[July 28, 2016] |
|
HCA Reports Second Quarter 2016 Results
HCA Holdings, Inc. (NYSE: HCA) today announced financial and operating
results for the second quarter ended June 30, 2016.
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Key second quarter metrics (all percentage changes compare 2Q
2016 to 2Q 2015 unless noted):
-
Revenues increased 4.3 percent to $10.319 billion
-
Net income attributable to HCA Holdings, Inc. totaled $658 million, or
$1.65 per diluted share
-
Adjusted EBITDA totaled $2.052 billion
-
Cash flows from operations totaled $1.349 billion
-
Same facility equivalent admissions increased 1.6 percent while same
facility admissions increased 0.6 percent
-
Same facility revenue per equivalent admission increased 2.1 percent
Revenues in the second quarter increased to $10.319 billion, compared to
$9.897 billion in the second quarter of 2015. Net income attributable to
HCA Holdings, Inc. totaled $658 million, or $1.65 per diluted share,
compared to $507 million, or $1.18 per diluted share, in the second
quarter of 2015. The Company recognized a $44 million tax benefit, or
$0.11 per diluted share, in the second quarter of 2016 related to the
early adoption, during the first quarter of 2016, of a new accounting
standard which requires the recording of excess tax benefits related to
equity award settlements as a component of the provision for income
taxes (for prospective periods). Adjusted EBITDA totaled $2.052 billion
compared to $2.008 billion in the second quarter of 2015. Adjusted
EBITDA is a non-GAAP financial measure. A table reconciling net income
attributable to HCA Holdings, Inc. to Adjusted EBITDA is included in
this release.
The second quarter 2016 results include gains on sales of facilities of
$6 million, or $0.01 per diluted share, and legal claim costs of $10
million, or $0.02 per diluted share. Second quarter 2015 results include
losses on retirement of debt of $125 million, or $0.18 per diluted
share, and losses on sales of facilities of $5 million, or $0.01 per
diluted share.
Same facility admissions for the second quarter of 2016 increased 0.6
percent, while same facility equivalent admissions increased 1.6
percent. Same facility emergency room visits for the second quarter of
2016 increased 4.1 percent from the prior year's second quarter. Same
facility inpatient surgeries increased 1.8 percent while same facility
outpatient surgeries increased 1.5 percent compared to the second
quarter of 2015.
During the second quarter of 2016, salaries and benefits, supplies and
other operating expenses totaled $8.282 billion, or 80.2 percent of
revenues, compared to $7.917 billion, or 80.0 percent of revenues, in
the second quarter of 2015.
Six Months Ended June 30, 2016
Revenues for the six months ended June 30, 2016 totaled $20.579 billion
compared to $19.573 billion in the same period of 2015. Net income
attributable to HCA Holdings, Inc. was $1.352 billion, or $3.34 per
diluted share, compared to $1.098 billion, or $2.54 per diluted share,
for the first six months of 2015. Results for the six months ended June
30, 2016 include a $118 million tax benefit, or $0.29 per diluted share,
related to the early adoption of a new accounting standard which
requires the recording of excess tax benefits related to equity award
settlements as a component of the provision for income taxes (for
prospective periods). Results for the six months ended June 30, 2016
also include gains on sales of facilities of $5 million and legal claim
costs of $22 million, or $0.03 per diluted share. Results for the six
months ended June 30, 2015 include gains on sales of facilities of $4
million and losses on retirement of debt of $125 million, or $0.18 per
diluted share.
Balance Sheet and Cash Flows from Operations
As of June 30, 2016, HCA Holdings, Inc.'s balance sheet reflected cash
and cash equivalents of $691 million, total debt of $31.452 billion, and
total assets of $33.205 billion. During the second quarter of 2016,
capital expenditures totaled $663 million, excluding acquisitions. Cash
flows provided by operating activities in the quarter totaled $1.349
billion compared to $1.057 billion in the second quarter of 2015.
As of June 30, 2016, HCA's leverage ratio as measured by Total
Debt/Adjusted EBITDA was 3.93x, compared to 3.85x as of December 31,
2015.
