-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, WiQZwKeqUoxPoOS+fOK5/4IycVFcikkglPOcaY615bO2c9cVlH+wKb4zZJzfW9El Y4KTywITlHgDMcpSOv3/hQ== 0000826490-94-000005.txt : 19940407 0000826490-94-000005.hdr.sgml : 19940406 ACCESSION NUMBER: 0000826490-94-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940228 FILED AS OF DATE: 19940405 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEALTHTRUST INC THE HOSPITAL CO CENTRAL INDEX KEY: 0000826490 STANDARD INDUSTRIAL CLASSIFICATION: 8062 IRS NUMBER: 621234332 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 34 SEC FILE NUMBER: 001-10915 FILM NUMBER: 94520372 BUSINESS ADDRESS: STREET 1: 4525 HARDING RD CITY: NASHVILLE STATE: TN ZIP: 37205 BUSINESS PHONE: 6153834444 10-Q 1 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarter ended February 28, 1994 Commission file number 001-10915 Healthtrust, Inc. - The Hospital Company (Exact name of registrant as specified in its charter) Delaware 62-1234332 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 4525 Harding Road Nashville, Tennessee 37205 (Address of principal executive (Zip Code) offices) (615) 383-4444 Registrant's telephone number, including area code Not Applicable Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Common Stock, $.001 Par Value - 81,223,177 shares as of March 25, 1994. INDEX HEALTHTRUST, INC. - THE HOSPITAL COMPANY PART I. FINANCIAL INFORMATION Page Item 1. Financial Statements (Unaudited) Condensed consolidated balance sheets-- February 28, 1994 and August 31, 1993 3 Condensed consolidated statements of operations--three months and six months ended February 28, 1994 and 1993 4 Condensed consolidated statements of cash flows--six months ended February 28, 1994 and 1993 5 Notes to condensed consolidated financial statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7-12 PART II. OTHER INFORMATION Item 4. Submission of matters to a vote of security holders 13 Item 6. Exhibits and reports on Form 8-K 13 SIGNATURES 14 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS HEALTHTRUST, INC. - THE HOSPITAL COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands)
February 28 August 31 1994 1993 CURRENT ASSETS Cash and cash equivalents $ 159,750 $ 151,346 Accounts receivable, less allowances for doubtful accounts of $128,281 and $107,758 392,122 346,491 Supplies 54,512 51,740 Other current assets 30,082 121,345 TOTAL CURRENT ASSETS 636,466 670,922 PROPERTY, PLANT AND EQUIPMENT 2,243,721 2,168,365 Less accumulated depreciation 660,167 600,853 1,583,554 1,567,512 EXCESS OF PURCHASE PRICE OVER NET ASSETS ACQUIRED 177,464 178,549 OTHER ASSETS 118,348 119,730 TOTAL ASSETS $ 2,515,832 $2,536,713 CURRENT LIABILITIES Accounts payable $ 77,741 $ 109,545 Other current liabilities 267,143 342,274 TOTAL CURRENT LIABILITIES 344,884 451,819 LONG-TERM DEBT 931,422 948,604 DEFERRED INCOME TAXES 133,552 133,385 DEFERRED PROFESSIONAL LIABILITY RISKS 148,889 140,124 OTHER LIABILITIES 212,639 207,124 STOCKHOLDERS' EQUITY Common Stock, $.001 par value; 400,000,000 shares authorized 81,221,108 and 81,065,074 shares issued and outstanding 81 81 Paid-in capital 828,330 826,350 Deferred compensation (581) (1,162) Retained deficit (83,384) (169,612) STOCKHOLDERS' EQUITY 744,446 655,657 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,515,832 $2,536,713 See accompanying notes.
