EX-99.2 3 g08593exv99w2.htm EX-99.2 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND SELECTED OPERATING DATA FOR TRIAD HOSPITALS, INC. Ex-99.2
 

Exhibit Number
99.2
Regulation FD Disclosure
The following unaudited condensed consolidated statements of operations and selected operating data for Triad Hospitals, Inc., (“Triad”), are being provided to supplement the information that will be discussed on the Community Health Systems, Inc., conference call scheduled for July 31, 2007. Certain unaudited financial information relating to Triad for the three months and six months ended June 30, 2007, has not been and is not required to be filed by Triad with the SEC because on July 25, 2007, following the Community Health Systems’ acquisition of Triad, Triad filed with the Securities Exchange Commission (the “SEC”) a Form 15 — 12B which suspended Triad’s duty to file such information. This information has been prepared and reviewed by Triad’s senior management in place prior to that acquisition and had been prepared on a basis consistent with the December 31, 2006 audited financial statements of Triad.
Triad Hospitals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands)
                                 
    For the Three Months Ended June 30,  
    2007     2006  
            % of             % of  
    Amount     Revenue     Amount     Revenue  
 
                                
Revenues
   $ 1,485,176       100.0 %   $ 1,378,067       100.0 %
 
                        
Salaries and benefits, including share-based compensation expense of $7,900 and $6,900 for the three months ended June 30, 2007 and 2006
     615,569       41.5 %     553,853       40.2 %
Reimbursable expenses
     11,924       0.8 %     12,206       0.9 %
Supplies
     251,507       16.9 %     234,538       17.0 %
Other operating expenses (a)
     306,008       20.6 %     272,353       19.8 %
Provision for doubtful accounts
     155,489       10.5 %     128,209       9.3 %
Depreciation
     60,143       4.0 %     55,527       4.0 %
Amortization
     1,895       0.1 %     2,109       0.2 %
Interest expense, net
     23,813       1.6 %     23,773       1.7 %
ESOP expense
     3,976       0.3 %     3,056       0.2 %
(Gain) loss on sales of assets
     (55 )     0.0 %     (531 )     0.0 %
 
                        
Total operating expenses
     1,430,269       96.3 %     1,285,093       93.3 %
 
                        
Income from continuing operations before minority interest, equity in earnings and income tax provision
     54,907       3.7 %     92,974       6.7 %
Minority interest in earnings of consolidated entities
     (5,991 )     -0.4 %     (5,106 )     -0.3 %
Equity in earnings of unconsolidated affiliates
     9,481       0.6 %     9,790       0.7 %
 
                        
 
                                
Income from continuing operations before income tax provision
     58,397       3.9 %     97,658       7.1 %
Income tax provision
     (28,219 )     -1.9 %     (37,632 )     -2.7 %
 
                        
Income from continuing operations
     30,178       2.0 %     60,026       4.4 %
Income from discontinued operations, net of tax
     212       0.0 %     51       0.0 %
 
                        
Net income
   $ 30,390       2.0 %   $ 60,077       4.4 %
 
                        
 
Footnotes on page 3.    

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Exhibit Number
99.2 Continued
Triad Hospitals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands)
                                 
    For the Six Months Ended June 30,  
    2007     2006  
            % of             % of  
    Amount     Revenue     Amount     Revenue  
 
                                
Revenues
   $ 2,975,910       100.0 %   $ 2,747,265       100.0 %
 
                        
Salaries and benefits, including share-based compensation expense of $16,000 and $13,700 for the six months ended June 30, 2007 and 2006
     1,230,591       41.4 %     1,111,382       40.5 %
Reimbursable expenses
     24,582       0.8 %     25,954       0.9 %
Supplies
     505,762       17.0 %     471,750       17.2 %
Other operating expenses (a)
     610,284       20.5 %     525,430       19.1 %
Provision for doubtful accounts
     303,564       10.2 %     248,874       9.1 %
Depreciation
     119,363       4.0 %     108,781       4.0 %
Amortization
     3,876       0.1 %     3,597       0.1 %
Interest expense, net
     48,225       1.6 %     47,414       1.7 %
ESOP expense
     7,504       0.3 %     6,099       0.2 %
(Gain) loss on sales of assets
     388       0.0 %     (614 )     0.0 %
 
                        
Total operating expenses
     2,854,139       95.9 %     2,548,667       92.8 %
 
                        
Income from continuing operations before minority interest, equity in earnings and income tax provision
     121,771       4.1 %     198,598       7.2 %
Minority interest in earnings of consolidated entities
     (12,831 )     -0.4 %     (9,984 )     -0.4 %
Equity in earnings of unconsolidated affiliates
     23,608       0.8 %     19,824       0.8 %
 
                        
 
                                
Income from continuing operations before income tax provision
     132,548       4.5 %     208,438       7.6 %
Income tax provision
     (60,710 )     -2.1 %     (80,552 )     -2.9 %
 
                        
Income from continuing operations
     71,838       2.4 %     127,886       4.7 %
Income (loss) from discontinued operations, net of tax
     (384 )     0.0 %     15,279       0.5 %
 
                        
Net income
   $ 71,454       2.4 %   $ 143,165       5.2 %
 
                        
 
Footnotes on page 3.    

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Exhibit Number
99.2 Continued
Triad Hosptials, Inc.
Selected Operating Data
(Unaudited)
($ in thousands)
                                                 
    For the Three Months Ended June 30,   For the Six Months Ended June 30,
    2007   2006   % Change   2007   2006   % Change
 
                                                
Consolidated Data:
                                                
Number of hospitals (at end of period)(b)
     51       49               51       49          
Admissions
     87,843       85,818       2.4 %     179,717       174,344       3.1 %
Adjusted admissions
     154,283       147,448       4.6 %     310,098       295,935       4.8 %
Adjusted EBITDA(a)(c)
   $ 154,160     $ 186,698       -17.4 %   $ 324,735     $ 383,700       -15.4 %
Adjusted EBITDA as a % of revenues
     10.4 %     13.5 %             10.9 %     14.0 %        
Net cash provided by operating activities
   $ 111,536     $ 36,700             $ 215,779     $ 132,900          
 
                                                
Same-Store Data(d):
                                                
Revenue
   $ 1,443,345     $ 1,378,067       4.8 %   $ 2,823,977     $ 2,680,332       5.4 %
Admissions
     86,237       85,818       0.5 %     171,112       168,749       1.4 %
Adjusted admissions
     150,241       147,448       1.9 %     292,337       285,523       2.4 %
 
(a)   Includes merger transaction costs of approximately $10,500 and $20,900 for the three months and six months ended June 30, 2007, respectively.
 
(b)   Number of hospitals excludes facilities designated as discontinued operations and facilities under construction. This table does not include any operating statistics for facilities designated as discontinued operations and non-consolidating joint ventures.
 
(c)   EBITDA consists of income from continuing operations before interest, taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude ESOP expense, (gain) loss of sales of assets, discontinued operations and minority interest in earnings. Adjusted EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles, 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 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 generally accepted accounting principles and is thus susceptible to varying calculations, adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.
 
(d)   Includes acquired hospitals to the extent Triad operated them during comparable periods in both years.

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