[February 15, 2013] |
|
LifePoint Hospitals Reports Fourth Quarter and Year-End 2012 Results
BRENTWOOD, Tenn. --(Business Wire)--
LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the
fourth quarter and year ended December 31, 2012.
For the fourth quarter ended December 31, 2012, revenues from continuing
operations were $893.3 million, up 14.3% from $781.3 million for the
same period a year ago. Income from continuing operations attributable
to LifePoint Hospitals, Inc. stockholders for the fourth quarter ended
December 31, 2012, decreased 3.3% to $36.5 million, or $0.76 per diluted
share, compared with $37.7 million, or $0.78 per diluted share, for the
same period a year ago.
For the year ended December 31, 2012, revenues from continuing
operations were $3,391.8 million, up 12.1% from $3,026.1 million for
2011. Income from continuing operations attributable to LifePoint
Hospitals, Inc. stockholders for 2012 decreased 6.6% to $151.9 million,
or $3.14 per diluted share, compared with $162.7 million, or $3.22 per
diluted share, for 2011.
In commenting on the results, William F. Carpenter III, chairman and
chief executive officer of LifePoint Hospitals, said, "In the fourth
quarter, LifePoint delivered improved volumes, good cost controls,
strong cash flow from operations and earnings at the top end of our
revised guidance range. We are identifying new opportunities to purchase
hospitals that we believe will complement our strategy to develop
regional integrated health systems. Our balanced approach to capital
deployment has allowed us to create value for shareholders, and we look
forward to the opportunities ahead in 2013."
On February 6, 2013, the Company amended its senior secured credit
agreement with, among others, Citibank, N.A., as administrative agent,
and the lenders party thereto pursuant to which it issued $325.0 million
of incremental term loans (the "Incremental Term Loans"). The Company
currently intends to use the proceeds from the Incremental Term Loans to
repurchase $225.0 million of its 3¼% convertible senior subordinated
debentures due August 15, 2025, that are putable by the holders thereof
to the Company on February 15, 2013, and, subject to market conditions,
callable by the Company on or after February 20, 2013, as well as to pay
fees and expenses related to the issuance of the Incremental Term Loans.
The Company intends to use the remaining proceeds of the Incremental
Term Loans for general corporate purposes.
|
|
|
The Company also issued the following guidance for 2013:
|
|
|
|
|
|
Estimated Net Revenue
|
|
$3.65 - $3.75 billion
|
Estimated Adjusted EBITDA
|
|
$540 - $570 million
|
Estimated Diluted EPS
|
|
$2.73 - $3.11
|
|
|
|
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Hospitals' fourth quarter and year-end 2012 conference call will be
available on line at www.lifepointhospitals.com/news/press-releases
and www.earnings.com
today, Friday, February 15, 2013, beginning at 10:00 a.m. Eastern Time.
LifePoint Hospitals, Inc. is a leading hospital company focused on
providing quality healthcare services close to home. Through its
subsidiaries, LifePoint operates 57 hospital campuses in 20 states. With
a mission of "Making Communities Healthier®," LifePoint is the sole
community hospital provider in the majority of the communities it
serves. More information about the Company, which is headquartered in
Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com.
All references to "LifePoint," "LifePoint Hospitals," or the "Company"
used in this release refer to LifePoint Hospitals, Inc. or its
affiliates.
