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8-K - LIFEPOINT HOSPITALS, INC. 8-K - LEGACY LIFEPOINT HEALTH, INC.a50047773.htm

Exhibit 99.1

LifePoint Hospitals Reports Third Quarter 2011 Results

Third Quarter EPS of $0.77, Up 6.9% Over Prior Year Period

Company Expects to Achieve High End of Guidance Range

BRENTWOOD, Tenn.--(BUSINESS WIRE)--October 28, 2011--LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third quarter and nine months ended September 30, 2011.

For the third quarter ended September 30, 2011, revenues from continuing operations were $877.2 million, up 5.4% from $832.3 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, 2011, increased 1.1% to $38.9 million, or $0.77 per diluted share, compared with $38.5 million, or $0.72 per diluted share, for the same period last year.

For the first nine months of 2011, revenues from continuing operations were $2,643.4 million, up 9.7% from $2,409.1 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for the first nine months of 2011 increased 4.8% to $125.0 million, or $2.43 per diluted share, compared with $119.3 million, or $2.21 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, “We’re pleased with our third quarter results and with the progress we have made throughout 2011. The quality of patient care provided in our hospitals continues to improve as we work more closely with our physicians. In addition, we are making strategic investments in our existing assets, as well as in new markets, while effectively controlling costs. We are confident that we have the right strategies, teams and tools in place to drive enhanced value for our shareholders.”

The Company noted that same store net revenues per equivalent admission were up 2.4% in the quarter versus the same period in the prior year. After normalizing for the $12.4 million of prior period revenue related to Alabama provider tax payments booked in the third quarter of 2010 and a deceleration in the amount of self pay revenue growth that the Company experienced in the third quarter of 2011, same store net revenues per equivalent admission would have increased by approximately 5.3%. The Company also noted that $11.0 million of meaningful use incentives was excluded from the net revenues per equivalent admission calculation.


The Company recognized $11.0 million of Medicaid meaningful use incentives and incurred $3.6 million of operating costs and approximately $1.1 million of depreciation in the quarter. On a year-to-date basis, the Company has recorded $15.2 million of Medicaid meaningful use incentives while incurring $7.9 million of operating costs and $2.8 million of depreciation.

The Company affirms the full year 2011 guidance given in its second quarter release on July 29, 2011, which included Adjusted EBITDA in a range of $525 – $545 million and Diluted EPS in a range of $2.95 – $3.15. The Company expects to be at the high end of the guidance range for both Adjusted EBITDA and Diluted EPS.

A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals’ third quarter 2011 conference call will be available on line at www.lifepointhospitals.com/news/press-releases and www.earnings.com today, Friday, October 28, 2011, 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 53 hospital campuses in 18 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, www.LifePointHospitals.com. All references to “LifePoint,” “LifePoint Hospitals,” or the “Company” used in this release refer to LifePoint Hospitals, Inc. or its affiliates.

Important Legal Information. Certain statements contained in this release are based on current management expectations and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to qualify for the safe harbor protections from liability provided by the Private Securities Litigation Reform Act of 1995. Numerous factors exist which may cause results to differ from these expectations. Many of the factors that will determine LifePoint’s future results are beyond LifePoint’s ability to control or predict with accuracy. Such forward-looking statements reflect the current expectations and beliefs of the management of LifePoint, are not guarantees of performance and are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ from those described in the forward-looking statements. These forward-looking statements may also be subject to other risk factors and uncertainties, including without limitation: (i) the effect and implementation of healthcare reform legislation and other changes in government programs including efforts to reduce healthcare expenditures; (ii) reductions in Medicare or Medicaid payments, whether driven by budget deficits, programmatic changes or otherwise; (iii) reductions in revenues from commercial payors, whether as a change in our revenue mix, reduction in commercial rates or otherwise;(iv) LifePoint’s ability to acquire hospitals on favorable terms, the business risks associated with acquiring additional hospitals and the uncertainty in operating and integrating such hospitals;(v) the ongoing, adverse effects from the recent economic recession including high rates of unemployment, which could intensify if credit conditions deteriorate; (vi) the failure of certain employers, or the closure of certain manufacturing and other facilities, especially in markets where LifePoint’s hospitals depend on a small number of local employers; (vii) the growth of uninsured and “patient due” accounts, and deterioration in the collectability of these accounts;(viii) whether our core strategies will result in anticipated operating results; (ix) whether our efforts to reduce the cost of providing healthcare while increasing the quality of care are successful; (x) the ability to attract, recruit and retain qualified physicians, nurses, medical technicians and other healthcare professionals; (xi) the loss of certain physicians in markets where such a loss can have a disproportionate impact on LifePoint’s hospitals; (xii) the increasingly stringent and complex legal and regulatory environment (and changing interpretations of applicable laws and regulations), increased legal and regulatory obligations and related enforcement activity, new obligations that providers must self-disclose violations, and the additional costs incurred in connection with efforts to comply with such laws and regulations; (xiii) competition from other hospitals and outpatient facilities providing services similar to those LifePoint offers and from physicians providing services in their offices that could be provided in LifePoint’s hospitals; (xiv) adverse events in states a large portion of LifePoint’s revenues are concentrated; (xv) any interruption of or restriction in LifePoint’s access to licensed information (and information technology systems) or failure in LifePoint’s ability to integrate changes to LifePoint’s existing information systems or information systems of acquired hospitals; (xvi) liabilities resulting from potential malpractice and related legal claims brought against LifePoint’s hospitals; and (xvii) those other risks and uncertainties described from time to time in LifePoint’s filings with the Securities and Exchange Commission. Therefore, LifePoint’s future results may differ materially from those described in this release. LifePoint undertakes no obligation to update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

