Revenue Increased 22% in 2016
Company Issues 2017 Guidance
LifePoint Health, Inc. (NASDAQ: LPNT) today announced results
for the fourth quarter and year ended December 31, 2016.
For the fourth quarter ended December 31, 2016, consolidated
revenues were $1,605.2 million, up 17.1% from $1,370.7 million
for the same period last year, primarily as a result of the
Company’s recent acquisitions. Net income for the fourth quarter
ended December 31, 2016, was $46.6 million, down $8.8 million,
or 16.1%, compared with net income of $55.4 million for the same
period last year. Net income for the fourth quarter ended December
31, 2016, includes accelerated depreciation expense of $1.5
million, or $0.9 million net of income taxes, for the existing
Marquette General Hospital because of the Company’s commitment to
construct a new replacement hospital. Net income for the fourth
quarter ended December 31, 2015, includes a bargain purchase gain
of $4.0 million, or $2.5 million net of income taxes, related to
the final valuation of an acquired hospital.
Diluted earnings per share attributable to LifePoint Health,
Inc. stockholders for the fourth quarter ended December 31, 2016,
decreased to $1.07 compared with $1.16 for the same period last
year. Diluted earnings per share attributable to LifePoint Health,
Inc. stockholders for the fourth quarter ended December 31, 2016,
were negatively impacted by $0.02 per share as a result of
Marquette General Hospital accelerated depreciation expense.
Diluted earnings per share attributable to LifePoint Health, Inc.
stockholders for the fourth quarter ended December 31, 2015, were
benefited by $0.05 per share as a result of the aforementioned
bargain purchase gain related to the final valuation of an acquired
hospital. When adjusted to exclude these two items, adjusted
diluted earnings per share attributable to LifePoint Health, Inc.
stockholders for the fourth quarter of 2016 decreased slightly to
$1.09 compared with $1.11 for the same period last year, primarily
as a result of an anticipated decrease in electronic health record
incentive income and higher depreciation and interest expense
associated with the Company’s recent acquisitions.
For the year ended December 31, 2016, consolidated revenues were
$6,364.0 million, up 22.0% from $5,214.3 million for the prior
year, primarily as a result of the Company’s recent acquisitions.
Net income for the year ended December 31, 2016, was $131.8
million, down $61.2 million, or 31.8%, compared with net income of
$193.0 million for the prior year. Net income for the year ended
December 31, 2016, includes charges of $24.7 million, or $15.5
million net of income taxes, related to cardiology-related
lawsuits, $22.0 million, or $13.7 million net of income taxes, for
debt transaction costs, $6.2 million, or $3.9 million net of income
taxes, for Marquette General Hospital accelerated depreciation
expense, and an impairment charge of $1.2 million, or $0.8 million
net of income taxes, related to the write-off of certain capital
assets. Net income for the year ended December 31, 2015, includes a
bargain purchase gain of $4.0 million, or $2.5 million net of
income taxes, and impairment charges of $13.8 million, or $8.9
million net of income taxes.
Diluted earnings per share attributable to LifePoint Health,
Inc. stockholders for the year ended December 31, 2016,
decreased to $2.82 compared with $3.95 for the prior year. Diluted
earnings per share attributable to LifePoint Health, Inc.
stockholders for the year ended December 31, 2016, were negatively
impacted by a total of $0.79 per share as a result of a combination
of cardiology-related lawsuits, debt transaction costs, Marquette
General Hospital accelerated depreciation expense, and an
impairment charge. Similarly, diluted earnings per share
attributable to LifePoint Health Inc. stockholders for the year
ended December 31, 2015, were negatively impacted by a total of
$0.14 per share as a result of impairment charges, partially offset
by a bargain purchase gain. When adjusted to exclude these various
items, adjusted diluted earnings per share attributable to
LifePoint Health, Inc. stockholders for 2016 decreased to $3.61
compared with $4.09 for the prior year, primarily as a result of an
anticipated decrease in electronic health record incentive income
and higher depreciation and interest expense associated with the
Company’s recent acquisitions. Additional information regarding
adjusted diluted earnings per share attributable to LifePoint
Health, Inc. stockholders, including uses by management and others
and a reconciliation to diluted earnings per share attributable to
LifePoint Health, Inc. stockholders, is set forth in this release
under the section titled “Unaudited Supplemental Information.”
