NAPLES, Fla.--(BUSINESS WIRE)--Health Management Associates, Inc. (NYSE: HMA) today announced its consolidated financial results for the fourth quarter and year ended December 31, 2011.
Key metrics from continuing operations for the fourth quarter (all percentage changes compare the fourth quarter of 2011 to the fourth quarter of 2010) include:
- Excluding certain write-offs of deferred debt issuance costs, Tennova restructuring charges, and interest rate swap accounting, as shown in the tables accompanying this press release, diluted earnings per share from continuing operations increased 62.5% to $0.26 as compared to $0.16 per diluted share for the same quarter a year ago;
- Revenue increased 17.6% to $1.584 billion;
- Adjusted EBITDA increased 27.3% to $236.2 million. Adjusted EBITDA includes approximately $38.2 million of Medicare and Medicaid HCIT incentive payments, and excludes $24.6 million of write-offs of deferred debt issuance costs and $12.9 million of Tennova restructuring charges;
- Admissions increased 6.8% while adjusted admissions increased 11.6%;
- Same hospital net revenue increased 5.5% to $1,420.4 million;
- Same hospital net revenue per adjusted admission increased 6.6%;
- Same hospital Adjusted EBITDA increased 25.3% to $271.6 million, resulting in a 300 basis point improvement in margin to 19.1%. Excluding approximately $38.2 million of Medicare and Medicaid HCIT incentive payments, same hospital Adjusted EBITDA increased 7.7% to $233.3 million, resulting in a 30 basis point improvement in margin to 16.4%; and
- Same hospital surgeries increased 0.8%.
The tables accompanying this press release include reconciliations of consolidated net income to all presentations of Adjusted EBITDA (which is not a GAAP measure) contained in this press release. Those tables also reconcile earnings per share on a GAAP basis to those amounts presented in this press release and contain disclaimers and other important information regarding how Health Management defines and uses Adjusted EBITDA.
For continuing operations at hospitals operated by Health Management for one year or more, referred to as same hospital operations, net revenue in the fourth quarter increased $73.9 million or 5.5%, to $1,420.4 million compared to the same quarter in the prior year. Adjusted EBITDA from same hospital operations grew 25.3% to $271.6 million, representing 19.1% of net revenue, as compared to $216.7 million and 16.1%, respectively, for the same quarter a year ago. Same hospital Adjusted EBITDA includes $38.2 million of Medicare and Medicaid HCIT incentive payments and excludes $24.6 million of write-offs of deferred debt issuance costs and $12.9 million of Tennova restructuring charges. Declines in uninsured admissions contributed to a 3.7% and 1.1% decline in fourth quarter same hospital admissions and adjusted admissions, respectively.
“We are pleased to report another year of record revenues and strong earnings as we continue to successfully execute our operating and partnership strategies,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “By continuing to focus our efforts on the fundamentals – investment in innovative services and strategic partnerships, recruitment of physicians and leadership talent, adherence to effective cost control measures and development of our very active partnership pipeline, we are looking forward to 2012 as we seek to enable America’s best local health care.”
Health Management’s provision for doubtful accounts, or bad debt expense, was $195.1 million, or 12.3% of net revenue, for the fourth quarter compared to $163.9 million, or 12.2% of net revenue, for the same quarter a year ago.
Uninsured self-pay patient discounts for the fourth quarter were $254.5 million, compared to $209.3 million for the same quarter a year ago. Charity/indigent care write-offs were $23.1 million for the fourth quarter, compared to $24.2 million for the same quarter a year ago.
The sum of uninsured discounts, charity/indigent write-offs and bad debt expense, as a percent of the sum of net revenue, uninsured discounts and charity/indigent write-offs (which Health Management refers to as its Uncompensated Patient Care Percentage) was 25.4% for the fourth quarter, compared to 25.2% for the fourth quarter a year ago, and 26.1% for the quarter ended September 30, 2011. Health Management believes that its Uncompensated Patient Care Percentage provides key information regarding the aggregate level of patient care for which it does not receive payment.