HEALTHTRUST, INC. - THE HOSPITAL COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except per share data)
Three Months Ended February 28 Six Months Ended February 28 1994 1993 1994 1993 Net operating revenue $ 652,521 $ 597,884 $ 1,274,616 $ 1,189,663 Costs and expenses: Hospital service costs: Salaries and benefits 236,182 218,271 468,445 437,846 Supplies 90,960 84,611 178,950 170,922 Fees 68,361 65,716 133,077 131,700 Other expenses 66,014 54,805 131,754 113,460 Bad debt expense 45,150 38,562 88,740 72,013 506,667 461,965 1,000,966 925,941 Depreciation and amortization 35,058 31,808 69,678 64,921 Interest 20,715 25,309 42,270 50,865 Pension expense 10,614 11,482 20,542 23,066 Deferred compensation expense 291 2,130 581 3,000 Other income (net) (3,229) (3,101) (8,679) (6,257) 570,116 529,593 1,125,358 1,061,536 INCOME BEFORE MINORITY INTERESTS AND INCOME TAXES 82,405 68,291 149,258 128,127 Minority interests 2,647 4,026 4,089 7,390 INCOME BEFORE INCOME TAXES 79,758 64,265 145,169 120,737 Income tax provision 32,382 26,330 58,941 49,480 NET INCOME $ 47,376 $ 37,935 $ 86,228 $ 71,257 Net income per share $ 0.56 $ 0.45 $ 1.02 $ 0.85 Shares used in computation of net income per share 84,878,164 83,676,464 84,639,121 83,413,692 See accompanying notes.
HEALTHTRUST, INC. - THE HOSPITAL COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands)
Six Months Ended February 28 1994 1993 OPERATING ACTIVITIES Net income $ 86,228 $ 71,257 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 65,372 61,271 Amortization 4,306 3,650 Non-cash insurance expense 8,765 4,882 Pension expense accrual 20,542 23,066 Increase in accounts and agency receivables (39,989) (24,982) Decrease in accounts payable and accrued liabilities (62,476) (10,683) Other (5,456) (9,950) NET CASH PROVIDED BY OPERATING ACTIVITIES 77,292 118,511 INVESTING ACTIVITIES Purchases of property, plant and equipment (83,709) (87,465) Proceeds from sales of property, plant and equipment 97,948 29,760 Other (3,407) (4,647) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 10,832 (62,352) FINANCING ACTIVITIES Principal payments on long-term debt (81,700) (351,250) Proceeds from long-term borrowings 300,000 Payment of debt issuance costs (4,618) Other 1,980 (2,921) NET CASH USED IN FINANCING ACTIVITIES (79,720) (58,789) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 8,404 (2,630) Cash and cash equivalents at beginning of period 151,346 172,600 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 159,750 $ 169,970 Cash paid during the year for: Interest $ 44,551 $ 48,325 Income taxes 92,272 53,126 See accompanying notes.
HEALTHTRUST, INC. - THE HOSPITAL COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All significant intercompany transactions have been eliminated in consolidation. Operating results for the three months and six months ended February 28, 1994 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 1994. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended August 31, 1993 (included in the Company's Annual Report on Form 10-K). Income Per Share Income per share has been computed by dividing net income for each period by the weighted average number of shares and share equivalents outstanding during the applicable period, adjusted for stock splits. Fully diluted per share data is not presented since the effect would dilute earnings per share by less than three percent (3%). Acquisition of EPIC Holdings Healthtrust entered into an agreement on January 9, 1994 to acquire EPIC Holdings, Inc. The agreement provides for the EPIC shareholders to receive $7.00 for each share of EPIC common stock (approximately $278 million in the aggregate) and Healthtrust will assume or refinance approximately $733 million of EPIC indebtedness. Healthtrust filed registration statements with the SEC to offer $200 million of Subordinated Notes and 5.2 million shares of common stock on February 25, 1994. The proceeds from these offerings will be utilized in financing the EPIC acquisition. EPIC owns and operates 34 hospitals in 10 states and reported net operating revenue of $272.5 and $1,019.1 million and net losses of $8.3 and $47.1 million for the three months ended December 31, 1993 and fiscal year ended September 30, 1993, respectively. The transaction is expected to be completed by May 1994 and will be recorded using the purchase method of accounting. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS SELECTED OPERATING STATISTICS (DOLLARS IN MILLIONS) Same Hospitals Operating Data (1):