Finally, Adjusted EBITDA for the fourth quarter ended December
31, 2016, increased by 6.8% to $196.8 million compared with
Adjusted EBITDA of $184.2 million for the same period last year,
and Adjusted Normalized EBITDA for the year ended December 31,
2016, increased 5.8% to $746.5 million compared with Adjusted
Normalized EBITDA of $705.7 million for the prior year. Adjusted
Normalized EBITDA for the year ended December 31, 2016, has been
adjusted to exclude the impact of $24.7 million in charges related
to cardiology-related lawsuits recognized during the first quarter
of 2016. Additional information regarding Adjusted EBITDA and
Adjusted Normalized EBITDA, including definitions, uses by
management and others and a reconciliation to net income, is set
forth in this release under the section titled “Unaudited
Supplemental Information.”
Commenting on the results, William F. Carpenter III, Chairman
and Chief Executive Officer of LifePoint Health, said, “We are
pleased with our fourth quarter results that contributed to a solid
second half of 2016 in which we saw sequential volume improvement
and margin expansion. We are well-positioned going into 2017 as our
pipeline for acquisitions remains strong, and we believe the
current environment may create even more opportunity as change
occurs. We remain committed to focusing on quality and patient
safety, as we execute on our strategic priorities and prudently
allocate capital to drive value for our shareholders.”
The Company also issued the following guidance for 2017:
Estimated Net Revenue $6.5 - $6.6 billion Estimated Adjusted
EBITDA $785 - $815 million Estimated Diluted EPS $4.05 - $4.34
Estimated Volume and Rate: Equivalent Admissions 0.5% - 1.0%
Revenue Per Equivalent Admission 1.5% - 2.5%
Guidance for 2017 excludes, if applicable, the estimated impact
of future acquisitions, as well as the impact of items that are
non-operational in nature, including items such as, but not limited
to, gains or losses on early debt retirement, impairments of
long-lived assets and share repurchases. This guidance is also
subject to certain risks, including those as set forth in the
Company’s “Important Legal Information.”
A listen-only simulcast, as well as a 30-day replay, of
LifePoint Health’s fourth quarter and year-end 2016 conference call
will be available on line at
www.lifepointhealth.net/investor-relations today, Friday, February
17, 2017, beginning at 10:00 a.m. Eastern Time.
LifePoint Health (NASDAQ: LPNT) is a leading healthcare company
dedicated to Making Communities Healthier®. Through its
subsidiaries, it provides quality inpatient, outpatient and
post-acute services close to home. LifePoint owns and operates
community hospitals, regional health systems, physician practices,
outpatient centers, and post-acute facilities in 22 states. It is
the sole community healthcare provider in the majority of
the non-urban communities it serves. More information about
the Company can be found at www.LifePointHealth.net. All references
to “LifePoint,” “LifePoint Health” or the “Company” used in this
release refer to affiliates or subsidiaries of LifePoint Health,
Inc.
Important Legal Information. Certain statements contained
in this release, including LifePoint's guidance for the year ended
December 31, 2017, are based on current management expectations and
are “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are intended to
qualify for the safe harbor protections from liability provided by
the Private Securities Litigation Reform Act of 1995. Numerous
factors exist which may cause results to differ from these
expectations. Many of the factors that will determine our future
results are beyond our ability to control or predict with accuracy.
Such forward-looking statements reflect the current expectations
and beliefs of the management of LifePoint, are not guarantees of
performance and are subject to a number of risks, uncertainties,
assumptions and other factors that could cause actual results to
differ from those described in the forward-looking statements.