Cash flow from continuing operating activities for the fourth quarter was $114.8 million, after cash interest and cash tax payments aggregating $59.9 million. Health Management’s total leverage ratio and interest coverage ratio were both approximately 4.0 at December 31, 2011.
For the year ended December 31, 2011, Health Management reported net revenue of $5,804.5 million and Adjusted EBITDA of $848.2 million. For 2011, income from continuing operations was $206.3 million and net income attributable to Health Management’s common stockholders was $178.7 million, or $0.71 per diluted share from continuing operations, a 9.2% increase compared to $0.65 per diluted share from continuing operations for the year ended December 31, 2010. As shown in the accompanying table, excluding write-offs of deferred debt issuance costs, interest rate swap accounting, Tennova restructuring charges and acquisition and investigation charges, diluted earnings per share from continuing operations increased 32.3% to $0.86 compared to the same period a year ago.
Health Management hospitals recognized approximately $1.8 million of Medicare and Medicaid HCIT incentive payments in the third quarter ended September 30, 2011 and approximately $38.2 million in the fourth quarter ended December 31, 2011. Based on current 2012 attestation schedules and cost report year ends for the remainder of its hospitals, Health Management expects to recognize approximately $90 to $120 million of Medicare and Medicaid HCIT incentive payments during the year ending December 31, 2012, the bulk of which is expected to be recorded in the third and fourth quarters of 2012.
Health Management is also affirming its diluted EPS from continuing operations objective range for fiscal year 2012 to be between $0.80 and $0.90. This diluted EPS range does not include approximately $80 million, or $0.20 per diluted share of impact expected from interest rate swap accounting or approximately $90 to $120 million of anticipated Medicare and Medicaid HCIT incentive payments.
As previously announced on February 6, 2012, a subsidiary of Health Management executed a definitive agreement with INTEGRIS Health to enter into a joint venture arrangement for five Oklahoma hospitals. The Oklahoma hospitals to be joint ventured include: 53-bed Integris Blackwell Regional Hospital, located in Blackwell; 64-bed Integris Clinton Regional Hospital, located in Clinton; 25-bed Integris Marshall County Medical Center, located in Madill; 52-bed Integris Mayes County Medical Center, located in Pryor; and 32-bed Integris Seminole Medical Center, located in Seminole. Combined, these five hospitals have an aggregate of 226 licensed beds and generated approximately $95 million of revenue over the last twelve months. Under the joint venture agreement, Health Management is anticipated to own an 80% controlling interest in each of these five hospitals and will manage their operations. The transaction is subject to normal and customary regulatory approvals and is expected to be completed by April 1, 2012.
Health Management’s executive team will hold a conference call and webcast to discuss the contents of this press release and Health Management’s consolidated financial results for the three months and year ended December 31, 2011 on Tuesday, February 14, 2012 at 11:00 a.m. EST. Investors are invited to access the webcast via Health Management’s website at www.HMA.com or via www.streetevents.com. Alternatively, investors may join the conference call by dialing 877-476-3476.
Health Management will archive a copy of the audio webcast of the conference call, along with any related information that Health Management may be required to provide pursuant to Securities and Exchange Commission rules, on its website under the heading “Investor Relations” for a period of 60 days following the conference call.
Health Management enables America's best local health care by providing the people, processes, capital and expertise necessary for its hospital and physician partners to fulfill their local missions of delivering superior health care services. Health Management, through its subsidiaries and upon completion of the previously announced INTEGRIS Health joint venture transaction, will operate 71 hospitals, with approximately 10,600 licensed beds, in non-urban communities located throughout the United States.
All references to "Health Management," "HMA" or the "Company" used in this release refer to Health Management Associates, Inc. and its affiliates.
Forward-Looking Statements
This press release contains 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. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "plans," "could" and other similar words. All statements addressing operating performance, events or developments that Health Management Associates, Inc. expects or anticipates will occur in the future, including but not limited to incurrence of indebtedness, projections of revenue, income or loss, capital expenditures, earnings per share, the timing and receipt of Medicare and Medicaid HCIT incentive payments the financial impact expected from interest rate swap accounting, debt structure, bad debt expense, capital structure, repayment of indebtedness, other financial items and operating statistics, statements regarding the plans and objectives of management for future operations, innovations, or market service development, statements regarding acquisitions, joint ventures, divestitures and other proposed or contemplated transactions (including but not limited to statements regarding the timing of anticipated acquisitions, the potential for future acquisitions and perceived benefits of acquisitions), statements of future economic performance, statements regarding the effects and/or interpretations of recently enacted or future health care laws and regulations, statements of the assumptions underlying or relating to any of the foregoing statements, and other statements which are other than statements of historical fact, are considered to be "forward-looking statements."
Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Health Management Associates, Inc.'s most recent Annual Report on Form 10-K, and its most recent Quarterly Report on Form 10-Q, under the headings entitled "Risk Factors." Should one or more of these risks or uncertainties materialize, or should any of Health Management Associates, Inc.'s underlying assumptions prove incorrect, actual results could vary materially from those currently anticipated. In addition, undue reliance should not be placed on Health Management Associates, Inc.'s forward-looking statements. Except as required by law, Health Management Associates, Inc. disclaims any obligation to update its risk factors or to publicly announce updates to the forward-looking statements contained in this press release to reflect new information, future events or other developments.
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HEALTH MANAGEMENT ASSOCIATES, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except per share amounts) |
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| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net revenue | $ | 1,583,774 | $ | 1,346,549 | $ | 5,804,451 | $ | 5,092,166 | ||||||||
| Salaries and benefits | 637,751 | 539,147 | 2,302,844 | 2,016,967 | ||||||||||||
| Supplies | 216,350 | 178,546 | 776,598 | 703,426 | ||||||||||||
| Provision for doubtful accounts | 195,127 | 163,946 | 716,856 | 624,753 | ||||||||||||
| Rent expense | 43,541 | 33,710 | 154,279 | 122,983 | ||||||||||||
| Other operating expenses | 305,865 | 245,636 | 1,067,980 | 892,465 | ||||||||||||
| Medicare and Medicaid HCIT incentive payments | (38,233 | ) | - | (39,982 | ) | - | ||||||||||
| Depreciation and amortization | 73,466 | 61,258 | 267,900 | 241,873 | ||||||||||||
| Interest expense | 70,659 | 52,742 | 222,747 | 211,673 | ||||||||||||
| Write-off of deferred debt issuance costs | 24,595 | - | 24,595 | - | ||||||||||||
| Other | 12 | (689 | ) | (1,771 | ) | (8,797 | ) | |||||||||
| 1,529,133 | 1,274,296 | 5,492,046 | 4,805,343 | |||||||||||||
| Income from continuing operations before income taxes | 54,641 | 72,253 | 312,405 | 286,823 | ||||||||||||
| Provision for income taxes | (16,893 | ) | (26,041 | ) | (106,071 | ) | (101,049 | ) | ||||||||
| Income from continuing operations | 37,748 | 46,212 | 206,334 | 185,774 | ||||||||||||
| Loss from discontinued operations, net of income taxes | (1,227 | ) | (12,976 | ) | (2,409 | ) | (13,526 | ) | ||||||||
| Consolidated net income | 36,521 | 33,236 | 203,925 | 172,248 | ||||||||||||
| Net income attributable to noncontrolling interests | (5,674 | ) | (5,057 | ) | (25,215 | ) | (22,179 | ) | ||||||||
| Net income attributable to Health Management Associates, Inc. | $ | 30,847 | $ | 28,179 | $ | 178,710 | $ | 150,069 | ||||||||
| Earnings (loss) per share attributable to Heath Management | ||||||||||||||||
| Associates, Inc. common stockholders: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | 0.13 | $ | 0.17 | $ | 0.72 | $ | 0.66 | ||||||||
| Discontinued operations | - | (0.05 | ) | (0.01 | ) | (0.05 | ) | |||||||||
| Net income | $ | 0.13 | $ | 0.12 | $ | 0.71 | $ | 0.61 | ||||||||
| Diluted: | ||||||||||||||||
| Continuing operations | $ | 0.13 | $ | 0.16 | $ | 0.71 | $ | 0.65 | ||||||||
| Discontinued operations | - | (0.05 | ) | (0.01 | ) | (0.05 | ) | |||||||||
| Net income | $ | 0.13 | $ | 0.11 | $ | 0.70 | $ | 0.60 | ||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic | 252,175 | 248,600 | 251,541 | 248,272 | ||||||||||||
| Diluted | 256,032 | 252,372 | 255,037 | 251,106 | ||||||||||||
| Net income attributable to Health Management Associates, Inc. | ||||||||||||||||
