HCA Healthcare Reports Second Quarter 2023 Results

Raises 2023 Guidance

HCA Healthcare, Inc. (NYSE:HCA), today announced financial and operating results for the second quarter ended June 30, 2023.

Key second quarter metrics (all percentage changes compare 2Q 2023 to 2Q 2022 unless otherwise noted):

  • Revenues totaled $15.861 billion
  • Net income attributable to HCA Healthcare, Inc. totaled $1.193 billion, or $4.29 per diluted share
  • Adjusted EBITDA totaled $3.056 billion
  • Cash flows from operating activities totaled $2.475 billion
  • Same facility admissions increased 2.2 percent and same facility equivalent admissions increased 3.7 percent

“The company produced solid results in the second quarter driven by continued strong demand for our services and good execution by our teams. I want to thank our colleagues for their dedication and great work,” said Sam Hazen, Chief Executive Officer of HCA Healthcare.

Revenues in the second quarter of 2023 increased to $15.861 billion, compared to $14.820 billion in the second quarter of 2022. Net income attributable to HCA Healthcare, Inc. totaled $1.193 billion, or $4.29 per diluted share, compared to $1.155 billion, or $3.90 per diluted share, in the second quarter of 2022. The second quarter of 2022 results included losses on sales of facilities of $32 million, or $0.11 per diluted share, and losses on retirement of debt of $78 million, or $0.20 per diluted share.

For the second quarter of 2023, Adjusted EBITDA totaled $3.056 billion, compared to $3.042 billion in the second quarter of 2022. Adjusted EBITDA is a non-GAAP financial measure. A table providing supplemental information on Adjusted EBITDA and reconciling net income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is included in this release.

Same facility admissions increased 2.2 percent and same facility equivalent admissions increased 3.7 percent in the second quarter of 2023, compared to the prior year period. Same facility emergency room visits increased 3.7 percent in the second quarter of 2023, compared to the prior year period. Same facility inpatient surgeries increased 1.8 percent while same facility outpatient surgeries increased 3.3 percent in the second quarter of 2023, compared to the same period of 2022. Same facility revenue per equivalent admission increased 2.4 percent in the second quarter of 2023, compared to the second quarter of 2022.

Six Months Ended June 30, 2023

Revenues for the six months ended June 30, 2023 totaled $31.452 billion, compared to $29.765 billion in the same period of 2022. Net income attributable to HCA Healthcare, Inc. was $2.556 billion, or $9.14 per diluted share, compared to $2.428 billion, or $8.05 per diluted share, for the first six months of 2022. Results for the six months ended June 30, 2023 include losses on sales of facilities of $14 million, or $0.08 per diluted share. Results for the six months ended June 30, 2022 included losses on sales of facilities of $22 million, or $0.08 per diluted share, and losses on retirement of debt of $78 million, or $0.20 per diluted share.

Balance Sheet and Cash Flows from Operations

As of June 30, 2023, HCA Healthcare, Inc.’s balance sheet reflected cash and cash equivalents of $862 million, total debt of $38.932 billion, and total assets of $53.594 billion. During the second quarter of 2023, capital expenditures totaled $1.241 billion, excluding acquisitions. Cash flows provided by operating activities in the second quarter totaled $2.475 billion, compared to $1.630 billion in the second quarter of 2022.

During the second quarter of 2023, the Company repurchased 3.3 million shares of its common stock at a cost of $915 million. The Company had $2.825 billion remaining under its repurchase authorization as of June 30, 2023. As of June 30, 2023, the Company had $6.875 billion of availability under its credit facilities.

Dividend

HCA today announced that its Board of Directors declared a quarterly cash dividend of $0.60 per share on the Company’s common stock. The dividend will be paid on September 29, 2023 to stockholders of record at the close of business on September 15, 2023.

The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations and contractual restrictions. Future dividends are expected to be funded by cash balances and future cash flows from operations.

2023 Revised Guidance

The 2023 guidance ranges for the year have been revised from our first quarter release as follows:

 

Previous 2023 Guidance Range

as of April 21, 2023

 

2023 Guidance Range

as of July 27, 2023

Revenues

$62.5 to $64.5 billion

 

$63.25 to $64.75 billion

Net Income Attributable to HCA Healthcare, Inc.

$4.750 to $5.160 billion

 

$4.900 to $5.255 billion

Adjusted EBITDA

$12.1 to $12.7 billion

 

$12.3 to $12.8 billion

EPS (diluted)

$17.25 to $18.55 per diluted share

 

$17.70 to $18.90 per diluted share

Capital expenditures for 2023, excluding acquisitions, are estimated to be approximately $4.7 billion compared to $4.6 billion previously.

