-----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, RMKLDrJhwnFUs3MsQOWaVIBqL7IhtGj6QGbmFi+XdtXQLhCQqMxD9dWgW9aypEJM XkWgwmlmziHP0ufudgcWkw== 0000950144-03-008738.txt : 20030722 0000950144-03-008738.hdr.sgml : 20030722 20030722095529 ACCESSION NUMBER: 0000950144-03-008738 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030722 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HCA INC/TN CENTRAL INDEX KEY: 0000860730 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-GENERAL MEDICAL & SURGICAL HOSPITALS, NEC [8062] IRS NUMBER: 752497104 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11239 FILM NUMBER: 03795556 BUSINESS ADDRESS: STREET 1: ONE PARK PLZ CITY: NASHVILLE STATE: TN ZIP: 37203 BUSINESS PHONE: 6153449551 MAIL ADDRESS: STREET 1: ONE PARK PLAZA CITY: NASHVILLE STATE: TN ZIP: 37203 FORMER COMPANY: FORMER CONFORMED NAME: HCA THE HEALTHCARE CO DATE OF NAME CHANGE: 20010419 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA HCA HEALTHCARE CORP DATE OF NAME CHANGE: 20000502 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA HCA HEALTHCARE CORP/ DATE OF NAME CHANGE: 19940314 8-K 1 g83917e8vk.htm HCA INC. HCA Inc.
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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) July 22, 2003

HCA INC.
(Exact name of registrant as specified in its charter)

DELAWARE
(State of Incorporation)

     
001-11239
(Commission
File Number)		   75-2497104
(IRS Employer
Identification Number)
One Park Plaza, Nashville, Tennessee
(Address of principal executive offices)		   37203
(Zip Code)

(615) 344-9551
(Registrant’s telephone number, including area code)

ITEM 9.  REGULATION FD DISCLOSURE
SIGNATURE
Ex-99 Press Release

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ITEM 9.  REGULATION FD DISCLOSURE

     The following information is being furnished pursuant to Item 12 “Results of Operations and Financial Conditions.” On July 22, 2003, HCA Inc. issued a press release announcing second quarter earnings results, the text of which is set forth in Exhibit 99.

2

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SIGNATURE

     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 hereunto duly authorized.

     
HCA Inc.
 
By: /s/ R. MILTON JOHNSON
R. Milton Johnson
Senior Vice President and Controller

DATED: July 22, 2003

3 EX-99 3 g83917exv99.txt EX-99 PRESS RELEASE EXHIBIT 99 (HCA LOGO) NEWS FOR IMMEDIATE RELEASE INVESTOR CONTACT: MEDIA CONTACT: Mark Kimbrough Jeff Prescott 615-344-2688 615-344-5708 HCA REPORTS 2ND QUARTER 2003 RESULTS NASHVILLE, TN, July 22, 2003 -- HCA (NYSE: HCA) today announced results for its second quarter ended June 30, 2003. Consolidated revenues for the quarter were $5.5 billion, up 11.5 percent from $4.9 billion last year. Net income totaled $240 million or $0.47 per diluted share compared to $350 million or $0.66 per diluted share in 2002. The EPS results for the quarter of $0.47 include the previously announced increase in the estimated allowance for doubtful accounts ($0.13) and asset impairment charge ($0.15), both of which are discussed below. As previously announced on July 15, 2003, financial results for the quarter ended June 30, 2003 include an increase to the estimated allowance for doubtful accounts of $106 million pretax, or $0.13 per diluted share. This change in estimate was based upon the results of the Company's customary "hindsight analysis", in which the Company's accounts receivable during a previous twelve-month period are analyzed. The historical "look back" results, along with considerations of current economic trends and collection indicators, are used as the basis for the Company's estimate of the appropriate amount of allowance for doubtful accounts for its current accounts receivable. Also, on May 22, 2003, HCA announced its intention to discontinue development of a new patient accounting information system (millennium accounts receivable system - MARS). As a 1 result of the termination of the MARS initiative, the Company recorded an impairment charge in the amount of $130 million pretax or $0.15 per diluted share during the second quarter of 2003. Revenue per equivalent admission increased 7.6 percent (7.5 percent on a same facility basis) for the second quarter. Consolidated admissions increased 4.5 percent in the quarter. The consolidated results include eleven hospitals acquired on April 1, 2003. Same facility revenues increased 7.1 percent in the second quarter while same facility admissions increased 0.6 percent. Adjusting for closed skilled nursing (SNF) and obstetric units (OB) within the Company's same facility hospitals, same facility admissions increased 1.5 percent. Same facility outpatient surgical procedures during the second quarter declined 3.6 percent. Management believes its overall hospital volumes and, in particular, outpatient volumes are being impacted by several factors, including general economic softness, higher unemployment levels in several key markets, increased co-pays and deductibles, non-renewal of a managed care contract in Tennessee, and various competitive pressures in certain markets. During the second quarter, monthly same facility admissions were as follows: April declined 0.9 percent (increased 0.1 percent, excluding SNF/OB); May declined 0.5 percent (increased 0.3 percent, excluding SNF/OB); and June increased 3.5 percent (increased 4.4 percent, excluding SNF/OB). Revenues for the six months ended June 30, 2003 were $10.7 billion compared to $9.8 billion in 2002. Net income totaled $709 million or $1.37 per diluted share compared to $735 million or $1.40 per diluted share for the six months ended June 30, 2002. On April 1, 2003, HCA completed the acquisition of Health Midwest's 11 hospital network in the greater Kansas City community. At closing, the Company paid $855 million in cash and assumed approximately $150 million of debt and leases. At June 30, 2003 the Company's balance sheet reflected total debt of $8.4 billion; stockholders' equity (including common and minority equity) of $6.7 billion; and total assets of $20.5 billion. The Company's ratio of debt-to-debt plus stockholders' equity was 55.7 percent at June 30, 2003 compared to 53.3 percent at June 30, 2002. 2 During the quarter, the Company repurchased 12.3 million shares of its common stock at a total cost of $394 million (average cost of $32.09 per share) and has approximately $1.2 billion remaining on its $1.5 billion share repurchase authorization. The Company had 501 million shares outstanding as of June 30, 2003. During the second quarter, the Company paid the Centers for Medicare and Medicaid Services (CMS) $250 million to resolve all Medicare cost report, home office cost statement, and appeal issues between HCA and CMS for the cost report periods ending before August 1, 2001. Following the quarter, on July 7, 2003, HCA paid the U.S. Department of Justice (DOJ) $641 million, which includes interest, to resolve all remaining investigation issues between the Company and the DOJ. As of June 30, 2003, the Company operated 190 hospitals and 80 ambulatory surgery centers (including 6 hospitals and 4 ASCs owned through 50/50 equity joint ventures) located in 23 states, London, England and Geneva, Switzerland compared to 181 hospitals and 80 ambulatory surgery centers (including 6 hospitals and 5 ASCs owned through equity joint ventures) as of June 30, 2002. HCA will host a conference call for investors at 9:00 a.m. Central Daylight Time today. All interested investors are invited to access a live audio broadcast of the call via webcast. The broadcast also will be available on a replay basis beginning this afternoon and through the next 30 days. The webcast can be accessed at http://www.firstcallevents.com/service/ajwz383767371gf12.html or via the Investor Relations site at www.hcahealthcare.com. # # # This press release contains forward-looking statements based on current management expectations. Those forward-looking statements include all statements other than those made 3 solely with respect to historical fact. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. These factors include, but are not limited to (i) the highly competitive nature of the health care business, (ii) the efforts of insurers, health care providers and others to contain health care costs, (iii) possible changes in the Medicare and Medicaid programs (including currently proposed changes to Medicare outlier payments) that may impact reimbursements to health care providers and insurers, (iv) the ability to achieve expected levels of patient volumes and control the costs of providing services, (v) the possible enactment of Federal or state health care reform, (vi) the ability to attract and retain qualified management and personnel, including affiliated physicians, nurses and medical support personnel, (vii) liabilities and other claims asserted against the Company, (viii) fluctuations in the market value of the Company's common stock, (ix) ability to complete the share repurchase program, (x) changes in accounting practices, (xi) changes in general economic conditions, (xii) future divestitures which may result in additional charges, (xiii) changes in revenue mix and the ability to enter into and renew managed care provider arrangements on acceptable terms, (xiv) the availability and terms of capital to fund the expansion of the Company's business, (xv) changes in business strategy or development plans, (xvi) delays in receiving payment, (xvii) the collectibility of uninsured accounts and deductible and co-pay amounts, (xviii) the outcome of pending and any future tax audits and litigation associated with the Company's tax positions, (xix) the outcome of the Company's continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures and the Company's corporate integrity agreement with the government, (xx) changes in Federal, state or local regulation affecting the health care industry, (xxi) the impact of charity and self-pay discounting care policy changes, (xxii) the ability to successfully integrate the operations of Health Midwest and fund expected capital improvements, (xxiii) the ability to develop and implement the financial enterprise resource planning ("ERP") information system within the expected time and cost projections and, upon implementation, to realize the expected benefits and efficiencies, and (xxiv) other risk factors detailed from time to time in the Company's filings with the SEC. Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. 4 All references to "Company" and "HCA" as used throughout this document refer to HCA Inc. and its affiliates. 5 HCA INC. CONSOLIDATED OPERATING RESULTS SUMMARY (Dollars in millions, except per share amounts)
For the Six Months Second Quarter Ended June 30, ---------------------- ---------------------- 2003 2002 2003 2002 --------- --------- --------- --------- Revenues ................................................................ $ 5,467 $ 4,903 $ 10,740 $ 9,776 Adjusted EBITDA (a) ..................................................... $ 968 $ 1,018 $ 2,077 $ 2,061 Net income: Net income, excluding gains on sales of facilities, impairment of long-lived assets and investigation related costs ....... $ 319 $ 374 $ 749 $ 770 Gains on sales of facilities (net of tax) ....................... -- -- 42 -- Impairment of long-lived assets (net of tax) .................... (79) (18) (79) (18) Investigation related costs (net of tax) ........................ -- (6) (3) (17) --------- --------- --------- --------- Net income ...................................................... $ 240 $ 350 $ 709 $ 735 ========= ========= ========= ========= Diluted earnings per share: Net income, excluding gains on sales of facilities, impairment of long-lived assets and investigation related costs ....... $ 0.62 $ 0.71 $ 1.44 $ 1.47 Gains on sales of facilities .................................... -- -- 0.08 -- Impairment of long-lived assets ................................. (0.15) (0.03) (0.15) (0.03) Investigation related costs ..................................... -- (0.02) -- (0.04) --------- --------- --------- --------- Net income ...................................................... $ 0.47 $ 0.66 $ 1.37 $ 1.40 ========= ========= ========= ========= Shares used in computing diluted earnings per share (000) ............... 514,412 528,068 518,374 524,841