| Income from continuing operations, net of income taxes | $ | 32,074 | $ | 41,155 | $ | 181,119 | $ | 163,595 | ||||||||
| Loss from discontinued operations, net of income taxes | (1,227 | ) | (12,976 | ) | (2,409 | ) | (13,526 | ) | ||||||||
| Net income attributable to Health Management Associates, Inc. | $ | 30,847 | $ | 28,179 | $ | 178,710 | $ | 150,069 | ||||||||
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HEALTH MANAGEMENT ASSOCIATES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) |
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| Twelve Months Ended December 31, | |||||||||||
| 2011 | 2010 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Consolidated net income | $ | 203,925 | $ | 172,248 | |||||||
| Adjustments to reconcile consolidated net income to net cash | |||||||||||
| provided by continuing operating activities: | |||||||||||
| Depreciation and amortization | 274,526 | 248,583 | |||||||||
| Amortization related to interest rate swap contract | 10,384 | - | |||||||||
| Fair value adjustment related to interest rate swap contract | 5,979 | - | |||||||||
| Provision for doubtful accounts | 716,856 | 624,753 | |||||||||
| Stock-based compensation expense | 25,169 | 18,366 | |||||||||
| Losses (gains) on sales of assets, net | 1,325 | (711 | ) | ||||||||
| Gains on sales of available-for-sale securities, net | (518 | ) | (4,328 | ) | |||||||
| Write-off of deferred debt issuance costs | 24,045 | - | |||||||||
| Deferred income tax expense | 79,159 | 20,311 | |||||||||
| Changes in assets and liabilities of continuing operations, | |||||||||||
| net of the effects of acquisitions: | |||||||||||
| Accounts receivable | (870,898 | ) | (731,607 | ) | |||||||
| Supplies, prepaid expenses and other current assets | (11,379 | ) | (20,643 | ) | |||||||
| Prepaid and recoverable income taxes | (18,987 | ) | 31,020 | ||||||||
| Deferred charges and other long-term assets | (5,785 | ) | 5,382 | ||||||||
| Accounts payable, accrued expenses and other liabilities | 128,521 | 59,069 | |||||||||
| Equity compensation excess income tax benefits | (2,999 | ) | (1,278 | ) | |||||||
| Loss from discontinued operations, net of income taxes | 2,409 | 13,526 | |||||||||
| Net cash provided by continuing operating activities | 561,732 | 434,691 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisitions of hospitals and other | (582,090 | ) | (191,454 | ) | |||||||
| Additions to property, plant and equipment | (302,046 | ) | (209,108 | ) | |||||||
| Proceeds from sales of assets and insurance recoveries | 2,765 | 3,150 | |||||||||
| Proceeds from sales of discontinued operations | 4,851 | 26,360 | |||||||||
| Purchases of available-for-sale securities | (1,385,580 | ) | (921,724 | ) | |||||||
| Proceeds from sales of available-for-sale securities | 1,321,398 | 904,881 | |||||||||
| Increase in restricted funds | (35,309 | ) | (5,758 | ) | |||||||
| Net cash used in continuing investing activities | (976,011 | ) | (393,653 | ) | |||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from long-term borrowings | 3,356,970 | - | |||||||||
| Principal payments on debt and capital lease obligations | (2,869,380 | ) | (40,147 | ) | |||||||
| Proceeds from exercises of stock options | 14,067 | 7,469 | |||||||||
| Payments for debt issuance costs | (75,149 | ) | - | ||||||||
| Cash received from noncontrolling shareholders | - | 2,547 | |||||||||
| Cash payments to noncontrolling shareholders | (28,284 | ) | (20,630 | ) | |||||||
| Equity compensation excess income tax benefits | 2,999 | 1,278 | |||||||||
