Province Healthcare (NYSE:PRV)
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Province Healthcare Reports First Quarter Results: EPS Increases
20%
BRENTWOOD, Tenn., April 28 /PRNewswire-FirstCall/ -- Province Healthcare
Company today announced results for the first quarter ended March 31, 2004.
Diluted earnings per share (EPS) from continuing operations for the quarter
increased 20% to $0.24 from $0.20 in the prior year.
Revenues from continuing operations for the first quarter of 2004 increased
9.9% to $204.9 million, compared with $186.5 million in the same quarter of
last year. Income from continuing operations for the quarter was $12.1 million
compared with $10.0 million in the prior year. Cash flow from operations for
the first quarter was $25.0 million, compared with $36.1 million in the same
quarter of last year. Adjusted for 2003 incentive compensation payments made
in 2004, timing of insurance premium payments and a federal income tax refund
received in the first quarter of 2003, cash flow from operations increased
approximately 34.4% quarter over quarter. Accounts receivable days outstanding
stood at 54 days at March 31, 2004.
On April 23, 2004, the Company and the Healthcare District of Palm Beach County
executed an Asset Purchase Agreement to permit the Healthcare District to
reacquire Glades General Hospital in Belle Glade, Florida. The transaction is
expected to close effective May 1, 2004. Pursuant to this plan of divestiture,
the operations and non-cash impairment of assets charge related to this
hospital are reported as "discontinued operations" and the consolidated
financial statements and statistics for all prior periods have been adjusted to
reflect this presentation. The Company's remaining 19 hospitals are now
reported as "continuing operations" and are considered "same-store."
Comparing the first quarter of 2004 with the first quarter of 2003, net patient
revenue increased 10.3%, driven by a 1.4% increase in total hospital admissions
and a 2.6% increase in adjusted admissions. Net patient revenue per adjusted
admission increased 7.5%, and gross outpatient revenue increased 14.4%.
"Our first quarter results confirm our optimism for 2004," said Martin S. Rash,
Chairman and Chief Executive Officer of Province Healthcare. "The strong 10.3%
increase in net patient revenue and 14.4% increase in gross outpatient revenue
resulted from our outstanding physician recruiting efforts and the additional
capital spent on revenue generating projects in 2003. Additionally, we remain
very enthusiastic about our two new hospital construction projects, Coastal
Carolina Medical Center near Hilton Head, South Carolina, and Ft. Mohave
Hospital in Ft. Mohave, Arizona. These communities are in high growth areas
and represent significant opportunities for our Company."
A listen-only simulcast, of Province Healthcare's first quarter conference
call, will be available on-line at http://www.prhc.net/ on April 29, 2004,
beginning at 11:00 a.m. Eastern Daylight Time.
The Company owns or leases 20 general acute care hospitals (including one
classified as "discontinued operations") in 13 states with a total of 2,273
licensed beds. The Company also provides management services to 36 non-urban
hospitals in 14 states with a total of 3,033 licensed beds.
Certain statements contained in this release, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may include projections of revenues, income or loss,
capital expenditures, capital structure, or other financial items, statements
regarding the plans and objectives of management for future operations,
statements of future economic performance, statements of the assumptions
underlying or relating to any of the foregoing statements, and other statements
which are other than statements of historical fact. These statements are based
on current estimates of future events, and the Company has no obligation to
update or correct these estimates unless considered material to the Company.
Forward-looking statements involve known and unknown risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from forecasted results. Those risks include, among others, risks
associated with general economic and business conditions, the effect of future
governmental regulations, changes in reimbursement levels by government
programs, including Medicare and Medicaid or other third party payors, the
Company's continued ability to recruit and retain physicians and the Company's
ability to successfully complete and integrate acquisitions. Those and other
risks are described in the Company's reports and filings with the Securities
and Exchange Commission.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
March 31, December 31,
2004 2003(*)
ASSETS
Current assets:
Cash and cash equivalents $56,624 $46,134
Accounts receivable, less allowance
for doubtful accounts of $62,937
in 2004 and $66,875 in 2003 117,103 111,957
Inventories 18,235 18,424
Prepaid expenses and other 12,901 11,832
Assets of discontinued operations 13,787 14,569
218,650 202,916
Property and equipment, net 468,431 460,031
Goodwill 309,271 309,271
Other assets 35,502 36,907
$1,031,854 $1,009,125
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $18,059 $16,343
Accrued salaries and benefits 23,817 28,740
Accrued expenses 22,044 14,238
Current portion of long-term debt 473 743
Liabilities of discontinued operations 2,875 2,749
67,268 62,813
Long-term debt, less current portion 451,537 447,956
Other liabilities 49,151 49,573
Minority interests 1,946 1,910
Stockholders' equity:
Preferred stock - $0.01 par value,
100,000 shares authorized,
none issued and outstanding -- --
Common stock - $0.01 par value;
150,000,000 shares authorized at
March 31, 2004 and December 31, 2003,
issued and outstanding 49,337,188 shares
and 48,841,157 shares at March 31, 2004
and December 31, 2003, respectively 493 488
Additional paid-in-capital 309,477 306,091
Retained earnings 152,746 141,186
Accumulated other comprehensive loss (764) (892)
Total stockholders' equity 461,952 446,873
$1,031,854 $1,009,125
(*) Derived from the audited consolidated financial statements of Province
and its subsidiaries, contained in the Company's Annual Report on
Form 10-K, filed with the Securities and Exchange Commission on
March 9, 2004.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Three Months Ended March 31,
2004 2003
% of % of
Amount Revenues Amount Revenues
Revenues:
Net patient revenue $198,241 $179,680
Other 6,635 6,784
204,876 100.0% 186,464 100.0%
Expenses:
Salaries, wages and benefits 75,564 36.9 72,355 38.8
Purchased services 18,870 9.2 16,650 8.9
Supplies 26,060 12.7 24,022 12.9
Provision for doubtful
accounts 20,245 9.9 16,041 8.6
Other operating expenses 25,254 12.3 23,698 12.7
Rentals and leases 2,370 1.2 2,319 1.2
Depreciation and amortization 10,202 5.0 8,878 4.8
Interest expense 6,920 3.4 5,722 3.1
Minority interests 67 -- 67 --
Loss on sale of assets -- -- 3 --
Total expenses 185,552 90.6 169,755 91.0
Income before provision for
income taxes 19,324 9.4 16,709 9.0
Income taxes 7,180 3.5 6,670 3.6
Income from continuing
operations 12,144 5.9% 10,039 5.4%
Discontinued operations,
net of tax:
Loss from operations (414) (188)
Impairment of assets (170) --
Net income $11,560 $9,851
Diluted earnings (loss) per
common share:
Continuing operations (a) $0.24 $0.20
Discontinued operations:
Loss from operations (0.01) --
Impairment of assets -- --
Net income $0.23 $0.20
(a) See calculation of diluted earnings per common share from continuing
operations in the Selected Operating Statistics section (attached).
