Province Healthcare (NYSE:PRV)
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Province Healthcare Reports Fourth Quarter EPS of $0.24 From Continuing
Operations
BRENTWOOD, Tenn., Feb. 18 /PRNewswire-FirstCall/ -- Province Healthcare Company
today announced results for the fourth quarter and year ended December 31,
2003. Diluted earnings per share (EPS) from continuing operations for the
fourth quarter increased 166.7% to $0.24 from $0.09 in the prior year's quarter,
and for the year increased 19.4% to $0.86 from $0.72 in the prior year.
Revenues from continuing operations for the fourth quarter of 2003 increased
14.9% to $199.1 million compared with $173.4 million in the same quarter of last
year. Income from continuing operations for the quarter was $12.1 million, a
172.2% increase over last year's fourth quarter income from continuing
operations of $4.5 million.
Revenues from continuing operations for the year ended December 31, 2003,
increased 13.2% to $762.0 million, compared with $673.2 million in 2002. Income
from continuing operations for 2003 was $42.7 million, a 20.0% increase over
last year's income from continuing operations of $35.6 million. Cash flow from
operations totaled $106.2 million for the year, compared with $92.1 million in
the prior year.
As previously announced, the Company has signed a letter of intent to permit the
Palm Beach Healthcare District to reacquire Glades General Hospital in Belle
Glade, Florida. This transaction is expected to close in the first half of
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."
During the fourth quarter of 2003, the Company recorded a non-cash impairment of
assets charge from discontinued operations of ($8.9 million) or ($0.15) per
diluted share. The Company's discontinued operations also incurred a ($0.9
million) or ($0.02) per diluted share loss from operations for the fourth
quarter of 2003. For the years ended December 31, 2003 and 2002, the Company's
discontinued operations incurred a ($2.1 million) or ($0.04)per diluted share
loss from operations and $0.5 million or $0.01 earnings per diluted share,
respectively.
For the fourth quarter of 2003 and 2002, actual and same-store hospital
statistics include 19 hospitals.
Inpatient admissions increased 6.1% inthe fourth quarter of 2003 compared to
the prior year, adjusted admissions increased 6.9%, and net patient revenue per
adjusted admission increased 7.4%.
The Company announced its 2004 objectives for continuing operations as follows:
1% to 3% same-store hospital admissions growth, 4% to 6% same-store revenue
growth, and EPS growth of 14% to 16% for the year.
Martin S. Rash, Chairman and Chief Executive Officer of Province Healthcare,
said, "We are extremely pleased with our 2003 results. Cash flow from
operations reached $106.2 million, a Company record; we saw 106 new physicians
begin practicing in our communities, another Province record; and
revenues increased a robust 13.2%. The outlook for 2004 is also positive, as
operating trends continue to be strong."
A listen-only simulcast, of Province Healthcare's fourth quarter conference
call, will be available on-line at http://www.prhc.net/ on February 19, 2004,
beginning at 11:00 a.m. Eastern Standard Time.
