UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
______________
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported):
February
12, 2016
______________
LIFEPOINT
HEALTH, INC.
(Exact
name of registrant as specified in its charter)
Delaware
|
000-51251
|
20-1538254
|
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
330 Seven Springs Way Brentwood, Tennessee
|
37027
|
(Address
of principal executive offices)
|
(Zip
Code)
|
615-920-7000
(Registrant’s
telephone number, including area code)
N/A
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On February 12, 2016, LifePoint Health, Inc. (the "Company") issued a
press release announcing results for the fourth quarter and year ended
December 31, 2015. See the press release attached as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Copy of press release issued by the Company on
February 12, 2016.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date:
|
February 12, 2016
|
LIFEPOINT HEALTH, INC.
|
|
|
|
|
|
By:
|
/s/ Leif M. Murphy
|
|
|
|
|
|
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Leif M. Murphy
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|
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Executive Vice President and Chief Financial Officer
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EXHIBIT INDEX
Exhibit Number
|
|
Description
|
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99.1
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Copy of press release issued by the Company on February 12, 2016.
|
Exhibit 99.1
LifePoint
Health Reports Fourth Quarter and Year-End 2015 Results
Achieves
Record Revenue, Adjusted EBITDA and Adjusted Diluted EPS in 2015
Company
Issues 2016 Guidance
BRENTWOOD, Tenn.--(BUSINESS WIRE)--February 12, 2016--LifePoint Health,
Inc. (NASDAQ: LPNT) today announced results for the fourth quarter and
year ended December 31, 2015.
For the fourth quarter ended December 31, 2015, consolidated revenues
were $1,370.7 million, up 8.5% from $1,262.9 million for the same period
last year. Adjusted EBITDA for the fourth quarter ended December 31,
2015, increased 5.9% to $184.2 million compared with $174.0 million for
the same period last year. Adjusted EBITDA for the fourth quarter ended
December 31, 2015, excludes a bargain purchase gain of $4.0 million, or
$0.05 per diluted share, related to the final valuation of a recently
acquired hospital. Adjusted EBITDA for the fourth quarter ended December
31, 2014, excludes impairment charges of $45.5 million, or $0.60 per
diluted share, for the write down of property, equipment, allocated
goodwill and certain other assets in connection with the sale of three
hospitals in Alabama. Net income attributable to LifePoint Health, Inc.
stockholders for the fourth quarter ended December 31, 2015, increased
136.9% to $53.0 million, or $1.16 per diluted share, compared with $22.4
million, or $0.48 per diluted share, for the same period last year. When
adjusted to exclude the bargain purchase gain and impairment charges
discussed above, diluted earnings per share for the fourth quarters
ended December 31, 2015 and 2014, were $1.11 and $1.08, respectively.
For the year ended December 31, 2015, consolidated revenues were
$5,214.3 million, up 16.3% from $4,483.1 million for the prior year.
Adjusted EBITDA for the year ended December 31, 2015, increased 11.3% to
$705.7 million compared with $634.2 million for the prior year. Adjusted
EBITDA for the year ended December 31, 2015, excludes a bargain purchase
gain of $4.0 million, or $0.05 per diluted share, and impairment charges
of $13.8 million, or $0.19 per diluted share. Adjusted EBITDA for the
year ended December 31, 2014, excludes impairment charges of $57.7
million, or $0.76 per diluted share. Net income attributable to
LifePoint Health, Inc. stockholders for the year ended December 31,
2015, increased 44.3% to $181.9 million, or $3.95 per diluted share,
compared with $126.1 million, or $2.69 per diluted share, for the prior
year. When adjusted to exclude the bargain purchase gain and impairment
charges discussed above, diluted earnings per share for the years ended
December 31, 2015 and 2014, were $4.09 and $3.45, respectively.
“We are pleased with our strong results for the fourth quarter, which
contributed to a record 2015 for LifePoint,” said William F. Carpenter
III, chairman and chief executive officer of LifePoint Health. “Overall,
2015 was a transformative year underscored by our continued progress on
acquisitions, which will add approximately $1.25 billion of revenue this
year. We expect that as we bring these and other recent acquisitions up
to company average margins over the coming years, they will drive
significant Adjusted EBITDA growth. In addition, we are confident that
our continued focus on improving safety, quality, and the patient
experience have differentiated our company and are fulfilling our vision
of creating places where patients choose to come for care. We look
forward to continuing to execute on our strategy and drive value for
shareholders in 2016 and beyond.”