The Company’s 2023 guidance contains a number of assumptions, including, among others, the Company’s current expectations regarding the impact of the COVID-19 pandemic, patient volumes and payor mix as well as general economic conditions, including inflation, and excludes the impact of items such as, but not limited to, gains or losses on sales of facilities, losses on retirement of debt, legal claims costs and impairment of long-lived assets.

Adjusted EBITDA is a non-GAAP financial measure. A table reconciling forecasted net income attributable to HCA Healthcare, Inc. to forecasted Adjusted EBITDA is included in this release.

The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below in the Company’s “Forward-Looking Statements.”

Earnings Conference Call

HCA Healthcare will host a conference call for investors at 9:00 a.m. Central Daylight Time today. All interested investors are invited to access a live audio broadcast of the call via webcast. The broadcast also will be available on a replay basis beginning this afternoon. The webcast can be accessed through the Company’s Investor Relations web page at https://investor.hcahealthcare.com/events-and-presentations/default.aspx.

About the Company

As of June 30, 2023, HCA operated 182 hospitals and approximately 2,300 ambulatory sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics, in 20 states and the United Kingdom.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include statements that do not relate solely to historical or current facts. Forward-looking statements can be identified by the use of words like “may,” “believe,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “initiative” or “continue.” These forward-looking statements are based on our current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond our control, which could significantly affect current plans and expectations and our future financial position and results of operations. These factors include, but are not limited to, (1) changes in or related to general economic conditions nationally and regionally in our markets, including inflation and economic and business conditions (and the impact thereof on the economy, financial markets and banking industry); changes in revenues due to declining patient volumes; changes in payer mix (including increases in uninsured and underinsured patients); potential increased expenses related to labor, supply chain or other expenditures; workforce disruptions; and supply shortages and disruptions, (2) the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms, (3) the impact of current and future federal and state health reform initiatives and possible changes to other federal, state or local laws and regulations affecting the health care industry, including, but not limited to, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the “Affordable Care Act”), additional changes to the Affordable Care Act, its implementation, or interpretation (including through executive orders and court challenges), and proposals to expand coverage of federally-funded insurance programs as an alternative to private insurance or establish a single-payer system (such reforms often referred to as “Medicare for All”), (4) the effects related to the implementation of sequestration spending reductions required under the Budget Control Act of 2011, related legislation extending these reductions and those required under the Pay-As-You-Go Act of 2010 as a result of the federal budget deficit impact of the American Rescue Plan Act of 2021, and the potential for future deficit reduction legislation that may alter these spending reductions, which include cuts to Medicare payments, or create additional spending reductions, (5) increases in the amount and risk of collectability of uninsured accounts and deductibles and copayment amounts for insured accounts, (6) the ability to achieve operating and financial targets, and attain expected levels of patient volumes and control the costs of providing services, (7) possible changes in Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs or Medicaid waiver programs, that may impact reimbursements to health care providers and insurers and the size of the uninsured or underinsured population, (8) personnel-related capacity constraints, increases in wages and the ability to attract, utilize and retain qualified management and other personnel, including affiliated physicians, nurses and medical and technical support personnel, (9) the highly competitive nature of the health care business, (10) changes in service mix, revenue mix and surgical volumes, including potential declines in the population covered under third-party payer agreements, the ability to enter into and renew third-party payer provider agreements on acceptable terms and the impact of consumer-driven health plans and physician utilization trends and practices, (11) the efforts of health insurers, health care providers, large employer groups and others to contain health care costs, (12) the outcome of our continuing efforts to monitor, maintain and comply with appropriate laws, regulations, policies and procedures, (13) the availability and terms of capital to fund the expansion of our business and improvements to our existing facilities, (14) changes in accounting practices, (15) developments related to COVID-19, including, without limitation, the length and severity of COVID-19-related impacts and the spread of virus strains with new epidemiological characteristics; the volume of canceled or rescheduled procedures and the volume and acuity of COVID-19 patients cared for across our health systems; and measures we are taking to respond to COVID-19, (16) the emergence of and effects related to pandemics, epidemics and infectious diseases, (17) future divestitures which may result in charges and possible impairments of long-lived assets, (18) changes in business strategy or development plans, (19) delays in receiving payments for services provided, (20) the outcome of pending and any future tax audits, disputes and litigation associated with our tax positions, (21) the impact of known and unknown government investigations, litigation and other claims that may be made against us, (22) the impact of actual and potential cybersecurity incidents or security breaches, including the data security incident disclosed in July 2023, (23) our ongoing ability to demonstrate meaningful use of certified electronic health record (“EHR”) technology and the impact of interoperability requirements, (24) the impact of natural disasters, such as hurricanes and floods, physical risks from climate change or similar events beyond our control, (25) changes in U.S. federal, state, or foreign tax laws including interpretive guidance that may be issued by taxing authorities or other standard setting bodies, and (26) other risk factors described in our annual report on Form 10-K for the year ended December 31, 2022 and our other filings with the Securities and Exchange Commission. Many of the factors that will determine our future results are beyond our ability to control or predict. In light of the significant uncertainties inherent in the forward-looking statements contained herein, readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. We undertake no obligation to revise or 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 “Company,” “HCA” and “HCA Healthcare” as used throughout this release refer to HCA Healthcare, Inc. and its affiliates.