Three Months Ended February 28, Six Months Ended February 28, % Increase %Increase 1994 1993 (Decrease) 1994 1993 (Decrease) Number of Hospitals 77 77 77 77 Gross Revenue: Inpatient $691.9 $622.7 11.1% $1,318.3 $1,213.9 8.6% Outpatient $310.9 $271.1 14.7% $623.9 $539.7 15.6% Net Operating Revenue $617.1 $572.4 7.8% $1,205.0 $1,124.4 7.2% Hospital Service Costs $470.6 $440.0 7.0% $931.4 $867.2 7.4% Admissions 73,240 68,733 6.6% 140,417 135,066 4.0% Adjusted Admissions 106,123 98,641 7.6% 206,872 195,116 6.0% Patient Days 384,056 376,892 1.9% 729,162 737,771 -1.2% Adjusted Patient Days 556,673 540,921 2.9% 1,074,249 1,065,784 0.8% Average Length of Stay (days) 5.24 5.48 5.19 5.46 Occupancy Rate 44.1% 42.8% 41.4% 41.6% Operating Margin 23.7% 23.1% 22.7% 22.9% (1)The results of operations applicable to hospital acquisitions and dispositions have been excluded.
General The Company continues to experience gross and net operating revenue increases and the Company's results of operations continue to be affected by the trend toward certain services being performed more frequently on an outpatient basis. While admissions for the six months ended February 28, 1994 increased 4.0%, patient days declined 1.2% due to a reduction in the average length of stay from 5.46 days to 5.19 days. The Company has been able to achieve increases in net operating revenue due to the higher utilization of outpatient and non-acute specialty services, general price increases and an increased severity of illness for the patients admitted. Although the Company's net operating revenue has grown in each period, the impact of price increases and increases in patient acuity have been partially offset by the increasing proportion of revenue derived from fixed payment sources, including Medicare and Medicaid (approximately 44% and 41%, for the six months ended February 28, 1994 and 1993, respectively, of the Company's net operating revenue was related to Medicare and Medicaid patients). The growth in outpatient services is expected to continue as procedures currently being performed on an inpatient basis become available on an outpatient basis through continuing advances in pharmaceutical and medical technologies. The redirection of certain procedures to an outpatient basis has also been influenced by pressures from payors to direct certain procedures from inpatient care to outpatient care. While the Company expects the growth in outpatient services to continue, the rate of increase is expected to decline. The Company expects Medicare and Medicaid revenue to continue to increase due to the general aging of the population and the expansion of state Medicaid programs. The Medicare program reimburses the Company's hospitals primarily based on established rates that are dependant on each patient's diagnosis, regardless of the provider's cost to treat the patient or the length of time the patient stays in the hospital. The Medicare program's established rates are indexed for inflation annually, but these increases have historically been less than both the actual inflation rate and the Company's increases to its standard charges. Insurance companies, government programs (other than Medicare) and employers purchasing health care services for their employees are negotiating the amounts they will pay health care providers, rather than paying the providers standard prices. This leads to these purchasers of health care services becoming managed care payors, similar to HMO's and PPO's, in virtually all markets and making it increasingly difficult for providers to maintain their historical net revenue growth trends. The Congress is currently reviewing various proposals for comprehensive health care reform. The reform proposals contain coverage guarantees, benefits standards and cost control mechanisms. The Company cannot predict what reforms the Congress will adopt, when such reforms will be implemented or the resulting implications for providers, at this time. However, the Company believes that the delivery of primary care, emergency care, obstetrical services and rehabilitative services, on a local basis, to rural and suburban markets will be an integral component of any strategy for controlling health care costs and the Company believes it is well positioned to provide these services. Three Months Ended February 28, 1994 and 1993 Net operating revenue for the Company's hospitals for the quarter ended February 28, 1994, increased 9.1% to $652.5 million, while same hospitals net operating revenue increased 