The Company also issued the following guidance for 2016:
|
|
|
|
Estimated Net Revenue
|
|
|
$6.45 - $6.55 billion
|
Estimated Adjusted EBITDA
|
|
|
$765 - $795 million
|
Estimated Diluted EPS
|
|
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$3.65 - $3.91
|
Same-Hospital Estimated Volume and Rate:
|
|
|
|
Equivalent Admissions
|
|
|
1.5% - 2.5%
|
Revenue Per Equivalent Admission
|
|
|
1.5% - 2.5%
|
|
|
|
|
Guidance for 2016 includes the estimated impact of recent acquisitions
in Columbus, Georgia, Hickory, North Carolina, Sanford, North Carolina
and Columbia, South Carolina along with the Company’s other 2015
acquisitions. While the Company estimates that these acquisitions will
contribute approximately $60 million to Adjusted EBITDA in 2016,
combined depreciation and amortization expense and interest expense
allocated to these acquisitions is estimated to exceed just over $100
million. As a result, the Company estimates that these acquisitions will
have an approximate $0.60 dilutive effect on its 2016 earnings per
share. The Company’s 2016 guidance also reflects a 170 basis point
Adjusted EBITDA margin decline as these acquired hospitals are expected
to have a combined Adjusted EBITDA margin of less than 5% in 2016.
Guidance for 2016 excludes, if applicable, the estimated impact of
future acquisitions, except for the aforementioned transactions, as well
as the impact of items that are non-operational in nature, including
items such as, but not limited to, gains or losses on early debt
retirement, impairments of long-lived assets and share repurchases (if
any). This guidance is also subject to certain risks, including those as
set forth in the Company’s “Important Legal Information.”
The Company noted that it expects its future Adjusted EBITDA margins
will benefit from the integration of its 2014, 2015 and recently
completed 2016 acquisitions by 100 basis points in 2017 and by an
additional 100 basis points in 2018. This solely represents the expected
margin contribution improvement from these acquisitions, does not
reflect the impact of numerous other factors that could affect margins
and, therefore, does not constitute overall consolidated Adjusted EBITDA
margin guidance.
A listen-only simulcast, as well as a 30-day replay, of LifePoint
Health’s fourth quarter and year-end 2015 conference call will be
available online at www.lifepointhealth.net/investor-relations
today, Friday, February 12, 2016, beginning at 10:00 a.m. Eastern Time.
LifePoint Health (NASDAQ: LPNT) is a leading healthcare company
dedicated to Making Communities Healthier®. Through its subsidiaries, it
provides quality inpatient, outpatient and post-acute services close to
home. LifePoint owns and operates community hospitals, regional health
systems, physician practices, outpatient centers, and post-acute
facilities in 22 states. It is the sole community healthcare provider in
the majority of the non-urban communities it serves. More information
about the Company can be found at www.LifePointHealth.net. All
references to “our,” “LifePoint,” “LifePoint Health” or the “Company”
used in this release refer to LifePoint Health, Inc. or its affiliates.