During the second quarter of 2016, the Company repurchased $1.237
billion, or 15.506 million shares of its common stock and during the six
months ended June 30, 2016, has repurchased $1.858 billion, or 24.427
million shares of its common stock. The Company had $746 million
remaining under its existing repurchase authorization as of June 30,
2016.
As of June 30, 2016, HCA operated 169 hospitals and 116 freestanding
surgery centers.
2016 Guidance
While the Company has experienced solid volume growth in the first half
of the year, it is at the lower-end of our expectations for the first
six months; therefore, the Company today adjusted its 2016 guidance
ranges for the year as follows:
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2016 Guidance
|
Revenues
|
|
|
|
|
|
$41.0 to $42.0 billion
|
Adjusted EBITDA
|
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|
|
|
$8.10 to $8.30 billion
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Adjusted EPS (diluted)
|
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|
|
|
|
$6.40 to $6.70 per diluted share
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Capital Expenditures
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Approximately $2.7 billion
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The Company's 2016 guidance contains a number of assumptions, including:
-
EHR incentive income of approximately $12 million compared to EHR
incentive income of $47 million in 2015;
-
2016 guidance excludes the impact of items such as, but not limited
to, gains or losses on sales of facilities, losses on retirement of
debt, legal claim costs, impairments of long-lived assets; and
-
Adjusted EPS guidance includes the recorded impact of early adoption
of a new accounting standard which requires the recording of excess
tax benefits related to equity award settlements as a component of the
provision for income taxes for the first two quarters of 2016, but
excludes any projection of this impact on the provision for income
taxes for the third and fourth quarters of 2016.
The Company's guidance is based on current plans and expectations and is
subject to a number of known and unknown uncertainties and risks,
including those set forth below in the Company's "Forward-Looking
Statements."
Earnings Conference Call
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. The webcast can be
accessed at: https://event.webcasts.com/starthere.jsp?ei=1080634
or through the Company's Investor Relations web page, www.hcahealthcare.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include statements that do not
relate solely to historical or current facts. Forward-looking statements
can be identified by the use of words like "may," "believe," "will,"
"expect," "project," "estimate," "anticipate," "plan," "initiative" or
"continue." These forward-looking statements are based on our current
plans and expectations and are subject to a number of known and unknown
uncertainties and risks, many of which are beyond our control, which
could significantly affect current plans and expectations and our future
financial position and results of operations. These factors include, but
are not limited to, (1) the impact of our substantial indebtedness and
the ability to refinance such indebtedness on acceptable terms, (2) the
effects related to the implementation of the Patient Protection and
Affordable Care Act, as amended by the Health Care and Education
Reconciliation Act (collectively, the "Health Reform Law"), possible
delays in or complications related to implementation of the Health
Reform Law, court challenges, the possible enactment of additional
federal or state health care reforms and possible changes to the Health
Reform Law and other federal, state or local laws or regulations
affecting the health care industry, (3) the effects related to the
continued implementation of the sequestration spending reductions
required under the Budget Control Act of 2011 (the "BCA"), and related
legislation extending these reductions, and the potential for future
deficit reduction legislation that may alter these spending reductions,
which include cuts to Medicare payments, or create additional spending