(a)Adjusted EBITDA for the second quarters of 2003 and 2002, respectively, is defined as income before depreciation and amortization ($278 million and $255 million), interest expense ($123 million and $108 million), gains on sales of facilities ($1 million in 2003), impairment of long-lived assets ($130 million and $19 million), investigation related costs ($1 million and $13 million), minority interests in earnings of consolidated entities ($47 million and $42 million) and income taxes ($150 million and $231 million). Adjusted EBITDA for the six months ended June 30, 2003 and 2002, respectively, is defined as income before depreciation and amortization ($539 million and $499 million), interest expense ($237 million and $229 million), gains on sales of facilities ($75 million in 2003), impairment of long-lived assets ($130 million and $19 million), investigation related costs ($5 million and $30 million), minority interests in earnings of consolidated entities ($86 million and $77 million) and income taxes ($446 million and $472 million). HCA uses Adjusted EBITDA as an analytical indicator for purposes of allocating resources to geographic areas and assessing their performance. 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 compable to other similarly titled measures of other companies. 6 HCA INC. CONSOLIDATED INCOME STATEMENTS SECOND QUARTER (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2003 2002 ---------------------- ------------------------ Amount Ratio Amount Ratio --------- ----- --------- ----- Revenues ................................................................. $ 5,467 100.0 % $ 4,903 100.0 % Salaries and benefits .................................................... 2,178 39.8 1,960 40.0 Supplies ................................................................. 870 15.9 778 15.9 Other operating expenses ................................................. 926 17.0 832 16.8 Provision for doubtful accounts .......................................... 577 10.6 371 7.6 Insurance subsidiary (gains) losses on sales of investments .............. 1 -- (1) -- Equity in earnings of affiliates ......................................... (53) (1.0) (55) (1.1) --------- ----- --------- ----- 4,499 82.3 3,885 79.2 --------- ----- --------- ----- Adjusted EBITDA ...................................................... 968 17.7 1,018 20.8 Depreciation and amortization ............................................ 278 5.1 255 5.2 Interest expense ......................................................... 123 2.2 108 2.2 Gains on sales of facilities ............................................. (1) -- -- -- Impairment of long-lived assets .......................................... 130 2.4 19 0.4 Investigation related costs .............................................. 1 -- 13 0.3 --------- ----- --------- ----- Income before minority interests and income taxes ........................ 437 8.0 623 12.7 Minority interests in earnings of consolidated entities .................. 47 0.9 42 0.8 --------- ----- --------- ----- Income before income taxes ............................................... 390 7.1 581 11.9 Provision for income taxes ............................................... 150 2.7 231 4.8 --------- ----- --------- ----- Net income .......................................................... $ 240 4.4 $ 350 7.1 ========= ===== ========= ===== Diluted earnings per share: Net income excluding gains on sales of facilities, impairment of long-lived assets and investigation related costs ..................................................... $ 0.62 $ 0.71 Impairment of long-lived assets ...................................... (0.15) (0.03) Investigation related costs .......................................... -- (0.02) --------- ----------- Net income ........................................................... $ 0.47 $ 0.66 ========= =========== Shares used in computing diluted earnings per share (000) ................ 514,412 528,068
7 HCA INC. CONSOLIDATED INCOME STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002 (DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
2003 2002 -------------------------- -------------------------- AMOUNT RATIO Amount Ratio ----------- ----------- ----------- ----------- Revenues ................................................ $ 10,740 100.0 % $ 9,776 100.0 % Salaries and benefits ................................... 4,274 39.8 3,890 39.8 Supplies ................................................ 1,715 16.0 1,556 15.9 Other operating expenses ................................ 1,779 16.5 1,632 16.7 Provision for doubtful accounts ......................... 1,005 9.4 739 7.6 Insurance subsidiary losses on sales of investments ..... 1 -- 4 -- Equity in earnings of affiliates ........................ (111) (1.0) (106) (1.1) ----------- ----- ----------- ----- 8,663 80.7 7,715 78.9 ----------- ----- ----------- ----- Adjusted EBITDA ..................................... 2,077 19.3 2,061 21.1 Depreciation and amortization ........................... 539 4.9 499 5.2 Interest expense ........................................ 237 2.2 229 2.3 Gains on sales of facilities ............................ (75) (0.7) -- -- Impairment of long-lived assets ......................... 130 1.2 19 0.2 Investigation related costs ............................. 5 0.1 30 0.3 ----------- ----- ----------- ----- Income before minority interests and income taxes ....... 1,241 11.6 1,284 13.1 Minority interests in earnings of consolidated entities . 86 0.8 77 0.7 ----------- ----- ----------- ----- Income before income taxes .............................. 1,155 10.8 1,207 12.4 Provision for income taxes .............................. 446 4.2 472 4.9 ----------- ----- ----------- ----- Net income ......................................... $ 709 6.6 $ 735 7.5 =========== ===== =========== ===== Diluted earnings per share: Net income excluding gains on sales of facilities, impairment of long-lived assets and investigation related costs .................................... $ 1.44 $ 1.47 Gains on sales of facilities ........................ 0.08 -- Impairment of long-lived assets ..................... (0.15) (0.03) Investigation related costs ......................... -- (0.04) ----------- ----------- Net income .......................................... $ 1.37 $ 1.40 =========== =========== Shares used in computing diluted earnings per share (000) 518,374 524,841
