10-QPeriod: Q2 FY2021

HCA Healthcare, Inc. Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 2, 2021For Securities:HCA

Summary

HCA Healthcare, Inc. reported strong financial results for the second quarter of 2021, with significant revenue and net income growth compared to the prior year. Revenues increased by 30.4% to $14.435 billion, driven by a robust rebound in patient volumes, including a 26.7% increase in equivalent admissions and a 37.7% rise in surgeries. Net income attributable to HCA Healthcare, Inc. surged by 34.3% to $1.450 billion, or $4.36 per diluted share. The company's operational recovery from the COVID-19 pandemic is evident in the substantial increase in patient volumes across various service lines, including emergency department visits and both inpatient and outpatient surgeries. While the company experienced a decline in cash flow from operating activities year-over-year, this was largely due to the absence of significant government stimulus income received in the prior year and changes in working capital. HCA Healthcare successfully refinanced a portion of its debt and has ample liquidity to meet its obligations.

Financial Highlights

48 data points
Beta

Revenue

$14.44B

Net Income

$1.45B

10.0% Net Margin

EPS (Diluted)

$4.36

Total Assets

$48.16B

Cash & Equivalents

$1.12B

Free Cash Flow

$1.41B

Financial Statements
Beta
Revenue$14.44B
Operating Expenses$12.32B
Interest Expense$386.00M
Net Income$1.45B
EPS (Basic)$4.42
EPS (Diluted)$4.36
Shares Outstanding (Basic)328.17M
Shares Outstanding (Diluted)332.61M

Key Highlights

  • 1Q2 2021 revenue surged by 30.4% year-over-year to $14.435 billion.
  • 2Net income attributable to HCA Healthcare, Inc. increased by 34.3% to $1.450 billion ($4.36 per diluted share).
  • 3Patient volumes saw a significant rebound, with equivalent admissions up 26.7% and surgeries up 37.7% compared to Q2 2020.
  • 4Same-facility revenues grew by 30.1%, indicating strong performance in existing operations.
  • 5The company completed significant debt refinancing in June 2021, strengthening its capital structure.
  • 6Share repurchases continued, with approximately $4.987 billion authorized for future repurchases as of June 30, 2021.
  • 7Management expects sufficient liquidity to meet obligations, supported by operating cash flows and credit facilities.

Frequently Asked Questions

The primary driver was a strong rebound in patient volumes across all service lines, including equivalent admissions and surgeries, as the effects of the COVID-19 pandemic moderated and restrictions were eased. This resulted in a 26.7% increase in equivalent admissions and a 37.7% increase in surgeries compared to the prior year.

In Q2 2020, HCA Healthcare received significant government stimulus income ($822 million) which boosted results. In Q2 2021, this stimulus income was absent, and while revenues and net income increased substantially due to patient volume recovery, the year-over-year comparison for cash flows from operations is significantly impacted by the prior year's stimulus and Medicare accelerated payments.

HCA Healthcare maintains a strong liquidity position with $5.620 billion available under its senior secured credit facilities as of June 30, 2021. Management believes that cash flows from operations, available credit facilities, and anticipated access to debt markets will be sufficient to meet expected liquidity needs for the next 12 months. The company also completed a debt refinancing in June 2021, which further supports its financial flexibility.

Yes, HCA Healthcare continued its share repurchase program, with $4.987 billion authorized for future repurchases as of June 30, 2021. The company also declared a quarterly dividend of $0.48 per share, payable in September 2021, although future dividend declarations are subject to board determination and debt agreement limitations.