reductions, (4) increases in the amount and risk of collectability of
uninsured accounts and deductibles and copayment amounts for insured
accounts, (5) the ability to achieve operating and financial targets,
and attain expected levels of patient volumes and control the costs of
providing services, (6) possible changes in Medicare, Medicaid and other
state programs, including Medicaid upper payment limit programs or
waiver programs, that may impact reimbursements to health care providers
and insurers, (7) the highly competitive nature of the health care
business, (8) changes in service mix, revenue mix and surgical volumes,
including potential declines in the population covered under managed
care agreements, the ability to enter into and renew managed care
provider agreements on acceptable terms and the impact of consumer
driven health plans and physician utilization trends and practices, (9)
the efforts of insurers, health care providers and others to contain
health care costs, (10) the outcome of our continuing efforts to
monitor, maintain and comply with appropriate laws, regulations,
policies and procedures, (11) increases in wages and the ability to
attract and retain qualified management and personnel, including
affiliated physicians, nurses and medical and technical support
personnel, (12) the availability and terms of capital to fund the
expansion of our business and improvements to our existing facilities,
(13) changes in accounting practices, (14) changes in general economic
conditions nationally and regionally in our markets, (15) the emergence
and effects related to infectious diseases; (16) future divestitures
which may result in charges and possible impairments of long-lived
assets, (17) changes in business strategy or development plans, (18)
delays in receiving payments for services provided, (19) the outcome of
pending and any future tax audits, disputes and litigation associated
with our tax positions, (20) potential adverse impact of known and
unknown government investigations, litigation and other claims that may
be made against us, (21) our ongoing ability to demonstrate meaningful
use of certified electronic health record technology, and (22) other
risk factors described in our annual report on Form 10-K for the year
ended December 31, 2015 and our other filings with the Securities and
Exchange Commission. Many of the factors that will determine our future
results are beyond our ability to control or predict. In light of the
significant uncertainties inherent in the forward-looking statements
contained herein, readers should not place undue reliance on
forward-looking statements, which reflect management's views only as of
the date hereof. We undertake 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 "HCA" as used throughout this release
refer to HCA Holdings, Inc. and its affiliates.
|
|
|
|
|
HCA Holdings, Inc.
|
Condensed Consolidated Comprehensive Income Statements
|
Second Quarter
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
|
|
$
|
11,081
|
|
|
|
|
|
|
$
|
10,932
|
|
|
|
|
Provision for doubtful accounts
|
|
|
|
|
762
|
|
|
|
|
|
|
|
1,035
|
|
|
|
|
Revenues
|
|
|
|
|
10,319
|
|
|
|
100.0
|
%
|
|
|
|
9,897
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
|
|
4,691
|
|
|
|
45.5
|
|
|
|
|
4,492
|
|
|
|
45.4
|
|
Supplies
|
|
|
|
|
1,718
|
|
|
|
16.7
|
|
|
|
|
1,670
|
|
|
|
16.9
|
|
Other operating expenses
|
|
|
|
|
1,873
|
|
|
|
18.0
|
|
|
|
|
1,755
|
|
|
|
17.7
|
|
Electronic health record incentive income
|
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
|
(18
|
)
|
|
|
(0.2
|
)
|
Equity in earnings of affiliates
|
|
|
|
|
(10
|
)
|
|
|
(0.1
|
)
|
|
|
|
(10
|
)
|
|
|
(0.1
|
)
|
Depreciation and amortization
|
|
|
|
|
489
|
|
|
|
4.8
|
|
|
|
|
469
|
|
|
|
4.8
|
|
Interest expense
|
|
|
|
|
427
|
|
|
|
4.1
|
|
|
|
|
425
|
|
|
|
4.3
|
|
Losses (gains) on sales of facilities
|
|
|
|
|
(6
|
)
|
|
|
(0.1
|
)
|
|
|
|
5
|
|
|
|
-
|
|
Losses on retirement of debt
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
125
|
|
|
|
1.3
|
|
Legal claim costs
|
|
|
|
|
10
|
|
|
|
0.1
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,187
|
|
|
|
89.0
|
|
|
|
|
8,913
|
|
|
|
90.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