Important Legal Information. Certain statements contained in
this release, including LifePoint's guidance for the year ended December
31, 2013, are based on current management expectations and are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and are intended to qualify for the
safe harbor protections from liability provided by the Private
Securities Litigation Reform Act of 1995. 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. Such forward-looking
statements reflect the current expectations and beliefs of the
management of LifePoint, are not guarantees of performance and are
subject to a number of risks, uncertainties, assumptions and other
factors that could cause actual results to differ from those described
in the forward-looking statements. These forward-looking
statements may also be subject to other risk factors and uncertainties,
including without limitation: (i) the effects related to the enactment
and implementation of healthcare reform, the possible enactment of
additional federal or state healthcare reforms and possible changes in
healthcare reform laws and other federal, state or local laws or
regulations affecting the healthcare industry including the timing of
the implementation of reform; (ii) the extent to which states support
increases, decreases or changes in Medicaid programs, implement
healthcare exchanges or alter the provision of healthcare to state
residents through regulation or otherwise; (iii) delays in receiving
payments for services provided, reductions in Medicare or Medicaid
payments (including increased recoveries made by Recovery Audit
Contractors (RAC) and similar governmental agents), compared to the
timing of expanded coverage; (iv) reductions in reimbursements from
commercial payors, whether due to a change in our revenue mix, service
mix, reduction in commercial rates or otherwise; (v) our ability to
acquire hospitals and other healthcare providers on favorable
terms, the business risks and costs associated therewith and the
uncertainty in operating and integrating such hospitals and other
providers; (vi) our ongoing ability to demonstrate meaningful use of
certified electronic health record technology and recognize income for
the related Medicare or Medicaid incentive payments ; (vii) the failure
or closure of employers in our markets, especially those that are
dependent on a small number of local employers; (viii) the growth of
"bad debt" and "patient due" accounts, the number of individuals without
insurance coverage (or who are underinsured) who seek care at our
hospitals, and deterioration in the collectability of these accounts;
(ix) changes in general economic conditions nationally and regionally in
our markets; (x) whether our core strategies will result in anticipated
operating results, including measureable quality and satisfaction
improvements; (xi) whether our efforts to reduce the cost of providing
healthcare while increasing the quality of care are successful; (xii)
the ability to attract, recruit and retain qualified physicians, nurses,
medical technicians and other healthcare professionals and the
increasing costs associated with doing so, including the direct costs
associated with employing physicians and other healthcare professionals;
(xiii) the loss of certain physicians in markets where such a loss can
have a disproportionate impact on our hospital in such market; (xiv) the
application, interpretation and enforcement of increasingly stringent
and complex laws and regulations governing our operations and healthcare
generally (and changing interpretations of applicable laws and
regulations), related enforcement activity and the potentially adverse
impact of known and unknown government investigations, litigation and
other claims that may be made against us; (xv) any interruption of or
restriction in our access to licensed information (and information
technology systems) or failure in our ability to integrate changes to
LifePoint's existing information systems or information systems of
acquired hospitals; (xvi) the highly competitive nature of the health
care business; (xvii) adverse events in states where a large portion of
our revenues are concentrated; (xviii) the availability and terms of
capital to fund the expansion of our business and improvements to our
existing facilities, and any changes in accounting practices; (xix)
liabilities resulting from potential malpractice and related legal
claims brought against our hospitals or the healthcare providers
associated with, or employed by, such hospitals or affiliated entities;
(xx) our increased dependence on third parties to provide purchasing,
revenue cycle and payroll services and information technology and
whether they are able to do so effectively; (xxi) the continued
viability of Duke - LifePoint Healthcare and our partnership with Duke
University Medical Center; and (xxii) those other risks and
uncertainties described from time to time in our filings with the
Securities and Exchange Commission.
Specifically, without limiting the cautionary statements made above,
with respect to our guidance for the year ended December 31, 2013,
management has assumed, among other things, that (1) RAC activity and
the level of one day stays in 2013 will be similar to that in 2012 and
(2) governmental and commercial payor reimbursements will remain as
projected. Therefore, our future results may differ materially
from those described in this release. LifePoint undertakes 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 "our," "LifePoint," "LifePoint Hospitals" and the
"Company" as used throughout this release refer to LifePoint Hospitals,
Inc. and its subsidiaries.
|
|
|
|
|
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in millions, except per share amounts
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Amount
|
|
% of Revenues
|
|
Amount
|
|
% of Revenues
|
|
Amount
|
|
% of Revenues
|
|
Amount
|
|
% of Revenues
|
Revenues before provision for doubtful accounts
|
|
$
|
1,053.1
|
|
|
|
|
$
|
916.4
|
|
|
|
|
$
|
4,016.2
|
|
|
|
|
$
|
3,544.6
|
|
|
|
Provision for doubtful accounts
|
|
|
159.8
|
|
|
|
|
|
135.1
|
|
|
|
|
|
624.4
|
|
|
|
|
|
518.5
|
|
|
|
Revenues
|
|
|
893.3
|
|
|
100.0
|
%
|
|
|
781.3
|
|
|
100.0
|
%
|
|
|
3,391.8
|
|
|
100.0
|
%
|
|
|
3,026.1
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
424.3
|
|
|
47.5
|
|
|
|
353.5
|
|
|
45.2
|
|
|
|
1,554.5
|
|
|
45.8
|
|
|
|
1,364.7
|
|
|
45.1
|
|
Supplies
|
|
|
141.9
|
|
|
15.9
|
|
|
|
122.8
|
|
|
15.7
|
|
|
|
524.6
|
|
|
15.5
|
|
|
|
469.5
|
|
|
15.5
|
|
Other operating expenses
|
|
|
209.6
|
|
|
23.4
|
|
|
|
186.6
|
|
|
24.0
|
|
|
|
799.1
|
|
|
23.5
|
|
|
|
682.4
|
|
|
22.6
|
|
Other income
|
|
|
(17.3
|
)
|
|
(1.9
|
)
|
|
|
(11.5
|
)
|
|
(1.5
|
)
|
|
|
(32.0
|
)
|
|
(0.9
|
)
|
|
|
(26.7
|
)
|
|
(0.9
|
)
|
Depreciation and amortization
|
|
|
53.4
|
|
|
6.0
|
|
|
|
44.8
|
|
|
5.7
|
|
|
|
193.1
|
|
|
5.7
|
|
|
|
165.8
|
|
|
5.5
|
|
Interest expense, net
|
|
|
24.3
|
|
|
2.7
|
|
|
|
25.5
|
|
|
3.3
|
|
|
|
100.0
|
|
|
3.0
|
|
|
|
107.1
|
|
|
3.5
|
|
Debt extinguishment costs
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
4.4
|
|
|
0.1
|
|
|
|
-
|
|
|
-
|
|
Impairment charges
|
|
|
0.9
|
|
|
0.1
|
|
|
|
-
|
|
|
-
|
|
|
|
4.0
|
|
|
0.1
|
|
|
|
-
|
|
|
-
|
|
|
|
|
837.1
|
|
|
93.7
|
|
|
|
721.7
|
|
|
92.4
|
|
|
|
3,147.7
|
|
|
92.8
|
|
|
|
2,762.8
|
|
|
91.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
56.2
|
|
|
6.3
|
|
|
|
59.6
|
|
|
7.6
|
|
|
|
244.1
|
|
|
7.2
|
|
|
|
263.3
|
|
|
8.7
|
|
Provision for income taxes
|
|
|
18.7
|
|
|
2.1
|
|
|
|
21.3
|
|
|
2.7
|
|
|
|
88.5
|
|
|
2.6
|
|
|
|
97.8
|
|
|
3.2
|
|
Income from continuing operations
|
|
|
37.5
|
|
|
4.2
|
|
|
|
38.3
|
|
|
4.9
|
|
|
|
155.6
|
|
|
4.6
|
|
|
|
165.5
|
|
|
5.5
|
|
(Loss) income from discontinued operations, net of income taxes
|
|
|
(0.2
|
)
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
0.2
|
|
|
-
|
|
Net income
|
|
|
37.3
|
|
|
4.2
|
|
|
|
38.3
|
|
|
4.9
|
|
|
|
155.6
|
|
|
4.6
|
|
|
|
165.7
|
|
|
5.5
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
(1.0
|
)
|
|
(0.1
|
)
|
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
|
(3.7
|
)
|
|
(0.1
|
)
|
|
|
(2.8
|
)
|
|
(0.1
|
)
|
Net income attributable to LifePoint Hospitals, Inc.
|
|
$
|
36.3
|
|
|
4.1
|
%
|
|
$
|
37.7
|
|
|
4.8
|
%
|
|
$
|
151.9
|
|
|
4.5
|
%
|
|
$
|
162.9
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share attributable to LifePoint
Hospitals, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.78
|
|
|
|
|
$
|
0.80
|
|
|
|
|
$
|
3.22
|
|
|
|
|
$
|
3.30
|
|
|
|
Discontinued operations
|
|
|
(0.01
|
)
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
Net income
|
|
$
|
0.77
|
|
|
|
|
$
|
0.80
|
|
|
|
|
$
|
3.22
|
|
|
|
|
$
|
3.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share attributable to LifePoint
Hospitals, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.76
|
|
|
|
|
$
|
0.78
|
|
|
|
|
$
|
3.14
|
|
|
|
|
$
|
3.22
|
|
|
|
Discontinued operations
|
|
|
(0.01
|
)
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
Net income
|
|
$
|
0.75
|
|
|
|
|
$
|
0.78
|
|
|
|
|
$
|
3.14
|
|
|
|
|
$
|
3.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to LifePoint Hospitals, Inc. stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of income taxes
|
|
$
|
36.5
|
|
|
|
|
$
|
37.7
|
|
|
|
|
$
|
151.9
|
|
|
|
|
$
|
162.7
|
|
|
|
(Loss) income from discontinued operations, net of income taxes
|
|
|
(0.2
|
)
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
|
0.2
|
|
|
|
Net income
|
|
$
|
36.3
|
|
|
|
|
$
|
37.7
|
|
|
|
|
$
|
151.9
|
|
|
|
|
$
|
162.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HOSPITALS, INC.
UNAUDITED EARNINGS PER SHARE CALCULATIONS
In millions, except per share amounts
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Income from continuing operations
|
|
$
|
37.5
|
|
|
$
|
38.3
|
|
|
$
|
155.6
|
|
|
$
|
165.5
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
(1.0
|
)
|
|
|
(0.6
|
)
|
|
|
(3.7
|
)
|
|
|
(2.8
|
)
|
Income from continuing operations attributable to LifePoint
Hospitals, Inc. stockholders
|
|
|
36.5
|
|
|
|
37.7
|
|
|
|
151.9
|
|
|
|
162.7
|
|
(Loss) income from discontinued operations, net of income taxes
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
0.2
|
|
Net income attributable to LifePoint Hospitals, Inc.
|
|
$
|
36.3
|
|
|
$
|
37.7
|
|
|
$
|
151.9
|
|
|
$
|
162.9
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
46.8
|
|
|
|
46.8
|
|
|
|
47.2
|
|
|
|
49.3
|
|
Effect of dilutive securities: stock options and other stock-based
awards
|
|
|
1.3
|
|
|
|
1.3
|
|
|
|
1.2
|
|
|
|
1.2
|
|
Weighted average shares outstanding - diluted
|
|
|
48.1
|
|
|
|
48.1
|
|
|
|
48.4
|
|
|
|
50.5
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share attributable to LifePoint
Hospitals, Inc. stockholders:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.78
|
|
|
$
|
0.80
|
|
|
$
|
3.22
|
|
|
$
|
3.30
|
|
Discontinued operations
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net income
|
|
$
|
0.77
|
|
|
$
|
0.80
|
|
|
$
|
3.22
|
|
|
$
|
3.30
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share attributable to LifePoint
Hospitals, Inc. stockholders:
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.76
|
|
|
$
|
0.78
|
|
|
$
|
3.14
|
|
|
$
|
3.22
|
|
Discontinued operations
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net income
|
|
$
|
0.75
|
|
|
$
|
0.78
|
|
|
$
|
3.14
|
|
|
$
|
3.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
In millions
|
|
|
|
|
|
|
|
Dec. 30, 2012
|
|
Dec. 31, 2011
|
ASSETS
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
85.0
|
|
|
$
|
126.2
|
|
Accounts receivable, less allowances for doubtful accounts of
$558.4 and $537.4 at December 31, 2012, and December 31, 2011,
respectively
|
|
|
518.8
|
|
|
|
430.6
|
|
Inventories
|
|
|
97.0
|
|
|
|
87.2
|
|
Prepaid expenses
|
|
|
31.8
|
|
|
|
26.4
|
|
Deferred tax assets
|
|
|
142.5
|
|
|
|
125.7
|
|
Other current assets
|
|
|
50.2
|
|
|
|
43.9
|
|
|
|
|
925.3
|
|
|
|
840.0
|
|
|
|
|
|
|
Property and equipment:
|
|
|
|
|
Land
|
|
|
101.9
|
|
|
|
93.5
|
|
Buildings and improvements
|
|
|
1,815.2
|
|
|
|
1,631.6
|
|
Equipment
|
|
|
1,289.7
|
|
|
|
1,084.0
|
|
Construction in progress
|
|
|
81.0
|
|
|
|
105.7
|
|
|
|
|
3,287.8
|
|
|
|
2,914.8
|
|
Accumulated depreciation
|
|
|
(1,256.9
|
)
|
|
|
(1,084.4
|
)
|
|
|
|
2,030.9
|
|
|
|
1,830.4
|
|
|
|
|
|
|
Deferred loan costs, net
|
|
|
21.9
|
|
|
|
21.7
|
|
Intangible assets, net
|
|
|
84.5
|
|
|
|
89.5
|
|
Other
|
|
|
47.8
|
|
|
|
19.8
|
|
Goodwill
|
|
|
1,611.8
|
|
|
|
1,568.7
|
|
Total assets
|
|
$
|
4,722.2
|
|
|
$
|
4,370.1
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
117.4
|
|
|
$
|
99.6
|
|
Accrued salaries
|
|
|
128.2
|
|
|
|
103.1
|
|
Other current liabilities
|
|
|
186.0
|
|
|
|
168.2
|
|
Current maturities of long-term debt
|
|
|
13.3
|
|
|
|
1.9
|
|
|
|
|
444.9
|
|
|
|
372.8
|
|
|
|
|
|
|
Long-term debt
|
|
|
1,696.5
|
|
|
|
1,595.4
|
|
Deferred income tax liabilities
|
|
|
249.2
|
|
