Jan 30 2010
HCA today announced preliminary financial and operating results for its fourth quarter and fiscal year ended December 31, 2009. The financial results are subject to finalization associated with the Company's year-end financial and accounting procedures.
"Our organization has performed well in these uncertain economic times," said Richard M. Bracken, HCA Chairman and CEO. "This is evident in our fourth quarter performance as it has been throughout the past year."
HCA anticipates that revenues for the fourth quarter of 2009 will be approximately $7.605 billion, a 4.7 percent increase from $7.265 billion in the fourth quarter of 2008. Net income attributable to HCA Inc. for the fourth quarter of 2009 is anticipated to be approximately $216 million, compared to $276 million in the fourth quarter of 2008. Adjusted EBITDA for the fourth quarter of 2009 is expected to total approximately $1.343 billion compared to $1.237 billion in the fourth quarter of 2008. A table describing adjusted EBITDA and reconciling net income attributable to HCA Inc. to adjusted EBITDA is included in this release.
For the fourth quarter of 2009, salaries and benefits, supply expense and other operating expenses, are expected to approximate $5.633 billion, compared to $5.192 billion in the fourth quarter of 2008. Provision for doubtful accounts in the fourth quarter of 2009 is expected to approximate $693 million, or 9.1 percent of revenues, compared to $889 million, or 12.2 percent of revenues, in the fourth quarter of 2008. The reduction in the provision for doubtful accounts was primarily the result of an increase in charity care and uninsured discounts which are expected to total $1.499 billion in the fourth quarter of 2009 compared to $1.007 billion in the fourth quarter of 2008. Same facility uninsured admissions increased 0.2 percent in the fourth quarter and comprised 6.4 percent of total admissions compared to 6.5 percent in the fourth quarter of 2008.
Same facility admissions are expected to reflect an increase of 1.2 percent while same facility equivalent admissions are expected to increase by 2.6 percent for the fourth quarter of 2009 compared to the fourth quarter of 2008.
For the fiscal year 2009, revenues are expected to approximate $30.052 billion, compared to $28.374 billion in 2008. Net income attributable to HCA Inc. is expected to approximate $1.054 billion for the year ended December 31, 2009 compared to $673 million for 2008. Adjusted EBITDA is expected to approximate $5.472 billion compared to $4.574 billion for 2008.
Also, on January 27, 2010, the Board of HCA Inc. declared a distribution to the Company's stockholders and vested option holders of record on February 1, 2010, to be paid on February 5, 2010. The aggregate amount of the distribution is approximately $1.75 billion. The distribution will be funded through funds available under the Company's existing asset-based and general revolving credit facilities and cash on hand.
The Company expects long-term debt (including amounts due within one year) at December 31, 2009 to approximate $25.670 billion, a decrease of $2.738 billion from December 31, 2006 following the completion of the Company's recapitalization in November 2006. The Company's estimated leverage ratio at December 31, 2009, as measured by the ratio of long-term debt to adjusted EBITDA, is 4.7x. On a pro forma basis, to reflect the $1.75 billion distribution, the Company's estimated leverage ratio would be 5.0x. In comparison, the Company's leverage ratio was 6.4x as of December 31, 2006.
HCA plans to announce its complete fourth quarter and fiscal year 2009 results on February 18, 2010.