Important Legal Information. Certain statements contained in
this release, including LifePoint’s guidance for the year ended December
31, 2016, and margin improvements in acquired hospitals, are based on
current management expectations and are “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and are intended to qualify for the safe harbor protections
from liability provided by the Private Securities Litigation Reform Act
of 1995. Numerous factors exist which may cause results to differ from
these expectations. Many of the factors that will determine our future
results are beyond our ability to control or predict with accuracy. Such
forward-looking statements reflect the current expectations and beliefs
of the management of LifePoint, are not guarantees of performance and
are subject to a number of risks, uncertainties, assumptions and other
factors that could cause actual results to differ from those described
in the forward-looking statements. These forward-looking statements may
also be subject to other risk factors and uncertainties, including
without limitation: (i) the effects related to the enactment and
implementation of healthcare reform, the possible enactment of
additional federal or state healthcare reforms and possible changes in
healthcare reform laws and other federal, state or local laws or
regulations affecting the healthcare industry including the timing of
the implementation of reform; (ii) the extent to which states support
increases, decreases or changes in Medicaid programs, implement
healthcare exchanges or alter the provision of healthcare to state
residents through regulation or otherwise; (iii) delays in receiving
payments for services provided, reductions in Medicare or Medicaid
payments (including increased recoveries made by Recovery Audit
Contractors (RAC) and similar governmental agents), compared to the
timing of expanded coverage; (iv) reductions in reimbursements from
commercial payors; (v) our ability to acquire healthcare facilities on
favorable terms and the business risks, unknown or contingent
liabilities and other costs associated therewith; (vi) our ability to
successfully integrate acquired facilities into our ongoing operations
and to achieve the anticipated financial results and synergies from such
acquisitions, individually or in the aggregate; (vii) our ongoing
ability to demonstrate meaningful use of certified electronic health
record technology and recognize income for the related Medicare or
Medicaid incentive payments; (viii) the deterioration in the
collectability of “bad debt” and “patient due” accounts, the number of
individuals without insurance coverage (or who are underinsured) who
seek care at our facilities; (ix) whether our core strategies will
result in anticipated operating results, including measurable quality
and satisfaction improvements; (x) whether our efforts to reduce the
cost of providing healthcare while increasing the quality of care are
successful; (xi) the ability to attract, recruit or employ and retain
qualified physicians, nurses, medical technicians and other healthcare
professionals and the increasing costs associated with doing so,
including the direct and indirect costs associated with employing
physicians and other healthcare professionals; (xii) the loss of certain
physicians in markets where such a loss can have a disproportionate
impact on our facilities in such market; (xiii) the application,
interpretation and enforcement of increasingly stringent and complex
laws and regulations governing our operations and healthcare generally
(and changing interpretations of applicable laws and regulations),
related enforcement activity and the potentially adverse impact of known
and unknown government investigations, litigation and other claims that
may be made against us; (xiv) any interruption of or restriction in our
prompt access to licensed or owned information (and information
technology systems) or failure in our ability to integrate changes to
LifePoint’s existing information systems or information systems of
acquired facilities; (xv) adverse events in states where a large portion
of our revenues are concentrated; (xvi) liabilities resulting from
potential malpractice and related legal claims brought against our
facilities or the healthcare providers associated with, or employed by,
such facilities or affiliated entities; (xvii) our increased dependence
on third parties to provide purchasing, revenue cycle and payroll
services and information technology and whether they are able to do so
effectively; (xviii) the continued viability of our operations through
joint venture entities, the largest of which is Duke LifePoint
Healthcare, our partnership with a wholly controlled affiliate of Duke
University Health Systems, Inc.; and (xix) those other risks and
uncertainties described from time to time in our filings with the
Securities and Exchange Commission. Therefore, our future results may
differ materially from those described in this release. LifePoint
undertakes no obligation to update any forward-looking statements, or to
make any other forward-looking statements, whether as a result of new
information, future events or otherwise.
