HCA Healthcare, Inc. (NYSE: HCA) today announced financial and
operating results for the third quarter ended September 30,
2021.
Key third quarter metrics (all percentage changes compare
3Q 2021 to 3Q 2020 unless otherwise noted):
- Revenues totaled $15.276 billion
- Net income attributable to HCA Healthcare, Inc. totaled $2.269
billion, or $7.00 per diluted share
- Adjusted EBITDA totaled $3.224 billion
- Cash flows from operating activities totaled $2.277
billion
- Same facility admissions and same facility equivalent
admissions increased 6.8 percent and 9.3 percent, respectively
“During the third quarter we experienced the most intense surge
yet of the pandemic, and our colleagues and physicians delivered
record levels of patient care to meet the demand caused by the
Delta variant,” said Sam Hazen, Chief Executive Officer of HCA
Healthcare. “Once again, the disciplined operating culture and
strong execution by our teams were on display. I want to thank them
for their tremendous work and dedication to serving others.”
Revenues in the third quarter of 2021 increased to $15.276
billion, compared to $13.311 billion in the third quarter of 2020.
Net income attributable to HCA Healthcare, Inc. totaled $2.269
billion, or $7.00 per diluted share, compared to $668 million, or
$1.95 per diluted share, in the third quarter of 2020. Results for
the third quarter of 2021 include gains on sales of facilities of
$1.047 billion, or $2.43 per diluted share, related to the sale of
four hospitals in Georgia and other health care entity investments.
Results for the third quarter of 2020 included a reversal of $822
million, or $1.72 per diluted share, in government stimulus income
recorded in the second quarter of 2020 related to general
distribution funds received from the Provider Relief Fund
established by the Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act and $14 million, or $0.03 per diluted share, of gains
on sales of facilities.
For the third quarter of 2021, Adjusted EBITDA totaled $3.224
billion, compared to $2.053 billion in the third quarter of 2020.
Adjusted EBITDA is a non-GAAP financial measure. A table providing
supplemental information on Adjusted EBITDA and reconciling net
income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is
included in this release.
Same facility admissions and equivalent admissions increased 6.8
percent and 9.3 percent, respectively, in the third quarter of
2021, compared to the prior year period. Same facility emergency
room visits increased 31.2 percent in the third quarter of 2021,
compared to the prior year period. Same facility inpatient
surgeries declined 4.9 percent, and same facility outpatient
surgeries increased 6.4 percent in the third quarter of 2021,
compared to the same period of 2020. Same facility revenue per
equivalent admission increased 5.2 percent in the third quarter of
2021, compared to the third quarter of 2020, due to increases in
acuity of patients treated and favorable payer mix in the
quarter.
Because of the pandemic-related impact on volumes in the third
quarter of 2020, the Company believes a comparison of volume
statistics to the comparable period in 2019 provides additional
context to the improvement in operations during 2021. The following
table provides a summary of statistical measures for the third
quarter of 2021 compared to the same period in 2019 on a same
facility basis.
Third Quarter
2021
2019
%
Change
Same Facility: Admissions
531,032
517,151
2.7
%
Equivalent Admissions
892,665
897,774
-0.6
%
Patient Days
2,836,248
2,482,756
14.2
%
Equivalent Patient Days
4,767,733
4,310,064
10.6
%
Inpatient Surgery Cases
125,533
141,313
-11.2
%
Outpatient Surgery Cases
242,450
241,019
0.6
%
Emergency Room Visits
2,301,968
2,198,357
4.7
%
Nine Months Ended September 30, 2021
Revenues for the nine months ended September 30, 2021 totaled
$43.688 billion, compared to $37.240 billion in the same period of
2020. Net income attributable to HCA Healthcare, Inc. was $5.142
billion, or $15.43 per diluted share, compared to $2.328 billion,
or $6.79 per diluted share, for the first nine months of 2020.
Results through September 2021 include gains on sales of facilities
of $1.057 billion, or $2.39 per diluted share, and losses on
retirement of debt of $12 million, or $0.03 per diluted share.
