LifePoint Hospitals, Inc.Jeff Sherman, 615-372-8501Executive Vice President and Chief Financial Officer
LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third quarter and nine months ended September 30, 2012.
For the third quarter ended September 30, 2012, revenues from continuing operations were $820.2 million, up 11.0% from $739.2 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, 2012, decreased 50.7% to $19.2 million, or $0.39 per diluted share, compared with $38.9 million, or $0.77 per diluted share, for the same period last year.
For the first nine months of 2012, revenues from continuing operations were $2,498.5 million, up 11.3% from $2,244.8 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for the first nine months of 2012 decreased 7.6% to $115.4 million, or $2.38 per diluted share, compared with $125.0 million, or $2.43 per diluted share, for the same period last year.
In commenting on the results, William F. Carpenter III, chairman and chief executive officer of LifePoint Hospitals, said, “This was a challenging quarter for LifePoint. Our financial results were adversely affected by specific costs associated with investments we made that are critical to future growth and by operational changes in our business. We remain focused on improving operating efficiencies in light of the current environment, advancing our strategy of delivering high quality care and service, expanding in existing markets and through acquisitions in faster growing markets, as well as developing talent. We are confident our plan will deliver results and continue to generate value for our stockholders.”
The Company provides the following table and explanations for certain items that adversely affected the Company’s financial performance for the three months ended September 30, 2012:
The following provides additional information pertaining to the significant items incurred and summarized in the table above:
In addition to the information highlighted above, the Company’s financial performance for the three months ended September 30, 2012, was adversely affected by other items as follows: During the three months ended September 30, 2012, the Company’s Recovery Audit Contractor experience resulted in a net reduction to revenue of approximately $4.0 million. As a result of increasing observation visits, the Company estimates that its reimbursement declined approximately $2.0 million in the quarter. The Company continues to employ an increasing number of physicians and, as a result, its net physician practice losses for the three months ended September 30, 2012, increased by approximately $3.5 million as compared with the same period in the prior year. Finally, beginning in the three months ended September 30, 2012, the Company experienced a decline in reimbursement of approximately $2.8 million, compared with the same period in the prior year, relating to a decrease in funding from a New Mexico indigent care program.
A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals’ third quarter 2012 conference call will be available on line at and today, Friday, October 26, 2012, 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 56 hospital campuses in 19 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, . All references to “LifePoint,” “LifePoint Hospitals,” or the “Company” used in this release refer to LifePoint Hospitals, Inc. or its affiliates.
Adjusted Diluted Earnings Per Share (“EPS”) attributable to LifePoint Hospitals, Inc. stockholders is defined by the Company as diluted EPS attributable to LifePoint Hospitals, Inc. stockholders before acquisition transaction expenses, prior period repayment obligation expense, retention and severance expenses and Hurricane Isaac impact. The Company believes Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders is useful to investors to properly reflect the ongoing operating performance of the Company adjusting for timing differences. Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders should not be considered as a measure of financial performance under U.S. generally accepted accounting principles (“GAAP”), and the items excluded from Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders are significant components in understanding and assessing financial performance. Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders 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 Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders is not a measurement determined in accordance with GAAP and is susceptible to varying calculations, Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders as presented may not be comparable to other similarly titled measures of other companies.
The following table reconciles Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders as presented earlier to Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders as reflected in the unaudited condensed consolidated statements of operations: