NASHVILLE, Tenn., July 24 /PRNewswire-FirstCall/ -- HCA (NYSE: HCA) today
announced results for the quarter ended June 30, 2006. Net income for the
second quarter of 2006 totaled $295 million, or $0.72 per diluted share,
compared to $405 million, or $0.90 per diluted share, in the second quarter of
2005. Results for the second quarter of 2006 include gains on sales of
facilities of $5 million, or $0.01 per diluted share. Results for the second
quarter of 2005 include a favorable tax settlement of $48 million, or $0.11
per diluted share, recognition of a previously deferred gain on the sale of
certain medical office buildings of $29 million, or $0.04 per diluted share,
and additional depreciation expense of $30 million, or $0.04 per diluted
share, to correct accumulated depreciation and assure a consistent application
of our accounting policies relative to certain short-lived medical equipment.
Second quarter 2006 results reflect a reduction in the Company's estimated
professional liability reserves of $85 million, or $0.13 per diluted share,
compared to a $36 million reduction, or $0.05 per diluted share, recorded in
the second quarter of 2005. The amounts of the changes to the estimated
professional liability reserves were determined based upon independent
actuarial analyses, which noted favorable claim and payment trends, the
adoption of state tort reform and benefits resulting from the Company's
patient safety programs in both review periods.
Second quarter 2006 results also include additional compensation costs of
$10 million, or $0.02 per diluted share, due to the expensing of stock options
and employee stock purchase plan shares associated with the January 1, 2006
adoption of FASB Statement 123 (R), "Share-Based Payment."
Revenues in the second quarter of 2006 totaled $6.4 billion compared to
$6.1 billion in the second quarter of 2005. Same facility revenues increased
6.0 percent compared to the second quarter of 2005. Same facility revenue per
equivalent admission increased 5.8 percent in the second quarter of 2006 (6.9
percent increase when adjusted for uninsured discounts) compared to the second
quarter of 2005.
Same facility admissions increased 0.5 percent in the second quarter of
2006 compared to the prior year's second quarter. Same facility equivalent
admissions, which take into consideration outpatient volumes, increased 0.1
percent compared to the second quarter of 2005. Same facility outpatient
surgical cases declined 2.1 percent, due to a decrease of 3.2 percent in
hospital based outpatient surgeries, while freestanding ambulatory surgical
cases were unchanged year over year.
The provision for doubtful accounts in the second quarter of 2006 totaled
$677 million, or 10.6 percent of revenues, compared to $541 million, or 8.9
percent of revenues, in the prior year. Adjusted to reflect uninsured
discounts, the provision for doubtful accounts totaled $935 million, or 14.1
percent of revenues, in the second quarter of 2006, compared to $725 million,
or 11.6 percent of revenues, in the second quarter of 2005. The estimated
allowance for doubtful accounts was increased by $32 million in the second
quarter of 2006 based upon results of the quarterly receivables analyses,
which reflected increased uncollectibility of self pay receivables.
Uninsured discounts in the second quarters of 2006 and 2005 were $258
million and $184 million, respectively. HCA's uninsured discount policy,
which became effective in the first quarter of 2005, lowers revenues and the
provision for doubtful accounts by generally corresponding amounts. Charity
care totaled $350 million in the second quarter of 2006, compared to $275
million in the previous year's second quarter. Same facility uninsured
admissions, which include charity patients, increased by 2,109 admissions, or
10.5 percent, in the second quarter of 2006 compared to the same period of
2005.
Effective July 1, 2006, HCA sold four hospitals (three in West Virginia
and one in Virginia) to LifePoint Hospitals, Inc. for $256 million. If
certain conditions are satisfied, the Company estimates a pretax gain of
approximately $93 million, or $0.13 per diluted share, will be realized on the
sale of the four hospitals. Certificates of Need ("CONs") were required for
the sale of the three West Virginia hospitals included in the transaction.
Because filings seeking the revocation of the CONs were pending at the time of
the closing, HCA and LifePoint have agreed that under certain circumstances,
LifePoint may require HCA to repurchase the three West Virginia Hospitals.
Generally, those circumstances require a final and nonappealable order
revoking the CONs or an order requiring LifePoint to divest the hospitals or
cease operations. In the event of such a repurchase, the repurchase price
would be based upon the original purchase price and adjusted for working
capital changes, capital expenditures and other items. Due to the CON
proceedings and the repurchase provision, HCA will defer the recognition of
the gain related to the three West Virginia hospitals of approximately $61
million pretax until the CON appeals are resolved. A gain of approximately
$32 million pretax on the sale of the hospital located in Virginia is expected
to be recognized in the third quarter of 2006.
Revenues for the six months ended June 30, 2006 were $12.8 billion
compared to $12.3 billion for the first six months of 2005. Net income
totaled $674 million, or $1.64 per diluted share, for the six months ended
June 30, 2006, compared to $819 million, or $1.84 per diluted share, for the
six months of 2005.
Cash Flow and Balance Sheet
HCA's cash flow from operations totaled $406 million in the second quarter
of 2006 compared to $839 million in the second quarter of 2005. Cash flow
from operations during the second quarter of 2006 was negatively affected by
the combined impact of lower net income and an increase of $259 million in
income tax payments, compared to the second quarter of 2005.
As of June 30, 2006, HCA's balance sheet reflected total debt of $11.7
billion, stockholders' equity (including common and minority equity) of $5.7
billion and total assets of $23.1 billion. HCA's ratio of debt to debt plus
common and minority equity was 67.1 percent at June 30, 2006, compared to 64.8
percent at December 31, 2005.
HCA had 409.2 million common shares outstanding at June 30, 2006, compared
to 417.5 million shares at December 31, 2005.
2006 Earnings Guidance
Effective with today's announcement, HCA is withdrawing its previous
earnings guidance for 2006.
Proposed Merger
The Company also announced today the execution of a definitive merger
agreement under which an acquiring consortium led by Bain Capital, Kohlberg
Kravis Roberts & Co. and Merrill Lynch Global Private Equity, along with HCA
founder, Dr. Thomas F. Frist, Jr. and certain members of his family, pursuant
to which HCA shareholders will receive $51.00 per share in cash for each share
of HCA common stock they hold. The transaction is subject to receipt of
stockholder approval and customary regulatory approvals as well as
satisfaction of other customary closing conditions. The transaction is
expected to close in the fourth quarter of 2006.
Important Additional Information Regarding The Merger Will Be Filed With
The SEC
In connection with the proposed merger, HCA will file a proxy statement
with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS
ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE IT
WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE PARTIES THERETO.
Investors and security holders may obtain a free copy of the proxy statement
(when available) and other documents filed by HCA at the Securities and
Exchange Commission's web site at http://www.sec.gov. The proxy statement and
such other documents may also be obtained for free from HCA by directing such
request to HCA Inc., Office of Investor Relations, One Park Plaza, Nashville,
Tennessee 37203, telephone: (615) 344-2068.
HCA and its directors, executive officers and other members of its
management and employees may be deemed to be participants in the solicitation
of proxies from its stockholders in connection with the proposed merger.
Information concerning the interests of HCA's participants in the
solicitation, which may be different than those of HCA stockholders generally,
is set forth in HCA's proxy statements and Annual Reports on Form 10-K,
previously filed with the Securities and Exchange Commission, and in the proxy
statement relating to the merger when it becomes available.
Due to the announced merger agreement this morning, the Company will not
hold a conference call or webcast regarding its second quarter results.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include all
statements other than those made solely with respect to historical facts.
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, (1) the occurrence of any
event, change or other circumstances that could give rise to the termination
of the merger agreement; (2) the outcome of any legal proceedings that may be
instituted against the Company and others following announcement of the merger
agreement; (3) the inability to complete the merger due to the failure to
obtain stockholder approval or the failure to satisfy other conditions to
completion of the merger, including the receipt of necessary approvals under
applicable antitrust laws and other relevant regulatory authorities; (4) the
failure to obtain the necessary debt financing arrangements set forth in
commitment letters received in connection with the merger; (5) risks that the
proposed transaction disrupts current plans and operations and the potential
difficulties in employee retention as a result of the merger; (6) the ability
to recognize the benefits of the merger; (7) the amount of the costs, fees,
expenses and charges related to the merger and the actual terms of certain
financings that will be obtained for the merger; (8) the impact of the
substantial indebtedness incurred to finance the consummation of the merger,
(9) increases in the amount and risk of collectibility of uninsured accounts,
and deductibles and copayment amounts for insured accounts, (10) the ability
to achieve operating and financial targets, attain expected levels of patient
volumes and control the costs of providing services, (11) possible changes in
the Medicare, Medicaid and other state programs that may impact reimbursements
to health care providers and insurers, (12) the highly competitive nature of
the health care business, (13) changes in revenue mix and the ability to enter
into and renew managed care provider agreements on acceptable terms, (14) the
efforts of insurers, health care providers and others to contain health care
costs, (15) the impact of our charity care and uninsured discounting policies,
(16) the outcome of our continuing efforts to monitor, maintain and comply
with appropriate laws, regulations, policies and procedures and our corporate
integrity agreement with the government, (17) changes in federal, state or
local regulations affecting the health care industry, (18) delays in receiving
payments for services provided, (19) the ability to attract and retain
qualified management and personnel, including affiliated physicians, nurses
and medical support personnel, (20) the outcome of governmental investigations
by the United States Attorney for the Southern District of New York and the
Securities and Exchange Commission (the "SEC"), (21) the outcome of certain
class action and derivative litigation filed with respect to us, (22) the
possible enactment of federal or state health care reform, (23) the increased
leverage resulting from the financing of our share repurchase program, (24)
the availability and terms of capital to fund the expansion of our business,
(25) the continuing impact of hurricanes on our facilities, the ability to
obtain recoveries under our insurance policies, and the ability to secure
adequate insurance coverage in future periods, (26) the resolution of the CON
appeal with respect to the three West Virginia hospitals sold to LifePoint,
(27) fluctuations in the market value of our common stock, (28) changes in
accounting practices, (29) changes in general economic conditions, (30) future
divestitures which may result in charges, (31) changes in business strategy or
development plans, (32) the outcome of pending and any future tax audits,
appeals and litigation associated with our tax positions, (33) potential
liabilities and other claims that may be asserted against us, (34) the ability
to develop and implement the payroll and human resources information systems
within the expected time and cost projections and, upon implementation, to
realize the expected benefits and efficiencies, and (35) other risk factors
described in our Annual Report on Form 10-K and other filings with the SEC.
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.
HCA Inc.
Consolidated Income Statements
Second Quarter
(Dollars in millions, except per share amounts)
2006 2005
Amount Ratio Amount Ratio
Revenues $6,360 100.0% $6,070 100.0%
Salaries and benefits 2,605 41.0 2,463 40.6
Supplies 1,091 17.2 1,042 17.2
Other operating expenses 995 15.6 981 16.2
Provision for doubtful accounts 677 10.6 541 8.9
Gains on investments (25) (0.4) (22) (0.4)
Equity in earnings of affiliates (47) (0.7) (53) (0.9)
Depreciation and amortization 352 5.5 364 6.0
Interest expense 196 3.1 165 2.7
Gains on sales of facilities (5) (0.1) (29) (0.5)
5,839 91.8 5,452 89.8
Income before minority interests
and income taxes 521 8.2 618 10.2
Minority interests in earnings
of consolidated entities 46 0.7 49 0.8
Income before income taxes 475 7.5 569 9.4
Provision for income taxes 180 2.9 164 2.7
Net income $295 4.6 $405 6.7
Diluted earnings per share $0.72 $0.90
Shares used in computing diluted
earnings per share (000) 408,202 451,731
HCA Inc.
