Revenues during the fourth quarter of 2008 totaled $7.265 billion,compared to $6.883 billion in the fourth quarter of 2007. On a same facilitybasis, revenues in the fourth quarter of 2008 increased 6.8 percent comparedto the fourth quarter of 2007. Adjusted EBITDA in the fourth quarter of 2008totaled $1.237 billion, compared to $1.153 billion in the fourth quarter of2007. Net income for the fourth quarter of 2008 totaled $276 million,compared to $278 million in the fourth quarter of 2007. Results for thefourth quarter of 2008 include gains on sales of facilities of $7 millioncompared to $139 million in the fourth quarter of 2007. Fourth quarter 2008results also include an $11 million charge for impairment of long-livedassets.
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The provision for doubtful accounts decreased to $889 million, or 12.2percent of revenues, in the fourth quarter of 2008 from $912 million, or 13.2percent of revenues, in the fourth quarter of 2007. Same facility uninsuredadmissions decreased 0.4 percent in the fourth quarter of 2008 compared to thefourth quarter of 2007.
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Interest expense decreased to $500 million in the fourth quarter of 2008,compared to $541 million in the fourth quarter of 2007, due primarily to areduction in the average effective interest rate on total debt.
The provision for income taxes resulted in low effective tax rates for thefourth quarters of both 2008 (11 percent effective tax rate) and 2007 (20percent effective tax rate). The provision for income taxes for the fourthquarter of 2008 was reduced, primarily due to a favorable revision to theproposed disallowance of a portion of prior period expense and relatedinterest. The provision for income taxes for the fourth quarter of 2007 wasreduced, primarily due to the recognition of certain state tax benefits.
Same facility admissions increased 0.5 percent and same facilityequivalent admissions increased 1.8 percent in the fourth quarter of 2008compared to the fourth quarter of 2007. Same facility inpatient surgeriesdeclined 0.7 percent, while outpatient surgeries increased 1.1 percent in thefourth quarter of 2008 compared to the fourth quarter of 2007. Same facilityrevenue per equivalent admission increased 4.8 percent in the fourth quarterof 2008 compared to the fourth quarter of 2007. Same facility charity anduninsured discounts totaled $985 million in the fourth quarter of 2008compared to $781 million in the fourth quarter of 2007.
Revenues for the year ended December 31, 2008 increased 5.6 percent to$28.374 billion compared to $26.858 billion in 2007. Adjusted EBITDA totaled$4.574 billion for 2008 compared to $4.592 billion in 2007. Net incometotaled $673 million for 2008 compared to $874 million in 2007. The operatingresults include gains on sales of facilities of $97 million in 2008 comparedto $471 million in 2007 and impairments of long-lived assets of $64 million in2008 compared to $24 million in 2007.
As of December 31, 2008, HCA's balance sheet reflected cash and cashequivalents of $465 million, total debt of $26.989 billion, and total assetsof $24.280 billion. Capital expenditures totaled $485 million for the fourthquarter of 2008 and $1.600 billion for the year ended December 31, 2008.
As of December 31, 2008, HCA operated 166 hospitals and 105 freestandingsurgery centers, including eight hospitals and eight freestanding surgerycenters operated through equity method joint ventures.
Earnings Conference Call
HCA will host a conference call for investors at 9:00 a.m. CentralStandard Time today. All interested investors are invited to access a liveaudio broadcast of the call via webcast. The broadcast also will be availableon a replay basis beginning this afternoon. The webcast can be accessed at:http://www.videonewswire.com/event.asp?id=55052or through the Company's Investor Relations web page, www.hcahealthcare.com .