1,132
|
|
|
|
11.0
|
|
|
|
|
984
|
|
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
341
|
|
|
|
3.3
|
|
|
|
|
319
|
|
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
791
|
|
|
|
7.7
|
|
|
|
|
665
|
|
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
133
|
|
|
|
1.3
|
|
|
|
|
158
|
|
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
658
|
|
|
|
6.4
|
|
|
|
$
|
507
|
|
|
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
$
|
1.65
|
|
|
|
|
|
|
$
|
1.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
|
|
|
398.659
|
|
|
|
|
|
|
|
429.369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
608
|
|
|
|
|
|
|
$
|
561
|
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Condensed Consolidated Comprehensive Income Statements
|
For the Six Months Ended June 30, 2016 and 2015
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues before provision for doubtful accounts
|
|
|
|
$
|
22,131
|
|
|
|
|
|
|
$
|
21,254
|
|
|
|
|
Provision for doubtful accounts
|
|
|
|
|
1,552
|
|
|
|
|
|
|
|
1,681
|
|
|
|
|
Revenues
|
|
|
|
|
20,579
|
|
|
|
100.0
|
%
|
|
|
|
19,573
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
|
|
9,393
|
|
|
|
45.6
|
|
|
|
|
8,890
|
|
|
|
45.4
|
|
Supplies
|
|
|
|
|
3,432
|
|
|
|
16.7
|
|
|
|
|
3,308
|
|
|
|
16.9
|
|
Other operating expenses
|
|
|
|
|
3,730
|
|
|
|
18.1
|
|
|
|
|
3,472
|
|
|
|
17.7
|
|
Electronic health record incentive income
|
|
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
|
(37
|
)
|
|
|
(0.2
|
)
|
Equity in earnings of affiliates
|
|
|
|
|
(22
|
)
|
|
|
(0.1
|
)
|
|
|
|
(29
|
)
|
|
|
(0.1
|
)
|
Depreciation and amortization
|
|
|
|
|
968
|
|
|
|
4.7
|
|
|
|
|
942
|
|
|
|
4.9
|
|
Interest expense
|
|
|
|
|
843
|
|
|
|
4.1
|
|
|
|
|
844
|
|
|
|
4.3
|
|
Gains on sales of facilities
|
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
-
|
|
Losses on retirement of debt
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
125
|
|
|
|
0.6
|
|
Legal claim costs
|
|
|
|
|
22
|
|
|
|
0.1
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,352
|
|
|
|
89.2
|
|
|
|
|
17,511
|
|
|
|
89.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
2,227
|
|
|
|
10.8
|
|
|
|
|
2,062
|
|
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
|
625
|
|
|
|
3.0
|
|
|
|
|
677
|
|
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
1,602
|
|
|
|
7.8
|
|
|
|
|
1,385
|
|
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
250
|
|
|
|
1.2
|
|
|
|
|
287
|
|
|
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
1,352
|
|
|
|
6.6
|
|
|
|
$
|
1,098
|
|
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
$
|
3.34
|
|
|
|
|
|
|
$
|
2.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
|
|
|
404.617
|
|
|
|
|
|
|
|
432.329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
1,273
|
|
|
|
|
|
|
$
|
1,131
|
|
|
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Supplemental Non-GAAP Disclosures
|
Operating Results Summary
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
|
|
|
|
|
|
|
Second Quarter
|
|
Ended June 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
10,319
|
|
|
$
|
9,897
|
|
$
|
20,579
|
|
|
$
|
19,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
658
|
|
|
$
|
507
|
|
$
|
1,352
|
|
|
$
|
1,098
|
|
|
Losses (gains) on sales of facilities (net of tax)
|
|
|
|
|
(4
|
)
|
|
|
3
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
Losses on retirement of debt (net of tax)
|
|
|
|
|
-
|
|
|
|
79
|
|
|
-
|
|
|
|
79
|
|
|
Legal claim costs (net of tax)
|
|
|
|
|
7
|
|
|
|
-
|
|
|
14
|
|
|
|
-
|
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities, losses on retirement of debt and
legal claim costs (a)
|
|
|
|
|
661
|
|
|
|
589
|
|
|
1,364
|
|
|
|
1,174
|
|
|
Depreciation and amortization
|
|
|
|
|
489
|
|
|
|
469
|
|
|
968
|
|
|
|
942
|
|
|
Interest expense
|
|
|
|
|
427
|
|
|
|
425
|
|
|
843
|
|
|
|
844
|
|
|
Provision for income taxes
|
|
|
|
|
342
|
|
|
|
367
|
|
|
630
|
|
|
|
722
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
133
|
|
|
|
158
|
|
|
250
|
|
|
|
287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a)
|
|
|
|
$
|
2,052
|
|
|
$
|
2,008
|
|
$
|
4,055
|
|
|
$
|
3,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to HCA Holdings, Inc.
