EX-99 3 g72253ex99.txt PRESS RELEASE EXHIBIT 99 LIFEPOINT HOSPITALS REPORTS 66.7% INCREASE IN THIRD QUARTER EPS, EXCLUDING NON-RECURRING GAIN THIRD QUARTER HIGHLIGHTS: - Continuing strong financial performance - Quarterly EPS of $0.20 compared with $0.12 in the prior year (excluding $0.02 non-recurring gain) - EBITDA margin increased to 20.3%, a 170bp increase over prior year - Increase in same-hospital admissions of 6.5% - Increase in same-hospital equivalent admissions of 6.0% - Signed definitive agreement to acquire 116-bed Ville Platte Medical Center - Completed acquisition of 118-bed Athens Regional Medical Center effective October 1. BRENTWOOD, TENNESSEE (October 22, 2001) - LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third quarter and nine months ended September 30, 2001. For the quarter ended September 30, 2001, net revenues were $149.2 million, up 2.7% from $145.3 million a year ago. Net income for the quarter totaled $7.5 million, or $0.20 per diluted share, versus $4.8 million, or $0.14 per diluted share, in the prior-year period, representing increases of 56.9% and 42.9%, respectively. Excluding the non-recurring gain (related to the gain on previously impaired assets) in the prior year period, diluted earnings per share increased 66.7% to $0.20 from $0.12 in the prior year. Shares used in calculating diluted earnings per share for the third quarter of 2001 included 3.7 million additional shares compared with the third quarter of 2000 as a result of the secondary offering of common stock completed in March 2001. Earnings before interest, income taxes, depreciation, amortization, ESOP expense, minority interest and gain on previously impaired assets (EBITDA) increased 12.1% to $30.3 million from $27.0 million in the same period last year. For the nine months ended September 30, 2001, net revenues were $455.1 million, up 9.8% from $414.6 million a year ago. Net income for the nine-month period totaled $23.0 million, or $0.63 per diluted share, versus $12.5 million, or $0.38 per diluted share, in the prior-year period, representing increases of 84.2% and 65.8%, respectively. Excluding the extraordinary item and the nonrecurring gain, diluted earnings per share increased 83.3% to $0.66 from $0.36 in the prior year. Earnings before interest, income taxes, depreciation, amortization, ESOP expense, minority interest, gain on previously impaired assets and extraordinary loss (EBITDA) increased 26.3% to $96.1 million from $76.1 million in the same period last year. During the third quarter, the Company announced the signing of a definitive agreement to acquire 116-bed Ville Platte Medical Center in Ville Platte, Louisiana. This acquisition is expected to close during the fourth quarter. In addition, the Company completed the acquisition of 118-bed Athens Regional Medical Center, located in Athens, Tennessee, effective October 1. Both acquisitions will be funded with available cash. Kenneth C. Donahey, chairman and chief executive officer of LifePoint Hospitals, said, "We are pleased that once again we have exceeded expectations. Improving EBITDA margins reflect our success LPNT Announces Third Quarter Results Page 2 October 22, 2001 at generating internal growth through cost controls, expanding services and recruiting physicians. During the quarter, we also announced two acquisitions. Our ability to fund these acquisitions with available cash continues to demonstrate our fiscal discipline. In addition to our solid financial performance, we are proud to continue providing quality healthcare in the communities we serve. Combined, these accomplishments solidly position us to reach our immediate and long-term objectives." A listen-only simulcast and replay of LifePoint Hospitals' third quarter conference call will be available on-line at www.lifepointhospitals.com and www.streetevents.com on October 23, 2001, beginning at 10:00 a.m. Eastern Time. LifePoint Hospitals, Inc. operates 22 hospitals in non-urban areas. In most cases, the LifePoint facility is the only hospital in its community. LifePoint's non-urban operating strategy offers continued operational improvement by focusing on its five core values: delivering high quality patient care, supporting physicians, creating excellent workplaces for its employees, providing community value, and ensuring fiscal responsibility. Headquartered in Brentwood, Tennessee, LifePoint Hospitals is affiliated with over 6,000 employees. ****** The above statements include forward-looking statements based on current management expectations. Numerous factors exist which may cause results to differ from these expectations. Many of the factors that will determine the Company's future results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties relating to the Company, including without limitation, (i) possible changes in reimbursement to healthcare providers and insurers that may reduce payments; (ii) its ability to attract and retain qualified management and personnel, including physicians; (iii) the geographic concentration of the Company's operations; (iv) risks associated with the Company's acquisition and disposition strategies; (v) the regulated nature of the healthcare industry; (vi) the highly competitive nature of the healthcare business; (vii) the potential adverse impact of government investigations and litigation involving the business practices of HCA (to the extent relating to periods prior to the Company's formation); and (viii) those risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. Therefore, the Company's actual results may differ materially. The Company 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 "Company" and "LifePoint" as used throughout this document refer to LifePoint Hospitals, Inc. and its affiliates. LPNT Announces Third Quarter Results Page 3 October 22, 2001 LIFEPOINT HOSPITALS, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS DOLLARS IN MILLIONS