Consolidated Income Statements
For the Six Months Ended June 30, 2006 and 2005
(Dollars in millions, except per share amounts)
2006 2005
Amount Ratio Amount Ratio
Revenues $12,775 100.0% $12,252 100.0%
Salaries and benefits 5,216 40.8 4,906 40.0
Supplies 2,205 17.3 2,093 17.1
Other operating expenses 2,032 15.8 1,953 15.9
Provision for doubtful accounts 1,273 10.0 1,115 9.1
Gains on investments (100) (0.8) (31) (0.2)
Equity in earnings of affiliates (108) (0.8) (106) (0.9)
Depreciation and amortization 697 5.4 701 5.7
Interest expense 382 3.0 329 2.7
Gains on sales of facilities (5) - (29) (0.2)
11,592 90.7 10,931 89.2
Income before minority
interests and income taxes 1,183 9.3 1,321 10.8
Minority interests in earnings
of consolidated entities 101 0.8 89 0.7
Income before income taxes 1,082 8.5 1,232 10.1
Provision for income taxes 408 3.2 413 3.4
Net income $674 5.3 $819 6.7
Diluted earnings per share $1.64 $1.84
Shares used in computing diluted
earnings per share (000) 409,731 443,739
HCA Inc.
Supplemental Operating Results Summary
(Dollars in millions, except per share amounts)
For the Six Months
Second Quarter Ended June 30,
2006 2005 2006 2005
Revenues $6,360 $6,070 $12,775 $12,252
Net income $295 $405 $674 $819
Gains on sales of facilities
(net of tax) (4) (18) (4) (18)
Tax settlement - (48) - (48)
Net income, excluding gains on
sales of facilities and
tax settlement 291 339 670 753
Depreciation and amortization 352 364 697 701
Interest expense 196 165 382 329
Minority interests in earnings
of consolidated entities 46 49 101 89
Provision for income taxes 179 201 407 450
Adjusted EBITDA (a) $1,064 $1,118 $2,257 $2,322
Diluted earnings per share:
Net income $0.72 $0.90 $1.64 $1.84
Gains on sales of facilities (0.01) (0.04) (0.01) (0.04)
Tax settlement - (0.11) - (0.11)
Net income, excluding gains
on sales of facilities and
tax settlement (a) $0.71 $0.75 $1.63 $1.69
Shares used in computing diluted
earnings per share (000) 408,202 451,731 409,731 443,739
(a) Net income, excluding gains on sales of facilities and tax settlement
and adjusted EBITDA are non-GAAP financial measures. We believe that
net income, excluding, gains on sales of facilities and tax settlement
and adjusted EBITDA are important measures that supplement discussions
and analysis of the Company's results of operations. We believe that
it is useful to investors to provide disclosures of our results of
operations on the same basis as that used by management. Management
relies upon net income, excluding gains on sales of facilities and tax
settlement and adjusted EBITDA as the primary measures to review and
assess operating performance of its hospital facilities and their
management teams.
Management and investors review both the overall performance
(including; net income, excluding gains on sales of facilities and tax
settlement, GAAP net income and GAAP EPS) and operating performance of
our health care facilities (adjusted EBITDA). 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. We recorded gains on sales of facilities during the second
quarters of 2006 and 2005 and a tax settlement during the second
quarter of 2005. It is reasonable to expect that gains on sales of
facilities and tax settlements will occur in future periods, but the
amounts recognized for these items can vary significantly from quarter
to quarter, do not directly relate to the ongoing operations of our
health care facilities and complicate quarterly comparisons of our
results of operations and operations comparisons with other health
care companies.