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
Amount
|
|
|
% of Revenues
|
|
|
Amount
|
|
|
% of Revenues
|
|
|
Amount
|
|
|
% of Revenues
|
|
|
Amount
|
|
|
% of Revenues
|
Revenues before provision for doubtful accounts
|
|
|
$
|
1,570
|
.7
|
|
|
|
|
|
$
|
1,483
|
.7
|
|
|
|
|
|
$
|
6,014
|
.4
|
|
|
|
|
|
$
|
5,300
|
.9
|
|
|
|
Provision for doubtful accounts
|
|
|
|
200
|
.0
|
|
|
|
|
|
|
220
|
.8
|
|
|
|
|
|
|
800
|
.1
|
|
|
|
|
|
|
817
|
.8
|
|
|
|
Revenues
|
|
|
|
1,370
|
.7
|
|
|
100
|
.0%
|
|
|
|
1,262
|
.9
|
|
|
100
|
.0%
|
|
|
|
5,214
|
.3
|
|
|
100
|
.0%
|
|
|
|
4,483
|
.1
|
|
|
100
|
.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
|
652
|
.7
|
|
|
47
|
.6
|
|
|
|
612
|
.4
|
|
|
48
|
.5
|
|
|
|
2,496
|
.9
|
|
|
47
|
.9
|
|
|
|
2,134
|
.5
|
|
|
47
|
.6
|
Supplies
|
|
|
|
218
|
.4
|
|
|
15
|
.9
|
|
|
|
199
|
.0
|
|
|
15
|
.8
|
|
|
|
815
|
.0
|
|
|
15
|
.6
|
|
|
|
699
|
.0
|
|
|
15
|
.6
|
Other operating expenses
|
|
|
|
330
|
.9
|
|
|
24
|
.2
|
|
|
|
299
|
.9
|
|
|
23
|
.7
|
|
|
|
1,246
|
.4
|
|
|
24
|
.0
|
|
|
|
1,087
|
.3
|
|
|
24
|
.3
|
Other income
|
|
|
|
(15
|
.5)
|
|
|
(1
|
.1)
|
|
|
|
(22
|
.4)
|
|
|
(1
|
.8)
|
|
|
|
(49
|
.7)
|
|
|
(1
|
.0)
|
|
|
|
(71
|
.9)
|
|
|
(1
|
.6)
|
Depreciation and amortization
|
|
|
|
71
|
.9
|
|
|
5
|
.2
|
|
|
|
59
|
.7
|
|
|
4
|
.8
|
|
|
|
279
|
.0
|
|
|
5
|
.3
|
|
|
|
250
|
.5
|
|
|
5
|
.6
|
Interest expense, net
|
|
|
|
29
|
.7
|
|
|
2
|
.2
|
|
|
|
29
|
.2
|
|
|
2
|
.3
|
|
|
|
114
|
.4
|
|
|
2
|
.2
|
|
|
|
123
|
.0
|
|
|
2
|
.7
|
Impairment charges
|
|
|
|
–
|
|
|
|
–
|
|
|
|
|
45
|
.5
|
|
|
3
|
.6
|
|
|
|
13
|
.8
|
|
|
0
|
.3
|
|
|
|
57
|
.7
|
|
|
1
|
.3
|
Other non-operating gain
|
|
|
|
(4
|
.0)
|
|
|
(0
|
.3)
|
|
|
|
–
|
|
|
|
–
|
|
|
|
|
(4
|
.0)
|
|
|
(0
|
.1)
|
|
|
|
–
|
|
|
|
–
|
|
|
|
|
|
1,284
|
.1
|
|
|
93
|
.7
|
|
|
|
1,223
|
.3
|
|
|
96
|
.9
|
|
|
|
4,911
|
.8
|
|
|
94
|
.2
|
|
|
|
4,280
|
.1
|
|
|
95
|
.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
86
|
.6
|
|
|
6
|
.3
|
|
|
|
39
|
.6
|
|
|
3
|
.1
|
|
|
|
302
|
.5
|
|
|
5
|
.8
|
|
|
|
203
|
.0
|
|
|
4
|
.5
|
Provision for income taxes
|
|
|
|
31
|
.2
|
|
|
2
|
.3
|
|
|
|
12
|
.9
|
|
|
1
|
.0
|
|
|
|
109
|
.5
|
|
|
2
|
.1
|
|
|
|
68
|
.1
|
|
|
1
|
.5
|
Net income
|
|
|
|
55
|
.4
|
|
|
4
|
.0
|
|
|
|
26
|
.7
|
|
|
2
|
.1
|
|
|
|
193
|
.0
|
|
|
3
|
.7
|
|
|
|
134
|
.9
|
|
|
3
|
.0
|
Less: Net income attributable to noncontrolling interests and
redeemable noncontrolling interests
|
|
|
|
(2
|
.4)
|
|
|
(0
|
.1)
|
|
|
|
(4
|
.3)
|
|
|
(0
|
.3)
|
|
|
|
(11
|
.1)
|
|
|
(0
|
.2)
|
|
|
|
(8
|
.8)
|
|
|
(0
|
.2)
|
Net income attributable to LifePoint Health, Inc.
|
|
|
$
|
53
|
.0
|
|
|
3
|
.9%
|
|
|
$
|
22
|
.4
|
|
|
1
|
.8
|
|
|
$
|
181
|
.9
|
|
|
3
|
.5
|
|
|
$
|
126
|
.1
|
|
|
2
|
.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to LifePoint Health, Inc.