Results for the nine months ended September 30, 2020 included
losses on sales of facilities of $6 million, or $0.03 per diluted
share, and losses on retirement of debt of $295 million, or $0.66
per diluted share.
Balance Sheet and Cash Flows from Operations
As of September 30, 2021, HCA Healthcare, Inc.’s balance sheet
reflected cash and cash equivalents of $1.027 billion, total debt
of $32.299 billion, and total assets of $49.562 billion. During the
third quarter of 2021, capital expenditures totaled $889 million,
excluding acquisitions. Cash flows provided by operating activities
in the third quarter totaled $2.277 billion, compared to $2.717
billion in the third quarter of 2020.
During the third quarter of 2021, the Company repurchased 9.605
million shares of its common stock at a cost of $2.329 billion. The
Company had $2.658 billion remaining under its repurchase
authorization as of September 30, 2021. As of September 30, 2021,
the Company had $5.920 billion of availability under its credit
facilities.
Dividend
HCA today announced that its Board of Directors declared a
quarterly cash dividend of $0.48 per share on the Company’s common
stock. The dividend will be paid on December 29, 2021 to
stockholders of record at the close of business on December 14,
2021.
The declaration and payment of any future dividend will be
subject to the discretion of the Board of Directors and will depend
on a variety of factors, including the Company’s financial
condition and results of operations and contractual restrictions.
Future dividends are expected to be funded by cash balances and
future cash flows from operations.
2021 Revised Guidance
The 2021 guidance ranges for the year have been revised from our
second quarter release and are as follows:
2021 Guidance
Range
Revenues
$58.7 to $59.3 billion
Adjusted EBITDA
$12.50 to $12.80 billion
EPS (diluted)
$17.20 to $17.80 per diluted share
Capital Expenditures
Approximately $3.7 billion
The Company’s 2021 guidance contains a number of assumptions,
including, among others, the Company’s current expectations
regarding the impact of the COVID-19 pandemic and related
government legislation, and excludes the impact of items such as,
but not limited to, gains or losses on sales of facilities, losses
on retirement of debt, legal claims costs and impairment of
long-lived assets.
Adjusted EBITDA is a non-GAAP financial measure. A table
reconciling forecasted net income attributable to HCA Healthcare,
Inc. to forecasted Adjusted EBITDA is included in this release.
The Company’s guidance is based on current plans and
expectations and is subject to a number of known and unknown
uncertainties and risks, including those set forth below in the
Company’s “Forward-Looking Statements.”
Earnings Conference Call
HCA Healthcare will host a conference call for investors at 9:00
a.m. Central Daylight Time today. All interested investors are
invited to access a live audio broadcast of the call via webcast.
The broadcast also will be available on a replay basis beginning
this afternoon. The webcast can be accessed at:
https://investor.hcahealthcare.com/events-and-presentations.
