HCA Healthcare, Inc. Quarterly Report for Q3 Ended Sep 30, 2019

Summary

HCA Healthcare, Inc. reported a 10.9% increase in consolidated revenues for the third quarter of 2019, reaching $12.694 billion, up from $11.451 billion in the prior year's third quarter. This growth was driven by a 7.5% increase in equivalent admissions and a 3.1% rise in revenue per equivalent admission. However, net income attributable to HCA Healthcare, Inc. declined to $612 million ($1.76 per diluted share) from $759 million ($2.15 per diluted share) in the same period last year. This decrease was largely due to a significant $211 million loss on the retirement of debt in the current quarter, compared to a much smaller $9 million loss in the prior year. Despite the earnings dip, operational performance showed strength with increases in admissions, surgeries, and emergency department visits on both a consolidated and same-facility basis, indicating robust patient demand. For the first nine months of 2019, consolidated revenues grew by 9.9% to $37.813 billion, while net income attributable to HCA Healthcare, Inc. decreased to $2.434 billion ($6.98 per diluted share) from $2.723 billion ($7.65 per diluted share) in the comparable period of 2018. This decline was influenced by a large loss on debt retirement and lower gains on facility sales in the current year. The company continues to invest in its facilities, with capital expenditures (excluding acquisitions) increasing year-over-year, demonstrating a commitment to long-term growth and operational improvement. Management expresses confidence in the company's liquidity, citing sufficient cash flows from operations and available credit facilities.

Key Highlights

• 1Consolidated revenues increased by 10.9% to $12.694 billion in Q3 2019.
• 2Net income attributable to HCA Healthcare, Inc. decreased by 19.3% to $612 million in Q3 2019, primarily due to a $211 million loss on debt retirement.
• 3Total admissions increased by 5.9% on a consolidated basis and 3.2% on a same-facility basis in Q3 2019.
• 4Revenue per equivalent admission saw a 3.1% increase on a consolidated basis and a 2.0% increase on a same-facility basis in Q3 2019.
• 5Cash flow from operating activities increased by $405 million to $2.126 billion in Q3 2019.
• 6Capital expenditures (excluding acquisitions) increased to $2.884 billion for the first nine months of 2019, indicating investment in facilities.
• 7The company repurchased $1.845 million shares of common stock in Q3 2019, reflecting a commitment to returning capital to shareholders.

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