All references to “LifePoint,” “LifePoint Hospitals” and the “Company” as used throughout this release refer to LifePoint Hospitals, Inc. and its subsidiaries.


     

LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in millions, except per share amounts

 
For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

2011   2010 2011   2010
Amount  

% of

Revenues

Amount  

% of

Revenues

Amount  

% of

Revenues

Amount  

% of

Revenues

Revenues $ 877.2 100.0 % $ 832.3 100.0 % $ 2,643.4 100.0 % $ 2,409.1 100.0 %
 
Salaries and benefits 337.8 38.5 324.8 39.0 1,011.2 38.3 935.1 38.8
Supplies 113.9 13.0 112.9 13.6 346.7 13.1 330.5 13.7
Other operating expenses 171.1 19.5 158.5 19.0 495.8 18.7 444.2 18.5
Provision for doubtful accounts 127.0 14.5 116.3 14.0 383.4 14.5 323.4 13.4
Depreciation and amortization 40.7 4.6 36.4 4.4 121.0 4.6 109.2 4.5
Interest expense, net 24.3 2.8 26.2 3.1 81.6 3.1 77.2 3.2
Debt extinguishment costs         2.4   0.3           2.4   0.1  
  814.8   92.9     777.5   93.4     2,439.7   92.3     2,222.0   92.2  
 
Income from continuing operations before income taxes 62.4 7.1 54.8 6.6 203.7 7.7 187.1 7.8
Provision for income taxes   22.8   2.6     15.6   1.9     76.5   2.9     65.5   2.8  
Income from continuing operations 39.6 4.5 39.2 4.7 127.2 4.8 121.6 5.0
(Loss) income from discontinued operations,

net of income taxes

  (0.1 )     0.3       0.2          
Net income 39.5 4.5 39.5 4.7 127.4 4.8 121.6 5.0
Less: Net income attributable to noncontrolling interests   (0.7 ) (0.1 )   (0.7 ) (0.1 )   (2.2 ) (0.1 )   (2.3 )  
Net income attributable to LifePoint Hospitals, Inc. $ 38.8   4.4 % $ 38.8   4.6 % $ 125.2   4.7 % $ 119.3   5.0 %
 
Basic earnings per share attributable to LifePoint Hospitals, Inc. stockholders:
Continuing operations $ 0.79 $ 0.74 $ 2.49 $ 2.26
Discontinued operations           0.01      
Net income $ 0.79   $ 0.74   $ 2.50   $ 2.26  
 
Diluted earnings per share attributable to LifePoint Hospitals, Inc. stockholders:(a)
Continuing operations $ 0.77 $ 0.72 $ 2.43 $ 2.21
Discontinued operations           0.01      
Net income $ 0.77   $ 0.73   $ 2.44   $ 2.21  
 
Amounts attributable to LifePoint Hospitals, Inc. stockholders:

Income from continuing operations, net of income taxes

$ 38.9 $ 38.5 $ 125.0 $ 119.3
(Loss) income from discontinued operations, net of income taxes   (0.1 )   0.3     0.2      
Net income $ 38.8   $ 38.8   $ 125.2   $ 119.3  

     

LIFEPOINT HOSPITALS, INC.