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1
|
.22
|
|
|
|
|
|
$
|
0
|
.50
|
|
|
|
|
|
$
|
4
|
.14
|
|
|
|
|
|
$
|
2
|
.81
|
|
|
|
Diluted
|
|
|
$
|
1
|
.16
|
|
|
|
|
|
$
|
0
|
.48
|
|
|
|
|
|
$
|
3
|
.95
|
|
|
|
|
|
$
|
2
|
.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED EARNINGS PER SHARE CALCULATIONS
In millions, except per share amounts
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net income
|
|
|
$
|
55
|
.4
|
|
|
$
|
26
|
.7
|
|
|
$
|
193
|
.0
|
|
|
$
|
134
|
.9
|
Less: Net income attributable to noncontrolling interests
and redeemable noncontrolling interests
|
|
|
|
(2
|
.4)
|
|
|
|
(4
|
.3)
|
|
|
|
(11
|
.1)
|
|
|
|
(8
|
.8)
|
Net income attributable to LifePoint Health, Inc.
|
|
|
$
|
53
|
.0
|
|
|
$
|
22
|
.4
|
|
|
$
|
181
|
.9
|
|
|
$
|
126
|
.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
|
43
|
.4
|
|
|
|
44
|
.5
|
|
|
|
43
|
.9
|
|
|
|
44
|
.9
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options and other stock-based awards
|
|
|
|
2
|
.2
|
|
|
|
2
|
.0
|
|
|
|
2
|
.2
|
|
|
|
1
|
.8
|
Convertible debt instruments
|
|
|
|
–
|
|
|
|
|
–
|
|
|
|
|
–
|
|
|
|
|
0
|
.2
|
Weighted average shares outstanding - diluted
|
|
|
|
45
|
.6
|
|
|
|
46
|
.5
|
|
|
|
46
|
.1
|
|
|
|
46
|
.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to LifePoint Health, Inc.
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1
|
.22
|
|
|
$
|
0
|
.50
|
|
|
$
|
4
|
.14
|
|
|
$
|
2
|
.81
|
Diluted
|
|
|
$
|
1
|
.16
|
|
|
$
|
0
|
.48
|
|
|
$
|
3
|
.95
|
|
|
$
|
2
|
.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Dollars in millions
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2015
|
|
|
Dec. 31, 2014
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
284
|
.0
|
|
|
$
|
191
|
.5
|
Accounts receivable, less allowances for doubtful accounts of
$796.8 and $709.5 at December 31, 2015, and December 31, 2014,
respectively
|
|
|
|
743
|
.7
|
|
|
|
|
|
|
|
|
752
|
.6
|
Inventories
|
|
|
|
127
|
.7
|
|
|
|
115
|
.2
|
Prepaid expenses
|
|
|
|
50
|
.8
|
|
|
|
45
|
.4
|
Income taxes receivable
|
|
|
|
-
|
|
|
|
|
33
|
.0
|
Other current assets
|
|
|
|
59
|
.8
|
|
|
|
85
|
.7
|
|
|
|
|
1,266
|
.0
|
|
|
|
1,223
|
.4
|
Property and equipment:
|
|
|
|
|
|
|
Land
|
|
|
|
162
|
.8
|
|
|
|
134
|
.8
|
Buildings and improvements
|
|
|
|
2,272
|
.3
|
|
|
|
2,155
|
.9
|
Equipment
|
|
|
|
1,767
|
.8
|
|
|
|
1,633
|
.8
|
Construction in progress
|
|
|
|
119
|
.4
|
|
|
|
72
|
.9
|
|
|
|
|
4,322
|
.3
|
|
|
|
3,997
|
.4
|
Accumulated depreciation
|
|
|
|
(1,840
|
.0)
|
|
|
|
(1,619
|
.9)
|
|
|
|
|
2,482
|
.3
|
|
|
|
2,377
|
.5
|
Intangible assets, net
|
|
|
|
70
|
.6
|
|
|
|
69
|
.1
|
Other long-term assets