These forward-looking statements may also be subject to other risk
factors and uncertainties, including without limitation: (i) the
effects related to the enactment and implementation of healthcare
reform, the possible repeal and replacement of the Affordable Care
Act, the possible enactment of additional federal or state
healthcare reforms and possible changes in healthcare reform laws
and other federal, state or local laws or regulations affecting the
healthcare industry including the timing of the implementation of
reform; (ii) the extent to which states support increases,
decreases or changes in Medicaid programs, or alter the provision
of healthcare to state residents through regulation or otherwise;
(iii) delays in receiving payments for services provided,
reductions in Medicare or Medicaid payments (including increased
recoveries made by Recovery Audit Contractors (RACs) and similar
governmental agents), compared to the timing of expanded coverage;
(iv) reductions in reimbursements from commercial payors and risks
associated with consolidation among commercial insurance companies
and shifts to insurance plans with narrow networks, high
deductibles or high co-payments; (v) the continued viability of our
operations through joint venture entities, the largest of which is
Duke LifePoint Healthcare, our partnership with a wholly controlled
affiliate of Duke University Health Systems, Inc.; (vi) our ability
to successfully integrate acquired facilities into our ongoing
operations and to achieve the anticipated financial results and
synergies from such acquisitions, individually or in the aggregate;
(vii) the deterioration in the collectability of “bad debt” and
“patient due” accounts, and the number of individuals without
insurance coverage (or who are underinsured) who seek care at our
facilities; (viii) industry emphasis on value-based purchasing and
bundled payment arrangements; (ix) whether our efforts to reduce
the cost of providing healthcare while increasing the quality of
care are successful; (x) the ability to attract, recruit or employ
and retain qualified physicians, nurses, medical technicians and
other healthcare professionals and the increasing costs associated
with doing so, including the direct and indirect costs associated
with employing physicians and other healthcare professionals; (xi)
the loss of certain physicians in markets where such a loss can
have a disproportionate impact on our facilities in such market;
(xii) the application and enforcement of increasingly stringent and
complex laws and regulations governing our operations and
healthcare generally (and changing interpretations of applicable
laws and regulations), related enforcement activity and the
potentially adverse impact of known and unknown government
investigations, litigation and other claims that may be made
against us; (xiii) risks due to cybersecurity attack or security
breach and our access to personal information of patients and
employees; (xiv) our ability to successfully implement
enterprise-wide information technology systems; (xv) payor controls
designed to reduce inpatient services; (xvi) our ability to
generate sufficient cash flow to fund all of our capital
expenditure programs and commitments; (xvii) adverse events in
states where a large portion of our revenues are concentrated;
(xviii) liabilities resulting from potential malpractice and
related legal claims brought against our facilities or the
healthcare providers associated with, or employed by, such
facilities or affiliated entities; (xix) our increased dependence
on third parties to provide purchasing, revenue cycle and payroll
services and information technology and their ability to do so
effectively; (xx) our ability to acquire healthcare facilities
on favorable terms and the business risks, unknown or contingent
liabilities and other costs associated therewith; and (xxi) those
other risks and uncertainties described from time to time in our
filings with the Securities and Exchange Commission. Therefore, our
future results may differ materially from those described in this
release. LifePoint 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.
LIFEPOINT HEALTH, INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS Dollars in millions,
except per share amounts Three Months Ended
Years Ended December 31, December 31,
2016 2015 2016 2015
% of % of % of
% of Amount Revenues Amount
Revenues Amount Revenues Amount
Revenues Revenues before provision for doubtful accounts $
1,835.4 $ 1,570.7 $ 7,273.6 $ 6,014.4
Provision for doubtful accounts
230.2 200.0 909.6
800.1 Revenues 1,605.2 100.0 % 1,370.7 100.0 % 6,364.0 100.0
% 5,214.3 100.0 % Salaries and benefits 766.4 47.7 652.7
47.6 3,047.4 47.9 2,496.9 47.9 Supplies 273.3 17.0 218.4 15.9
1,066.6 16.8 815.0 15.6 Other operating expenses 378.8 23.6 330.9
24.2 1,558.1 24.5 1,246.4 24.0 Other income (10.1 ) (0.6 ) (15.5 )
(1.1 ) (29.9 ) (0.5 ) (49.7 ) (1.0 ) Depreciation and amortization
87.5 5.5 71.9 5.2 344.6 5.5 279.0 5.3 Interest expense, net 36.4
2.3 29.7 2.2 149.2 2.3 114.4 2.2 Debt transaction costs – – – –
22.0 0.3 – – Impairment charges – – – – 1.2 – 13.8 0.3 Other
non-operating gain – – (4.0 ) (0.3 )
– – (4.0 ) (0.1 ) 1,532.3
95.5 1,284.1 93.7 6,159.2
96.8 4,911.8 94.2 Income before
income taxes 72.9 4.5 86.6 6.3 204.8 3.2 302.5 5.8 Provision for
income taxes 26.3 1.6 31.2 2.3
73.0 1.1 109.5 2.1
Net income 46.6 2.9 55.4 4.0 131.8 2.1 193.0 3.7
Less: Net income attributable to
noncontrolling interests and redeemable noncontrolling
interests
(2.7 ) (0.2 ) (2.4 ) (0.1 ) (9.9 ) (0.2 )
(11.1 ) (0.2 )
Net income attributable to LifePoint
Health, Inc.
$ 43.9 2.7 % $ 53.0 3.9 % $ 121.9 1.9 % $
181.9 3.5 % Weighted average shares outstanding -
basic 40.0 43.4 42.0 43.9 Effect of dilutive stock options and
other stock-based awards 1.1 2.2
1.2 2.2 Weighted average shares outstanding -
diluted 41.1 45.6 43.2
46.1 Earnings per share attributable to
LifePoint Health, Inc. stockholders: Basic $ 1.10 $
1.22 $ 2.90 $ 4.14 Diluted $ 1.07 $
1.16 $ 2.82 $ 3.95
LIFEPOINT HEALTH, INC. UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS Dollars in millions Dec.
31, Dec. 31, 2016 2015 ASSETS
Current assets: Cash and cash equivalents $ 96.1 $ 284.0
Accounts receivable, less allowances for
doubtful accounts of $891.2 and $796.8 at December 31, 2016 and
2015, respectively
912.7 743.7 Inventories 154.3 127.7 Prepaid expenses 71.9 50.8
Other current assets 80.3 59.8 1,315.3
1,266.0 Property and equipment: Land 191.6 162.8 Buildings and
improvements 2,601.6 2,272.3 Equipment 2,237.7 1,767.8 Construction
in progress 178.3 119.4 5,209.2 4,322.3
Accumulated depreciation (2,142.4 ) (1,840.0 )
3,066.8 2,482.3 Intangible assets, net 80.3 70.6 Other long-term
assets 78.7 510.4 Goodwill 1,777.9 1,667.5
Total assets $ 6,319.0 $ 5,996.8
LIABILITIES AND EQUITY Current liabilities: Accounts payable
$ 261.2 $ 164.3 Accrued salaries 212.9 206.0 Income taxes payable
47.8 28.9 Other current liabilities 244.0 194.5 Current maturities
of long-term debt 22.3 25.0 788.2 618.7
Long-term debt, net 2,892.0 2,643.8 Deferred income taxes 50.0 94.4
Long-term portion of reserves for self-insurance claims 161.5 154.7
Other long-term liabilities 85.2 72.8
Total liabilities 3,976.9 3,584.4
Redeemable noncontrolling interests 113.7 103.6
Equity: LifePoint Health, Inc. stockholders’ equity: Preferred
stock – – Common stock 0.7 0.7 Capital in excess of par value
1,584.2 1,556.4 Accumulated other comprehensive loss (2.8 ) (2.7 )
Retained earnings 1,776.9 1,655.0 Common stock in treasury, at cost
(1,178.6 ) (945.5 ) Total LifePoint Health, Inc.