UNAUDITED EARNINGS PER SHARE CALCULATIONS

In millions, except per share amounts

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

  2011       2010     2011       2010  
Income from continuing operations $ 39.6 $ 39.2 $ 127.2 $ 121.6
Less: Net income attributable to noncontrolling interests   (0.7 )   (0.7 )   (2.2 )   (2.3 )

Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders

38.9 38.5 125.0 119.3
(Loss) income from discontinued operations, net of income taxes   (0.1 )   0.3     0.2      
Net income attributable to LifePoint Hospitals, Inc. $ 38.8   $ 38.8   $ 125.2   $ 119.3  
 
Weighted average shares outstanding – basic 49.3 52.0 50.2 52.8
Effect of dilutive securities: stock options and other stock-based awards   1.1     1.1     1.2     1.2  
Weighted average shares outstanding – diluted   50.4     53.1     51.4     54.0  
 
Basic earnings per share attributable to

LifePoint Hospitals, Inc. stockholders:

Continuing operations $ 0.79 $ 0.74 $ 2.49 $ 2.26
Discontinued operations           0.01      
Net income $ 0.79   $ 0.74   $ 2.50   $ 2.26  
 
Diluted earnings per share attributable to

LifePoint Hospitals, Inc. stockholders:(a)

Continuing operations $ 0.77 $ 0.72 $ 2.43 $ 2.21
Discontinued operations           0.01      
Net income $ 0.77   $ 0.73   $ 2.44   $ 2.21  

(a)  Total per share amounts may not add due to rounding.


     

LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

In millions

 
Sept. 30,

2011

Dec. 31,

2010

ASSETS
Current assets:
Cash and cash equivalents $ 199.4 $ 207.4

Accounts receivable, less allowances for doubtful accounts of $534.2 and $459.8 at September 30, 2011, and December 31, 2010, respectively

397.7 387.3
Inventories 83.9 84.6
Prepaid expenses 20.4 13.9
Income taxes receivable 5.5
Deferred tax assets 138.3 99.7
Other current assets   24.5     24.7  
864.2 823.1
 
Property and equipment:
Land 86.5 85.9
Buildings and improvements 1,561.0 1,532.9
Equipment 1,033.1 950.2
Construction in progress   68.9     39.4  
2,749.5 2,608.4
Accumulated depreciation   (1,045.0 )   (939.8 )
1,704.5 1,668.6
 
Deferred loan costs, net 23.2 27.2
Intangible assets, net 88.2 73.1
Other 43.7 20.2
Goodwill   1,574.5     1,550.7  
Total assets $ 4,298.3   $ 4,162.9  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 82.8 $ 89.0
Accrued salaries 95.8 101.4
Accrued interest 10.4 16.0
Income taxes payable 58.1
Other current liabilities 124.7 116.5
Current maturities of long-term debt   1.4     1.4  
373.2 324.3
 
Long-term debt 1,588.7 1,570.5
Deferred income tax liabilities 217.0 211.2
Reserves for self-insurance claims and other liabilities 142.1 131.8
Long-term income tax liability   15.3     18.5  
Total liabilities   2,336.3     2,256.3  
 
Redeemable noncontrolling interests 15.3 15.3
 
Equity:
LifePoint Hospitals, Inc. stockholders’ equity:
Preferred stock
Common stock 0.6 0.6
Capital in excess of par value 1,347.3 1,289.4
Accumulated other comprehensive loss (4.0 )
Retained earnings 1,029.2 904.0
Common stock in treasury, at cost   (443.7 )   (302.5 )
Total LifePoint Hospitals, Inc. stockholders’ equity 1,933.4 1,887.5
Noncontrolling interests   13.3     3.8  
Total equity   1,946.7     1,891.3  
Total liabilities and equity $ 4,298.3   $ 4,162.9  

     

LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in millions

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

2011   2010 2011   2010
Cash flows from operating activities:
Net income $ 39.5 $ 39.5 $ 127.4 $ 121.6

Adjustments to reconcile net income to net cash provided by operating activities:

Loss (income) from discontinued operations 0.1 (0.3 ) (0.2 )
Stock-based compensation 6.4 5.7 17.7 16.8
Depreciation and amortization 40.7 36.4 121.0 109.2
Amortization of physician minimum revenue guarantees 5.0 4.4 14.3 12.4
Amortization of convertible debt discounts 6.1 5.7 18.0 16.7
Amortization of deferred loan costs 1.4 1.6 4.4 5.6
Debt extinguishment costs 2.4 2.4
Deferred income tax benefit (15.3 ) (17.9 ) (34.7 ) (34.6 )
Reserves for self-insurance claims, net of payments 2.7 5.0 9.7 9.3

Increase (decrease) in cash from operating assets and liabilities, net of effects from acquisitions and divestitures:

Accounts receivable (17.5 ) (1.8 ) (12.4 ) (28.2 )
Inventories and other current assets (1.7 ) 0.1 (5.5 ) (2.4 )
Accounts payable and accrued expenses 8.6 15.8 (2.6 ) (3.9 )
Income taxes payable/receivable 37.0 17.6 63.6 57.3
Other   (3.0 )   (0.6 )   (2.4 )   (0.5 )
Net cash provided by operating activities – continuing operations 110.0 113.6 318.3 281.7
Net cash (used in) provided by operating activities – discontinued operations       (0.5 )   0.2     (1.2 )
Net cash provided by operating activities   110.0     113.1     318.5     280.5  
 
Cash flows from investing activities:
Purchase of property and equipment (49.3 ) (48.4 ) (153.8 ) (122.0 )
Acquisitions, net of cash acquired (36.6 ) (142.2 ) (63.1 ) (184.9 )
Other   (0.3 )       (1.2 )    
Net cash used in investing activities   (86.2 )   (190.6 )   (218.1 )   (306.9 )
 
Cash flows from financing activities:
Proceeds from borrowings 400.0 400.0
Payments on borrowings (0.1 ) (255.2 ) (0.1 ) (255.2 )
Repurchases of common stock (99.4 ) (46.9 ) (141.2 ) (97.4 )
Payment of debt financing costs (0.3 ) (8.7 ) (0.4 ) (13.1 )
Proceeds from exercise of stock options 0.1 1.2 34.6 14.7
Proceeds from employee stock purchase plans 0.6 0.4 1.2 1.0
Distributions to noncontrolling interests (0.8 ) (0.7 ) (1.4 ) (1.6 )
(Purchases of) proceeds from redeemable noncontrolling interests (0.8 ) 3.1
Capital lease payments and other   (0.3 )   (0.2 )   (1.1 )   (1.0 )
Net cash (used in) provided by financing activities   (100.2 )   89.1     (108.4 )   50.5  
 
Change in cash and cash equivalents (76.4 ) 11.6 (8.0 ) 24.1
Cash and cash equivalents at beginning of period   275.8     199.7     207.4     187.2  
Cash and cash equivalents at end of period $ 199.4   $ 211.3   $ 199.4   $ 211.3  
 
Supplemental disclosure of cash flow information:
Interest payments $ 21.0   $ 16.0   $ 65.0   $ 50.7  
Capitalized interest $ 0.5   $ 0.3   $ 1.3   $ 0.6  
Income taxes paid, net $ 1.2   $ 16.0   $ 47.8   $ 42.8  

   

LIFEPOINT HOSPITALS, INC.

UNAUDITED STATISTICS

 
Three Months Ended

September 30,

Nine Months Ended

September 30,

2011   2010   %

Change

2011   2010   %

Change

Continuing Operations: (1)
Number of hospitals at end of period 52 52 % 52 52 %
Admissions 47,378 46,159 2.6 147,620 141,174 4.6
Equivalent admissions (2) 104,912 102,613 2.2 317,826 303,665 4.7
Revenues per equivalent admission (3) $ 8,256 $ 8,111 1.8 $ 8,270 $ 7,933 4.2
Medicare case mix index 1.28 1.29 (0.8 ) 1.29 1.30 (0.8 )
Average length of stay (days) 4.2 4.3 (2.3 ) 4.3 4.4 (2.3 )
Inpatient surgeries 13,255 13,733 (3.5 ) 39,962 40,539 (1.4 )
Outpatient surgeries 38,456 39,506 (2.7 ) 116,310 115,798 0.4
Emergency room visits 258,888 248,957 4.0 767,227 708,435 8.3
Outpatient factor (2) 2.22 2.22 2.15 2.15
 