HCA Healthcare, Inc.
Condensed Consolidated Comprehensive Income Statements
Second Quarter
Unaudited
(Dollars in millions, except per share amounts)
 

2023

2022

Amount

Ratio

Amount

Ratio

 
Revenues

$15,861

 

100.0

%

$14,820

 

100.0

 

%

 
Salaries and benefits

7,277

 

45.9

6,792

 

45.8

 

Supplies

2,478

 

15.6

2,301

 

15.5

 

Other operating expenses

3,043

 

19.2

2,693

 

18.3

 

Equity in losses (earnings) of affiliates

7

 

-

(8

)

(0.1

)

Depreciation and amortization

763

 

4.8

738

 

5.0

 

Interest expense

485

 

3.1

434

 

2.9

 

Losses (gains) on sales of facilities

(1

)

-

32

 

0.2

 

Losses on retirement of debt

-

 

-

78

 

0.5

 

 

14,052

 

88.6

13,060

 

88.1

 

 
Income before income taxes

1,809

 

11.4

1,760

 

11.9

 

 
Provision for income taxes

397

 

2.5

381

 

2.6

 

 
Net income

1,412

 

8.9

1,379

 

9.3

 

 
Net income attributable to noncontrolling interests

219

 

1.4

224

 

1.5

 

 
Net income attributable to HCA Healthcare, Inc.

$1,193

 

7.5

$1,155

 

7.8

 

 
Diluted earnings per share

$4.29

 

$3.90

 

 
Shares used in computing diluted earnings per share (millions)

278.198

 

296.061

 

 
Comprehensive income attributable to HCA Healthcare, Inc.

$1,207

 

$1,087

 

 
HCA Healthcare, Inc.
Condensed Consolidated Comprehensive Income Statements
For the Six Months Ended June 30, 2023 and 2022
Unaudited
(Dollars in millions, except per share amounts)
 

2023

2022

Amount

Ratio

Amount

Ratio

 
Revenues

$31,452

100.0

%

$29,765

 

100.0

 

%

 
Salaries and benefits

14,361

45.7

13,731

 

46.1

 

Supplies

4,901

15.6

4,622

 

15.5

 

Other operating expenses

5,937

18.8

5,445

 

18.4

 

Equity in losses (earnings) of affiliates

25

0.1

(19

)

(0.1

)

Depreciation and amortization

1,519

4.8

1,470

 

4.9

 

Interest expense

964

3.1

842

 

2.8

 

Losses on sales of facilities

14

-

22

 

0.1

 

Losses on retirement of debt

-

-

78

 

0.3

 

 

27,721

88.1

26,191

 

88.0

 

 
Income before income taxes

3,731

11.9

3,574

 

12.0

 

 
Provision for income taxes

776

2.5

730

 

2.4

 

 
Net income

2,955

9.4

2,844

 

9.6

 

 
Net income attributable to noncontrolling interests

399

1.3

416

 

1.4

 

 
Net income attributable to HCA Healthcare, Inc.

$2,556

8.1

$2,428

 

8.2

 

 
Diluted earnings per share

$9.14

$8.05

 

 
Shares used in computing diluted earnings per share (millions)

279.573

301.690

 

 
Comprehensive income attributable to HCA Healthcare, Inc.

