-----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, GDmi8HAtVAlurxF/DaLYuhRVR2bIPMVmJJr9hqdXy6MqV+WZCjoaW5iOrEleK/rF zaHRbHfAi5aA/Z4MWGrRCA== 0000950144-99-012132.txt : 19991028 0000950144-99-012132.hdr.sgml : 19991028 ACCESSION NUMBER: 0000950144-99-012132 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991025 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA HCA HEALTHCARE CORP/ 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: SEC FILE NUMBER: 001-11239 FILM NUMBER: 99734308 BUSINESS ADDRESS: STREET 1: ONE PARK PLZ CITY: NASHVILLE STATE: TN ZIP: 37203 BUSINESS PHONE: 6153449551 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA HEALTHCARE CORP DATE OF NAME CHANGE: 19930830 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA HOSPITAL CORP DATE OF NAME CHANGE: 19930328 8-K 1 COLUMBIA/HCA HEALTHCARE CORPORATION 1 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 October 25, 1999 (Date of Earliest Event Reported) COLUMBIA/HCA HEALTHCARE CORPORATION (Exact name of Registrant as specified in its Charter) DELAWARE (State of Incorporation) 001-11239 75-2497104 (Commission (I.R.S. Employer File Number) Identification No.) One Park Plaza, Nashville, Tennessee 37203 (Address of principal executive offices) (Zip Code) (615) 344-9551 (Registrant's telephone number, including area code) 2 ITEM 5. OTHER EVENTS On October 25, 1999, Columbia/HCA Healthcare Corporation (the "Company") announced operating results for the third quarter and nine months ended September 30, 1999. ITEM 7. EXHIBIT Exhibit 20 Copy of press release dated October 25, 1999 relating to third quarter earnings release. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. COLUMBIA/HCA HEALTHCARE CORPORATION /s/ JOHN M. FRANCK II - ----------------------------------- John M. Franck II Corporate Secretary DATED: October 26, 1999 EX-20 2 PRESS RELEASE 1 EXHIBIT 20 [COLUMBIA/HCA LOGO] NEWS - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE INVESTOR CONTACT MEDIA CONTACT Mark Kimbrough: 615-344-2688 Jeff Prescott: 615-344-5708 COLUMBIA/HCA REPORTS THIRD QUARTER 1999 EPS FROM CONTINUING OPERATIONS OF $0.27 EXCLUDING NON-RECURRING ITEMS SAME FACILITY REVENUE PER EQUIVALENT ADMISSION INCREASES 3.8% SAME FACILITY ADMISSIONS INCREASES 2.0% NASHVILLE, TENN., OCTOBER 25, 1999 - Columbia/HCA Healthcare Corporation (NYSE: COL) today announced operating results for the third quarter and nine months ended September 30, 1999. For the third quarter of 1999, revenues totaled $3.9 billion compared to $4.6 billion in the third quarter of 1998. This decline in revenues reflects the sale or spin-off of approximately 100 hospitals and more than 20 ambulatory surgery centers since September 30, 1998. Net income from continuing operations, excluding restructuring of operations and investigation related costs, totaled $155 million or $0.27 per diluted share for the third quarter of 1999, compared to $131 million or $0.20 per diluted share in the third quarter of 1998. Net income for the third quarter of 1999 totaled $138 million or $0.24 per diluted share, compared to $146 million or $0.22 per diluted share in the third quarter of 1998. 1 2 For the quarter ended September 30, 1999, same facility revenues increased 5.8 percent while same facility revenue per equivalent admission increased 3.8 percent. Same facility admissions for the Company's hospitals increased by 2.0 percent during the quarter. Revenues for the nine months ended September 30, 1999, totaled $12.7 billion compared to $14.3 billion in the first nine months of 1998. Net income from continuing operations, before gains on sales of facilities, impairment of long-lived assets and restructuring of operations and investigation related costs, totaled $608 million or $1.02 per diluted share in the first nine months of 1999, compared to $563 million or $0.87 per diluted share for the nine months ended September 