About the Company
As of September 30, 2021, HCA Healthcare operated 183 hospitals
and approximately 2,000 sites of care, including surgery centers,
freestanding emergency rooms, urgent care centers and physician
clinics, in 20 states and the United Kingdom.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include the Company’s
financial guidance for the year ending December 31, 2021, as well
as other statements that do not relate solely to historical or
current facts. Forward-looking statements can be identified by the
use of words like “may,” “believe,” “will,” “expect,” “project,”
“estimate,” “anticipate,” “plan,” “initiative” or “continue.” These
forward-looking statements are based on our current plans and
expectations and are subject to a number of known and unknown
uncertainties and risks, many of which are beyond our control,
which could significantly affect current plans and expectations and
our future financial position and results of operations. These
factors include, but are not limited to, (1) developments related
to COVID-19, including, without limitation, the length and severity
of the pandemic and the spread of virus strains with new
epidemiological characteristics; the volume of canceled or
rescheduled procedures and the volume of COVID-19 patients cared
for across our health systems; measures we are taking to respond to
the COVID-19 pandemic; the impact and terms of government and
administrative regulation and stimulus (including the Families
First Coronavirus Response Act, the CARES Act, the Paycheck
Protection Program and Health Care Enhancement Act, the
Consolidated Appropriations Act, 2021, the American Rescue Plan Act
of 2021 and other enacted and potential future legislation);
changes in revenues due to declining patient volumes, changes in
payer mix and deteriorating macroeconomic conditions (including
increases in uninsured and underinsured patients); potential
increased expenses related to labor, supply chain or other
expenditures; workforce disruptions; supply shortages and
disruptions; and the timing, availability and adoption of effective
medical treatments and vaccines, (2) the impact of our substantial
indebtedness and the ability to refinance such indebtedness on
acceptable terms, as well as risks associated with disruptions in
the financial markets and the business of financial institutions as
the result of the COVID-19 pandemic which could impact us from a
financial perspective, (3) the impact of the Patient Protection and
Affordable Care Act, as amended by the Health Care and Education
Reconciliation Act of 2010 (collectively, the “Affordable Care
Act”), including the effects of changes or court challenges to the
Affordable Care Act or additional changes to its implementation,
the possible enactment of additional federal or state health care
reforms and possible changes to other federal, state or local laws
or regulations affecting the health care industry, including
proposals to expand coverage of federally-funded insurance programs
as an alternative to private insurance or establish a single-payer
system (such reforms often referred to as “Medicare for All”), and
also including any such laws or governmental regulations which are
adopted in response to the COVID-19 pandemic, (4) the effects
related to the implementation of sequestration spending reductions
required under the Budget Control Act of 2011, related legislation
extending these reductions, and those required under the
Pay-As-You-Go Act of 2010 (“PAYGO Act”) as a result of the federal
budget deficit impact of the American Rescue Plan Act of 2021, and
the potential for future deficit reduction legislation that may
alter these spending reductions, which include cuts to Medicare
payments, or create additional spending reductions, (5) increases
in the amount and risk of collectability of uninsured accounts and
deductibles and copayment amounts for insured accounts, (6) the
ability to achieve operating and financial targets, and attain
expected levels of patient volumes and control the costs of
providing services, (7) possible changes in Medicare, Medicaid and
other state programs, including Medicaid supplemental payment
programs or Medicaid waiver programs, that may impact
reimbursements to health care providers and insurers and the size
of the uninsured or underinsured population, (8) the highly
competitive nature of the health care business, (9) changes in
service mix, revenue mix and surgical volumes, including potential
declines in the population covered under third-party payer
agreements, the ability to enter into and renew third-party payer
provider agreements on acceptable terms and the impact of
consumer-driven health plans and physician utilization trends and
practices, (10) the efforts of health insurers, health care
providers, large employer groups and others to contain health care
costs, (11) the outcome of our continuing efforts to monitor,
maintain and comply with appropriate laws, regulations, policies
and procedures, (12) increases in wages and the ability to attract
and retain qualified management and personnel, including affiliated
physicians, nurses and medical and technical support personnel,
(13) the availability and terms of capital to fund the expansion of
our business and improvements to our existing facilities, (14)
changes in accounting practices, (15) changes in general economic
conditions nationally and regionally in our markets, including
economic and business conditions (and the impact thereof on the
economy, financial markets and banking industry) resulting from the
COVID-19 pandemic, (16) the emergence of and effects related to
other pandemics, epidemics and infectious diseases, (17) future
divestitures which may result in charges and possible impairments
of long-lived assets, (18) changes in business strategy or
development plans, (19) delays in receiving payments for services
provided, (20) the outcome of pending and any future tax audits,
disputes and litigation associated with our tax positions, (21)
potential adverse impact of known and unknown government
investigations, litigation and other claims that may be made
against us, (22) the impact of potential cybersecurity incidents or
security breaches, (23) our ongoing ability to demonstrate
meaningful use of certified electronic health record (“EHR”)
technology and the impact of interoperability requirements, (24)
the impact of natural disasters, such as hurricanes and floods, or
similar events beyond our control, (25) changes in the U.S.
federal, state, or foreign tax laws including interpretive guidance
that may be issued by taxing authorities or other standard setting
bodies, and (26) other risk factors described in our annual report
on Form 10-K for the year ended December 31, 2020 and our other
filings with the Securities and Exchange Commission. 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.