Net income, excluding gains on sales of facilities and tax settlement
and adjusted EBITDA are not measures of financial performance under
accounting principles generally accepted in the United States, and
should not be considered as alternatives to net income as a measure of
operating performance or cash flows from operating, investing and
financing activities as a measure of liquidity. Because net income,
excluding gains on sales of facilities and tax settlement and adjusted
EBITDA are not measurements determined in accordance with generally
accepted accounting principles and are susceptible to varying
calculations, net income, excluding gains on sales of facilities and
tax settlement and adjusted EBITDA, as presented, may not be
comparable to other similarly titled measures presented by other
companies.
HCA Inc.
Supplemental Non-GAAP Disclosures
Operating Measures Adjusted for the Impact of Discounts for the Uninsured
Second Quarter 2006
(Dollars in millions, except revenue per equivalent admission)
Uninsured Non-
Discounts Non-GAAP GAAP % GAAP %
GAAP Adjust- Adjusted of Adjusted
Amounts ment(a) Amounts(b) Revenues Revenues
2006 2005 2006 2005
Consolidated:
Revenues $6,360 $258 $6,618 100.0% 100.0% 100.0% 100.0%
Salaries and
benefits 2,605 - 2,605 41.0% 40.6% 39.4% 39.4%
Supplies 1,091 - 1,091 17.2% 17.2% 16.5% 16.7%
Other operating
expenses 995 - 995 15.6% 16.2% 15.0% 15.5%
Provision for
doubtful accounts 677 258 935 10.6% 8.9% 14.1% 11.6%
Admissions 402,900 402,900
Equivalent
admissions 609,900 609,900
Revenue per
equivalent
admission $10,429 $10,852
% change from
prior year 6.5% 7.5%
Same Facility:
Revenues $6,221 $257 $6,478
Admissions 398,700 398,700
Equivalent
admissions 600,500 600,500
Revenue per
equivalent
admission $10,360 $10,788
% change from
prior year 5.8% 6.9%
(a) Represents the impact of the discounts for the uninsured for the
period. On January 1, 2005, we modified our policies to provide
discounts to uninsured patients who do not qualify for Medicaid or
charity care. These discounts are similar to those provided to many
local managed care plans. In implementing the discount policy, we
first attempt to qualify uninsured patients for Medicaid, other
federal or state assistance or charity care. If an uninsured patient
does not qualify for these programs, the uninsured discount is
applied. On a consolidated basis, we recorded $258 million and $184
million of uninsured discounts during the second quarters of 2006 and
2005, respectively.
(b) Revenues, the provision for doubtful accounts, certain operating
expense categories as a percentage of revenues and revenue per
equivalent admission have been adjusted to exclude the discounts under
our uninsured discount policy (non-GAAP financial measures). We
believe these non-GAAP financial measures are useful to investors to
provide disclosures of our results of operations on the same basis as
that used by management. Management uses this information to compare
revenues, the provision for doubtful accounts, certain operating
expense categories as a percentage of revenues and revenue per
equivalent admission, adjusted for the impact of the uninsured
discount policy. Management finds this information to be useful to
enable the evaluation of revenue and certain expense category trends
that are influenced by patient volumes and are generally analyzed as a
percentage of net revenues. These non-GAAP financial measures should
not be considered an alternative to GAAP financial measures. We
believe this supplemental information provides management and the
users of its financial statements with useful information for period-
to-period comparisons. Investors are encouraged to use GAAP measures
when evaluating our overall financial performance.
HCA Inc.