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended March 31,
2004 2003
Cash flows from operating activities:
Income from continuing operations $12,144 $10,039
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 10,202 8,878
Deferred income taxes 2,375 830
Provision for professional liability 1,603 1,979
Loss on sale of assets -- 3
Changes in operating assets and
liabilities, net of effects
from acquisitions and disposals:
Accounts receivable (5,146) (1,302)
Inventories 189 145
Prepaid expenses and other (2,335) (5,476)
Accounts payable and accrued
expenses 8,988 21,735
Accrued salaries and benefits (4,923) 167
Other 1,898 (941)
Net cash provided by operating activities 24,995 36,057
Cash flows from investing activities:
Purchase of property and equipment (18,476) (15,175)
Purchase of hospitals and healthcare
entities -- (3)
Net cash used in investing activities (18,476) (15,178)
Cash flows from financing activities:
Repayments of debt (255) (20,387)
Issuance of common stock 3,902 1,163
Net cash provided by (used in) financing
activities 3,647 (19,224)
Net cash provided by continuing operations 10,166 1,655
Net cash provided by (used in) discontinued
operations 324 (289)
Increase in cash and cash equivalents 10,490 1,366
Cash and cash equivalents at beginning
of period 46,134 14,648
Cash and cash equivalents at end of period $56,624 $16,014
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SELECTED OPERATING STATISTICS (Unaudited)
Actual and Same Store (1)
Three Months Ended
March 31,
2004 2003 % Change
Consolidated Hospitals
(Continuing Operations):
Number of hospitals at end
of period 19 19 --%
Licensed beds at end of period 2,200 2,208 (0.4)
Beds in service at end of period 1,933 1,933 --
Inpatient admissions 18,993 18,724 1.4
Adjusted admissions (2) 33,984 33,109 2.6
Net patient revenue per
adjusted admission $5,833 $5,427 7.5
Patient days 81,247 80,583 0.8
Adjusted patient days (3) 145,320 142,518 2.0
Average length of stay (days) 4.28 4.30 (0.5)
Net patient revenue (000's) $198,241 $179,680 10.3
Gross revenue (000's):
Inpatient $253,943 $227,764 11.5%
Outpatient 200,276 175,004 14.4
$454,219 $402,768 12.8
Net Patient Revenue by Payor
(Continuing Operations):
Medicare 40.7% 39.5%
Medicaid 9.1 10.7
Other 50.2 49.8
Total 100.0% 100.0%
Three Months Ended March 31,
2004 2003 % Change
Diluted Earnings Per Share
From Continuing Operations
Calculation (000's, except
for per share amounts):
Income from continuing
operations $12,144 $10,039 21.0%
Add convertible notes
interest, net of tax (4) 1,898 --
$14,042 $10,039
Basic shares plus
stock options 50,338 48,758
Convertible shares (4) 9,099 --
59,437 48,758
Diluted earnings per share
from continuing operations $0.24 $0.20 20.0%
(1) Represents hospitals owned or leased during both periods.
(2) Used by management and investors as a general measure of combined
inpatient and outpatient volume. Adjusted admissions are computed by
multiplying admissions (inpatient volume) by the outpatient factor.
The outpatient factor is the sum of gross inpatient revenue and gross
outpatient revenue divided by gross inpatient revenue. The adjusted
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) Adjusted patient days are computed by multiplying patient days
(inpatient volume) by the outpatient factor. The outpatient factor is
the sum of gross inpatient revenue and gross outpatient revenue
divided by gross inpatient revenue. The adjusted patient days
computation equates outpatient revenue to the volume measure (patient
days) used to measure inpatient volume, resulting in a general measure
of combined inpatient and outpatient volume.
(4) The Company's two outstanding series of convertible notes are anti-
dilutive for the three months ended March 31, 2003 and thus, are not
included in the diluted earnings per share calculation for such
period.
DATASOURCE: Province Healthcare Company
CONTACT: Merilyn H. Herbert, Vice President, Investor Relations of
Province Healthcare Company, +1-615-370-1377
Web site: http://www.provincehealthcare.com/