7.8%. Gross revenue during the quarter ended February 28, 1994, increased 10.5% due to a 15.9% increase in gross outpatient revenue and an 8.2% increase in gross inpatient revenue. On a same hospitals basis, gross revenue increased 10.8% compared to the prior year, due to a 14.7% increase in gross outpatient revenue and an 11.1% increase in gross inpatient revenue. In each case, gross revenue grew faster than net operating revenue, primarily because the patient mix continues to become more heavily weighted to Medicare, Medicaid and specialty unit patients (for which reimbursement rate increases have been less than implemented price increases) and increased utilization by managed care programs. Costs of hospital services (salaries and benefits, fees, supplies, bad debt expense and other expenses) for the quarter ended February 28, 1994 increased 9.7%. The 9.1% increase in net operating revenue and 9.7% increase in the costs of hospital services resulted in the operating margin declining from 22.7% for the quarter ended February 28, 1993 to 22.4% for the quarter ended February 28, 1994. Salaries and benefits, the largest component of hospital services, declined from 36.5% to 36.2% of net operating revenue for the quarters ended February 28, 1993 and 1994, respectively. Supplies expense declined from 14.2% to 13.9% of net operating revenue, primarily resulting from the Company's efforts to standardize supplies and negotiate contracts with vendors on a consolidated basis. Bad debt expense increased from 6.4% to 6.9% of net operating revenue. The increase in bad debt expense relates primarily to higher than average bad debt expense for the hospitals the Company acquired during fiscal 1993. Interest expense declined $4.6 million for the quarter ended February 28, 1994. This decrease was due to both lower interest rates on the Company's variable rate debt and reductions in the total amount of debt outstanding. Income before income taxes increased $15.5 million due primarily to (i) an increase of $9.9 million in net operating revenue less hospital service costs and (ii) reductions in interest expense ($4.6 million), deferred compensation expense ($1.8 million ) and minority interests ($1.4 million). Six Months Ended February 28, 1994 and 1993 Net operating revenue for the Company's hospitals for the six months ended February 28, 1994, increased 7.1% to $1,274.6 million, while same hospitals net operating revenue increased 7.2%. Gross revenue during the six months ended February 28, 1994, increased 7.4% due to a 15.9% increase in gross outpatient revenue and an 8.2% increase in gross inpatient revenue. On a same hospitals basis, gross revenue increased 10.8% compared to the prior year, due to a 15.6% increase in gross outpatient revenue and an 8.6% increase in gross inpatient revenue. Costs of hospital services (salaries and benefits, fees, supplies, bad debt expense and other expenses) for the six months ended February 28, 1994 increased 8.1%. The 7.1% increase in net operating revenue and 8.1% increase in the costs of hospital services resulted in the operating margin decreasing from 22.2% for the six months ended February 28, 1993 to 21.5% for the six months ended February 28, 1994. Salaries and benefits, the largest component of hospital services, were 36.8% of net operating revenue for both six-month periods. Supplies expense was reduced from 14.4% to 14.0% of net operating revenue for the six months ended February 28, 1994, reflecting the benefits of the Company's efforts to standardize supplies and consolidate vendors. Fees declined from 11.1% to 10.4% of net operating revenue due to decreased usage of contractual labor for both nursing services and departmental administration. Other expenses increased from 9.5% to 10.3% of net operating revenue, due primarily to higher expenditures for physician recruiting and employee travel. Bad debt expense has increased from 6.0% to 7.0% of net operating revenues, resulting primarily from higher than average expense at the facilities acquired during fiscal 1993. Income before income taxes increased $24.4 million due primarily to a $9.9 million increase in net operating revenue less hospital service costs, an $8.6 million reduction in interest expense and a $3.3 million decline in minority interests. The Company generated $77.3 million of cash flows from operations during the six months ended February 28, 1994. This represented a $41.2 million decrease in cash flows provided by operations compared to the prior