Same-hospital: (4)
Number of hospitals at end of period 47 47 % 47 47 %
Admissions 44,535 44,645 (0.2 ) 138,915 139,224 (0.2 )
Equivalent admissions (2) 97,636 98,562 (0.9 ) 296,306 298,218 (0.6 )
Revenues per equivalent admission (3) $ 8,346 $ 8,148 2.4 $ 8,317 $ 7,950 4.6
Medicare case mix index 1.29 1.30 (0.8 ) 1.29 1.30 (0.8 )
Average length of stay (days) 4.2 4.3 (2.3 ) 4.3 4.4 (2.3 )
Inpatient surgeries 12,465 13,355 (6.7 ) 37,739 40,047 (5.8 )
Outpatient surgeries 36,275 38,123 (4.8 ) 110,185 113,662 (3.1 )
Emergency room visits 239,902 238,430 0.6 712,548 693,657 2.7
Outpatient factor (2) 2.20 2.21 (0.5 ) 2.13 2.14 (0.5 )

(1)

  Continuing operations information includes the results of our same-hospital operations, but excludes the results of our hospitals that have been disposed.
 

(2)

Management and investors use equivalent admissions as a general measure of combined inpatient and outpatient volume. We compute equivalent admissions by multiplying admissions (inpatient volumes) by the outpatient factor (the sum of gross inpatient revenue and gross outpatient revenue and then dividing the resulting amount by gross inpatient revenue). The equivalent admissions computation “equates” outpatient revenue to the volume measure (admissions) used to measure inpatient volume resulting in a general measure of combined inpatient and outpatient volume.
 

(3)

Revenues per equivalent admission calculation excludes revenues recognized in connection with Medicaid EHR incentive payments.
 

(4)

Same-hospital information includes the results of our corporate office and the same 47 hospitals operated during the three and nine months ended September 30, 2011 and 2010. Same-hospital information excludes the results of HighPoint Health System, which we acquired effective September 1, 2010, Clark Regional Medical Center, which we acquired effective May 1, 2010, and our hospitals that have previously been disposed.
 

LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars in millions

Adjusted EBITDA is defined by the Company as earnings before depreciation and amortization; interest expense, net; debt extinguishment costs; provision for income taxes; loss (income) from discontinued operations and net income attributable to noncontrolling interests. LifePoint’s management and Board of Directors use Adjusted EBITDA to evaluate the Company’s operating performance and as a measure of performance for incentive compensation purposes. LifePoint’s credit facilities use Adjusted EBITDA for certain financial covenants. The Company believes Adjusted EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. In addition, multiples of current or projected Adjusted EBITDA are used to estimate current or prospective enterprise value. Adjusted EBITDA should not be considered as a measure of financial performance under U.S. generally accepted accounting principles (“GAAP”), and the items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA 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 EBITDA is not a measurement determined in accordance with GAAP and is susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.


    Three Months Ended

September 30,

  Nine Months Ended

September 30,

2011   2010 2011   2010
Amount  

% of

Revenues

Amount  

% of

Revenues

Amount  

% of

Revenues

Amount  

% of

Revenues

Revenues $ 877.2 100.0 % $ 832.3 100.0 % $ 2,643.4 100.0 % $ 2,409.1 100.0 %
 
Salaries and benefits 337.8 38.5 324.8 39.0 1,011.2 38.3 935.1 38.8
Supplies 113.9 13.0 112.9 13.6 346.7 13.1 330.5 13.7
Other operating expenses 171.1 19.5 158.5 19.0 495.8 18.7 444.2 18.5
Provision for doubtful accounts   127.0 14.5     116.3 14.0     383.4 14.5     323.4 13.4  
  749.8 85.5     712.5 85.6     2,237.1 84.6     2,033.2 84.4  
Adjusted EBITDA $ 127.4 14.5 % $ 119.8 14.4 % $ 406.3 15.4 % $ 375.9 15.6 %

The following table reconciles Adjusted EBITDA as presented above to net income attributable to LifePoint Hospitals, Inc. as reflected in the unaudited condensed consolidated statements of operations:


         

