: Cash and cash equivalents $20.6 $23.0 Accounts receivable, less allowances for doubtful accounts of $111.7 and $109.1 at December 31, 2003 and December 31, 2002, respectively 101.4 85.0 Inventories 22.3 20.5 Income taxes receivable 7.4 -- Deferred income taxes and other current assets 19.5 14.8 ------- ------- 171.2 143.3 Property and equipment: Land 19.0 11.3 Buildings and improvements 357.1 285.3 Equipment 337.2 295.5 Construction in progress 28.3 18.1 ------- ------- 741.6 610.2 Accumulated depreciation (277.4) (238.0) ------- ------- 464.2 372.2 Deferred loan costs, net 7.0 8.6 Unallocated purchase price 16.4 136.1 Intangible assets, net 3.6 3.8 Other -- 0.3 Goodwill 136.6 69.2 ------- ------- $799.0 $733.5 ======= ======= LIABILITIES AND EQUITY Current liabilities: Accounts payable $30.9 $28.5 Accrued salaries 25.7 24.4 Other current liabilities 9.7 14.3 Estimated third-party payor settlements 2.5 8.2 ------- ------- 68.8 75.4 Long-term debt 270.0 250.0 Deferred income taxes 35.9 24.9 Professional and general liability risks and other liabilities 28.6 25.6 Minority interest in equity of consolidated entity 1.4 -- Stockholders' equity: Preferred stock -- -- Common stock 0.4 0.4 Capital in excess of par value 301.7 297.2 Unearned ESOP compensation (16.1) (19.3) Retained earnings 137.2 79.3 Treasury stock (28.9) -- ------- ------- 394.3 357.6 ------- ------- $799.0 $733.5 ======= ======= (1) Derived from audited financial statements. LIFEPOINT HOSPITALS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS In millions Three Months Ended Year Ended December 31, December 31, ---------------- ---------------- 2003 2002 2003 2002 ------- ------- ------- ------- Cash flows from operating activities: Net income $19.3 $17.6 $68.5 $41.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 12.3 9.9 45.7 37.9 ESOP expense 2.0 2.3 6.9 9.7 Minority interest in earnings of consolidated entity 0.2 -- 0.7 2.2 Deferred income taxes 1.8 2.4 8.9 3.0 Reserve for professional and general liability risks, net (0.9) 1.7 2.4 9.2 Debt retirement costs -- 0.6 -- 31.0 Tax benefit from stock option exercises 1.6 0.4 2.3 1.7 Increase (decrease) in cash from operating assets and liabilities, net of effects from acquisitions: Accounts receivable (9.1) (2.1) (15.9) (16.9) Inventories and other current assets (0.4) (1.8) (4.8) (3.2) Accounts payable and accrued expenses (15.0) (9.9) 1.3 1.7 Income taxes payable 1.6 7.0 (7.5) 6.9 Estimated third-party payor settlements (1.6) (7.5) (5.7) (10.1) Other 0.6 0.3 1.8 0.2 ------- ------- ------- ------- Net cash provided by operating activities 12.4 20.9 104.6 114.8 Cash flows from investing activities: Purchases of property and equipment, net (16.0) (18.5) (70.2) (60.7) Purchases of facilities (0.2) (137.1) (16.5) (137.1) Purchase of minority interest in joint venture -- (25.0) -- (25.0) Other (0.3) 0.3 0.7 (1.9) ------- ------- ------- ------- Net cash used in investing activities (16.5) (180.3) (86.0) (224.7) Cash flows from financing activities: Repurchases of common stock (17.7) -- (45.7) -- Borrowings under bank credit facility 20.0 -- 20.0 -- Repurchase of senior subordinated notes -- (3.4) -- (176.5) Proceeds from issuance of convertible notes, net -- -- -- 242.5 Proceeds from exercise of stock options 2.4 0.6 3.7 3.0 Proceeds from employee loans -- 0.5 -- 5.7 Other (0.1) 0.9 1.0 1.0 ------- ------- ------- ------- Net cash provided by (used in) financing activities 4.6 (1.4) (21.0) 75.7 Change in cash and cash equivalents 0.5 (160.8) (2.4) (34.2) Cash and cash equivalents at beginning of period 20.1 183.8 23.0 57.2 ------- ------- ------- ------- Cash and cash equivalents at end of period $20.6 $23.0 $20.6 $23.0 ======= ======= ======= ======= Interest payments $5.8 $7.3 $12.4 $16.3 ======= ======= ======= ======= Income taxes paid, net $6.6 $2.8 $41.4 $21.0 ======= ======= ======= ======= LIFEPOINT HOSPITALS, INC UNAUDITED STATISTICS Three Months Ended December 31, ------------------------- % 2003 2002 Change ------- ------- ------- Actual: Number of hospitals at end of period 29 28 3.6% Licensed beds at end of period 2,737 2,617 4.6% Weighted average licensed beds 2,737 2,404 13.9% Average daily census 1,078 901 19.6% Average length of stay 4.0 4.0 -- % Revenues ($ in millions) $237.3 $201.9 17.5% Revenues per equivalent admission $4,948 $5,131 (3.6%) Equivalent admissions (1) 47,969 39,353 21.9% Outpatient factor (1) 1.95 1.92 1.5% Outpatient surgeries 18,201 17,067 6.6% Inpatient surgeries 6,951 6,133 13.3% Emergency room visits 117,835 92,960 26.8% Admissions 24,689 20,531 20.3% Medicare case mix index 1.16 1.15 0.9% Net outpatient revenues as a percentage of net revenues 46.6% 48.9% N/M (2) Same-Hospital: (3) Number of hospitals at end of period 23 23 -- % Licensed beds at end of period 2,203 2,196 0.3% Weighted average licensed beds 2,203 2,196 0.3% Average daily census 875 831 5.3% Average length of stay 4.1 4.1 -- % Revenues ($ in millions) $194.7 $188.5 3.3% Revenues per equivalent admission $5,186 $5,251 (1.2%) Equivalent admissions (1) 37,540 35,893 4.6% Outpatient factor (1) 1.92 1.92 -- % Outpatient surgeries 16,361 15,939 2.6% Inpatient surgeries 5,655 5,706 (0.9%) Emergency room visits 93,683 84,337 11.1% Admissions 19,562 18,763 4.3% Medicare case mix index 1.17 1.17 -- % Net outpatient revenues as a percentage of net revenues 48.2% 49.3% N/M (2) Year Ended December 31, ------------------------- % 2003 2002 Change ------- ------- ------- Number of hospitals at end of period 29 28 3.6% Licensed beds at end of period 2,737 2,617 4.6% Weighted average licensed beds 2,651 2,248 17.9% Average daily census 1,015 865 17.3% Average length of stay 4.0 4.1 (2.4%) Revenues ($ in millions) $907.1 $743.6 22.0% Revenues per equivalent admission $4,988 $4,986 -- % Equivalent admissions (1) 181,879 149,152 21.9% Outpatient factor (1) 1.97 1.91 3.1% Outpatient surgeries 77,119 65,545 17.7% Inpatient surgeries 27,201 23,030 18.1% Emergency room visits 434,424 355,891 22.1% Admissions 92,184 77,927 18.3% Medicare case mix index 1.17 1.15 1.8% Net outpatient revenues as a percentage of net revenues 49.7% 49.8% N/M (2) Same-Hospital: (3) Number of hospitals at end of period 23 23 -- % Licensed beds at end of period 2,203 2,196 0.3% Weighted average licensed beds 2,202 2,195 0.3% Average daily census 846 847 (0.1%) Average length of stay 4.1 4.1 -- % Revenues ($ in millions) $760.6 $730.2 4.2% Revenues per equivalent admission $5,167 $5,012 3.1% Equivalent admissions (1) 147,194 145,692 1.0% Outpatient factor (1) 1.94 1.91 1.4% Outpatient surgeries 65,359 64,417 1.5% Inpatient surgeries 22,887 22,603 1.3% Emergency room visits 353,415 347,268 1.8% Admissions 75,795 76,159 (0.5%) Medicare case mix index 1.18 1.16 1.7% Net outpatient revenues as a percentage of net revenues 49.7% 49.9% N/M (2) (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) Not meaningful. (3) 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. Our bank credit facility uses adjusted EBITDA for numerous financial covenants. 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 December 31, 2003 2002 ---------------- ---------------- Amount Ratio Amount Ratio ------- ------- ------- ------- Revenues $237.3 100.0% $201.9 100.0% Salaries and benefits 93.4 39.3% 78.8 39.0% Supplies 31.9 13.4% 24.8 12.3% Other operating expenses 40.8 17.2% 36.0 17.9% Provision for doubtful accounts 22.9 9.7% 16.4 8.1% ------- ------- ------- ------- Adjusted EBITDA $48.3 20.4% $45.9 22.7% ======= ======= ======= ======= For the Year Ended December 31, 2003 2002 --------------- ---------------- Amount Ratio Amount Ratio ------- ------- ------- -------- Revenues $907.1 100.0% $743.6 100.0% Salaries and benefits 365.0 40.2% 291.4 39.2% Supplies 118.1 13.0% 92.2 12.4% Other operating expenses 162.8 18.0% 137.1 18.4% Provision for doubtful accounts 81.5 9.0% 55.2 7.4% ------- ------- ------- ------- Adjusted EBITDA $179.7 19.8% $167.7 22.6% ======= ======= ======= ======= 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 Ended Year Ended December 31, December 31, ---------------- ---------------- 2003 2002 2003 2002 ------- ------- ------- ------- Adjusted EBITDA $48.3 $45.9 $179.7 $167.7 Less: Depreciation and amortization 12.3 9.9 45.7 37.9 Interest expense, net 2.9 3.4 12.8 13.3 Debt retirement costs -- 0.5 -- 31.0 ESOP expense 2.0 2.3 6.9 9.7 Minority interest in earnings of consolidated entity 0.2 -- 0.7 2.2 Provision for income taxes 11.6 12.2 45.1 32.1 ------- ------- ------- ------- Net income $19.3 $17.6 $68.5 $41.5 ======= ======= ======= ======= CONTACT: LifePoint Hospitals Inc., Brentwood Michael J. Culotta, 615-372-8512 -----END PRIVACY-ENHANCED MESSAGE-----