Skip to content
AnalystLens

HCA Healthcare, Inc. 8-K Report, Financial Results (Apr 26, 2024)

Reports
Earnings & Results·Regulation FD·Other Events+1
Filing Date
Filed April 26, 2024
Period End
April 26, 2024
Security
HCA
In the record · 2016–202610-K1110-Q328-K144

HCA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Aug ’22Aug ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed April 26, 2024. Cited figures are marked; the original filing is the authoritative source.

HCA Healthcare reported first quarter 2024 results (quarter ended March 31, 2024) that were driven primarily by broad-based volume growth.

Revenues rose 11.2% to $17.339 billiona from $15.591 billion, and net income attributable to HCA Healthcare was $1.591 billion, or $5.93 per diluted share, versus $4.85 a year earlier. The headline EPS figure was helped by a $201 million pre-tax gain on facility sales (about $0.57 per diluted share), primarily from the sale of a California hospital. Excluding facility gains and losses, net income attributable to HCA, as adjusted, was $1.437 billion, or $5.36 per diluted share, compared with $4.93 a year earlier, a gain of roughly 9%.

Adjusted EBITDA rose 5.7% to $3.353 billionb, although the margin contracted to 19.3% from 20.3%, reflecting higher other operating expenses. Operating volumes were strong. Same facility admissions grew 6.2%, same facility equivalent admissions grew 5.2%, and same facility emergency room visits grew 7.2%.

Same facility revenue per equivalent admission rose 3.5%. Inpatient surgeries grew 1.7%, while outpatient surgeries declined 2.1%. Operating cash flow was $2.469 billionc, up from $1.803 billion.

Management reaffirmed its 2024 guidance, which calls for revenues of $67.75 billion to $70.25 billiond, net income attributable to HCA of $5.2 billion to $5.6 billion, Adjusted EBITDA of $12.85 billion to $13.55 billion, and diluted EPS of $19.70 to $21.20. Guidance excludes facility gains and losses, debt retirement losses, legal claim costs, and impairments. Capital allocation remained shareholder-focused.

HCA repurchased 3.894 million shares for $1.180 billion, leaving $5.595 billion under its authorization, and declared a quarterly dividend of $0.66 per share payable June 28, 2024 to holders of record on June 14, 2024. Total debt was $40.191 billion at quarter end, and HCA issued $4.483 billion of long-term debt during the quarter while repaying $2.066 billion.

Liquidity included $1.284 billion of cash and $7.987 billion of credit facility availability. Investors should note the substantial leverage, the thinner adjusted margin, and the reliance on volume growth and continued buybacks.

02—Key points

Key Highlights

  1. Revenue grew 11.2% year over year to $17.339 billion, driven primarily by broad-based volume growth.
  2. Same facility admissions rose 6.2% and equivalent admissions rose 5.2%, with ER visits up 7.2%.
  3. GAAP diluted EPS of $5.93 included a roughly $0.57 gain on facility sales; adjusted EPS was $5.36 versus $4.93 a year earlier.
  4. Adjusted EBITDA rose 5.7% to $3.353 billion, but the margin fell to 19.3% from 20.3%.
  5. Operating cash flow increased to $2.469 billion from $1.803 billion, and 2024 guidance was reaffirmed.
  6. HCA repurchased $1.180 billion of stock in the quarter, with $5.595 billion remaining under its authorization, and declared a $0.66 quarterly dividend.
  7. Total debt stood at $40.191 billion, with $4.483 billion of new issuance and $2.066 billion of repayments during the quarter.

03—Questions

Frequently Asked Questions

  1. Did HCA's underlying earnings growth come from operations or from one-time items?

    Mostly from operations. Net income attributable to HCA, as adjusted, rose about 3.8% to $1.437 billion, and adjusted EPS grew 8.7% to $5.36. GAAP EPS of $5.93 was inflated by a $0.57 gain on facility sales, primarily a California hospital sale, which is excluded from the adjusted figures.

  2. Why did the Adjusted EBITDA margin decline even though revenue grew?

    Costs grew faster than revenue. Other operating expenses rose to 20.9% of revenue from 18.7%, and supplies were roughly flat as a share of revenue. Salaries and benefits improved to 44.4% of revenue from 45.4%, which partly offset the increase. The release does not break down the drivers of the other operating expense increase.

  3. Is HCA's 2024 guidance changing?

    No. The company reaffirmed the ranges it issued on January 30, 2024: revenues of $67.75 billion to $70.25 billion, Adjusted EBITDA of $12.85 billion to $13.55 billion, and diluted EPS of $19.70 to $21.20. Guidance assumes current patient volumes, payer mix, and economic conditions, and excludes facility gains and losses and other non-recurring items.

  4. How is HCA returning capital to shareholders?

    Through buybacks and dividends. HCA repurchased 3.894 million shares for $1.180 billion in Q1 and has $5.595 billion remaining under its authorization. The Board declared a $0.66 quarterly dividend, payable June 28, 2024 to holders of record on June 14, 2024, which cost $185 million in Q1 dividend payments. Future dividends depend on the Board's discretion and on the company's financial condition.

  5. How much leverage does HCA carry, and is liquidity adequate?

    Leverage is high. Total debt was $40.191 billion against $56.962 billion of total assets, and interest expense was $512 million for the quarter. Liquidity is adequate, with $1.284 billion of cash and $7.987 billion of credit facility availability. HCA also refinanced aggressively, issuing $4.483 billion of long-term debt and repaying $2.066 billion, and $3.028 billion of long-term debt is due within one year.

04—Continue

← View all 8-K filings