30, 1998. Net income totaled $566 million or $0.95 per diluted share in 1999, versus $421 million or $0.65 per diluted share in 1998. Several factors continue to adversely affect the Company's financial results during the first nine months of 1999. These factors include reduced Medicare reimbursement mandated by the Balanced Budget Act of 1997; increased supply expense due to the increasing costs of new technology and pharmaceuticals; and increased bad debt expense. As of September 30, 1999, the Company operated 214 hospitals and 84 ambulatory surgery centers (including 12 hospitals and 3 ASCs owned through 50/50 equity joint ventures), compared to 318 hospitals and 108 ambulatory surgery centers (including 24 hospitals and 5 ASCs owned through equity joint ventures) at September 30, 1998. The Company sold 3 hospitals and certain investments in other non-core assets during the third quarter of 1999 for approximately $131 million, net of tax. 2 3 At September 30, 1999, the Company's balance sheet reflected total debt of approximately $6.5 billion, stockholders' equity of approximately $5.5 billion and total assets of approximately $16.6 billion. Capital expenditures for the quarter totaled approximately $246 million. The Company's total debt-to-capital ratio was 51 percent at September 30, 1999, compared to 45 percent at September 30, 1998. * * * This press release contains forward-looking statements based on current management expectations. Numerous factors including: (i.) the outcome of the known and unknown governmental investigations and litigation involving the Company's business practices, (ii.) possible changes in the Medicare program that may further limit reimbursements to health care providers and insurers, (iii.) the complexity of integrated computer systems and the success and expense of the remediation efforts of the Company and relevant third parties in achieving Year 2000 readiness, and (iv.) the ability to enter into managed care provider arrangements on acceptable terms, and those detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and, therefore, actual results may differ materially. 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. All references to "Company" and "Columbia/HCA" as used throughout this document refer to Columbia/HCA Healthcare Corporation and its affiliates. 3 4 Columbia/HCA Healthcare Corporation Consolidated Operating Results Summary (Dollars in millions, except per share amounts)
For the Nine Months Third Quarter Ended September 30, ---------------------- ---------------------- 1999 1998 1999 1998 --------- --------- --------- --------- Revenues $ 3,899 $ 4,579 $ 12,715 $ 14,261 EBITDA (a) $ 655 $ 682 $ 2,239 $ 2,379 Net income: Income from continuing operations, excluding gains on sales of facilities, impairment of long-lived assets and restructuring of operations and investigation related costs $ 155 $ 131 $ 608 $ 563 Gains on sales of facilities (net of tax) -- 242 151 242 Impairment of long -lived assets (net of tax) -- (197) (131) (197) Restructuring of operations and investigation related costs (net of tax) (17) (13) (62) (53) Discontinued operations: Loss from operations of discontinued businesses (net of tax)- -- (17) -- (61) Loss on disposal of discontinued businesses (net of tax)- -- -- -- (73) --------- --------- --------- --------- Net income $ 138 $ 146 $ 566 $ 421 ========= ========= ========= =========
4 5 Diluted earnings per share Income from continuing operations, excluding gains on sales of facilities, impairment of long-lived assets and restructuring of operations and investigation related costs $ 0.27 $ 0.20 $ 1.02 $ 0.87 Gains on sales of facilities (net of tax) -- 0.38 0.25 0.38 Impairment of long -lived assets -- (0.31) (0.22) (0.31) Restructuring of operations and investigation related costs (0.03) (0.02) (0.10) (0.08) Discontinued operations: Loss from operations of discontinued businesses -- (0.03) -- (0.10) Loss on disposal of discontinued businesses -- -- -- (0.11) --------- --------- --------- --------- Net income $ 0.24 $ 0.22 $ 0.95 $ 0.65 ========= ========= ========= ========= Shares used in computing diluted earnings per share (000) 567,789 647,243 598,594 646,734
(a) EBITDA is defined as income from continuing operations before depreciation and amortization, interest expense, gains on sales of facilities, impairment of long-lived assets, restructuring of operations and investigation related costs, minority interests and income taxes. 5 6 Columbia/HCA Healthcare Corporation Consolidated Income Statements Third Quarter (Dollars in millions, except per share amounts)
1999 1998 ------------------ ------------------- Amount Ratio Amount Ratio Revenues $ 3,899 100.0% $ 4,579 100.0% Salaries and benefits 1,583 40.6 1,900 41.5 Supplies 618 15.9 730 15.9 Other operating expenses 733 18.7 914 20.0 Provision for doubtful accounts 318 8.2 369 8.1 Equity in earnings of affiliates (8) (0.2) (16) (0.4) ------- ----- ------- ----- 3,244 83.2 3,897 85.1 ------- ----- ------- ----- EBITDA 655 16.8 682 14.9 Depreciation and amortization 262 6.8 312 6.7 Interest expense 122 3.1 142 3.1 Gains on sales of facilities -- -- (537) (11.7) Impairment of long-lived assets -- -- 334 7.3 Restructuring of operations and investigation related costs 24 0.6 21 0.5 ------- ----- ------- ----- Income from continuing operations before minority interests and income taxes 247 6.3 410 9.0 Minority interests in earnings of consolidated entities 13 0.3 16 0.4 ------- ----- ------- ----- Income from continuing operations before income taxes 234 6.0 394 8.6 Provision for income taxes 96 2.5 231 5.0 ------- ----- ------- ----- Income from continuing operations 138 3.5 163 3.6 Loss from operations of discontinued businesses (net of tax benefit) -- -- (17) (0.4) ------- ----- ------- ----- Net income $ 138 3.5 $ 146 3.2 ======= ===== ======= =====
6 7 Diluted earnings per share: Income from continuing operations, excluding gains on sales of facilities, impairment of long-lived assets and restructuring and investigation related costs $ 0.27 $ 0.20 Gains on sales of facilities -- 0.38 Impairment of long- lived assets -- (0.31) Restructuring of operations and investigation related costs (0.03) (0.02) Loss from operations of discontinued businesses -- (0.03) ----------- ----------- Net income $ 0.24 $ 0.22 =========== =========== Shares used in computing diluted earnings per share(000) 567,789 647,243
7 8 Columbia/HCA Healthcare Corporation Consolidated Income Statements For the Nine Months Ended September 30,1999 and 1998 (Dollars in millions, except per share amounts)
1999 1998 ------------------- ------------------- Amount Ratio Amount Ratio Revenues $ 12,715 100.0% $ 14,261 100.0% Salaries and benefits 5,119 40.3 5,911 41.4 Supplies 1,994 15.7 2,195 15.4 Other operating expenses 2,451 19.2 2,815 19.7 Provision for doubtful accounts 985 7.8 1,052 7.4 Equity in earnings of affiliates (73) (0.6) (91) (0.6) -------- ----- -------- ----- 10,476 82.4 11,882 83.3 -------- ----- -------- ----- EBITDA 2,239 17.6 2,379 16.7 Depreciation and amortization 836 6.4 932 6.6 Interest expense 351 2.8 440 3.1 Gains on sales of facilities (257) (2.0) (537) (3.8) Impairment of long-lived assets 160 1.3 334 2.3 Restructuring of operations and investigation related costs 84 0.7 90 0.6 -------- ----- -------- ----- Income from continuing operations before minority interests and income taxes 1,065 8.4 1,120 7.9 Minority interests in earnings of consolidated entities 41 0.3 54 0.4 -------- ----- -------- ----- Income from continuing operations before income taxes 1,024 8.1 1,066 7.5 Provision for income taxes 458 3.6 511 3.6 -------- ----- -------- ----- Income from continuing operations 566 4.5 555 3.9 Discontinued operations: Loss from operations of discontinued businesses (net of tax benefit)- -- -- (61) (0.4) Loss on disposal of discontinued businesses (net of tax benefit)- -- -- (73) (0.5) -------- ----- -------- ----- Net income $ 566 4.5 $ 421 3.0 ======== ===== ======== =====