stockholders’ equity 2,180.4 2,263.9 Noncontrolling interests
48.0 44.9 Total equity 2,228.4
2,308.8 Total liabilities and equity $ 6,319.0
$ 5,996.8
LIFEPOINT HEALTH,
INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS Dollars in millions Three Months
Ended Years Ended December 31, December
31, 2016 2015 2016
2015 Cash flows from operating activities: Net income $ 46.6
$ 55.4 $ 131.8 $ 193.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Stock-based compensation 6.4 7.6 29.4 30.0 Depreciation and
amortization 87.5 71.9 344.6 279.0 Amortization of physician
minimum revenue guarantees 2.4 2.7 9.9 12.0 Amortization of debt
issuance costs, discounts and premium 1.2 1.3 5.4 5.1 Debt
transaction costs – – 22.0 – Impairment charges – – 1.2 13.8 Other
non-operating gain – (4.0 ) – (4.0 ) Deferred income taxes 3.0
(17.5 ) (44.7 ) (14.4 ) Reserve for self-insurance claims, net of
payments (2.3 ) 2.4 25.4 17.9
Increase (decrease) in cash from operating
assets and liabilities, net of effects from acquisitions and
divestitures:
Accounts receivable (18.4 ) 3.5 (123.7 ) 38.7 Inventories, prepaid
expenses and other current assets (29.8 ) (32.4 ) (24.8 ) 19.9
Accounts payable, accrued salaries and other current liabilities
(13.4 ) (30.1 ) 45.7 (24.7 ) Income taxes payable/receivable 21.4
23.7 18.9 61.9 Other (2.1 ) 0.3 (5.9 )
(1.1 ) Net cash provided by operating activities
102.5 84.8 435.2 627.1
Cash flows from investing activities: Purchases of
property and equipment (173.2 ) (121.3 ) (399.5 ) (274.7 )
Acquisitions, net of cash acquired (0.8 ) (444.9 ) (121.1 ) (619.4
) Proceeds from sale of hospital – – – 18.8 Other 0.5
(1.5 ) (0.1 ) (1.0 ) Net cash used in
investing activities (173.5 ) (567.7 ) (520.7
) (876.3 ) Cash flows from financing activities:
Proceeds from borrowings – 500.0 1,350.0 500.0 Payments of
borrowings (4.3 ) (5.6 ) (1,186.3 ) (16.9 ) Repurchases of common
stock (74.1 ) (32.5 ) (233.1 ) (134.5 ) Payments of debt financing
costs – (6.9 ) (30.0 ) (7.2 ) Proceeds from exercise of stock
options 9.8 0.4 12.1 11.5 Other (5.2 ) (1.7 )
(15.1 ) (11.2 ) Net cash (used in) provided by financing
activities (73.8 ) 453.7 (102.4 )
341.7 Change in cash and cash equivalents
(144.8 ) (29.2 ) (187.9 ) 92.5 Cash and cash equivalents at
beginning of period 240.9 313.2
284.0 191.5 Cash and cash equivalents at end
of period $ 96.1 $ 284.0 $ 96.1 $ 284.0
Supplemental disclosure of cash flow information: Interest
payments $ 62.1 $ 47.6 $ 138.8 $ 103.2
Capitalized interest $ 1.5 $ 0.9 $ 5.1 $ 2.2
Income tax payments, net $ 1.8 $ 25.0 $ 98.6
$ 62.0
LIFEPOINT HEALTH,
INC. UNAUDITED STATISTICS Three Months
Ended Years Ended December 31, December
31, % % 2016
2015 Change 2016 2015 Change
Consolidated: (1) Number of hospitals 72 67 7.5 % 72 67 7.5 %
Admissions 68,674 59,219 16.0 274,611 236,474 16.1 Equivalent
admissions (2) 178,072 157,280 13.2 717,009 617,434 16.1
Revenues per equivalent admission
$ 9,014 $ 8,715 3.4 $ 8,876 $ 8,445 5.1
Medicare case mix index
1.50 1.47 2.0 1.49 1.43 4.2
Average length of stay (days)
4.9 4.9
-
4.9 4.9 - Inpatient surgeries 18,810 16,635 13.1 77,121 65,432 17.9
Outpatient surgeries 70,739 63,013 12.3 283,127 243,820 16.1 Total
surgeries 89,549 79,648 12.4 360,248 309,252 16.5 Emergency room
visits 414,089 371,508 11.5 1,689,119 1,477,113 14.4 Outpatient
factor (2) 2.59 2.65 (2.3 ) 2.61 2.61 - Same-hospital: (3)
Number of hospitals 67 67 - % 63 63 - % Admissions 58,683 59,219
(0.9 ) 220,906 227,522 (2.9 ) Equivalent admissions (2) 156,214
157,280 (0.7 ) 588,714 594,060 (0.9 ) Revenues per equivalent
admission $ 8,840 $ 8,715 1.4 $ 8,756 $ 8,509 2.9 Medicare case mix
index 1.46 1.47 (0.7 ) 1.47 1.43 2.8 Average length of stay (days)
4.9 4.9 - 5.0 5.0 - Inpatient surgeries 15,635 16,635 (6.0 ) 60,004
62,493 (4.0 ) Outpatient surgeries 62,621 63,013 (0.6 ) 234,255
233,315 0.4 Total surgeries 78,256 79,648 (1.7 ) 294,259 295,808
(0.5 ) Emergency room visits 362,479 371,508 (2.4 ) 1,407,924
1,427,307 (1.4 ) Outpatient factor (2) 2.66 2.65 0.4 2.67 2.61 2.3
(1) Consolidated information includes the results of
the Company’s health support center, its same-hospital operations
and the results of its recent acquisitions. Additionally,
consolidated information includes the results of the Company’s
hospitals that have previously been disposed. (2) Management
and investors use equivalent admissions as a general measure of
combined inpatient and outpatient volume. The Company computes
equivalent admissions by multiplying admissions (inpatient volumes)
by the outpatient factor (the sum of gross inpatient revenue and
gross outpatient revenue and then dividing the resulting amount by
gross inpatient revenue). The equivalent admissions computation
“equates” outpatient revenue to the volume measure (admissions)
used to measure inpatient volume resulting in a general measure of
combined inpatient and outpatient volume. (3) Same-hospital
information includes the results of the Company’s health support
center and the same 67 hospitals operated during the three months
ended December 31, 2016 and 2015, and the same 63 hospitals
operated during the years ended December 31, 2016 and 2015.