$2,590

$2,317

 

 
HCA Healthcare, Inc.
Condensed Consolidated Balance Sheets
Unaudited
(Dollars in millions)
 
June 30, March 31, December 31,

2023

2023

2022

 
ASSETS
Current assets:
Cash and cash equivalents

$862

 

$842

 

$908

 

Accounts receivable

8,713

 

8,657

 

8,891

 

Inventories

2,050

 

2,085

 

2,068

 

Other

2,263

 

1,957

 

1,776

 

13,888

 

13,541

 

13,643

 

 
Property and equipment, at cost

56,667

 

55,463

 

54,757

 

Accumulated depreciation

(30,023

)

(29,410

)

(29,182

)

26,644

 

26,053

 

25,575

 

 
Investments of insurance subsidiaries

384

 

390

 

381

 

Investments in and advances to affiliates

731

 

786

 

823

 

Goodwill and other intangible assets

9,641

 

9,590

 

9,653

 

Right-of-use operating lease assets

2,110

 

2,032

 

2,065

 

Other

196

 

319

 

298

 

 

$53,594

 

$52,711

 

$52,438

 

 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable

$3,823

 

$3,769

 

$4,239

 

Accrued salaries

1,776

 

1,565

 

1,712

 

Other accrued expenses

3,551

 

3,316

 

3,581

 

Long-term debt due within one year

2,395

 

2,378

 

370

 

11,545

 

11,028

 

9,902

 

 
Long-term debt, less debt issuance costs and discounts of $349, $295 and $301

36,537

 

36,478

 

37,714

 

Professional liability risks

1,554

 

1,565

 

1,528

 

Right-of-use operating lease obligations

1,806

 

1,716

 

1,752

 

Income taxes and other liabilities

1,691

 

1,692

 

1,615

 

 
Stockholders' equity (deficit):
Stockholders' deficit attributable to HCA Healthcare, Inc.

(2,303

)

(2,495

)

(2,767

)

Noncontrolling interests

2,764

 

2,727

 

2,694

 

461

 

232

 

(73

)

$53,594

 

$52,711

 

$52,438

 

 
HCA Healthcare, Inc.
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2023 and 2022
Unaudited
(Dollars in millions)
 

2023

2022

 
Cash flows from operating activities:
Net income

$2,955

 

$2,844

 

Adjustments to reconcile net income to net cash provided by operating activities:
Increase (decrease) in cash from operating assets and liabilities:
Accounts receivable

306

 

(547

)

Inventories and other assets

(301

)

(462

)

Accounts payable and accrued expenses .

(505

)

(818

)

Depreciation and amortization

1,519

 

1,470

 

Income taxes

3

 

121

 

Losses on sales of facilities

14

 

22

 

Losses on retirement of debt

-

 

78

 

Amortization of debt issuance costs and discounts

17

 

15

 

Share-based compensation

133

 

171

 

Other

137

 

81

 

 
Net cash provided by operating activities

4,278

 

2,975

 

 
 
Cash flows from investing activities:
Purchase of property and equipment

(2,438

)

(1,941

)

Acquisition of hospitals and health care entities

(124

)

(116

)

Sales of hospitals and health care entities

172

 

20

 

Change in investments

(16

)

(2

)

Other

(2

)

(11

)

 
Net cash used in investing activities

(2,408

)

(2,050

)

 
 
Cash flows from financing activities:
Issuances of long-term debt

3,218

 

5,966

 

Net change in revolving credit facilities

(1,840

)

930

 

Repayment of long-term debt

(608

)

(2,690

)

Distributions to noncontrolling interests

(342

)

(333

)

Payment of debt issuance costs

(30

)

(53

)

Payment of dividends

(339

)

(337

)

Repurchase of common stock

(1,761

)

(4,783

)

Other

(221

)

(201

)

 
Net cash used in financing activities

(1,923

)

(1,501

)

 
Effect of exchange rate changes on cash and cash equivalents

7

 

(17

)

 
Change in cash and cash equivalents

(46

)

(593

)

Cash and cash equivalents at beginning of period

908

 

1,451

 

 
 
Cash and cash equivalents at end of period

$862

 

$858

 

 
 
Interest payments

$925

 

$777

 

Income tax payments, net

$773

 

$609

 

 
HCA Healthcare, Inc.
Operating Statistics
 
For the Six Months
Second Quarter Ended June 30,

 

 

2023

 

2022

 

2023

 

2022

 
Operations:
Number of Hospitals

 

182

 

 

182

 

 

182

 

 

182

 

Number of Freestanding Outpatient Surgery Centers*

 

126

 

 

126

 

 

126

 

 

126

 

Licensed Beds at End of Period

 

49,063

 

 

48,979

 

 

49,063

 

 

48,979

 

Weighted Average Beds in Service

 