|
|
259.0
|
|
Long-term portion of reserves for self-insurance claims
|
|
|
133.0
|
|
|
|
118.3
|
|
Other long-term liabilities
|
|
|
79.2
|
|
|
|
20.8
|
|
Long-term income tax liability
|
|
|
16.9
|
|
|
|
18.0
|
|
Total liabilities
|
|
|
2,619.7
|
|
|
|
2,384.3
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
29.4
|
|
|
|
26.2
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
LifePoint Hospitals, Inc. stockholders' equity:
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
Common stock
|
|
|
0.6
|
|
|
|
0.6
|
|
Capital in excess of par value
|
|
|
1,403.5
|
|
|
|
1,354.8
|
|
Accumulated other comprehensive income
|
|
|
0.2
|
|
|
|
-
|
|
Retained earnings
|
|
|
1,218.8
|
|
|
|
1,066.9
|
|
Common stock in treasury, at cost
|
|
|
(572.6
|
)
|
|
|
(477.1
|
)
|
Total LifePoint Hospitals, Inc. stockholders' equity
|
|
|
2,050.5
|
|
|
|
1,945.2
|
|
Noncontrolling interests
|
|
|
22.6
|
|
|
|
14.4
|
|
Total equity
|
|
|
2,073.1
|
|
|
|
1,959.6
|
|
Total liabilities and equity
|
|
$
|
4,722.2
|
|
|
$
|
4,370.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HOSPITALS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
37.3
|
|
|
$
|
38.3
|
|
|
$
|
155.6
|
|
|
$
|
165.7
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Loss (income) from discontinued operations
|
|
|
0.2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.2
|
)
|
Stock-based compensation
|
|
|
7.1
|
|
|
|
6.3
|
|
|
|
27.4
|
|
|
|
24.0
|
|
Depreciation and amortization
|
|
|
53.4
|
|
|
|
44.8
|
|
|
|
193.1
|
|
|
|
165.8
|
|
Amortization of physician minimum revenue guarantees
|
|
|
4.9
|
|
|
|
5.5
|
|
|
|
19.6
|
|
|
|
19.8
|
|
Amortization of convertible debt discounts
|
|
|
6.8
|
|
|
|
6.3
|
|
|
|
26.0
|
|
|
|
24.3
|
|
Amortization of deferred loan costs
|
|
|
1.2
|
|
|
|
1.5
|
|
|
|
5.4
|
|
|
|
5.9
|
|
Debt extinguishment costs
|
|
|
-
|
|
|
|
-
|
|
|
|
4.4
|
|
|
|
-
|
|
Impairment charges
|
|
|
0.9
|
|
|
|
-
|
|
|
|
4.0
|
|
|
|
-
|
|
Deferred income taxes (benefit)
|
|
|
23.8
|
|
|
|
57.8
|
|
|
|
(24.2
|
)
|
|
|
23.1
|
|
Reserve for self-insurance claims, net of payments
|
|
|
2.6
|
|
|
|
8.3
|
|
|
|
1.6
|
|
|
|
18.0
|
|
Increase (decrease) in cash from operating assets and liabilities,
net of effects from acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(0.9
|
)
|
|
|
(17.1
|
)
|
|
|
(43.3
|
)
|
|
|
(29.5
|
)
|
Inventories and other current assets
|
|
|
(7.5
|
)
|
|
|
(14.6
|
)
|
|
|
(9.7
|
)
|
|
|
(20.1
|
)
|
Accounts payable and accrued expenses
|
|
|
(2.7
|
)
|
|
|
5.5
|
|
|
|
19.5
|
|
|
|
2.9
|
|
Income taxes receivable/payable
|
|
|
(7.4
|
)
|
|
|
(59.7
|
)
|
|
|
2.3
|
|
|
|
3.9
|
|
Other
|
|
|
0.9
|
|
|
|
-
|
|
|
|
1.2
|
|
|
|
(2.4
|
)
|
Net cash provided by operating activities - continuing operations
|
|
|
120.6
|
|
|
|
82.9
|
|
|
|
382.9
|
|
|
|
401.2
|
|
Net cash provided by (used in) operating activities - discontinued
operations
|
|
|
-
|
|
|
|
0.1
|
|
|
|
(0.7
|
)
|
|
|
0.3
|
|
Net cash provided by operating activities
|
|
|
120.6
|
|
|
|
83.0
|
|
|
|
382.2
|
|
|
|
401.5
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(64.0
|
)
|
|
|
(66.1
|
)
|
|
|
(221.4
|
)
|
|
|
(219.9
|
)
|
Acquisitions, net of cash acquired
|
|
|
(17.3
|
)
|
|
|
(57.9
|
)
|
|
|
(199.7
|
)
|
|
|
(121.0
|
)
|
Other
|
|
|
(0.6
|
)
|
|
|
-
|
|
|
|
(1.0
|
)
|
|
|
(1.2
|
)
|
Net cash used in investing activities
|
|