SEPTEMBER 30, DECEMBER 31, 2001 2000 ------------- ------------ ASSETS Current assets: Cash and cash equivalents $ 73.5 $ 39.7 Accounts receivable, net 42.0 41.7 Inventories 14.4 13.9 Deferred taxes and other current assets 17.0 22.2 -------- -------- 146.9 117.5 Property and equipment: Land 9.4 8.7 Buildings and improvements 244.1 236.9 Equipment 248.5 244.9 Construction in progress 16.6 9.4 -------- -------- 518.6 499.9 Accumulated depreciation (195.9) (183.4) -------- -------- 322.7 316.5 Intangible assets, net 55.0 53.8 Other 0.1 0.2 -------- -------- $ 524.7 $ 488.0 ======== ======== LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 15.8 $ 16.1 Accrued salaries 16.2 13.8 Other current liabilities 23.4 11.1 Current maturities of long-term debt -- 11.1 -------- -------- 55.4 52.1 Long-term debt 150.0 278.3 Deferred income taxes 18.0 15.2 Professional liability risks and other liabilities 16.2 9.4 Minority interests in equity of consolidated entities 4.4 4.6 Stockholders' equity: Common stock 0.4 0.3 Capital in excess of par value 283.3 156.5 Unearned ESOP compensation (23.3) (25.7) Notes receivable for shares sold to employees (7.2) (7.2) Retained earnings 27.5 4.5 -------- -------- 280.7 128.4 -------- -------- $ 524.7 $ 488.0 ======== ======== Current ratio 2.65 2.26 Ratio of debt to debt plus common and minority equity 34.5% 68.5%
LPNT Announces Third Quarter Results Page 4 October 22, 2001 LIFEPOINT HOSPITALS, INC. UNAUDITED CONSOLIDATED INCOME STATEMENTS DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------------------------------- ----------------------------------------- 2001 2000 2001 2000 ------------------ ------------------ ------------------ ------------------ AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO -------- ----- -------- ----- -------- ----- -------- ----- Revenues $ 149.2 100.0% $ 145.3 100.0% $ 455.1 100.0% $ 414.6 100.0% Salaries and benefits 59.3 39.7% 58.1 40.1% 179.0 39.3% 168.2 40.6% Supplies 19.0 12.7% 17.1 11.8% 57.4 12.6% 50.1 12.1% Other operating expenses 29.1 19.6% 30.6 20.9% 88.5 19.5% 88.8 21.3% Provision for doubtful accounts 11.5 7.7% 12.5 8.6% 34.1 7.5% 31.4 7.6% -------- ----- -------- ----- -------- ----- -------- ----- 118.9 79.7% 118.3 81.4% 359.0 78.9% 338.5 81.6% -------- ----- -------- ----- -------- ----- -------- ----- EBITDA 30.3 20.3% 27.0 18.6% 96.1 21.1% 76.1 18.4% Depreciation and amortization 8.2 5.5% 8.5 5.9% 24.8 5.4% 25.3 6.1% Interest expense, net 4.0 2.7% 8.3 5.7% 14.2 3.1% 22.9 5.5% Gain on previously impaired assets -- -- (1.4) (1.0)% (0.5) (0.1)% (1.4) (0.3)% ESOP expense 3.0 2.0% 2.0 1.4% 8.0 1.8% 4.4 1.1% -------- ----- -------- ----- -------- ----- -------- ----- Income before minority interest, income taxes and extraordinary item 15.1 10.1% 9.6 6.6% 49.6 10.9% 24.9 6.0% Minority interest 0.6 0.4% 0.5 0.3% 1.9 0.4% 1.8 0.4% -------- ----- -------- ----- -------- ----- -------- ----- Income before income taxes and extraordinary item 14.5 9.7% 9.1 6.3% 47.7 10.5% 23.1 5.6% Provision for income taxes 7.0 4.7% 4.3 3.0% 23.1 5.1% 10.6 2.6% -------- ----- -------- ----- -------- ----- -------- ----- Income before extraordinary item 7.5 5.0% 4.8 3.3% 24.6 5.4% 12.5 3.0% Extraordinary loss on early retirement of debt, net -- -- -- -- 1.6 0.3% -- -- -------- ----- -------- ----- -------- ----- -------- ----- Net income $ 7.5 5.0% $ 4.8 3.3% $ 23.0 5.1% $ 12.5 3.0% ======== ===== ======== ===== ======== ===== ======== ===== Shares used in diluted EPS (000's) 38,230 33,330 36,740 32,631 Diluted earnings per share: Income before gain on previously impaired assets and extraordinary item $ 0.20 $ 0.12 $ 0.66 $ 0.36 Gain on previously impaired assets, net -- 0.02 0.01 0.02 Extraordinary loss on early retirement of debt, net -- -- (0.04) -- -------- -------- -------- -------- Net income $ 0.20 $ 0.14 $ 0.63 $ 0.38 ======== ======== ======== ========
LPNT Announces Third Quarter Results Page 5 October 22, 2001 LIFEPOINT HOSPITALS, INC. STATISTICS
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------- ------------------------------- % % 2001 2000 CHANGE 2001 2000 CHANGE -------- -------- ------ -------- -------- ------ Number of hospitals at end of period 21 21 --% 21 21 --% Licensed beds at end of period 1,963 2,026 (3.1)% 1,963 2,026 (3.1)% Admissions 16,875 16,721 0.9% 52,903 49,197 7.5% Equivalent admissions 31,248 30,779 1.5% 95,702 90,080 6.2% Revenues per equivalent admission $ 4,774 $ 4,719 1.2% $ 4,756 $ 4,602 3.3% Net outpatient revenues as a percentage of net patient revenues 49.4% 49.5% 47.6% 48.9% Average daily census 740 731 1.2% 783 736 6.4% Average length of stay 4.0 4.0 --% 4.0 4.1 (2.4)%
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