All references to “Company” and “HCA Healthcare” as used
throughout this release refer to HCA Healthcare, Inc. and its
affiliates.
HCA Healthcare, Inc. Condensed Consolidated Comprehensive
Income Statements Third Quarter (Dollars in millions,
except per share amounts)
2021
2020
Amount
Ratio
Amount
Ratio
Revenues
$
15,276
100.0
%
$
13,311
100.0
%
Salaries and benefits
7,094
46.4
6,097
45.8
Supplies
2,463
16.1
2,128
16.0
Other operating expenses
2,530
16.6
2,251
16.9
Government stimulus income reversal
-
-
822
6.2
Equity in earnings of affiliates
(35
)
(0.2
)
(40
)
(0.3
)
Depreciation and amortization
716
4.7
694
5.2
Interest expense
398
2.6
385
2.9
Gains on sales of facilities
(1,047
)
(6.9
)
(14
)
(0.1
)
12,119
79.3
12,323
92.6
Income before income taxes
3,157
20.7
988
7.4
Provision for income taxes
685
4.5
209
1.5
Net income
2,472
16.2
779
5.9
Net income attributable to noncontrolling interests
203
1.3
111
0.9
Net income attributable to HCA Healthcare, Inc.
$
2,269
14.9
$
668
5.0
Diluted earnings per share
$
7.00
$
1.95
Shares used in computing diluted earnings per share
(millions)
324.029
343.346
Comprehensive income attributable to HCA Healthcare, Inc.
$
2,252
$
715
HCA Healthcare, Inc. Condensed Consolidated
Comprehensive Income Statements For the Nine Months Ended
September 30, 2021 and 2020 (Dollars in millions, except per
share amounts)
2021
2020
Amount
Ratio
Amount
Ratio
Revenues
$
43,688
100.0
%
$
37,240
100.0
% Salaries and benefits
19,780
45.3
17,545
47.1
Supplies
7,067
16.2
5,999
16.1
Other operating expenses
7,424
17.0
6,825
18.3
Equity in earnings of affiliates
(78
)
(0.2
)
(48
)
(0.1
)
Depreciation and amortization
2,125
4.8
2,059
5.6
Interest expense
1,168
2.7
1,201
3.2
Losses (gains) on sales of facilities
(1,057
)
(2.4
)
6
-
Losses on retirement of debt
12
-
295
0.8
36,441
83.4
33,882
91.0
Income before income taxes
7,247
16.6
3,358
9.0
Provision for income taxes
1,531
3.5
665
1.8
Net income
5,716
13.1
2,693
7.2
Net income attributable to noncontrolling interests
574
1.3
365
0.9
Net income attributable to HCA Healthcare, Inc
$
5,142
11.8
$
2,328
6.3
Diluted earnings per share
$
15.43
$
6.79
Shares used in computing diluted earnings per share
(millions)
333.248
343.014
Comprehensive income attributable to HCA Healthcare, Inc.