|
(81.9
|
)
|
|
|
(124.0
|
)
|
|
|
(422.1
|
)
|
|
|
(342.1
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
65.0
|
|
|
|
-
|
|
|
|
555.0
|
|
|
|
-
|
|
Payments of borrowings
|
|
|
(25.6
|
)
|
|
|
-
|
|
|
|
(469.3
|
)
|
|
|
(0.1
|
)
|
Repurchases of common stock
|
|
|
(89.3
|
)
|
|
|
(33.4
|
)
|
|
|
(95.5
|
)
|
|
|
(174.6
|
)
|
Payment of debt financing costs
|
|
|
(0.4
|
)
|
|
|
-
|
|
|
|
(10.0
|
)
|
|
|
(0.4
|
)
|
Proceeds from exercise of stock options
|
|
|
0.4
|
|
|
|
4.4
|
|
|
|
21.8
|
|
|
|
39.0
|
|
(Refunds of) proceeds from employee stock purchase plans
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
1.2
|
|
|
|
1.2
|
|
Distributions to noncontrolling interests
|
|
|
(1.0
|
)
|
|
|
(0.4
|
)
|
|
|
(3.8
|
)
|
|
|
(1.8
|
)
|
(Repurchases) sales of redeemable noncontrolling interests
|
|
|
-
|
|
|
|
(2.3
|
)
|
|
|
1.6
|
|
|
|
(2.3
|
)
|
Capital lease payments and other
|
|
|
(0.6
|
)
|
|
|
(0.5
|
)
|
|
|
(2.3
|
)
|
|
|
(1.6
|
)
|
Net cash used in financing activities
|
|
|
(51.6
|
)
|
|
|
(32.2
|
)
|
|
|
(1.3
|
)
|
|
|
(140.6
|
)
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
(12.9
|
)
|
|
|
(73.2
|
)
|
|
|
(41.2
|
)
|
|
|
(81.2
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
97.9
|
|
|
|
199.4
|
|
|
|
126.2
|
|
|
|
207.4
|
|
Cash and cash equivalents at end of period
|
|
$
|
85.0
|
|
|
$
|
126.2
|
|
|
$
|
85.0
|
|
|
$
|
126.2
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest payments
|
|
$
|
26.2
|
|
|
$
|
14.2
|
|
|
$
|
70.0
|
|
|
$
|
79.2
|
|
Capitalized interest
|
|
$
|
0.4
|
|
|
$
|
0.7
|
|
|
$
|
2.3
|
|
|
$
|
2.0
|
|
Income tax payments, net
|
|
$
|
2.2
|
|
|
$
|
23.2
|
|
|
$
|
110.5
|
|
|
$
|
71.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HOSPITALS, INC.
UNAUDITED STATISTICS
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2012
|
|
2011
|
|
% Change
|
|
2012
|
|
2011
|
|
% Change
|
Continuing Operations: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals at end of period
|
|
|
56
|
|
|
54
|
|
3.7
|
%
|
|
|
56
|
|
|
54
|
|
3.7
|
%
|
Admissions
|
|
|
51,488
|
|
|
48,354
|
|
6.5
|
|
|
|
199,814
|
|
|
195,974
|
|
2.0
|
|
Equivalent admissions (2)
|
|
|
117,414
|
|
|
106,850
|
|
9.9
|
|
|
|
452,779
|
|
|
424,676
|
|
6.6
|
|
Revenues per equivalent admission
|
|
$
|
7,608
|
|
$
|
7,313
|
|
4.0
|
|
|
$
|
7,491
|
|
$
|
7,126
|
|
5.1
|
|
Medicare case mix index
|
|
|
1.35
|
|
|
1.30
|
|
3.4
|
|
|
|
1.31
|
|
|
1.29
|
|
1.6
|
|
Average length of stay (days)
|
|
|
4.5
|
|
|
4.4
|
|
2.3
|
|
|
|
4.4
|
|
|
4.3
|
|
2.3
|
|
Inpatient surgeries
|
|
|
13,688
|
|
|
13,055
|
|
4.8
|
|
|
|
53,696
|
|
|
53,017
|
|
1.3
|
|
Outpatient surgeries
|
|
|
43,844
|
|
|
40,404
|
|
8.5
|
|
|
|
171,246
|
|
|
158,240
|
|
8.2
|
|
Emergency room visits
|
|
|
298,119
|
|
|
257,046
|
|
16.0
|
|
|
|
1,149,301
|
|
|
1,024,273
|
|
12.2
|
|
Outpatient factor (2)
|
|
|
2.28
|
|
|
2.21
|
|
3.5
|
|
|
|
2.27
|
|
|
2.17
|
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-hospital: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals at end of period
|
|
|
51
|
|
|
51
|
|
-
|
%
|
|
|
51
|
|
|
51
|
|
-
|
%
|
Admissions
|
|
|
46,081
|
|
|
47,061
|
|
(2.1
|
)
|
|
|
186,447
|
|
|
194,681
|
|
(4.2
|
)
|
Equivalent admissions (2)
|
|
|
103,086
|
|
|
103,269
|
|
(0.2
|
)
|
|
|
416,523
|
|
|
421,095
|
|
(1.1
|
)
|
Revenues per equivalent admission
|
|
$
|
7,412
|
|
$
|
7,364
|