The Company owns or leases 20 general acute care hospitals (including one
classified as "discontinued operations") in 13 states with a total of 2,262
licensed beds. The Company also provides management services to 36 non- urban
hospitals in 14 states with a total of 2,985 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 foregoingstatements, 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 tothe 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
associatedwith 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 payers, 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)
December 31, December 31,
2003 2002(*)
ASSETS
Current assets:
Cash and cash equivalents $46,134 $14,648
Accounts receivable, less allowance for
doubtful accounts of $66,875 in 2003
and $64,762 in 2002 111,957 109,948
Inventories 18,424 19,203
Prepaid expenses and other 11,832 13,649
Assets of discontinued operations 14,569 26,374
202,916 183,822
Property and equipment, net 460,031 440,358
Goodwill 309,271 311,172
Unallocated purchase price -- 466
Other assets 36,907 36,681
$1,009,125 $972,499
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $16,343 $19,735
Accrued salaries and benefits 28,740 24,478
Accrued expenses 14,238 12,877
Currentportion of long-term debt 743 974
Liabilities of discontinued operations 2,749 4,947
62,813 63,011
Long-term debt, less current portion 447,956 460,370
Other liabilities 49,573 33,304
Minority interests 1,910 2,612
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
December 31, 2003 and 2002, issued and
outstanding 48,841,157 shares and
48,581,549 shares at December 31, 2003 and
2002, respectively 488 486
Additional paid-in-capital 306,091 304,102
Retained earnings 141,186 109,567
Accumulated other comprehensive loss (892) (953)
Total stockholders' equity 446,873 413,202
$1,009,125 $972,499
(*) 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 24,
2003.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Fourth Quarter
2003 2002
% of % of
Amount Revenues Amount Revenues
Revenues:
Net patient
revenue $192,174 $167,373
Other 6,941 5,985
199,115 100.0% 173,358 100.0%
Expenses:
Salaries, wages
and benefits 74,886 37.6 73,113 42.2
Purchased services 18,132 9.1 18,575 10.7
Supplies 24,536 12.3 23,103 13.3
Provision for
doubtful accounts 21,582 10.8 14,268 8.2
Other operating
expenses 24,927 12.6 20,745 11.9
Rentals and leases 2,415 1.2 2,393 1.4
Depreciation and
amortization 10,414 5.2 8,074 4.7
Interest expense 6,916 3.5 5,839 3.4
Minority interests 59 -- (38) --
Gain on sale of assets
and other -- -- (130) (0.1)
Income before provision
for income taxes 15,248 7.7 7,416 4.3
Income taxes 3,126 1.6 2,962 1.7
Income from continuing
operations 12,122 6.1% 4,454 2.6%
Discontinued operations,
net of tax:
Loss from operations (870) (411)
Impairment of assets (8,952) --
Net income $2,300 $4,043
Diluted earnings (loss)
per common share:
Continuing
operations (a) $0.24 $0.09
Discontinued
operations:
Loss from
operations (0.02) (0.01)
Impairment of
assets (0.15) --
Net income $0.07 $0.08
(a) See calculation of diluted earnings per common share from continuing
operations in the Selected Operating Statistics section(attached).
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Year Ended December 31,
2003 2002
% of % of
Amount Revenues Amount Revenues
Revenues:
Net patient revenue $735,841 $649,954
Other 26,137 23,279
761,978 100.0% 673,233 100.0%
Expenses:
Salaries, wages and
benefits 287,466 37.7 266,651 39.6
Purchased services 69,388 9.1 70,205 10.4
Supplies 95,675 12.6 84,524 12.6
Provision for doubtful
accounts 72,678 9.5 53,059 7.9
Other operating
expenses 96,568 12.7 77,341 11.4
Rentals and leases 9,323 1.2 8,592 1.3
Depreciation and
amortization 37,753 5.0 32,313 4.8
Interest expense 26,262 3.4 21,285 3.2
Minority interests 260 -- 34 --
Loss (gain) on sale
of assets 86 -- (77) --
Loss on early
extinguishment of debt 486 0.1 -- --
Income before provision
for income taxes 66,033 8.7 59,306 8.8
Income taxes 23,345 3.1 23,731 3.5
Income from continuing
operations 42,688 5.6% 35,575 5.3%
Discontinued operations,
net of tax:
(Loss) earnings from
operations (2,117) 537
Impairment of assets (8,952) --
Net income $31,619 $36,112
Diluted earnings (loss)
per common share:
Continuing
operations(a) $0.86 $0.72
Discontinued
operations:
(Loss) earnings
from operations (0.04) 0.01
Impairment of
assets (0.15) --
Net income $0.67 $0.73
See accompanying footnotes on previous page.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Fourth Quarter
2003 2002
Cash flows from operating activities:
Income from continuing operations $12,122 $4,454
Adjustments to reconcile income from
continuing operations to net cash provided
by operating activities:
Depreciation and amortization 10,414 8,074
Deferred income taxes 10,748 7,107
Provision for professional liability 670 1,806
Gain on sale of assets -- (130)
Changes in operating assets and liabilities,
net of effects from acquisitions
and disposals:
Accounts receivable (4,740) 8,166
Inventories 35 29
Prepaid expenses and other (3,948) 867
Accounts payable and accrued expenses (15,128) (13,622)
Accrued salaries and benefits 3,426 1,597
Other 2,618 (536)
Net cash provided by operating activities 16,217 17,812
Cash flows from investing activities:
Purchase of property and equipment (9,798) (9,859)
Purchase of hospitals and healthcare entities -- 550
Net cash used in investing activities (9,798) (9,309)
Cash flows from financing activities:
Repayments of debt (398) (5,522)
Issuance of common stock 1,218 532
Net cash provided by (used in) financing activities 820 (4,990)
Net cash provided by continuing operations 7,239 3,513
Net cash used in discontinued operations (179) (864)
Increase in cash and cash equivalents 7,060 2,649
Cash and cash equivalents at beginning of period 39,074 11,999
Cash and cash equivalents at end of period $46,134 $14,648
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Year Ended December 31,
2003 2002
Cash flows from operating activities:
Income from continuing operations $42,688 $35,575
Adjustments to reconcile income from continuing
operations to net cash provided by operating
activities:
Depreciation and amortization 37,753 32,313
Deferred income taxes 14,217 8,947
Provision for professional liability 5,476 7,209
Loss on early extinguishment of debt 486 --
Loss (gain) of sale of assets 86 (77)
Changes in operating assets and liabilities,
net of effects from acquisitions and disposals:
Accounts receivable (994) 6,410
Inventories 712 (1,311)
Prepaid expenses and other (2,662) 7,555
Accounts payable and accrued expenses (3,992) (5,254)
Accrued salaries and benefits 4,262 (141)
Other 8,205 885
Net cash provided by operating activities 106,237 92,111
Cash flows from investing activities:
Purchase of property and equipment (53,766) (45,522)
Purchase of hospitals and healthcare entities (3,247) (171,157)
Net cash used in investing activities (57,013) (216,679)
Cash flows from financing activities:
Proceeds from long-term debt 194,199 134,321
Repayments of debt (213,049) (44,048)
Issuance of common stock 2,574 11,037
Net cash (used in) provided by financing
activities (16,276) 101,310
Net cash provided by continuing operations 32,948 (23,258)
Net cash used in discontinued operations (1,462) (1,076)
Increase (decrease) in cash and cash equivalents 31,486 (24,334)
Cash and cash equivalents at beginning of period 14,648 38,982
Cash and cash equivalents at end of period $46,134 $14,648
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SELECTED OPERATING STATISTICS (Unaudited)
Actual Same Store(1)
Fourth Quarter Fourth Quarter
December 31, December 31,
2003 2002 %Change 2003 2002 %Change
Consolidated Hospitals
(Continuing Operations):
Number of hospitals at end
of period 19 19 --% 19 19 --%
Licensed beds at end of
period 2,189 2,207 (0.8) 2,189 2,207 (0.8)
Beds in serviceat end of
period 1,933 1,933 -- 1,933 1,933 --
Inpatient admissions 18,598 17,526 6.1 18,598 17,526 6.1
Adjusted admissions (2) 33,426 31,272 6.9 33,426 31,272 6.9
Net patient revenue per
adjusted admission $5,749 $5,352 7.4 $5,749 $5,352 7.4
Patient days 78,964 75,103 5.1 78,964 75,103 5.1
Adjusted patient days (3) 141,925 134,051 5.9 141,925 134,051 5.9
Average length of stay
(days) 4.25 4.29 (0.9) 4.25 4.29 (0.9)
Net patient revenue
(000's) $192,174 $167,373 14.8 $192,174 $167,373 14.8
Gross revenue (000's):
Inpatient $240,819 $207,456 16.1% $240,819 $207,456 16.1%
Outpatient 191,824 162,759 17.9 191,824 162,759 17.9
$432,643 $370,215 16.9 $432,643 $370,215 16.9
Net Patient Revenue by
Payor (Continuing
Operations):
Medicare 37.9% 40.8% 37.9% 40.8%
Medicaid 9.1 10.8 9.1 10.8
Other 53.0 48.4 53.0 48.4
Total 100.0% 100.0% 100.0% 100.0%
Three Months Ended December 31,
2003 2002 % Change
Diluted Earnings Per Share From
Continuing Operations Calculation
(000's, except for share amounts):
Income from continuing operations $12,122 $4,454 172.2%
Add convertible notes interest,
net of tax (4) 1,838 --
$13,960 $4,454
Basic shares plus stock options 49,791 49,183
Convertible shares (4) 9,099 --
58,890 49,183
Diluted earnings per share from
continuing operations $0.24 $0.09 166.7%
(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 and twelve months ended December 31, 2002
and thus, are not included in the diluted earnings per share
calculation for such periods.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SELECTED OPERATING STATISTICS (Unaudited)
Actual Same Store(1)
Year Ended Year Ended
December 31, December 31,
2003 2002 %Change 2003 2002 %Change
Consolidated Hospitals
(Continuing Operations):
Number of hospitals
at end of period 19 19 --% 19 19 --%
Licensed beds at
end of period 2,189 2,207 (0.8) 2,189 2,207 (0.8)
Beds in service
at end of period 1,933 1,933 -- 1,933 1,933 --
Inpatient
admissions 72,630 69,107 5.1 68,205 67,694 0.8
Adjusted
admissions(2) 131,557 120,990 8.7 121,707 118,035 3.1
Net patient
revenue per
adjusted
admission $5,593 $5,372 4.1 $5,521 $5,363 2.9
Patient days 307,195 299,138 2.7 287,880 293,248 (1.8)
Adjusted patient
days(3) 556,331 523,307 6.3 513,539 510,906 0.5
Average length of
stay (days) 4.23 4.33 (2.3) 4.22 4.33 (2.5)
Net patient revenue
(000's) $735,841 $649,954 13.2 $671,910 $633,005 6.1
Gross revenue (000's):
Inpatient $903,740 $799,358 13.1% $857,340 $787,050 8.9%
Outpatient 732,844 599,333 22.3 672,018 584,687 14.9
$1,636,584 $1,398,691 17.0 $1,529,358 $1,371,737 11.5
Net Patient Revenue by Payor
(Continuing Operations):
Medicare 38.5% 45.4% 38.5% 45.4%
Medicaid 10.311.3 10.3 11.3
Other 51.2 43.3 51.2 43.3
Total 100.0% 100.0% 100.0% 100.0%
Twelve Months Ended December 31,
2003 2002 % Change
Diluted Earnings Per Share From
Continuing Operations Calculation
(000's, except per share amounts):
Income from continuing operations $42,688 $35,575 20.0%
Add convertible notes interest,
net of tax (4) 8,325 --
$51,013 $35,575
Basic shares plus stock options 49,305 49,453
Convertible shares (4) 10,243 --
59,548 49,453
Diluted earnings per share from
continuing operations $0.86 $0.72 19.4%
See accompanying footnotes on previous page.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING RESULTS FROM
CONTINUING OPERATIONS
(Dollars in thousands, except per share data)
For the Year Ended December 31, 2003
First Quarter Second Quarter Third Quarter
$ % of rev $ % of rev $ % of rev
Revenues:
Net Patient
revenue $179,680 $181,758 $182,229
Other 6,784 6,112 6,300
186,464 100.0% 187,870 100.0% 188,529 100.0%
Expenses:
Salaries, wages
& benefits $72,355 38.8% 71,925 38.3% 68,300 36.2%
Purchased
services 16,650 8.9% 17,682 9.4% 16,924 9.0%
Supplies 24,022 13.0% 23,065 12.3% 24,052 12.7%
Provision for
doubtful accts 16,041 8.6% 16,263 8.7% 18,792 10.0%
Rentals and
leases 2,319 1.2% 2,313 1.2% 2,276 1.2%
Other operating
expense 23,698 12.7% 23,524 12.5% 24,419 13.0%
155,085 83.2% 154,772 82.4% 154,763 82.1%
Adjusted
EBITDA (a) 31,379 16.8% 33,098 17.6% 33,766 17.9%
Depreciation &
amortization 8,878 4.8% 9,112 4.9% 9,349 5.0%