year. The decline in cash flows was due to changes in current assets and liabilities (a $51.8 million decrease in accounts payable and accrued liabilities and a $15.0 million increase in receivables), which offset the $15.0 million improvement in net income. Liquidity and Capital Resources The Company began fiscal 1994 with a strong balance sheet; cash totaled $151.3 million; total assets were $2.537 billion; stockholders' equity had climbed to $655.7 million; and debt as a percentage of total capital was reduced to 59% from 66% the previous year. At February 28, 1994, stockholders equity had increased to $744.4 million and debt as a percentage of capital had been reduced to 56%. These improvements were achieved primarily through strong earnings and cash flows provided by operations. Cash provided from operations continued to satisfy all of the Company's working capital, capital expenditure and debt principal payment requirements. The Company receives payment for services rendered from federal and state agencies (under the Medicare, Medicaid and Champus programs), private insurance carriers, employers, managed care programs and patients. During the six months ended February 28, 1994, approximately 44% of the Company's net operating revenue related to patients participating in the Medicare and Medicaid programs. The Company recognizes that revenue and receivables from government agencies are significant to the Company's operations, but the Company does not believe that there are any significant credit risks associated with these government agencies. The Company does not believe that there are any other significant concentrations of revenue from any particular payor that would subject the Company to any significant credit risks in the collection of its accounts receivable. The Company is primarily self-insured for professional and general liability risks. The unfunded reserve for professional and general liability risks was $164.9 million at February 28, 1994. Payments of professional and general liability claims aggregated $7.1 million for the six months ended February 28, 1994. The Company does not believe that the payment of these self-insured risks will have any significant impact on the Company's liquidity or working capital. At March 31, 1994, the Company had $150.3 million of outstanding term loans and approximately $192 million of credit available under the 1992 Credit Agreement. During fiscal 1993, the Company acquired five hospital facilities in Tennessee and Texas for an aggregate purchase price of $90.1 million. During October 1993, the Company signed a letter of intent to acquire three hospitals in Utah from the Holy Cross Health System Corporation and a letter of intent to acquire Nashville Memorial Hospital in Nashville, Tennessee. These transactions were originally expected to be completed during the second quarter of fiscal 1994, but the FTC's review of the Holy Cross transaction and certain litigation related to the Nashville Memorial transaction have delayed the expected consummation dates and the Company now expects the Nashville Memorial acquisition to be completed during the third quarter of fiscal 1994. On March 22, 1994, the Federal Trade Commission voted to challenge the sale of the Holy Cross Health Services facilities to the Company and the Company is currently considering its available options regarding the Utah facilities. On January 9, 1994 the Company entered into an agreement to acquire EPIC Holdings, Inc. EPIC owns and operates 34 general acute care hospitals and owns and manages certain specialty medical programs and services. The Company expects the acquisition of EPIC will require approximately $278 million to acquire the outstanding EPIC common stock and approximately $790 million (including related fees and expenses) to purchase and/or redeem certain EPIC outstanding debt securities. The Company plans to finance the acquisition and redemption of the EPIC stock and debt by using cash on hand (approximately $200 million, combined), the proceeds from an offering of 5.2 million shares of Healthtrust common stock (approximately $150 million), the proceeds from an offering of subordinated debt (approximately $200 million) and borrowings under a proposed new bank credit agreement. On a pro forma basis, the acquisition and related financing will increase stockholders' equity by approximately $145 million and the ratio of debt to total capitalization will increase to approximately 67%. During 1993, the Company spent $219.5 million