8 9 Diluted earnings per share: Income from continuing operations, excluding gains on sales of facilities, impairment of long-lived assets and restructuring and investigation related costs $ 1.02 $ 0.87 Gains on sales of facilities 0.25 0.38 Impairment of long- lived assets (0.22) (0.31) Restructuring of operations and investigation related costs (0.10) (0.08) Discontinued operations: Loss from operations of discontinued businesses -- (0.10) Loss on disposal of discontinued businesses -- (0.11) ----------- ----------- Net income $ 0.95 $ 0.65 =========== =========== Shares used in computing diluted earnings per share (000) 598,594 646,734
9 10 Columbia/HCA Healthcare Corporation Consolidated Balance Sheets (Dollars in millions)
September 30, June 30, December 31, 1999 1999 1998 ------------- ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 124 $ 83 $ 297 Accounts receivable, net 1,834 1,821 2,096 Other 1,557 1,480 1,470 ------------- ------------- ------------- Total current assets 3,515 3,384 3,863 Property and equipment, at cost 13,955 13,764 15,644 Accumulated depreciation (5,650) (5,536) (6,195) ------------- ------------- ------------- 8,305 8,228 9,449 Investments of insurance subsidiary 1,545 1,578 1,614 Investments in and advances to affiliates 617 793 1,275 Intangible assets, net of accumulated amortization 2,481 2,523 2,910 Other 164 144 318 ------------- ------------- ------------- $ 16,627 $ 16,650 $ 19,429 ============= ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 608 $ 629 $ 784 Other current liabilities 1,531 1,456 1,707 Long-term debt due within one year 1,010 942 1,068 ------------- ------------- ------------- Total current liabilities 3,149 3,027 3,559 Long-term debt 5,522 5,718 5,685 Professional liability risks, deferred taxes and other liabilities 1,679 1,703 1,839 Minority interests in equity of consolidated entities 768 768 765 Stockholders' equity 5,509 5,434 7,581 ------------- ------------- ------------- $ 16,627 $ 16,650 $ 19,429 ============= ============= ============= Current ratio 1.12 1.12 1.09 Ratio of debt to debt plus common and minority equity 51.0% 51.8% 44.7% Shares Outstanding: 563,282,000 564,038,500 642,578,300
10 11 Columbia/HCA Healthcare Corporation Operating Statistics
For the Nine Months Third Quarter Ended September 30, ------------------------ ------------------------- 1999 1998 1999 1998 ---------- ---------- ---------- ----------- Consolidated Hospitals: Number of Hospitals 202 294 202 294 Weighted Average Licensed Beds 43,511 59,396 47,451 60,286 Licensed Beds at End of Period 43,461 57,521 43,461 57,521 Admissions 370,500 459,700 1,243,700 1,443,300 Same Facility Change 2.0% 2.2% Equivalent Admissions 557,900 705,100 1,858,100 2,195,200 Same Facility Change 1.9% 2.1% Revenue per Equivalent Admission $ 6,988 $ 6,494 $ 6,843 $ 6,496 Same Facility Change 3.8% 2.2% Patient Days 1,812,800 2,246,100 6,155,400 7,185,500 Equivalent Patient Days 2,729,900 3,445,900 9,196,100 10,929,200 Emergency Room Visits 1,091,000 1,400,400 3,651,100 4,228,100 Outpatient Revenues as a Percentage of Patient Revenues 38.8% 39.3% 38.9% 38.4% Surgery Cases 322,600 403,100 1,048,500 1,298,300 Average Length of Stay 4.9 4.9 5.0 5.0 Occupancy 45.3% 41.1% 47.5% 43.7% Equivalent Occupancy 68.2% 63.1% 71.0% 66.5% Number of Consolidated and Non-Consolidated (50/50 Equity Joint Ventures) Hospitals: Consolidated 202 294 202 294 Non-Consolidated (50/50 Equity Joint Ventures) 12 24 12 24 ---------- ---------- ---------- ----------- Total Number of Hospitals 214 318 214 318 ========== ========== ========== ===========
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