| Net cash provided by (used in) continuing financing activities | 401,223 | (49,483 | ) | ||||||||
| Net decrease in cash and cash equivalents before | |||||||||||
| discontinued operations | (13,056 | ) | (8,445 | ) | |||||||
| Net increases (decreases) in cash and cash equivalents | |||||||||||
| from discontinued operations: | |||||||||||
| Operating activities | 5,991 | 5,672 | |||||||||
| Investing activities | (12,894 | ) | (1,433 | ) | |||||||
| Net decrease in cash and cash equivalents | (19,959 | ) | (4,206 | ) | |||||||
| Cash and cash equivalents at the beginning of the period | 101,812 | 106,018 | |||||||||
| Cash and cash equivalents at the end of the period | $ | 81,853 | $ | 101,812 | |||||||
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HEALTH MANAGEMENT ASSOCIATES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AND STATISTICS |
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| December 31, | December 31, | |||||
| 2011 | 2010 | |||||
| (unaudited, in thousands) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 81,853 | $ | 101,812 | ||
| Available-for-sale securities | 122,277 | 57,327 | ||||
| Accounts receivable, net | 903,517 | 759,131 | ||||
| Other current assets | 305,640 | 268,726 | ||||
| Assets of discontinued operations | 14,561 | 11,384 | ||||
| Property, plant and equipment, net | 3,263,172 | 2,662,947 | ||||
| Restricted funds | 96,244 | 51,067 | ||||
| Other assets | 1,234,635 | 997,691 | ||||
| Total assets | $ | 6,021,899 | $ | 4,910,085 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | $ | 821,534 | $ | 555,630 | ||
| Deferred income taxes | 234,080 | 157,177 | ||||
| Other long-term liabilities | 691,680 | 680,073 | ||||
| Long-term debt | 3,489,489 | 2,983,719 | ||||
| Stockholders' equity | 785,116 | 533,486 | ||||
| Total liabilities and stockholders' equity | $ | 6,021,899 | $ | 4,910,085 | ||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
| 2011 | 2010 | % Change | 2011 | 2010 | % Change | |||||||||||||||||
| Continuing Operations | ||||||||||||||||||||||
| Occupancy | 41.0 | % | 42.7 | % | 42.8 | % | 43.9 | % | ||||||||||||||
| Patient days | 364,916 | 342,909 | 6.4 | % | 1,424,500 | 1,350,697 | 5.5 | % | ||||||||||||||
| Admissions | 88,330 | 82,734 | 6.8 | % | 338,637 | 323,917 | 4.5 | % | ||||||||||||||
| Adjusted admissions | 169,200 | 151,548 | 11.6 | % | 635,934 | 586,060 | 8.5 | % | ||||||||||||||
| Average length of stay | 4.1 | 4.1 | 4.2 | 4.2 | ||||||||||||||||||
| Surgeries | 95,429 | 80,869 | 18.0 | % | 342,421 | 314,564 | 8.9 | % | ||||||||||||||
| Emergency room visits | 416,627 | 370,821 | 12.4 | % | 1,562,028 | 1,413,831 | 10.5 | % | ||||||||||||||
| Net revenue (in thousands) | $ | 1,583,774 | $ | 1,346,549 | 17.6 | % | $ | 5,804,451 | $ | 5,092,166 | 14.0 | % | ||||||||||
| Net revenue per adjusted admission | $ | 9,360 | $ | 8,885 | 5.3 | % | $ | 9,127 | $ | 8,689 | 5.0 | % | ||||||||||
| Total inpatient revenue percentage | 47.7 | % | 49.5 | % | 48.1 | % | 50.0 | % | ||||||||||||||
| Total outpatient revenue percentage | 52.3 | % | 50.5 | % | 51.9 | % | 50.0 | % | ||||||||||||||
| Same Hospitals | ||||||||||||||||||||||
| Occupancy | 40.7 | % | 42.7 | % | 42.1 | % | 43.9 | % | ||||||||||||||
| Patient days | 328,340 | 342,909 | -4.2 | % | 1,300,722 | 1,350,697 | -3.7 | % | ||||||||||||||
| Admissions | 79,646 | 82,734 | -3.7 | % | 311,053 | 323,917 | -4.0 | % | ||||||||||||||
| Adjusted admissions | 149,947 | 151,548 | -1.1 | % | 581,056 | 586,060 | -0.9 | % | ||||||||||||||
| Average length of stay | 4.1 | 4.1 | 4.2 | 4.2 | ||||||||||||||||||
| Surgeries | 81,502 | 80,869 | 0.8 | % | 316,298 | 314,564 | 0.6 | % | ||||||||||||||