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements based on currentmanagement expectations. Those forward-looking statements include allstatements other than those made solely with respect to historical fact andare intended to comply with the safe harbor provided by the Private SecuritiesLitigation Reform Act of 1995. Numerous risks, uncertainties and otherfactors may cause actual results to differ materially from those expressed inany forward-looking statements. These factors include, but are not limited to,(1) the ability to recognize the benefits of the recapitalization; (2) theimpact of the substantial indebtedness incurred to finance therecapitalization; (3) increases in the amount and risk of collectibility ofuninsured accounts, and deductibles and copayment amounts for insuredaccounts, particularly in the current economic downturn; (4) the ability toachieve operating and financial targets, and attain expected levels of patientvolumes and control the costs of providing services; (5) possible changes inthe Medicare, Medicaid and other state programs, including Medicaidsupplemental payments pursuant to upper payment limit programs, that mayimpact reimbursements to health care providers and insurers; (6) the highlycompetitive nature of the health care business; (7) changes in revenue mix andthe ability to enter into and renew managed care provider agreements onacceptable terms; (8) the efforts of insurers, health care providers andothers to contain health care costs; (9) the outcome of our continuing effortsto monitor, maintain and comply with appropriate laws, regulations, policiesand procedures; (10) changes in federal, state or local laws or regulationsaffecting the health care industry; (11) increases in wages and the ability toattract and retain qualified management and personnel, including affiliatedphysicians, nurses and medical and technical support personnel; (12) thepossible enactment of federal or state health care reform; (13) theavailability and terms of capital to fund the expansion of our business andimprovements to our existing facilities; (14) changes in accounting practices;(15) changes in general economic conditions nationally and regionally in ourmarkets; (16) future divestitures which may result in charges; (17) changes inbusiness strategy or development plans; (18) the outcome of pending and anyfuture tax audits, appeals and litigation associated with our tax positions;(19) delays in receiving payment for services provided; (20) potentialliabilities and other claims that may be asserted against us; (21) otherrisk factors described in our Annual Report on Form 10-K and other filingswith the Securities and Exchange Commission. Many of the factors that willdetermine our future results are beyond our ability to control or predict. Inlight of the significant uncertainties inherent in the forward-lookingstatements contained herein, readers should not place undue reliance onforward-looking statements, which reflect management's views only as of thedate hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whetheras a result of new information, future events or otherwise.
All references to "Company" and "HCA" as used throughout this releaserefer to HCA Inc. and its affiliates.
(a) Net income, excluding gains on sales of facilities and impairment oflong-lived assets and adjusted EBITDA are non-GAAP financial measures. Webelieve that net income, excluding gains on sales of facilities and impairmentof long-lived assets and adjusted EBITDA are important measures thatsupplement discussions and analysis of our results of operations. We believethat it is useful to investors to provide disclosures of our results ofoperations on the same basis as that used by management. Management reliesupon net income, excluding gains on sales of facilities and impairment oflong-lived assets and adjusted EBITDA as the primary measures to review andassess operating performance of its hospital facilities and their managementteams.
Management and investors review both the overall performance (including;net income, excluding gains on sales of facilities and impairment of long-lived assets and GAAP net income) 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 investorsto compare our current operating results with the corresponding periods duringthe previous year and to compare our operating results with other companies inthe health care industry. It is reasonable to expect that gains on sales offacilities and impairments of long-lived assets will occur in future periods,but the amounts recognized can vary significantly from quarter to quarter, donot directly relate to the ongoing operations of our health care facilitiesand complicate quarterly comparisons of our results of operations andoperations comparisons with other health care companies.
Net income, excluding gains on sales of facilities and impairment of long-lived assets and adjusted EBITDA are not measures of financial performanceunder accounting principles generally accepted in the United States, andshould not be considered as alternatives to net income as a measure ofoperating performance or cash flows from operating, investing and financingactivities as a measure of liquidity. Because net income, excluding gains onsales of facilities and impairment of long-lived assets and adjusted EBITDAare not measurements determined in accordance with generally acceptedaccounting principles and are susceptible to varying calculations, net income,excluding gains on sales of facilities and impairment of long-lived assets andadjusted EBITDA, as presented, may not be comparable to other similarly titledmeasures presented by other companies.(Logo: http://www.newscom.com/cgi-bin/prnh/20050825/CLTH069LOGO ) Fourth Quarter Summary: -- Revenues increased 5.6 percent to $7.265 billion. -- Net income totaled $276 million, compared to $278 million in the fourth quarter of 2007. -- Adjusted EBITDA totaled $1.237 billion, compared to $1.153 billion in the fourth quarter of 2007. -- Interest expense decreased to $500 million, from $541 million in the fourth quarter of 2007. -- Same facility admissions increased 0.5 percent, and same facility equivalent admissions increased 1.8 percent. -- Same facility revenue per equivalent admission increased 4.8 percent. -- Same facility total surgeries increased 0.4 percent.
SOURCE HCA