Interest expense 5,722 3.0% 6,635 3.5% 6,989 3.7%
Other (income)
expense -- --% 477 0.3% 10 --%
Loss on sale of
assets 3 --% -- --% 82 --%
Minority interests 67 --% 82 --% 52 --%
Income before
income taxes 16,709 9.0% 16,792 8.9% 17,284 9.2%
Income taxes 6,670 3.6% 6,682 3.5% 6,867 3.7%
Income from
continuing
operations $10,039 5.4% $10,110 5.4% $10,417 5.5%
EPS Calculations:
Income from
continuing
operations $10,039 $10,110 $10,417
Add convertible
notes interest,
net of tax -- -- --
$10,039 $10,110 $10,417
Diluted shares 48,758 49,032 49,639
Convertible
shares -- -- --
48,758 49,032 49,639
Diluted EPS from
continuing
operations $0.20 $0.21 $0.21
% change from
prior year:
Revenues 18.2% 13.0% 7.2%
Operating expenses 21.0 14.8 6.6
Adjusted EBITDA 6.2 5.1 10.1
Income from
continuing
operations (8.8) (6.0) 11.2
Diluted EPS from
continuing
operations (9.1) (4.5) 10.5
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING RESULTS FROM
CONTINUING OPERATIONS
(Dollars in thousands, except per share data)
For the Year Ended December 31, 2003
Fourth Quarter Year
$ % of rev $ % of rev
Revenues:
Net Patient revenue $192,174 $735,841
Other 6,941 26,137
199,115 100.0% 761,978 100.0%
Expenses:
Salaries, wages
& benefits 74,886 37.6% 287,466 37.7%
Purchased services 18,132 9.1% 69,388 9.1%
Supplies 24,536 12.3% 95,675 12.6%
Provision for doubtful
accts 21,582 10.8% 72,678 9.5%
Rentals and leases 2,415 1.2% 9,323 1.2%
Other operating expense 24,927 12.6% 96,568 12.7%
166,478 83.6% 631,098 82.8%
Adjusted EBITDA (a) 32,637 16.4% 130,880 17.2%
Depreciation &
amortization 10,414 5.2% 37,753 5.0%
Interest expense 6,916 3.5% 26,262 3.4%
Other (income) expense (1) --% 486 0.1%
Loss on sale of assets 1 --% 86 --%
Minority interests 59 --% 260 --%
Income before income
taxes 15,248 7.7% 66,033 8.7%
Income taxes 3,126 1.6% 23,345 3.1%
Income from
continuing operations $12,122 6.1% $42,688 5.6%
EPS Calculations:
Income from continuing
operations $12,122 $42,688
Add convertible notes
interest, net of tax 1,838 8,325
$13,960 $51,013
Diluted shares 49,791 49,305
Convertible shares 9,099 10,243
58,890 59,548
Diluted EPS from
continuing operations $0.24 $0.86
% change from prior year:
Revenues 14.9% 13.2%
Operating expenses 9.4 12.6
Adjusted EBITDA 54.2 16.0
Income from
continuing operations 172.2 20.0
Diluted EPS from
continuing operations 166.7 19.4
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING RESULTS
FROM CONTINUING OPERATIONS (continued)
For the Year Ended December 31, 2003
First Quarter Second Quarter Third Quarter
% change % change % change
from from from
prior prior prior
$ year $ year$ year
Volumes
(Continuing
Operations):
Inpatient
admissions 18,724 9.7% 17,579 4.1% 17,729 0.7%
Adjusted
admissions 33,109 19.2% 32,143 7.9% 32,879 2.2%
Net patient
revenue
per adjusted
admission $5,427 (0.8)% $5,655 4.9% $5,542 4.8%
Patient days 80,583 4.8% 74,713 2.4% 72,935 (1.7)%
Adjusted patient
days 142,518 13.9% 136,619 6.2% 135,269 (0.2)%
Average daily
census 895 4.8% 821 2.4% 793 (1.7)%
Average length
of stay 4.30 (4.4)% 4.25 (1.6)% 4.11 (2.4)%
ER visits 73,365 20.6% 73,192 6.5% 74,031 (1.0)%
Occupancy rate
(average
licensed beds) 40.6% (1.0)% 37.2% 3.9% 35.9% (0.3)%
Occupancy rate
(average .beds
in service) 46.3% (4.1)% 42.5% 4.4% 41.0% (6.2)%
Other Indicators
(Continuing
Operations):
Number of
hospitals
at end of
period 19 11.8% 19 --% 19 --%
Licensed beds
at end of
period 2,208 6.0% 2,208 (1.5)% 2,208 (1.5)%
Beds in service
at end of
period 1,933 9.1% 1,933(1.9)% 1,933 4.8%
Net Patient
Revenue by Payor
(Continuing
Operations):
Medicare 39.5% 38.5% 38.0%
Medicaid 10.7% 10.7% 11.0%
Other 49.8% 50.8% 51.0%
100.0% 100.0% 100.0%
(a) Adjusted EBITDA for 2003 and 2002, represents income from continuing
operations before provision for income taxes, depreciation and
amortization, interest, minority interests, loss on sale of assets
and loss on extinguishment of debt. The Company's bank credit
facility also uses Adjusted EBITDA for numerous financial covenants.