| Emergency room visits | 368,461 | 370,821 | -0.6 | % | 1,430,193 | 1,413,831 | 1.2 | % | ||||||||||||||
| Net revenue (in thousands) | $ | 1,420,432 | $ | 1,346,549 | 5.5 | % | $ | 5,335,498 | $ | 5,092,166 | 4.8 | % | ||||||||||
| Net revenue per adjusted admission | $ | 9,473 | $ | 8,885 | 6.6 | % | $ | 9,182 | $ | 8,689 | 5.7 | % | ||||||||||
| Total inpatient revenue percentage | 47.8 | % | 49.5 | % | 48.4 | % | 50.0 | % | ||||||||||||||
| Total outpatient revenue percentage | 52.2 | % | 50.5 | % | 51.6 | % | 50.0 | % | ||||||||||||||
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HEALTH MANAGEMENT ASSOCIATES, INC. SUPPLEMENTAL CONSOLIDATED STATEMENTS OF INCOME INFORMATION (unaudited, in thousands) |
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| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net revenue | $ | 1,583,774 | $ | 1,346,549 | $ | 5,804,451 | $ | 5,092,166 | ||||||||
| Less acquisitions | 163,342 | - | 468,953 | - | ||||||||||||
| Same hospital net revenue | $ | 1,420,432 | $ | 1,346,549 | $ | 5,335,498 | $ | 5,092,166 | ||||||||
| Consolidated net income | $ | 36,521 | $ | 33,236 | $ | 203,925 | $ | 172,248 | ||||||||
| Adjustments: | ||||||||||||||||
| Loss from discontinued operations, net of income taxes | 1,227 | 12,976 | 2,409 | 13,526 | ||||||||||||
| Provision for income taxes | 16,893 | 26,041 | 106,071 | 101,049 | ||||||||||||
| (Gains) losses on sales of assets, net | 229 | 133 | 1,325 | (711 | ) | |||||||||||
| Interest and other income, net | (217 | ) | (822 | ) | (3,096 | ) | (8,086 | ) | ||||||||
| Interest expense | 70,659 | 52,742 | 222,747 | 211,673 | ||||||||||||
| Write-off of deferred debt issuance costs | 24,595 | - | 24,595 | - | ||||||||||||
| Costs for acquisitions, investigations and restructuring (a) | 12,869 | 83 | 22,324 | 883 | ||||||||||||
| Depreciation and amortization | 73,466 | 61,258 | 267,900 | 241,873 | ||||||||||||
| Adjusted EBITDA (b) | 236,242 | 185,647 | 848,200 | 732,455 | ||||||||||||
| Adjustment for acquisitions, corporate and other | 35,312 | 31,069 | 106,826 | 127,369 | ||||||||||||
| Same hospital operating Adjusted EBITDA (b) | $ | 271,554 | $ | 216,716 | $ | 955,026 | $ | 859,824 | ||||||||
| Same hospital operating Adjusted EBITDA margins = | ||||||||||||||||
| Same hospital operating Adjusted EBITDA / Same hospital net revenue (b) | 19.1 | % | 16.1 | % | 17.9 | % | 16.9 | % | ||||||||
| (a) For purposes of calculating Adjusted EBITDA as further defined below, Health Management has not included any investigation costs for the three months ended December 31, 2011, while for the year ended December 31, 2011, approximately $4.5 million of investigation costs have been included. | |
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(b) Adjusted EBITDA is defined as consolidated net income before discontinued operations, net gains (losses) on sales of assets, net interest and other income, interest expense, income taxes, costs for acquisitions, investigations and restucturing, write-offs of deferred debt issuance costs, and depreciation and amortization. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net revenue. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Health Management believes that providing non-GAAP information such as Adjusted EBITDA is important for investors and other readers of Health Management's consolidated financial statements as it is commonly used as an analytical indicator within the health care industry and Health Management's debt facilities contain covenants that use Adjusted EBITDA in their calculations. Because Adjusted EBITDA is a non-GAAP measure and is thus susceptible to varying calculations, Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies. |
