Revenues for the third quarter totaled $7.002 billion, compared to $6.569billion in the third quarter of 2007. Adjusted EBITDA in the quarter totaled$1.053 billion, compared to $983 million in the third quarter of 2007. Atable describing adjusted EBITDA and reconciling net income to adjusted EBITDAfor these periods is included in this release. Net income for the thirdquarter of 2008 totaled $86 million, compared to $300 million in the thirdquarter of 2007. Results for the third quarter of 2008 include gains on salesof facilities of $50 million compared to $316 million in the third quarter of2007. Results for the third quarter of 2008 also include an impairment oflong-lived assets of $44 million.
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The provision for doubtful accounts increased to $819 million, or 11.7percent of revenues, in the third quarter of 2008 from $774 million, or 11.8percent of revenues, in the third quarter of 2007. Same facility uninsuredadmissions increased 0.9 percent in the third quarter of 2008 compared to thethird quarter of 2007.
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Interest expense decreased to $497 million in the third quarter of 2008,compared to $560 million in the same period of 2007, due primarily to areduction in the average effective interest rate on total debt.
Same facility admissions increased 0.4 percent and same facilityequivalent admissions increased 1.9 percent in the third quarter of 2008compared to the third quarter of 2007. Same facility inpatient surgeriesdeclined 1.2 percent and same facility outpatient surgeries increased 0.8percent in the third quarter of 2008 compared to the third quarter of 2007.Same facility revenue per equivalent admission increased 5.7 percent in thethird quarter of 2008 compared to the third quarter of 2007. Same facilitycharity and uninsured discounts totaled $917 million in the third quarter of2008 compared to $793 million in the third quarter of 2007.
Revenues for the nine months ended September 30, 2008 totaled $21.109billion compared to $19.975 billion for the same nine months of 2007.Adjusted EBITDA for the nine month period in 2008 was $3.337 billion comparedto $3.439 billion for the same nine months of 2007. HCA's net income totaled$397 million during the first nine months of 2008 compared to $596 million forthe same nine month period of 2007. Results for the nine months endedSeptember 30, 2008 include gains on sales of facilities of $90 million,compared to $332 million of gains on sales of facilities for the nine monthsended September 30, 2007, and impairments on long-lived assets of $53 millionin the nine month period in 2008 compared to a $24 million impairment of long-lived assets in the same nine month period of 2007.
As of September 30, 2008 HCA's balance sheet reflected cash and cashequivalents of $444 million, total debt of $27.041 billion, and total assetsof $23.793 billion. During the third quarter, capital expenditures totaled$398 million.
As of September 30, 2008, HCA operated 166 hospitals and 107 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=52343
or 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.Numerous risks, uncertainties and other factors may cause actual results todiffer materially from those expressed in any forward-looking statements.These factors include, but are not limited to, (1) the ability to recognizethe benefits of the recapitalization; (2) the impact of the substantialindebtedness incurred to finance the recapitalization; (3) increases,particularly in the current economic downturn, in the amount and risk ofcollectibility of uninsured accounts, and deductibles and copayment amountsfor insured accounts; (4) the ability to achieve operating and financialtargets, and attain expected levels of patient volumes and control the costsof providing services; (5) possible changes in the Medicare, Medicaid andother state programs, including Medicaid supplemental payments pursuant toupper payment limit programs, that may impact reimbursements to health careproviders and insurers; (6) the highly competitive nature of the health carebusiness; (7) changes in revenue mix and the ability to enter into and renewmanaged care provider agreements on acceptable terms; (8) the efforts ofinsurers, health care providers and others to contain health care costs; (9)the outcome of our continuing efforts to monitor, maintain and comply withappropriate laws, regulations, policies and procedures and our corporateintegrity agreement with the government; (10) changes in federal, state orlocal laws or regulations affecting the health care industry; (11) increasesin wages and the ability to attract and retain qualified management andpersonnel, including affiliated physicians, nurses and medical and technicalsupport personnel; (12) the possible enactment of federal or state health carereform; (13) the availability and terms of capital to fund the expansion ofour business and improvements to our existing facilities; (14) changes inaccounting practices; (15) changes in general economic conditions nationallyand regionally in our markets; (16) future divestitures which may result incharges; (17) changes in business strategy or development plans; (18) theoutcome of pending and any future tax audits, appeals and litigationassociated with our tax positions; (19) delays in receiving payment forservices provided; (20) potential liabilities and other claims that may beasserted against us; (21) other risk factors described in our Annual Reporton Form 10-K and other filings with the Securities and Exchange Commission.Many of the factors that will determine our future results are beyond ourability to control or predict. In light of the significant uncertaintiesinherent in the forward-looking statements contained herein, readers shouldnot place undue reliance on forward-looking statements, which reflectmanagement's views only as of the date hereof. We undertake no obligation torevise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events orotherwise.
All references to "Company" and "HCA" as used throughout this documentrefer to HCA Inc. and its affiliates.Third Quarter Summary: -- Revenues increased 6.6 percent to $7.002 billion. -- Net income totaled $86 million, compared to $300 million in the third quarter of 2007 (gains on sales of facilities were $50 million, compared to $316 million in the third quarter of 2007). -- Adjusted EBITDA totaled $1.053 billion, compared to $983 million in the third quarter of 2007. -- Interest expense decreased to $497 million, from $560 million in the third quarter of 2007. -- Same facility admissions increased 0.4 percent, and same facility equivalent admissions increased 1.9 percent. -- Same facility revenue per equivalent admission increased 5.7 percent. -- Same facility inpatient surgeries declined 1.2 percent, while same facility outpatient surgical cases increased 0.8 percent.
SOURCE HCA