8 HCA INC. CONSOLIDATED BALANCE SHEETS (DOLLARS IN MILLIONS)
JUNE 30, MARCH 31, DECEMBER 31, 2003 2003 2002 --------- --------- --------- ASSETS Current assets: Cash and cash equivalents ............................................... $ 184 $ 1,090 $ 161 Accounts receivable, net ................................................ 2,873 2,969 2,788 Inventories ............................................................. 493 462 462 Deferred income taxes ................................................... 640 577 568 Other ................................................................... 606 328 526 --------- --------- --------- Total current assets ............................................... 4,796 5,426 4,505 Property and equipment, at cost .............................................. 17,893 17,211 16,800 Accumulated depreciation ..................................................... (7,399) (7,287) (7,079) --------- --------- --------- 10,494 9,924 9,721 Investments of insurance subsidiary .......................................... 1,549 1,427 1,355 Investments in and advances to affiliates .................................... 661 659 679 Goodwill ..................................................................... 2,501 1,982 1,994 Deferred loan costs .......................................................... 67 70 67 Other ........................................................................ 402 397 420 --------- --------- --------- $ 20,470 $ 19,885 $ 18,741 ========= ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ........................................................ $ 765 $ 749 $ 809 Accrued salaries ........................................................ 461 413 438 Other accrued expenses .................................................. 1,134 1,120 1,113 Government settlement accrual ........................................... 683 933 933 Long-term debt due within one year ...................................... 808 623 446 --------- --------- --------- Total current liabilities .......................................... 3,851 3,838 3,739 Long-term debt ............................................................... 7,568 7,092 6,497 Professional liability risks ................................................. 1,271 1,221 1,193 Deferred income taxes and other liabilities .................................. 1,128 1,046 999 Minority interests in equity of consolidated entities ........................ 672 647 611 Stockholders' equity ......................................................... 5,980 6,041 5,702 --------- --------- --------- $ 20,470 $ 19,885 $ 18,741 ========= ========= ========= Current ratio ................................................................ 1.25 1.41 1.20 Ratio of debt to debt plus common and minority equity ........................ 55.7% 53.6% 52.4% Shares outstanding (thousands) ............................................... 501,053 512,033 514,176
9 HCA INC. OPERATING STATISTICS
FOR THE SIX MONTHS SECOND QUARTER ENDED JUNE 30, ------------------------ ------------------------ 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Consolidated Hospitals: Number of Hospitals 184 175 184 175 Weighted Average Licensed Beds 42,178 39,844 41,074 39,961 Licensed Beds at End of Period 42,152 39,930 42,152 39,930 REPORTED: Admissions 409,000 391,400 813,500 798,700 % Change 4.5% 1.9% Equivalent Admissions 605,300 584,200 1,192,600 1,178,900 % Change 3.6% 1.2% Revenue per Equivalent Admission $ 9,033 $ 8,394 $ 9,006 $ 8,293 % Change 7.6% 8.6% Inpatient Revenue per Admission $ 8,167 $ 7,687 $ 8,200 $ 7,578 % Change 6.2% 8.2% Patient Days 2,020,200 1,927,800 4,047,400 3,988,500 Equivalent Patient Days 2,990,200 2,878,500 5,933,600 5,887,100 Emergency Room Visits 1,268,300 1,198,000 2,484,500 2,404,900 % Change 5.9% 3.3% Outpatient Revenues as a Percentage of Patient Revenues 37.7% 37.5% 36.8% 36.9% Average Length of Stay 4.9 4.9 5.0 5.0 Occupancy 52.6% 53.2% 54.4% 55.1% Equivalent Occupancy 77.9% 79.4% 79.8% 81.3% SAME FACILITY: Admissions 391,900 389,500 795,200 794,400 % Change 0.6% 0.1% Equivalent Admissions 578,900 581,100 1,164,200 1,171,700 % Change -0.4% -0.6% Revenue per Equivalent Admission $ 8,998 $ 8,367 $ 8,977 $ 8,261 % Change 7.5% 8.7% Inpatient Revenue per Admission $ 8,272 $ 7,684 $ 8,253 $ 7,581 % Change 7.7% 8.9% Emergency Department Visits 1,217,500 1,193,600 2,432,500 2,390,200 % Change 2.0% 1.8% NUMBER OF CONSOLIDATED AND NON-CONSOLIDATED (50/50 EQUITY JOINT VENTURES) HOSPITALS: Consolidated 184 175 184 175 Non-Consolidated (50/50 Equity Joint Ventures) 6 6 6 6 ---------- ---------- ---------- ---------- Total Number of Hospitals 190 181 190 181 ========== ========== ========== ==========
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