$
5,152
$
2,273
HCA Healthcare, Inc. Condensed Consolidated Balance
Sheets (Dollars in millions)
September 30,
June 30,
December 31,
2021
2021
2020
ASSETS Current assets: Cash and cash equivalents
$
1,027
$
1,120
$
1,793
Accounts receivable
8,433
7,636
7,051
Inventories
2,019
2,027
2,025
Other
1,769
1,692
1,464
13,248
12,475
12,333
Property and equipment, at cost
50,695
50,698
49,317
Accumulated depreciation
(27,148
)
(27,227
)
(26,118
)
23,547
23,471
23,199
Investments of insurance subsidiaries
418
410
388
Investments in and advances to affiliates
412
382
422
Goodwill and other intangible assets
9,153
8,680
8,578
Right-of-use operating lease assets
2,099
2,118
2,024
Other
685
628
546
$
49,562
$
48,164
$
47,490
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable
$
3,759
$
3,531
$
3,535
Accrued salaries
2,134
1,896
1,720
Other accrued expenses
3,481
2,935
3,240
Long-term debt due within one year
250
253
209
9,624
8,615
8,704
Long-term debt, less debt issuance costs and discounts of
$253, $255 and $236
32,049
32,319
30,795
Professional liability risks
1,522
1,585
1,486
Right-of-use operating lease obligations
1,742
1,767
1,673
Income taxes and other liabilities
2,800
2,088
1,940
Stockholders' equity: Stockholders' (deficit) equity
attributable to HCA Healthcare, Inc.
(695
)
(593
)
572
Noncontrolling interests
2,520
2,383
2,320
1,825
1,790
2,892
$
49,562
$
48,164
$
47,490
HCA Healthcare, Inc. Condensed Consolidated
Statements of Cash Flows For the Nine Months Ended September
30, 2021 and 2020 (Dollars in millions)
2021
2020
Cash flows from operating activities: Net income
$
5,716
$
2,693
Adjustments to reconcile net income to net cash provided by
operating activities: Increase (decrease) in cash from operating
assets and liabilities: Accounts receivable
(1,312
)
930
Inventories and other assets
(333
)
(36
)
Accounts payable and accrued expenses
731
542
Government stimulus refund liability
-
6,123
Depreciation and amortization
2,125
2,059
Income taxes
185
(114
)
Losses (gains) on sales of facilities .
(1,057
)
6
Losses on retirement of debt
12
295
Amortization of debt issuance costs and discounts
21
22
Share-based compensation
341
229
Other
87
66
Net cash provided by operating activities
6,516
12,815
Cash flows from investing activities: Purchase of
property and equipment
(2,385
)
(2,087
)
Acquisition of hospitals and health care entities
(488
)
(380
)
Sales of hospitals and health care entities
1,980
68
Change in investments
(38
)
(40
)
Other
2
(44
)
Net cash used in investing activities
(929
)
(2,483
)
Cash flows from financing activities: Issuances of
long-term debt
4,337
2,700
Net change in revolving credit facilities
500
(2,480
)
Repayment of long-term debt
(3,787
)
(3,403
)
Distributions to noncontrolling interests
(501
)
(393
)
Payment of debt issuance costs
(38
)
(35
)
Payment of dividends
(476
)
(153
)
Repurchase of common stock
(6,143
)
(441
)
Other
(241
)
(156
)
Net cash used in financing activities
(6,349
)
(4,361
)
Effect of exchange rate changes on cash and cash equivalents
(4
)
(4
)
Change in cash and cash equivalents
(766
)
5,967
Cash and cash equivalents at beginning of period
1,793
621
Cash and cash equivalents at end of period
$
1,027
$
6,588
Interest payments
$
1,127
$
1,230
Income tax payments, net
$
1,346
$
779
HCA Healthcare, Inc.