|
|
|
|
$
|
1.65
|
|
|
$
|
1.18
|
|
$
|
3.34
|
|
|
$
|
2.54
|
|
|
Losses (gains) on sales of facilities
|
|
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
|
-
|
|
|
|
-
|
|
|
Losses on retirement of debt
|
|
|
|
|
-
|
|
|
|
0.18
|
|
|
-
|
|
|
|
0.18
|
|
|
Legal claim costs
|
|
|
|
|
0.02
|
|
|
|
-
|
|
|
0.03
|
|
|
|
-
|
|
|
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities, losses on retirement of debt and
legal claim costs(a)
|
|
|
|
$
|
1.66
|
|
|
$
|
1.37
|
|
$
|
3.37
|
|
|
$
|
2.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted earnings per share (millions)
|
|
|
|
|
398.659
|
|
|
|
429.369
|
|
|
404.617
|
|
|
|
432.329
|
|
__________________________
|
|
|
(a)
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities, losses on retirement of debt and
legal claim costs, and Adjusted EBITDA should not be considered as
measures of financial performance under generally accepted
accounting principles ("GAAP"). We believe net income
attributable to HCA Holdings, Inc., excluding losses (gains) on
sales of facilities, losses on retirement of debt and legal claim
costs, and Adjusted EBITDA are important measures that supplement
discussions and analysis of our results of operations. We believe
it is useful to investors to provide disclosures of our results of
operations on the same basis used by management. Management
relies upon net income attributable to HCA Holdings, Inc.,
excluding losses (gains) on sales of facilities, losses on
retirement of debt and legal claim costs, and Adjusted EBITDA as
the primary measures to review and assess operating performance of
its health care facilities and their management teams.
|
|
|
|
Management and investors review both the overall performance
(including net income attributable to HCA Holdings, Inc.,
excluding losses (gains) on sales of facilities, losses on
retirement of debt and legal claim costs, and GAAP net income
attributable to HCA Holdings, Inc.) and operating performance
(Adjusted EBITDA) of our health care facilities. Adjusted EBITDA
and the Adjusted EBITDA margin (Adjusted EBITDA divided by
revenues) are utilized by management and investors to compare our
current operating results with the corresponding periods during
the previous year and to compare our operating results with other
companies in the health care industry. It is reasonable to expect
that losses (gains) on sales of facilities, losses on retirement
of debt and legal claim costs will occur in future periods, but
the amounts recognized can vary significantly from period to
period, do not directly relate to the ongoing operations of our
health care facilities and complicate period comparisons of our
results of operations and operations comparisons with other health
care companies.
|
|
|
|
Net income attributable to HCA Holdings, Inc., excluding losses
(gains) on sales of facilities, losses on retirement of debt and
legal claim costs, and Adjusted EBITDA are not measures of
financial performance under GAAP, and should not be considered as
alternatives to net income attributable to HCA Holdings, Inc. as a
measure of operating performance or cash flows from operating,
investing and financing activities as a measure of
liquidity. Because net income attributable to HCA Holdings, Inc.,
excluding losses (gains) on sales of facilities, losses on
retirement of debt and legal claim costs, and Adjusted EBITDA are
not measurements determined in accordance with GAAP and are
susceptible to varying calculations, net income attributable to
HCA Holdings, Inc., excluding losses (gains) on sales of
facilities, losses on retirement of debt and legal claim costs,
and Adjusted EBITDA, as presented, may not be comparable to other
similarly titled measures presented by other companies.