|
0.7
|
|
|
$
|
7,462
|
|
$
|
7,137
|
|
4.6
|
|
Medicare case mix index
|
|
|
1.32
|
|
|
1.31
|
|
1.5
|
|
|
|
1.31
|
|
|
1.29
|
|
1.1
|
|
Average length of stay (days)
|
|
|
4.2
|
|
|
4.3
|
|
(2.3
|
)
|
|
|
4.2
|
|
|
4.3
|
|
(2.3
|
)
|
Inpatient surgeries
|
|
|
11,846
|
|
|
12,756
|
|
(7.1
|
)
|
|
|
49,564
|
|
|
52,718
|
|
(6.0
|
)
|
Outpatient surgeries
|
|
|
38,707
|
|
|
39,348
|
|
(1.6
|
)
|
|
|
158,954
|
|
|
157,184
|
|
1.1
|
|
Emergency room visits
|
|
|
266,313
|
|
|
246,185
|
|
8.2
|
|
|
|
1,054,501
|
|
|
1,013,412
|
|
4.1
|
|
Outpatient factor (2)
|
|
|
2.24
|
|
|
2.19
|
|
2.1
|
|
|
|
2.23
|
|
|
2.16
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Continuing operations information includes the
results of (i) our hospital support center; (ii) our same-hospital
operations; (iii) the results of Marquette General Health System
("Marquette General"), which we acquired effective September 1,
2012; Twin County Regional Hospital ("Twin County"), in which we
acquired an 80% interest effective April 1, 2012; Maria Parham
Medical Center ("Maria Parham"), in which we acquired an 80%
interest effective November 1, 2011; and Person Memorial Hospital
("Person Memorial"), which we acquired effective October 1, 2011,
each through Duke LifePoint Healthcare, in which we own a
controlling interest with a wholly-controlled affiliate of Duke
University Health System, Inc. and (iv) Woods Memorial Hospital
("Woods Memorial"), which we acquired effective July 1, 2012.
|
(2) Management and investors use equivalent admissions
as a general measure of combined inpatient and outpatient volume.
We compute equivalent admissions by multiplying admissions
(inpatient volumes) by the outpatient factor (the 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.
|
(3) Same-hospital information includes the results of
our hospital support center and the same 51 hospitals operated
during the three months and year ended December 31, 2012 and 2011.
Same-hospital information excludes the results of Marquette
General, Woods Memorial, Twin County, Maria Parham and Person
Memorial.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HOSPITALS, INC. UNAUDITED SUPPLEMENTAL
INFORMATION Dollars in millions, except Diluted EPS amounts
Adjusted EBITDA is defined by the Company as earnings before
depreciation and amortization; interest expense, net; debt
extinguishment costs; impairment charges; provision for income taxes;
loss (income) from discontinued operations, net of income taxes; and net
income attributable to noncontrolling interests. LifePoint's management
and Board of Directors use Adjusted EBITDA to evaluate the Company's
operating performance and as a measure of performance for incentive
compensation purposes. LifePoint's credit facilities use Adjusted EBITDA
for certain financial covenants. The Company believes 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 is used to estimate current or
prospective enterprise value. Adjusted EBITDA should not be considered
as a measure of financial performance under U.S. generally accepted
accounting principles ("GAAP"), and the items excluded from Adjusted
EBITDA is 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 GAAP and is
susceptible to varying calculations, Adjusted EBITDA as presented may
not be comparable to other similarly titled measures of other companies.