for capital expenditures (excluding the five facilities acquired), primarily to renovate and add new equipment and technology to existing facilities. The Company intends to continue to invest in its existing facilities and in new facilities within its existing health care business, and capital expenditures (excluding hospital acquisitions) for fiscal 1994 are expected to be approximately $230 million (capital expenditures for the quarter and six months ended February 28, 1994 were $49.4 million and $83.7 million, respectively). The Company may seek to sell certain of its hospitals from time to time. Management does not consider the sale of any assets to be necessary to repay the Company's indebtedness or to provide working capital. The Company's cash, cash expected to be generated from operations and available sources of capital are believed by management to be adequate to finance its planned future growth. Management believes that, based upon its analysis of the Company's financial condition, the cash flow generated from operations in the future should provide sufficient liquidity to meet all cash requirements for at least the next year without substantial additional borrowings (other than the borrowings to finance the EPIC acquisition). In addition, the Company believes, based on current internal long-term projections of future results of operations, that it will be able to satisfy its current and expected obligations as they become due without incurring substantial additional indebtedness, and that satisfaction of such obligations will not prevent the Company from meeting liquidity requirements for operations and capital expenditures. However, there can be no assurance that future developments in the health care industry or general economic trends will not adversely affect the Company's operations or its ability to meet such obligations. PART II. OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Company's Annual Meeting of Shareholders was held on January 13, 1994. the following members were elected to the Company's Board of Directors to serve as Class III Directors until the annual meeting following the Company's fiscal year ending August 31, 1996 and until their successors are elected and qualified. VOTES VOTES NOMINEE IN FAVOR WITHHELD R. Clayton McWhorter 50,458,084 280,642 W. Hudson Connery, Jr. 50,464,062 274,664 Harry N. Beaty, MD 50,472,937 265,789 The results of the voting on the motion to ratify the selection of Ernst & Young as the Company's independent auditors for the fiscal year ending August 31, 1994 were; 50,348,643 common shares were voted for ratification, 149,797 shares were voted against ratification and 240,286 shares abstained from voting. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibit is included herein: (11) Statement re: Computation of Earnings Per Share (b) The Company filed a current report on Form 8-K dated January 10, 1994 to disclose the signing of an agreement under which Healthtrust will acquire EPIC Holdings, Inc. No financial statements were filed with the Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Healthtrust, Inc. - The Hospital Company (Registrant) April 5, 1994 /S/ R. Clayton McWhorter Date R. Clayton McWhorter Chairman of the Board, Chief Executive Officer and President April 5, 1994 /S/ Kenneth C. Donahey Date Kenneth C. Donahey Senior Vice President and Controller Chief Accounting Officer EX-11 2 EXHIBIT 11 HEALTHTRUST, INC. - THE HOSPITAL COMPANY Exhibit 11 - STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE (Dollars in thousands, except per share data)
Three Months Ended February 28 Six Months Ended February 28 1994 1993 1994 1993 Primary: Average shares outstanding 81,175,622 81,241,645 81,138,773 81,274,611 Net effect of dilutive warrants 2,731,645 2,171,052 2,675,458 2,004,328 Net effect of dilutive stock options 970,897 263,767 824,890 134,753 Total weighted average common shares 84,878,164 83,676,464 84,639,121 83,413,692 Net income $ 47,376 $ 37,935 $ 86,228 $ 71,257 Net income per share $ 0.56 $ 0.45 $ 1.02 $ 0.85 Fully Diluted: Average shares outstanding 81,175,622 81,241,645 81,138,773 81,274,611 Net effect of dilutive warrants 2,772,431 2,171,052 2,772,431 2,004,328 Net effect of dilutive stock options 1,061,482 263,767 1,020,829 134,753 Total weighted average common shares 85,009,535 83,676,464 84,932,033 83,413,692 Net income $ 47,376 $ 37,935 $ 86,228 $ 71,257 Net income per share $ 0.56 $ 0.45 $ 1.02 $ 0.85
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