Same-hospital information excludes the Company’s hospitals that
have previously been disposed.
LIFEPOINT HEALTH, INC.UNAUDITED
SUPPLEMENTAL INFORMATIONDollars in millions
Adjusted EBITDA is defined by the Company as earnings before
depreciation and amortization; interest expense, net; debt
transaction costs; impairment charges; other non-operating gain;
provision for income taxes; and net income attributable to
noncontrolling interests and redeemable noncontrolling interests.
Additionally, Adjusted Normalized EBITDA has been adjusted to
exclude the impact of $24.7 million in charges related to
cardiology-related lawsuits recognized during the first quarter of
2016. LifePoint’s management and Board of Directors use Adjusted
EBITDA and Adjusted Normalized EBITDA to evaluate the Company’s
operating performance and as a measure of performance for incentive
compensation purposes. LifePoint’s credit facilities use Adjusted
EBITDA, subject to further permitted adjustments, for certain
financial covenants. The Company believes Adjusted EBITDA and
Adjusted Normalized EBITDA are measures of performance used by some
investors, equity analysts, rating agencies and lenders to make
informed decisions as to, among other things, the Company’s ability
to incur and service debt and make capital expenditures. In
addition, multiples of current or projected Adjusted EBITDA and
Adjusted Normalized EBITDA are used by some investors and equity
analysts to estimate current or prospective enterprise value.
Adjusted EBITDA and Adjusted Normalized EBITDA should not be
considered as measures of financial performance under U.S.
generally accepted accounting principles (“GAAP”), and the items
excluded from Adjusted EBITDA and Adjusted Normalized EBITDA are
significant components in understanding and assessing financial
performance. Adjusted EBITDA and Adjusted Normalized EBITDA should
not be considered in isolation or as an alternative to net income,
cash flows generated by operating, investing or financing
activities or other financial statement data presented in the
condensed consolidated financial statements as an indicator of
financial performance. Because Adjusted EBITDA and Adjusted
Normalized EBITDA are not measurements determined in accordance
with GAAP and are susceptible to varying calculations, Adjusted
EBITDA and Adjusted Normalized EBITDA as presented may not be
comparable to other similarly titled measures of other
companies.
The following table reconciles net income as reflected in the
unaudited condensed consolidated statements of operations to
Adjusted EBITDA and Adjusted Normalized EBITDA:
Three Months Ended December 31, Years Ended
December 31, 2016 2015 2016
2015 % of % of %
of % of Amount Revenues
Amount Revenues Amount Revenues
Amount Revenues Net income $ 46.6 2.9 % $ 55.4 4.0 %
$ 131.8 2.1 % $ 193.0 3.7 % Less: Net income attributable to
noncontrolling interests and redeemable noncontrolling interests
(2.7 ) (0.2 ) (2.4 ) (0.1 ) (9.9 ) (0.2 )
(11.1 ) (0.2 ) Net income attributable to LifePoint Health,
Inc. 43.9 2.7 53.0 3.9 121.9 1.9 181.9 3.5 Add: Depreciation
and amortization 87.5 5.5 71.9 5.2 344.6 5.5 279.0 5.3 Interest
expense, net 36.4 2.3 29.7 2.2 149.2 2.3 114.4 2.2 Debt transaction
costs – – – – 22.0 0.3 – – Impairment charges – – – – 1.2 – 13.8
0.3 Other non-operating gain – – (4.0 ) (0.3 ) – – (4.0 ) (0.1 )
Provision for income taxes 26.3 1.6 31.2 2.3 73.0 1.1 109.5 2.1 Net
income attributable to noncontrolling interests and redeemable
noncontrolling interests 2.7 0.2 2.4
0.1 9.9 0.2 11.1
0.2 Adjusted EBITDA 196.8 12.3 184.2 13.4 721.8 11.3 705.7
13.5 Add: Cardiology-related lawsuits – –
– – 24.7 0.4 –
– Adjusted Normalized EBITDA $ 196.8 12.3 % $
184.2 13.4 % $ 746.5 11.7 % $ 705.7 13.5 %
LIFEPOINT HEALTH, INC.UNAUDITED
SUPPLEMENTAL INFORMATION (Continued)Dollars in
millions
From time to time, the Company incurs certain non-recurring
gains or losses that are normally nonoperational in nature and that
it does not consider relevant in assessing its ongoing operating
performance. When significant, LifePoint’s management and Board of
Directors typically exclude these gains or losses when evaluating
the Company’s operating performance and in certain instances when
evaluating performance for incentive compensation purposes.
Additionally, the Company believes that some investors and equity
analysts exclude these or similar items when evaluating the
Company’s current or future operating performance and in making
informed investment decisions regarding the Company. Accordingly,
the Company provides adjusted diluted earnings per share
attributable to LifePoint Health, Inc. stockholders as a supplement
to its comparable GAAP measure of diluted earnings per share
attributable to LifePoint Health, Inc. Adjusted diluted earnings
per share attributable to LifePoint Health, Inc. stockholders
should not be considered as a measure of financial performance
under GAAP, and the items excluded from adjusted diluted earnings
per share attributable to LifePoint Health, Inc. stockholders are
significant components in understanding and assessing financial
performance. Adjusted diluted earnings per share attributable to
LifePoint Health, Inc. stockholders should not be considered in
isolation or as an alternative to diluted earnings per share
attributable to LifePoint Health, Inc. stockholders as presented in
the condensed consolidated financial statements.
The following table reconciles diluted earnings per share
attributable to LifePoint Health, Inc. stockholders as reflected in
the unaudited condensed consolidated statements of operations to
adjusted diluted earnings per share attributable to LifePoint
Health, Inc. stockholders:
Three Months Ended
Years Ended
December 31,
December 31,
2016 2015 2016 2015
Diluted earnings per share attributable to LifePoint Health, Inc.
stockholders $ 1.07 $ 1.16 $ 2.82 $ 3.95 Adjust: Cardiology-related
lawsuits – – 0.36 – Debt transaction costs – – 0.32 – Impairment
charges – – 0.02 0.19 Other non-operating gain – (0.05 ) – (0.05 )
Marquette General Hospital accelerated depreciation expense
0.02 – 0.09 – Adjusted diluted
earnings per share attributable to
LifePoint Health, Inc. stockholders
$ 1.09 $ 1.11 $ 3.61 $ 4.09
The following table reconciles net income to Estimated Adjusted
EBITDA as presented for the Company’s 2017 guidance ranges:
Low High End End Net
income $ 181.8 $ 194.4 Less: Net income attributable to
noncontrolling interests and redeemable noncontrolling interests
13.5 14.0 Net income attributable to LifePoint
Health, Inc. 168.3 180.4 Add: Depreciation and
amortization 350.0 360.0 Interest expense, net 150.0 150.0
Provision for income taxes 103.2 110.6 Net income attributable to
noncontrolling interests and redeemable noncontrolling interests
13.5 14.0 Adjusted EBITDA $ 785.0 $ 815.0
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version on businesswire.com: http://www.businesswire.com/news/home/20170217005147/en/
LifePoint Health, Inc.Michael S. Coggin, 615-920-7000Executive
Vice President and Chief Financial Officer
LifePoint Health, Inc. (NASDAQ:LPNT)
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LifePoint Health, Inc. (NASDAQ:LPNT)
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