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Condensed Consolidated Balance Sheets
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
691
|
|
|
|
$
|
852
|
|
|
|
$
|
741
|
|
Accounts receivable, less allowance for doubtful accounts of
$5,046, $5,205 and $5,326
|
|
|
|
|
5,669
|
|
|
|
|
5,880
|
|
|
|
|
5,889
|
|
Inventories
|
|
|
|
|
1,481
|
|
|
|
|
1,415
|
|
|
|
|
1,439
|
|
Other
|
|
|
|
|
1,254
|
|
|
|
|
1,054
|
|
|
|
|
1,163
|
|
Total current assets
|
|
|
|
|
9,095
|
|
|
|
|
9,201
|
|
|
|
|
9,232
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, at cost
|
|
|
|
|
35,873
|
|
|
|
|
34,978
|
|
|
|
|
34,614
|
|
Accumulated depreciation
|
|
|
|
|
(20,249
|
)
|
|
|
|
(19,921
|
)
|
|
|
|
(19,600
|
)
|
|
|
|
|
|
15,624
|
|
|
|
|
15,057
|
|
|
|
|
15,014
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments of insurance subsidiaries
|
|
|
|
|
341
|
|
|
|
|
425
|
|
|
|
|
432
|
|
Investments in and advances to affiliates
|
|
|
|
|
201
|
|
|
|
|
174
|
|
|
|
|
178
|
|
Goodwill and other intangible assets
|
|
|
|
|
6,694
|
|
|
|
|
6,713
|
|
|
|
|
6,731
|
|
Other
|
|
|
|
|
1,250
|
|
|
|
|
1,206
|
|
|
|
|
1,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
33,205
|
|
|
|
$
|
32,776
|
|
|
|
$
|
32,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
1,934
|
|
|
|
$
|
1,944
|
|
|
|
$
|
2,170
|
|
Accrued salaries
|
|
|
|
|
1,405
|
|
|
|
|
1,309
|
|
|
|
|
1,233
|
|
Other accrued expenses
|
|
|
|
|
1,833
|
|
|
|
|
1,919
|
|
|
|
|
1,880
|
|
Long-term debt due within one year
|
|
|
|
|
224
|
|
|
|
|
226
|
|
|
|
|
233
|
|
Total current liabilities
|
|
|
|
|
5,396
|
|
|
|
|
5,398
|
|
|
|
|
5,516
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less net debt issuance costs of $173, $179 and $167
|
|
|
|
|
31,228
|
|
|
|
|
30,328
|
|
|
|
|
30,255
|
|
Professional liability risks
|
|
|
|
|
1,126
|
|
|
|
|
1,116
|
|
|
|
|
1,115
|
|
Income taxes and other liabilities
|
|
|
|
|
1,953
|
|
|
|
|
1,933
|
|
|
|
|
1,904
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit attributable to HCA Holdings, Inc.
|
|
|
|
|
(8,107
|
)
|
|
|
|
(7,556
|
)
|
|
|
|
(7,599
|
)
|
Noncontrolling interests
|
|
|
|
|
1,609
|
|
|
|
|
1,557
|
|
|
|
|
1,553
|
|
Total deficit
|
|
|
|
|
(6,498
|
)
|
|
|
|
(5,999
|
)
|
|
|
|
(6,046
|
)
|
|
|
|
|
$
|
33,205
|
|
|
|
$
|
32,776
|
|
|
|
$
|
32,744
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Consolidated Statements of Cash Flows
|
For Six Months Ended June 30, 2016 and 2015
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
1,602
|
|
|
|
$
|
1,385
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash from operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(1,364
|
)
|
|
|
|
(1,784
|
)
|
|
|
|
|
Provision for doubtful accounts
|
|
|
|
|
1,552
|
|
|
|
|
1,681
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
188
|
|
|
|
|
(103
|
)
|
|
|
|
|
Inventories and other assets
|
|
|
|
|
(176
|
)
|
|
|
|
(195
|
)
