Summary
HCA Healthcare, Inc. (HCA) reported its financial results for the third quarter and the first nine months of 2011. The company experienced revenue growth, with Q3 revenues increasing by 5.5% year-over-year to $7.310 billion and nine-month revenues rising by 5.4% to $22.004 billion. This growth was driven by an increase in patient volumes (equivalent admissions) across both consolidated and same-facility operations, although revenue per equivalent admission saw a slight decline or modest increase. A significant factor impacting net income was a substantial loss on the retirement of debt in Q3 2011, amounting to $406 million. This, along with other charges like a $181 million termination fee for a management agreement in the first nine months of 2011, contributed to a significant year-over-year decrease in net income attributable to HCA Holdings, Inc., which fell to $61 million in Q3 2011 from $243 million in Q3 2010, and to $530 million for the nine months ended September 30, 2011, from $924 million in the prior year period. The company also completed a significant initial public offering (IPO) in March 2011 and a large share repurchase in September 2011, impacting share counts and capital structure.
Financial Highlights
46 data points| Revenue | $7.26B |
| Interest Expense | $519.00M |
| Net Income | $61.00M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 508.42M |
| Shares Outstanding (Diluted) | 527.51M |
Key Highlights
- 1Revenue increased by 5.5% to $7.310 billion in Q3 2011 and by 5.4% to $22.004 billion in the first nine months of 2011, driven by higher patient volumes.
- 2Net income attributable to HCA Holdings, Inc. decreased significantly to $61 million ($0.11/share) in Q3 2011 from $243 million ($0.55/share) in Q3 2010, primarily due to a $406 million loss on debt retirement.
- 3The company completed an Initial Public Offering (IPO) in March 2011, issuing 87.7 million shares and raising approximately $2.5 billion in net proceeds.
- 4Operating expenses, particularly salaries and benefits and other operating expenses, increased as a percentage of revenue compared to the prior year, impacting profitability.
- 5Same facility admissions increased by 3.2% in Q3 2011 and 4.8% in Q3 2010, indicating continued demand for services.
- 6The company is actively managing its debt, issuing $5 billion in new notes and refinancing credit facilities in August and September 2011, while also undertaking significant debt redemptions.
- 7The provision for doubtful accounts and uninsured discounts/charity care increased, reflecting ongoing challenges in collecting payments from uninsured patients.