Operating Statistics
For the Nine Months
Third Quarter
Ended September 30,
2021
2020
2021
2020
Operations: Number of Hospitals
183
187
183
187
Number of Freestanding Outpatient Surgery Centers*
123
121
123
121
Licensed Beds at End of Period
48,950
49,473
48,950
49,473
Weighted Average Beds in Service
42,088
42,426
42,304
42,304
Reported: Admissions
536,848
506,756
1,575,269
1,487,992
% Change
5.9
%
5.9
%
Equivalent Admissions
905,627
835,576
2,654,328
2,447,747
% Change
8.4
%
8.4
%
Revenue per Equivalent Admission
$
16,868
$
15,930
$
16,459
$
15,214
% Change
5.9
%
8.2
%
Inpatient Revenue per Admission
$
18,102
$
16,265
$
17,115
$
15,531
% Change
11.3
%
10.2
%
Patient Days
2,865,220
2,593,139
8,166,211
7,476,794
% Change
10.5
%
9.2
%
Equivalent Patient Days
4,833,197
4,275,481
13,760,066
12,299,326
% Change
13.0
%
11.9
%
Inpatient Surgery Cases
126,436
133,492
390,486
387,228
% Change
-5.3
%
0.8
%
Outpatient Surgery Cases
249,192
232,493
742,527
629,723
% Change
7.2
%
17.9
%
Emergency Room Visits
2,338,180
1,813,661
6,308,386
5,594,484
% Change
28.9
%
12.8
%
Outpatient Revenues as a Percentage of Patient Revenues
34.1
%
35.5
%
36.0
%
35.0
%
Average Length of Stay (days)
5.337
5.117
5.184
5.025
Occupancy (weighted average beds in service)
74.0
%
66.4
%
70.7
%
64.5
%
Same Facility: Admissions
531,032
497,309
1,549,732
1,458,609
% Change
6.8
%
6.2
%
Equivalent Admissions
892,665
817,079
2,603,550
2,392,119
% Change
9.3
%
8.8
%
Revenue per Equivalent Admission
$
16,799
$
15,962
$
16,456
$
15,247
% Change
5.2
%
7.9
%
Inpatient Revenue per Admission
$
18,055
$
16,323
$
17,148
$
15,610
% Change
10.6
%
9.9
%
Inpatient Surgery Cases
125,533
131,957
386,190
382,121
% Change
-4.9
%
1.1
%
Outpatient Surgery Cases
242,450
227,918
724,914
616,082
% Change
6.4
%
17.7
%
Emergency Room Visits
2,301,968
1,753,887
6,162,206
5,419,887
% Change
31.2
%
13.7
%
* Excludes freestanding endoscopy centers (21 centers at both
September 30, 2021 and September 30, 2020).
HCA Healthcare,
Inc. Supplemental Non-GAAP Disclosures Operating
Results Summary (Dollars in millions, except per share
amounts)
For the Nine Months
Third Quarter
Ended September 30,
2021
2020
2021
2020
Revenues
$
15,276
$
13,311
$
43,688
$
37,240
Net income attributable to HCA Healthcare, Inc.
$
2,269
$
668
$
5,142
$
2,328
Losses (gains) on sales of facilities (net of tax)
(788
)
(10
)
(795
)
9
Losses on retirement of debt (net of tax)
-
-
9
227
Net income attributable to HCA Healthcare, Inc., excluding
losses (gains) on sales of facilities and losses on retirement of
debt (a)
1,481
658
4,356
2,564
Depreciation and amortization
716
694
2,125
2,059
Interest expense
398
385
1,168
1,201
Provision for income taxes
426
205
1,272
730
Net income attributable to noncontrolling interests
203
111
574
365
Adjusted EBITDA (a)
$
3,224
$
2,053
$
9,495
$
6,919
Adjusted EBITDA margin (a)
21.1
%
15.4
%
21.7
%
18.6
%
Diluted earnings per share: Net income attributable to HCA
Healthcare, Inc.
$
7.00
$
1.95
$
15.43
$
6.79
Losses (gains) on sales of facilities
(2.43
)
(0.03
)
(2.39
)
0.03
Losses on retirement of debt
-
-
0.03
0.66
Net income attributable to HCA Healthcare, Inc., excluding losses
(gains) on sales of facilities and losses on retirement of debt (a)
$
4.57
$
1.92
$
13.07
$
7.48
Shares used in computing diluted earnings per share
(millions)
324.029
343.346
333.248
343.014
(a)
Net income attributable to HCA
Healthcare, Inc., excluding losses (gains) on sales of facilities
and losses on retirement of debt, and Adjusted EBITDA should not be
considered as measures of financial performance under generally
accepted accounting principles ("GAAP"). We believe net income
attributable to HCA Healthcare, Inc., excluding losses (gains) on
sales of facilities and losses on retirement of debt, and Adjusted
EBITDA are important measures that supplement discussions and
analysis of our results of operations. We believe it is useful to
investors to provide disclosures of our results of operations on
the same basis used by management. Management relies upon net
income attributable to HCA Healthcare, Inc., excluding losses
(gains) on sales of facilities and losses on retirement of debt,
and Adjusted EBITDA as the primary measures to review and assess
operating performance of its health care facilities and their
management teams.
Management and investors review
both the overall performance (including net income attributable to
HCA Healthcare, Inc., excluding losses (gains) on sales of
facilities and losses on retirement of debt, and GAAP net income
attributable to HCA Healthcare, Inc.) 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 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. It is reasonable to expect
that losses (gains) on sales of facilities and losses on retirement
of debt will occur in future periods, but the amounts recognized
can vary significantly from period to period, do not directly
relate to the ongoing operations of our health care facilities and
complicate period comparisons of our results of operations and
operations comparisons with other health care companies.
Net income attributable to HCA
Healthcare, Inc., excluding losses (gains) on sales of facilities
and losses on retirement of debt, and Adjusted EBITDA are not
measures of financial performance under GAAP, and should not be
considered as alternatives to net income attributable to HCA
Healthcare, Inc. as a measure of operating performance or cash
flows from operating, investing and financing activities as a
measure of liquidity. Because net income attributable to HCA
Healthcare, Inc., excluding losses (gains) on sales of facilities
and losses on retirement of debt, and Adjusted EBITDA are not
measurements determined in accordance with GAAP and are susceptible
to varying calculations, net income attributable to HCA Healthcare,
Inc., excluding losses (gains) on sales of facilities and losses on
retirement of debt, and Adjusted EBITDA, as presented, may not be
comparable to other similarly titled measures presented by other
companies.
HCA Healthcare, Inc. Supplemental Non-GAAP
Disclosures 2021 Operating Results Forecast (Dollars
in millions, except per share amounts)
For the Year Ending
December 31, 2021
Low
High
Revenues
$
58,700
$
59,300
Net income attributable to HCA Healthcare, Inc. (a)
$
5,650
$
5,830
Depreciation and amortization
2,840
2,860
Interest expense
1,560
1,580
Provision for income taxes
1,700
1,750
Net income attributable to noncontrolling interests
750
780
Adjusted EBITDA (a) (b)
$
12,500
$
12,800
Diluted earnings per share: Net income attributable to HCA
Healthcare, Inc.
$
17.20
$
17.80
Shares used in computing diluted earnings per share
(millions)
329.000
329.000
The Company's forecasted guidance range is based on current
plans and expectations and is subject to a number of known and
unknown uncertainties and risks.
(a)
The Company does not forecast the
impact of items such as, but not limited to, losses (gains) on
sales of facilities, losses on retirement of debt, legal claim
costs (benefits) and impairments of long-lived assets because the
Company does not believe that it can forecast these items with
sufficient accuracy.
(b)
Adjusted EBITDA should not be
considered a measure of financial performance under generally
accepted accounting principles ("GAAP"). We believe Adjusted EBITDA
is an important measure that supplements discussions and analysis
of our results of operations. We believe it is useful to investors
to provide disclosures of our results of operations on the same
basis used by management. Management relies upon Adjusted EBITDA as
a primary measure to review and assess operating performance of its
health care facilities and their management teams.
Management and investors review
both the overall performance (including net income attributable to
HCA Healthcare, Inc.) 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 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.
Adjusted EBITDA is not a measure
of financial performance under GAAP and should not be considered as
an alternative to net income attributable to HCA Healthcare, Inc.
as a measure of operating performance or cash flows from operating,
investing and financing activities as a measure of liquidity.
Because Adjusted EBITDA is not a measurement determined in
accordance with GAAP and is susceptible to varying calculations,
Adjusted EBITDA, as presented, may not be comparable to other
similarly titled measures presented by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211022005081/en/
INVESTOR CONTACT: Mark Kimbrough 615-344-2688
MEDIA CONTACT: Harlow Sumerford 615-344-1851
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