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HEALTH MANAGEMENT ASSOCIATES, INC. SUPPLEMENTAL CONSOLIDATED STATEMENTS OF INCOME INFORMATION (unaudited, in thousands, except per share amounts) |
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The following tables provide information regarding income from continuing operations attributable to Health Management, excluding the impact of write-off of deferred debt issuance costs, interest rate swap amortization and mark-to-market adjustment, and acquisition, investigation and restructuring costs. These tables are a non-GAAP presentation; nonetheless, Health Management believes that providing this detail is beneficial to investors and other readers of Health Management's consolidated financial statements due to the significant impact these items had on income from continuing operations attributable to Health Management. |
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| Three Months Ended December 31, 2011 | |||||||||
| Write-Off of | Interest Rate Swap | Acquisition, | |||||||
| Deferred | Amortization and | Investigation and | |||||||
| Continuing | Debt Issuance | Mark-To-Market | Restructuring | Total, As | |||||
| Operations | Costs | Adjustment | Costs | Reported | |||||
| Income from continuing operations before income taxes | |||||||||
| $ 108,468 | $ (24,595) | $ (16,363) | $ (12,869) | $ 54,641 | |||||
| Net income from continuing operations attributable to noncontrolling interests | |||||||||
| (5,674) | - | - | - | (5,674) | |||||
| Income from continuing operations before income taxes attributable to Health Management Associates, Inc. | |||||||||
| 102,794 | (24,595) | (16,363) | (12,869) | 48,967 | |||||
| Provision for income taxes | (37,752) | 9,531 | 6,341 | 4,987 | (16,893) | ||||
| Income from continuing operations attributable to Health Management Associates, Inc. common stockholders | |||||||||
| $ 65,042 | $ (15,064) | $ (10,022) | $ (7,882) | $ 32,074 | |||||
| Earnings per share from continuing operations attributable to Health Management Associates, Inc. common stockholders: | |||||||||
| Basic | $ 0.26 | $ (0.06) | $ (0.04) | $ (0.03) | $ 0.13 | ||||
| Diluted | $ 0.26 | $ (0.06) | $ (0.04) | $ (0.03) | $ 0.13 | ||||
| Twelve Months Ended December 31, 2011 | |||||||||
| Write-Off of | Interest Rate Swap | Acquisition, | |||||||
| Deferred | Amortization and | Investigation and | |||||||
| Continuing | Debt Issuance | Mark-To-Market | Restructuring | Total, As | |||||
| Operations | Costs | Adjustment | Costs | Reported | |||||
| Income from continuing operations before income taxes | |||||||||
| $ 375,687 | $ (24,595) | $ (16,363) | $ (22,324) | $ 312,405 | |||||
| Net income from continuing operations attributable to noncontrolling interests | |||||||||
| (25,215) | - | - | - | (25,215) | |||||
| Income from continuing operations before income taxes attributable to Health Management Associates, Inc. | |||||||||
| 350,472 | (24,595) | (16,363) | (22,324) | 287,190 | |||||
| Provision for income taxes | (130,594) | 9,531 | 6,341 | 8,651 | (106,071) | ||||
| Income from continuing operations attributable to Health Management Associates, Inc. common stockholders | |||||||||
| $ 219,878 | $ (15,064) | $ (10,022) | $ (13,673) | $ 181,119 | |||||
| Earnings per share from continuing operations attributable to Health Management Associates, Inc. common stockholders: | |||||||||
| Basic | $ 0.87 | $ (0.06) | $ (0.04) | $ (0.05) | $ 0.72 | ||||
| Diluted | $ 0.86 | $ (0.06) | $ (0.04) | $ (0.05) | $ 0.71 | ||||