41,802

 

 

41,930

 

 

41,743

 

 

41,875

 

 
Reported:
Admissions

 

522,996

 

 

515,113

 

 

1,048,231

 

 

1,022,069

 

% Change

 

1.5

%

 

2.6

%

Equivalent Admissions

 

938,834

 

 

902,757

 

 

1,855,369

 

 

1,762,047

 

% Change

 

4.0

%

 

5.3

%

Revenue per Equivalent Admission

$

16,894

 

$

16,417

 

$

16,952

 

$

16,892

 

% Change

 

2.9

%

 

0.4

%

Inpatient Revenue per Admission

$

17,689

 

$

16,727

 

$

17,759

 

$

17,207

 

% Change

 

5.8

%

 

3.2

%

 
Patient Days

 

2,558,563

 

 

2,571,328

 

 

5,196,466

 

 

5,253,046

 

% Change

 

-0.5

%

 

-1.1

%

Equivalent Patient Days

 

4,594,604

 

 

4,510,739

 

 

9,197,745

 

 

9,056,251

 

% Change

 

1.9

%

 

1.6

%

 
Inpatient Surgery Cases

 

132,447

 

 

130,961

 

 

262,907

 

 

257,841

 

% Change

 

1.1

%

 

2.0

%

Outpatient Surgery Cases

 

263,601

 

 

258,182

 

 

519,572

 

 

505,603

 

% Change

 

2.1

%

 

2.8

%

 
Emergency Room Visits

 

2,294,205

 

 

2,223,999

 

 

4,546,874

 

 

4,280,388

 

% Change

 

3.2

%

 

6.2

%

 
Outpatient Revenues as a
Percentage of Patient Revenues

 

39.8

%

 

38.9

%

 

38.7

%

 

38.1

%

 
Average Length of Stay (days)

 

4.892

 

 

4.992

 

 

4.957

 

 

5.140

 

 
Occupancy**

 

71.1

%

 

71.0

%

 

72.6

%

 

72.8

%

 
Same Facility:
Admissions

 

522,363

 

 

511,188

 

 

1,047,610

 

 

1,014,289

 

% Change

 

2.2

%

 

3.3

%

Equivalent Admissions

 

928,239

 

 

895,090

 

 

1,843,794

 

 

1,745,591

 

% Change

 

3.7

%

 

5.6

%

Revenue per Equivalent Admission

$

16,780

 

$

16,385

 

$

16,884

 

$

16,881

 

% Change

 

2.4

%

 

0.0

%

Inpatient Revenue per Admission

$

17,746

 

$

16,702

 

$

17,784

 

$

17,179

 

% Change

 

6.3

%

 

3.5

%

 
Inpatient Surgery Cases

 

132,286

 

 

129,922

 

 

262,757

 

 

255,816

 

% Change

 

1.8

%

 

2.7

%

Outpatient Surgery Cases

 

260,478

 

 

252,170

 

 

514,641

 

 

494,076

 

% Change

 

3.3

%

 

4.2

%

 
Emergency Room Visits

 

2,290,580

 

 

2,208,160

 

 

4,543,249

 

 

4,250,515

 

% Change

 

3.7

%

 

6.9

%

 
* Excludes freestanding endoscopy centers (22 centers at June 30, 2023 and 21 centers at June 30, 2022).
** Reflects the rate of occupancy (patient days and observations) based on weighted average beds in service.
HCA Healthcare, Inc.
Supplemental Non-GAAP Disclosures
Operating Results Summary
(Dollars in millions, except per share amounts)
 
For the Six Months
Second Quarter Ended June 30,

2023

2022

2023

2022

 
Revenues

$

15,861

 

$

14,820

 

$

31,452

 

$

29,765

 

 
Net income attributable to HCA Healthcare, Inc.

$

1,193

 

$

1,155

 

$

2,556

 

$

2,428

 

Losses (gains) on sales of facilities (net of tax)

 

-

 

 

32

 

 

22

 

 

24

 

Losses on retirement of debt (net of tax)

 

-

 

 

60

 

 

-

 

 

60

 

Net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities
and losses on retirement of debt (a)

 

1,193

 

 

1,247

 

 

2,578

 

 

2,512

 

Depreciation and amortization

 

763

 

 

738

 

 

1,519

 

 

1,470

 

Interest expense

 

485

 

 

434

 

 

964

 

 

842

 

Provision for income taxes

 

396

 

 

399

 

 

768

 

 

746

 

Net income attributable to noncontrolling interests

 

219

 

 

224

 

 

399

 

 

416

 

 
Adjusted EBITDA (a)

$

3,056

 

$

3,042

 

$

6,228

 

$

5,986

 

 
Adjusted EBITDA margin (a)

 

19.3

%

 

20.5

%

 

19.8

%

 

20.1

%

 
Diluted earnings per share:
Net income attributable to HCA Healthcare, Inc.