Adjusted EBITDA serves as a measure of leveragecapacity and debt
service ability, and is commonly used as an analytical indicator
within the healthcare industry. Adjusted EBITDA, however, is not a
measure of financial performance under accounting principles
generally accepted in the United States, and should not be considered
an alternative to net income as a measure of operating performance or
to cash flows from operating, investing or financing activities as a
measure of liquidity. Because Adjusted EBITDA is not a measurement
determined in accordance with accounting principles generally
accepted in the United States and is susceptible to varying
calculations, Adjusted EBITDA as presented may not be comparable to
other similarly titled measures of other companies.
PROVINCE HEALTHCARE COMPANY AND SUBSIDIARIES
SUPPLEMENTAL OPERATING RESULTS
FROM CONTINUING OPERATIONS (continued)
For theYear Ended December 31, 2003
Fourth Quarter Year
% change % change
from from
prior prior
$ year $ year
Volumes (Continuing
Operations):
Inpatient admissions 18,598 6.1% 72,630 5.1%
Adjusted admissions 34,426 6.9% 131,557 8.7%
Net patient revenue
per adjusted admission $5,749 7.4% $5,593 4.1%
Patient days 78,964 5.1% 307,195 2.7%
Adjusted patient days 141,925 5.9% 556,331 6.3%
Average daily census 858 5.1% 842 2.7%
Average length of stay 4.25 (0.9)% 4.23 (2.3)%
ER visits 77,231 7.5% 297,819 7.9%
Occupancy rate
(average licensed beds) 39.2% 5.9% 38.4% 3.5%
Occupancy rate
(average .beds in
service) 44.4% 5.2% 43.5% 2.3%
Other Indicators
(Continuing Operations):
Number of hospitals
at end of period 19 --% 19 --%
Licensed beds at end
of period 2,189 (0.8)% 2,189 (0.8)%
Beds in service at
end of period 1,933 --% 1,933 --%
Net Patient Revenue
by Payor (Continuing
Operations):
Medicare 37.9% 38.4%
Medicaid 9.1% 10.3%
Other 53.0% 51.3%
100.0% 100.0%
(a) Adjusted EBITDA for 2003 and 2002, represents income from continuing
operations before provision for income taxes, depreciation and
amortization, interest, minority interests, loss on sale of assets
and loss on extinguishment of debt. The Company's bank credit
facility also uses Adjusted EBITDA for numerous financial covenants.
Adjusted EBITDA serves as a measure of leverage capacity anddebt
service ability, and is commonly used as an analytical indicator
within the healthcare industry. Adjusted EBITDA, however, is not a
measure of financial performance under accounting principles
generally accepted in theUnited States, and should not be considered
an alternative to net income as a measure of operating performance or
to cash flows from operating, investing or financing activities as a
measure of liquidity. Because Adjusted EBITDA is not a measurement
determined in accordance with accounting principles generally
accepted in the United States and is susceptible to varying
calculations, Adjusted EBITDA as presented may not be comparable to
other similarlytitled measures of other companies.
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/
http://www.prhc.net/