Third Quarter Revenue of $832 Million up 11.7% over Prior Year Period
BRENTWOOD, Tenn.--(BUSINESS WIRE)-- LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third quarter and nine months ended September 30, 2010.
For the third quarter ended September 30, 2010, revenues from continuing operations were $832.3 million, up 11.7% from $745.0 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for the third quarter ended September 30, 2010, increased 19.9% to $38.5 million, or $0.72 per diluted share, compared with income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders of $32.1 million, or $0.59 per diluted share, for the same period last year. Income from continuing operations for the third quarter ended September 30, 2010, includes incremental Alabama Medicaid funding that the Company budgeted to receive in 2010 as well as a favorable income tax adjustment. Net income attributable to LifePoint Hospitals, Inc. stockholders for the third quarter ended September 30, 2010, was $38.8 million, or $0.73 per diluted share, compared with $31.4 million, or $0.58 per diluted share, for the same period last year.
For the nine months ended September 30, 2010, revenues from continuing operations were $2,409.1 million, up 8.7% from $2,215.8 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for the first nine months of 2010, increased 18.5% to $119.3 million, or $2.21 per diluted share, compared with income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders of $100.6 million, or $1.88 per diluted share, for the same period last year. Net income attributable to LifePoint Hospitals, Inc. stockholders for the nine months ended September 30, 2010, was $119.3 million, or $2.21 per diluted share, compared with $96.1 million, or $1.80 per diluted share, for the same period last year.
In commenting on the results, William F. Carpenter III, president and chief executive officer of LifePoint Hospitals, said, “Our third quarter results were solid in spite of soft volumes. We are on track to meet the guidance that we revised upward in the second quarter, and we are executing our strategic initiatives to create value for LifePoint stockholders. In addition, our recently acquired hospitals are performing well, and the integrations are proceeding as scheduled. We look forward to bringing the benefits of our scale, resources and management capabilities to these facilities.”
A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals’ third quarter 2010 conference call will be available on line at www.LifePointHospitals.com and www.earnings.com today, Friday, October 29, 2010, beginning at 10:00 a.m. Eastern Time.
LifePoint Hospitals, Inc. is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates 52 hospital campuses in 17 states. With a mission of “Making Communities Healthier®,” LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com. All references to “LifePoint,” "LifePoint Hospitals," or the “Company” used in this release refer to LifePoint Hospitals, Inc. or its affiliates.
Important Legal Information. Certain statements contained in this release 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 LifePoint’s future results are beyond LifePoint’s 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 failure of certain employers, or the closure of certain manufacturing and other facilities, in markets where LifePoint’s hospitals depend on a small number of local employers; (ii) the growth of uninsured and “patient due” accounts, and deterioration in the collectability of these accounts; (iii) continuing fallout from the recent economic recession, particularly if conditions in the capital and credit markets deteriorate or there is a prolonged period of recovery; (iv) reduction in Medicare or Medicaid payments by federal or state programs, or reduction in reimbursement amounts from managed care companies; (v) deterioration in the financial condition of payors, or increased healthcare cost containment initiatives; (vi) LifePoint’s ability to attract, recruit and retain qualified physicians, nurses, medical technicians and other healthcare professionals; (vii) the loss of certain physicians in markets where such a loss can have a disproportionate impact on LifePoint’s hospitals; (viii) the effect of recently enacted health care reform legislation and other changes in government programs intended to decrease the number of uninsured Americans and reduce overall healthcare costs; (ix) increasingly stringent governmental scrutiny that may subject LifePoint to allegations that LifePoint has failed to comply with governmental regulations; (x) competition from other hospitals and outpatient facilities providing services similar to those LifePoint offers and from physicians providing services in their offices that could be provided in LifePoint’s hospitals; (xi) regulatory and economic changes in the small number of states in which LifePoint’s revenues are concentrated; (xii) interruption of or restriction in LifePoint’s access to licensed information or failure in LifePoint’s ability to integrate changes to LifePoint’s existing information systems or information systems of acquired hospitals; (xiii) LifePoint’s substantial indebtedness and any incurrence of significant amounts of additional indebtedness; (xiv) liabilities resulting from potential malpractice and related legal claims brought against LifePoint’s hospitals; (xv) LifePoint’s ability to acquire hospitals and not-for-profit entities on favorable terms; (xvi) business risks associated with acquiring additional hospitals and the difficulty in operating and integrating such hospitals; (xvii) LifePoint’s ability to enhance LifePoint’s hospitals with the most recent technological advances in diagnostic and surgical equipment; and (xviii) those other risks and uncertainties described from time to time in LifePoint’s filings with the Securities and Exchange Commission. Therefore, LifePoint’s 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.
All references to “LifePoint,” “LifePoint Hospitals” and the “Company” as used throughout this release refer to LifePoint Hospitals, Inc. and its subsidiaries.
Adjusted EBITDA is defined by the Company as earnings before depreciation and amortization; interest expense, net; debt extinguishment costs; provision for income taxes; (income) loss from discontinued operations and net income attributable to noncontrolling interests. LifePoint’s management and Board of Directors use Adjusted 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 for certain financial covenants. The Company believes Adjusted EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. In addition, multiples of current or projected Adjusted EBITDA are used to estimate current or prospective enterprise value. Adjusted EBITDA should not be considered as a measure of financial performance under U.S. generally accepted accounting principles, and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted 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 consolidated financial statements as an indicator of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with U.S. generally accepted accounting principles and is susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.