$

4.29

 

$

3.90

 

$

9.14

 

$

8.05

 

Losses (gains) on sales of facilities

 

-

 

 

0.11

 

 

0.08

 

 

0.08

 

Losses on retirement of debt

 

-

 

 

0.20

 

 

-

 

 

0.20

 

Net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of
facilities and losses on retirement of debt (a)

$

4.29

 

$

4.21

 

$

9.22

 

$

8.33

 

 
Shares used in computing diluted earnings per share (millions)

 

278.198

 

 

296.061

 

 

279.573

 

 

301.690

 

__________________

(a)

Net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and Adjusted EBITDA should not be considered as measures of financial performance under generally accepted accounting principles ("GAAP"). We believe net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and Adjusted EBITDA are important measures that supplement discussions and analysis of our results of operations. We believe it is useful to investors to provide disclosures of our results of operations on the same basis used by management. Management relies upon net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and Adjusted EBITDA as the primary measures to review and assess operating performance of its health care facilities and their management teams.
 

 

Management and investors review both the overall performance (including net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and GAAP net income attributable to HCA Healthcare, Inc.) and operating performance (Adjusted EBITDA) of our health care facilities. Adjusted EBITDA and the Adjusted EBITDA margin (Adjusted EBITDA divided by revenues) are utilized by management and investors to compare our current operating results with the corresponding periods during the previous year and to compare our operating results with other companies in the health care industry. It is reasonable to expect that losses (gains) on sales of facilities and losses on retirement of debt will occur in future periods, but the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our health care facilities and complicate period comparisons of our results of operations and operations comparisons with other health care companies.
 

 

Net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and Adjusted EBITDA are not measures of financial performance under GAAP, and should not be considered as alternatives to net income attributable to HCA Healthcare, Inc. as a measure of operating performance or cash flows from operating, investing and financing activities as a measure of liquidity. Because net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and Adjusted EBITDA are not measurements determined in accordance with GAAP and are susceptible to varying calculations, net income attributable to HCA Healthcare, Inc., excluding losses (gains) on sales of facilities and losses on retirement of debt, and Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures presented by other companies.
HCA Healthcare, Inc.
Supplemental Non-GAAP Disclosures
2023 Operating Results Forecast
(Dollars in millions, except per share amounts)
 
For the Year Ending
December 31, 2023
Low High
 
Revenues

$63,250

$64,750

 
Net income attributable to HCA Healthcare, Inc. (a)

$4,900

$5,255

Depreciation and amortization

3,070

3,100

Interest expense

1,950

1,970

Provision for income taxes

1,535

1,610

Net income attributable to noncontrolling interests

845

865

 
Adjusted EBITDA (a) (b)

$12,300

$12,800

 
Diluted earnings per share:
Net income attributable to HCA Healthcare, Inc.

$17.70

$18.90

 
Shares used in computing diluted earnings per share (millions)

278.000

278.000

 
The Company's forecasted guidance range is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks.
___________________
(a) The Company does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of debt, legal claim costs (benefits) and impairments of long-lived assets because the Company does not believe that it can forecast these items with sufficient accuracy.
 
(b) Adjusted EBITDA should not be considered a measure of financial performance under generally accepted accounting principles ("GAAP"). We believe Adjusted EBITDA is an important measure that supplements discussions and analysis of our results of operations. We believe it is useful to investors to provide disclosures of our results of operations on the same basis used by management. Management relies upon Adjusted EBITDA as a primary measure to review and assess operating performance of its health care facilities and their management teams.
 
Management and investors review both the overall performance (including net income attributable to HCA Healthcare, Inc.) and operating performance (Adjusted EBITDA) of our health care facilities. Adjusted EBITDA is utilized by management and investors to compare our current operating results with the corresponding periods during the previous year and to compare our operating results with other companies in the health care industry.
 
Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income attributable to HCA Healthcare, Inc. as a measure of operating performance or cash flows from operating, investing and financing activities as a measure of 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 presented by other companies.

 

Contacts

INVESTOR CONTACT:

Frank Morgan

615-344-2688



MEDIA CONTACT:

Harlow Sumerford

615-344-1851

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