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
|
(102
|
)
|
|
|
|
(117
|
)
|
|
|
|
Depreciation and amortization
|
|
|
|
|
968
|
|
|
|
|
942
|
|
|
|
|
Income taxes
|
|
|
|
|
67
|
|
|
|
|
(101
|
)
|
|
|
|
Gains on sales of facilities
|
|
|
|
|
(5
|
)
|
|
|
|
(4
|
)
|
|
|
|
Losses on retirement of debt
|
|
|
|
|
-
|
|
|
|
|
125
|
|
|
|
|
Legal claim costs
|
|
|
|
|
22
|
|
|
|
|
-
|
|
|
|
|
Amortization of debt issuance costs
|
|
|
|
|
18
|
|
|
|
|
19
|
|
|
|
|
Share-based compensation
|
|
|
|
|
129
|
|
|
|
|
103
|
|
|
|
|
Other
|
|
|
|
|
37
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
2,748
|
|
|
|
|
2,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
|
(1,172
|
)
|
|
|
|
(1,004
|
)
|
|
|
Acquisition of hospitals and health care entities
|
|
|
|
|
(430
|
)
|
|
|
|
(95
|
)
|
|
|
Disposition of hospitals and health care entities
|
|
|
|
|
14
|
|
|
|
|
22
|
|
|
|
Change in investments
|
|
|
|
|
18
|
|
|
|
|
67
|
|
|
|
Other
|
|
|
|
|
15
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
(1,555
|
)
|
|
|
|
(1,009
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
|
|
3,000
|
|
|
|
|
4,048
|
|
|
|
Net change in revolving credit facilities
|
|
|
|
|
-
|
|
|
|
|
(300
|
)
|
|
|
Repayment of long-term debt
|
|
|
|
|
(2,065
|
)
|
|
|
|
(3,644
|
)
|
|
|
Distributions to noncontrolling interests
|
|
|
|
|
(205
|
)
|
|
|
|
(237
|
)
|
|
|
Payment of debt issuance costs
|
|
|
|
|
(24
|
)
|
|
|
|
(33
|
)
|
|
|
Repurchase of common stock
|
|
|
|
|
(1,858
|
)
|
|
|
|
(940
|
)
|
|
|
Other
|
|
|
|
|
(91
|
)
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
(1,243
|
)
|
|
|
|
(959
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
|
|
(50
|
)
|
|
|
|
107
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
741
|
|
|
|
|
566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
691
|
|
|
|
$
|
673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payments
|
|
|
|
$
|
767
|
|
|
|
$
|
810
|
|
Income tax payments, net
|
|
|
|
$
|
558
|
|
|
|
$
|
581
|
|
|
|
|
|
|
|
|
HCA Holdings, Inc.
|
Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
|
|
|
|
|
|
Second Quarter
|
|
|
Ended June 30,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Hospitals
|
|
|
|
|
169
|
|
|
|
|
168
|
|
|
|
|
169
|
|
|
|
|
168
|
|
|
Number of Freestanding Outpatient Surgery Centers
|
|
|
|
|
116
|
|
|
|
|
112
|
|
|
|
|
116
|
|
|
|
|
112
|
|
|
Licensed Beds at End of Period
|
|
|
|
|
44,127
|
|
|
|
|
43,647
|
|
|
|
|
44,127
|
|
|
|
|
43,647
|
|
|
Weighted Average Licensed Beds
|
|
|
|
|
44,064
|
|
|
|
|
43,619
|
|
|
|
|
43,922
|
|
|
|
|
43,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
|
|
|
467,200
|
|
|
|
|
464,200
|
|
|
|
|
946,800
|
|
|
|
|
935,100
|
|
|
% Change
|
|
|
|
|
0.6
|
%
|
|
|
|
|
|
|
1.3
|
%
|
|
|
|
|
Equivalent Admissions
|
|
|
|
|
792,600
|
|
|
|
|
778,200
|
|
|
|
|
1,590,600
|
|
|
|
|
1,547,600
|
|
|
% Change
|
|
|
|
|
1.9
|
%
|
|
|
|
|
|
|
2.8
|
%
|
|
|
|