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Amount
|
|
% of Revenues
|
|
Amount
|
|
% of Revenues
|
|
Amount
|
|
% of Revenues
|
|
Amount
|
|
% of Revenues
|
Revenues before provision for doubtful accounts
|
|
$
|
1,053.1
|
|
|
|
|
$
|
916.4
|
|
|
|
|
$
|
4,016.2
|
|
|
|
|
$
|
3,544.6
|
|
|
|
Provision for doubtful accounts
|
|
|
159.8
|
|
|
|
|
|
135.1
|
|
|
|
|
|
624.4
|
|
|
|
|
|
518.5
|
|
|
|
Revenues
|
|
|
893.3
|
|
|
100.0
|
%
|
|
|
781.3
|
|
|
100.0
|
%
|
|
|
3,391.8
|
|
|
100.0
|
%
|
|
|
3,026.1
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
424.3
|
|
|
47.5
|
|
|
|
353.5
|
|
|
45.2
|
|
|
|
1,554.5
|
|
|
45.8
|
|
|
|
1,364.7
|
|
|
45.1
|
|
Supplies
|
|
|
141.9
|
|
|
15.9
|
|
|
|
122.8
|
|
|
15.7
|
|
|
|
524.6
|
|
|
15.5
|
|
|
|
469.5
|
|
|
15.5
|
|
Other operating expenses
|
|
|
209.6
|
|
|
23.4
|
|
|
|
186.6
|
|
|
24.0
|
|
|
|
799.1
|
|
|
23.5
|
|
|
|
682.4
|
|
|
22.6
|
|
Other income
|
|
|
(17.3
|
)
|
|
(1.9
|
)
|
|
|
(11.5
|
)
|
|
(1.5
|
)
|
|
|
(32.0
|
)
|
|
(0.9
|
)
|
|
|
(26.7
|
)
|
|
(0.9
|
)
|
|
|
|
758.5
|
|
|
84.9
|
|
|
|
651.4
|
|
|
83.4
|
|
|
|
2,846.2
|
|
|
83.9
|
|
|
|
2,489.9
|
|
|
82.3
|
|
Adjusted EBITDA
|
|
$
|
134.8
|
|
|
15.1
|
%
|
|
$
|
129.9
|
|
|
16.6
|
%
|
|
$
|
545.6
|
|
|
16.1
|
%
|
|
$
|
536.2
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Adjusted EBITDA as presented above to net
income attributable to LifePoint Hospitals, Inc. as reflected in the
unaudited condensed consolidated statements of operations:
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Adjusted EBITDA
|
|
$
|
134.8
|
|
$
|
129.9
|
|
$
|
545.6
|
|
$
|
536.2
|
|
Less: Depreciation and amortization
|
|
|
53.4
|
|
|
44.8
|
|
|
193.1
|
|
|
165.8
|
|
Interest expense, net
|
|
|
24.3
|
|
|
25.5
|
|
|
100.0
|
|
|
107.1
|
|
Debt extinguishment costs
|
|
|
-
|
|
|
-
|
|
|
4.4
|
|
|
-
|
|
Impairment charges
|
|
|
0.9
|
|
|
-
|
|
|
4.0
|
|
|
-
|
|
Provision for income taxes
|
|
|
18.7
|
|
|
21.3
|
|
|
88.5
|
|
|
97.8
|
|
Loss (income) from discontinued operations, net of income taxes
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
(0.2
|
)
|
Net income attributable to noncontrolling interests
|
|
|
1.0
|
|
|
0.6
|
|
|
3.7
|
|
|
2.8
|
|
Net income attributable to LifePoint Hospitals, Inc.
|
|
$
|
36.3
|
|
$
|
37.7
|
|
$
|
151.9
|
|
$
|
162.9
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Estimated Adjusted EBITDA as presented
for the Company's 2013 guidance:
|
|
|
|
|
|
|
Low
End
|
|
High End
|
Adjusted EBITDA
|
|
$
|
540.0
|
|
$
|
570.0
|
Less: Depreciation and amortization
|
|
|
227.0
|
|
|
227.0
|
Interest expense, net
|
|
|
94.0
|
|
|
94.0
|
Debt extinguishment costs
|
|
|
5.1
|
|
|
5.1
|
Provision for income taxes
|
|
|
80.7
|
|
|
92.2
|
Net income attributable to noncontrolling interests
|
|
|
3.2
|
|
|
3.2
|
Net income from continuing operations attributable to LifePoint
Hospitals, Inc.
|
|
$
|
130.0
|
|
$
|
148.5
|
|
|
|
|
|
[ Back To TMCnet.com's Homepage ]
|