Three Months Ended

September 30,

Nine Months Ended

September 30,

2011 2010 2011   2010
Adjusted EBITDA $ 127.4 $ 119.8 $ 406.3 $ 375.9
Less:
Depreciation and amortization 40.7 36.4 121.0 109.2
Interest expense, net 24.3 26.2 81.6 77.2
Debt extinguishment costs 2.4 2.4
Provision for income taxes 22.8 15.6 76.5 65.5
Loss (income) from discontinued operations 0.1 (0.3 ) (0.2 )
Net income attributable to noncontrolling interests   0.7   0.7     2.2     2.3
Net income attributable to LifePoint Hospitals, Inc. $ 38.8 $ 38.8   $ 125.2   $ 119.3
 

LIFEPOINT HOSPITALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION (Continued)
Dollars in millions

Cash Revenues is defined by the Company as reported revenues less the provision for doubtful accounts. Cash Revenues is a common analytical indicator within the health care industry. Cash Revenues should not be considered as a measure of financial performance under GAAP. Because Cash Revenues is not a measurement determined in accordance with GAAP and is susceptible to varying calculations, Cash Revenues, as presented, may not be comparable to other similarly titled measures of other companies.


     
Three Months Ended

September 30, 2011

Three Months Ended

September 30, 2010

Amount  

Non-GAAP

% of Cash

Revenues

Ratios (1)

 

GAAP

% of

Revenues

Ratios (1)

Amount  

Non-GAAP

% of Cash

Revenues

Ratios (1)

 

GAAP

% of

Revenues

Ratios (1)

Continuing Operations:
Revenues $ 877.2 100.0 % $ 832.3 100.0 %
Provision for doubtful accounts   127.0     116.3
Cash Revenues 750.2 100.0 % 716.0 100.0 %
 
Salaries and benefits 337.8 45.0 38.5 324.8 45.4 39.0
Supplies 113.9 15.2 13.0 112.9 15.8 13.6
Other operating expenses   171.1   22.9   19.5   158.5 22.1   19.0
622.8 83.1 596.2 83.3
 
Cash EBITDA $ 127.4   16.9 % 14.5 % $ 119.8 16.7 % 14.4 %
 
% Changes from Prior Year:
Revenues 5.4 %
Cash Revenues 4.8 %
Cash EBITDA margins 20 bps

    Nine Months Ended

September 30, 2011

  Nine Months Ended

September 30, 2010

Amount  

Non-GAAP

% of Cash

Revenues

Ratios (1)

 

GAAP

% of

Revenues

Ratios (1)

Amount  

Non-GAAP

% of Cash

Revenues

Ratios (1)

 

GAAP

% of

Revenues

Ratios (1)

Continuing Operations:
Revenues $ 2,643.4 100.0 % $ 2,409.1 100.0 %
Provision for doubtful accounts   383.4     323.4
Cash Revenues 2,260.0 100.0 % 2,085.7 100.0 %
 
Salaries and benefits 1,011.2 44.7 38.3 935.1 44.8 38.8
Supplies 346.7 15.3 13.1 330.5 15.8 13.7
Other operating expenses   495.8   22.0   18.7   444.2 21.4   18.5
1,853.7 82.0 1,709.8 82.0
 
Cash EBITDA $ 406.3   18.0 % 15.4 % $ 375.9 18.0 % 15.6 %
 
% Changes from Prior Year:
Revenues 9.7 %
Cash Revenues 8.4 %
Cash EBITDA margins (0) bps

(1) Salaries and benefits, supplies and other operating expenses, as a percentage of Cash Revenues (a non-GAAP financial measure), present the impact on these ratios due to the adjustment of deducting the provision for doubtful accounts from reported revenues and results in these ratios being non-GAAP financial measures. The Company’s management and Board of Directors finds this information useful to evaluate certain expense category trends without the influence of whether adjustments to revenues for uninsured accounts are recorded as revenue adjustments (charity care and uninsured discounts) or operating expenses (provision for doubtful accounts). Thus, the expense category trends are generally analyzed as a percentage of Cash Revenues. These non-GAAP financial measures should not be considered alternatives to GAAP financial measures. The Company’s management believes this supplemental information provides management and the users of its financial statements with useful information for period-to-period comparisons. Investors are encouraged to use GAAP measures when evaluating the Company’s overall financial performance.

CONTACT:
LifePoint Hospitals, Inc.
Jeff Sherman, 615-372-8501
Executive Vice President and
Chief Financial Officer