Supplemental Non-GAAP Disclosures
Operating Measures Adjusted for the Impact of Discounts for the Uninsured
Six Months Ended June 30, 2006
(Dollars in millions, except revenue per equivalent admission)
Uninsured Non-
Discounts Non-GAAP GAAP % GAAP %
GAAP Adjust- Adjusted of Adjusted
Amounts ment(a) Amounts(b) Revenues Revenues
2006 2005 2006 2005
Consolidated:
Revenues $12,775 $514 $13,289 100.0% 100.0% 100.0% 100.0%
Salaries and
benefits 5,216 - 5,216 40.8% 40.0% 39.3% 39.1%
Supplies 2,205 - 2,205 17.3% 17.1% 16.6% 16.7%
Other operating
expenses 2,032 - 2,032 15.8% 15.9% 15.3% 15.5%
Provision for
doubtful accounts 1,273 514 1,787 10.0% 9.1% 13.4% 11.2%
Admissions 823,900 823,900
Equivalent
admissions 1,235,900 1,235,900
Revenue per
equivalent
admission $10,336 $10,752
% change from
prior year 6.0% 7.7%
Same Facility:
Revenues $12,514 $512 $13,026
Admissions 817,400 817,400
Equivalent
admissions 1,219,600 1,219,600
Revenue per
equivalent
admission $10,261 $10,680
% change from
prior year 5.4% 7.1%
(a) Represents the impact of the discounts for the uninsured for the
period. On January 1, 2005, we modified our policies to provide
discounts to uninsured patients who do not qualify for Medicaid or
charity care. These discounts are similar to those provided to many
local managed care plans. In implementing the discount policy, we
first attempt to qualify uninsured patients for Medicaid, other
federal or state assistance or charity care. If an uninsured patient
does not qualify for these programs, the uninsured discount is
applied. On a consolidated basis, we recorded $514 million and $293
million of uninsured discounts during the six months ended June 30,
2006 and 2005, respectively.
(b) Revenues, the provision for doubtful accounts, certain operating
expense categories as a percentage of revenues and revenue per
equivalent admission have been adjusted to exclude the discounts under
our uninsured discount policy (non-GAAP financial measures). We
believe these non-GAAP financial measures are useful to investors to
provide disclosures of our results of operations on the same basis as
that used by management. Management uses this information to compare
revenues, the provision for doubtful accounts, certain operating
expense categories as a percentage of revenues and revenue per
equivalent admission, adjusted for the impact of the uninsured
discount policy. Management finds this information to be useful to
enable the evaluation of revenue and certain expense category trends
that are influenced by patient volumes and are generally analyzed as a
percentage of net revenues. These non-GAAP financial measures should
not be considered an alternative to GAAP financial measures. We
believe this supplemental information provides management and the
users of its financial statements with useful information for period-
to-period comparisons. Investors are encouraged to use GAAP measures
when evaluating our overall financial performance.
HCA Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
June 30, March 31, December 31,
ASSETS 2006 2006 2005
Current assets:
Cash and cash equivalents $736 $453 $336
Accounts receivable, net 3,414 3,491 3,332
Inventories 646 624 616
Deferred income taxes 552 535 372
Other 570 567 559
Total current assets 5,918 5,670 5,215
Property and equipment, at cost 21,592 21,105 20,818
Accumulated depreciation (10,014) (9,740) (9,439)
11,578 11,365 11,379
Investments of insurance subsidiary 2,134 1,947 2,134
Investments in and advances
to affiliates 665 649 627
Goodwill 2,648 2,622 2,626
Deferred loan costs 74 76 85
Other 103 86 159
$23,120 $22,415 $22,225
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,240 $1,244 $1,484
Accrued salaries 639 619 561
Other accrued expenses 1,506 1,379 1,264
Long-term debt due within one year 659 704 586
Total current liabilities 4,044 3,946 3,895
Long-term debt 11,005 10,608 9,889
Professional liability risks 1,315 1,378 1,336
Deferred taxes and other liabilities 1,029 1,067 1,414
Minority interests in equity of
consolidated entities 901 861 828
Stockholders' equity 4,826 4,555 4,863
$23,120 $22,415 $22,225
Current ratio 1.46 1.44 1.34
Ratio of debt to debt plus
common and minority equity 67.1% 67.6% 64.8%
Shares outstanding (thousands) 409,237 408,062 417,513
HCA Inc.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2006 and 2005
(Dollars in millions)
2006 2005
Cash flows from operating activities:
Net income $674 $819
Adjustments to reconcile net income to
net cash provided by operating activities:
Provision for doubtful accounts 1,273 1,115
Depreciation and amortization 697 701
Income taxes (408) 222
Gains on sales of facilities (5) -
Change in operating assets and liabilities (1,597) (1,236)
Other 137 70
Net cash provided by operating activities 771 1,691
Cash flows from investing activities:
Purchase of property and equipment (820) (625)
Acquisition of hospitals and health care entities (105) (84)
Disposal of hospitals and health care entities 291 36
Change in investments (150) (110)
Other (11) 25
Net cash used in investing activities (795) (758)
Cash flows from financing activities:
Issuance of long-term debt 1,400 -
Net change in revolving bank credit facility 945 (700)
Repayment of long-term debt (1,162) (480)
Repurchase of common stock (653) -
Issuance of common stock 76 922
Payment of cash dividends (131) (123)
Other (51) (113)
Net cash provided by (used in)
financing activities 424 (494)
Change in cash and cash equivalents 400 439
Cash and cash equivalents at beginning of period 336 258
Cash and cash equivalents at end of period $736 $697
Interest payments $351 $308
Income tax payments, net of refunds $810 $191
HCA Inc.
Operating Statistics
For the Six Months
Second Quarter Ended June 30,
2006 2005 2006 2005
Consolidated Hospitals:
Number of Hospitals 176 183 176 183
Weighted Average Licensed Beds 41,263 41,948 41,259 41,903
Licensed Beds at End of Period 41,300 42,013 41,300 42,013
Reported:
Admissions 402,900 407,600 823,900 840,200
% Change -1.1% -1.9%
Equivalent Admissions 609,900 619,700 1,235,900 1,256,100
% Change -1.6% -1.6%
Revenue per Equivalent Admission $10,429 $9,795 $10,336 $9,754
% Change 6.5% 6.0%
Inpatient Revenue per Admission $9,765 $9,163 $9,678 $9,115
% Change 6.6% 6.2%
Patient Days 1,973,000 2,009,100 4,063,500 4,168,300
Equivalent Patient Days 2,986,700 3,055,400 6,095,300 6,231,600
Inpatient Surgery Cases 134,000 136,400 269,300 271,900
% Change -1.7% -0.9%
Outpatient Surgery Cases 210,700 216,200 423,600 427,200
% Change -2.6% -0.9%
Emergency Room Visits 1,325,600 1,345,600 2,658,100 2,737,400
% Change -1.5% -2.9%
Outpatient Revenues as a
Percentage of Patient Revenues 36.9% 37.5% 36.3% 36.5%
Average Length of Stay 4.9 4.9 4.9 5.0
Occupancy 52.5% 52.6% 54.4% 55.0%
Equivalent Occupancy 79.5% 79.9% 81.6% 82.2%
Same Facility:
Admissions 398,700 396,800 817,400 818,100
% Change 0.5% -0.1%
Equivalent Admissions 600,500 599,600 1,219,600 1,219,000
% Change 0.1% 0.1%
Revenue per Equivalent Admission $10,360 $9,792 $10,261 $9,735
% Change 5.8% 5.4%
Inpatient Revenue per Admission $9,766 $9,203 $9,674 $9,108
% Change 6.1% 6.2%
Inpatient Surgery Cases 133,200 132,700 267,100 263,800
% Change 0.4% 1.2%
Outpatient Surgery Cases 204,100 208,400 409,200 411,800
% Change -2.1% -0.6%
Emergency Room Visits 1,310,100 1,305,600 2,634,300 2,655,800
% Change 0.3% -0.8%
Number of Consolidated
and Non-Consolidated
(50/50 Equity Joint
Ventures) Hospitals:
Consolidated 176 183 176 183
Non-Consolidated (50/50
Equity Joint Ventures) 7 7 7 7
Total Number of Hospitals 183 190 183 190
SOURCE HCA Inc.
CONTACT: INVESTORS Mark Kimbrough, +1-615-344-2688, or
MEDIA, Jeff
Prescott, +1-615-344-5708,
both of HCA Inc.
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