|
Revenue per Equivalent Admission
|
|
|
|
$
|
13,020
|
|
|
|
$
|
12,719
|
|
|
|
$
|
12,938
|
|
|
|
$
|
12,648
|
|
|
% Change
|
|
|
|
|
2.4
|
%
|
|
|
|
|
|
|
2.3
|
%
|
|
|
|
|
Inpatient Revenue per Admission
|
|
|
|
$
|
12,879
|
|
|
|
$
|
12,381
|
|
|
|
$
|
12,758
|
|
|
|
$
|
12,386
|
|
|
% Change
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patient Days
|
|
|
|
|
2,293,200
|
|
|
|
|
2,267,700
|
|
|
|
|
4,688,700
|
|
|
|
|
4,611,200
|
|
|
% Change
|
|
|
|
|
1.1
|
%
|
|
|
|
|
|
|
1.7
|
%
|
|
|
|
|
Equivalent Patient Days
|
|
|
|
|
3,890,800
|
|
|
|
|
3,802,300
|
|
|
|
|
7,877,000
|
|
|
|
|
7,631,600
|
|
|
% Change
|
|
|
|
|
2.3
|
%
|
|
|
|
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
|
|
134,100
|
|
|
|
|
131,800
|
|
|
|
|
265,900
|
|
|
|
|
261,900
|
|
|
% Change
|
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
1.5
|
%
|
|
|
|
|
Outpatient Surgery Cases
|
|
|
|
|
234,600
|
|
|
|
|
228,300
|
|
|
|
|
461,100
|
|
|
|
|
442,800
|
|
|
% Change
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
|
|
2,093,000
|
|
|
|
|
2,007,400
|
|
|
|
|
4,226,300
|
|
|
|
|
3,989,400
|
|
|
% Change
|
|
|
|
|
4.3
|
%
|
|
|
|
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outpatient Revenues as a Percentage of Patient Revenues
|
|
|
|
|
39.7
|
%
|
|
|
|
39.9
|
%
|
|
|
|
39.3
|
%
|
|
|
|
38.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Length of Stay
|
|
|
|
|
4.9
|
|
|
|
|
4.9
|
|
|
|
|
5.0
|
|
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
|
|
|
57.2
|
%
|
|
|
|
57.1
|
%
|
|
|
|
58.7
|
%
|
|
|
|
58.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Admissions
|
|
|
|
|
464,600
|
|
|
|
|
461,800
|
|
|
|
|
941,400
|
|
|
|
|
931,300
|
|
|
% Change
|
|
|
|
|
0.6
|
%
|
|
|
|
|
|
|
1.1
|
%
|
|
|
|
|
Equivalent Admissions
|
|
|
|
|
786,200
|
|
|
|
|
773,900
|
|
|
|
|
1,576,900
|
|
|
|
|
1,540,300
|
|
|
% Change
|
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
2.4
|
%
|
|
|
|
|
Revenue per Equivalent Admission
|
|
|
|
$
|
12,979
|
|
|
|
$
|
12,714
|
|
|
|
$
|
12,914
|
|
|
|
$
|
12,644
|
|
|
% Change
|
|
|
|
|
2.1
|
%
|
|
|
|
|
|
|
2.1
|
%
|
|
|
|
|
Inpatient Revenue per Admission
|
|
|
|
$
|
12,880
|
|
|
|
$
|
12,381
|
|
|
|
$
|
12,770
|
|
|
|
$
|
12,387
|
|
|
% Change
|
|
|
|
|
4.0
|
%
|
|
|
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient Surgery Cases
|
|
|
|
|
133,400
|
|
|
|
|
131,000
|
|
|
|
|
264,800
|
|
|
|
|
260,500
|
|
|
% Change
|
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
1.7
|
%
|
|
|
|
|
Outpatient Surgery Cases
|
|
|
|
|
230,000
|
|
|
|
|
226,500
|
|
|
|
|
452,800
|
|
|
|
|
439,800
|
|
|
% Change
|
|
|
|
|
1.5
|
%
|
|
|
|
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Room Visits
|
|
|
|
|
2,067,200
|
|
|
|
|
1,985,500
|
|
|
|
|
4,175,000
|
|
|
|
|
3,956,400
|
|
|
% Change
|
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728005257/en/
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