|
|
|
|
510
|
.4
|
|
|
|
49
|
.2
|
Goodwill
|
|
|
|
1,667
|
.5
|
|
|
|
1,636
|
.1
|
Total assets
|
|
|
$
|
5,996
|
.8
|
|
|
$
|
5,355
|
.3
|
|
LIABILITIES AND EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
164
|
.3
|
|
|
$
|
158
|
.5
|
Accrued salaries
|
|
|
|
206
|
.0
|
|
|
|
202
|
.4
|
Income taxes payable
|
|
|
|
28
|
.9
|
|
|
|
–
|
|
Other current liabilities
|
|
|
|
194
|
.5
|
|
|
|
203
|
.2
|
Current maturities of long-term debt
|
|
|
|
25
|
.0
|
|
|
|
19
|
.2
|
|
|
|
|
618
|
.7
|
|
|
|
583
|
.3
|
Long-term debt, net
|
|
|
|
2,643
|
.8
|
|
|
|
2,170
|
.4
|
Deferred income taxes
|
|
|
|
94
|
.4
|
|
|
|
114
|
.7
|
Long-term portion of reserves for self-insurance claims
|
|
|
|
154
|
.7
|
|
|
|
133
|
.2
|
Other long-term liabilities
|
|
|
|
72
|
.8
|
|
|
|
84
|
.7
|
Total liabilities
|
|
|
|
3,584
|
.4
|
|
|
|
3,086
|
.3
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
|
103
|
.6
|
|
|
|
87
|
.1
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
LifePoint Health, Inc. stockholders’ equity:
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
–
|
|
|
|
|
–
|
|
Common stock
|
|
|
|
0
|
.7
|
|
|
|
0
|
.7
|
Capital in excess of par value
|
|
|
|
1,556
|
.4
|
|
|
|
1,496
|
.2
|
Accumulated other comprehensive loss
|
|
|
|
(2
|
.7)
|
|
|
|
(4
|
.4)
|
Retained earnings
|
|
|
|
1,655
|
.0
|
|
|
|
1,473
|
.1
|
Common stock in treasury, at cost
|
|
|
|
(945
|
.5)
|
|
|
|
(811
|
.0)
|
Total LifePoint Health, Inc. stockholders’ equity
|
|
|
|
2,263
|
.9
|
|
|
|
2,154
|
.6
|
Noncontrolling interests
|
|
|
|
44
|
.9
|
|
|
|
27
|
.3
|
Total equity
|
|
|
|
2,308
|
.8
|
|
|
|
2,181
|
.9
|
Total liabilities and equity
|
|
|
$
|
5,996
|
.8
|
|
|
$
|
5,355
|
.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in millions
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
55
|
.4
|
|
|
$
|
26
|
.7
|
|
|
$
|
193
|
.0
|
|
|
$
|
134
|
.9
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
7
|
.6
|
|
|
|
6
|
.9
|
|
|
|
30
|
.0
|
|
|
|
27
|
.3
|
Depreciation and amortization
|
|
|
|
71
|
.9
|
|
|
|
59
|
.7
|
|
|
|
279
|
.0
|
|
|
|
250
|
.5
|
Amortization of physician minimum revenue guarantees
|
|
|
|
2
|
.7
|
|
|
|
3
|
.5
|
|
|
|
12
|
.0
|
|
|
|
14
|
.7
|
Amortization of debt issuance costs, discounts and premium
|
|
|
|
1
|
.3
|
|
|
|
1
|
.2
|
|
|
|
5
|
.1
|
|
|
|
14
|
.0
|
Impairment charges
|
|
|
|
–
|
|
|
|
|
45
|
.5
|
|
|
|
13
|
.8
|
|
|
|
57
|
.7
|
Other non-operating gain
|
|
|
|
(4
|
.0)
|
|
|
|
–
|
|
|
|
|
(4
|
.0)
|
|
|
|
–
|
|
Deferred income taxes (benefit)
|
|
|
|
(17
|
.5)
|
|
|
|
(0
|
.3)
|
|
|
|
(14
|
.4)
|
|
|
|
22
|
.8
|
Reserve for self-insurance claims, net of payments
|
|
|
|
2
|
.4
|
|
|
|
6
|
.0
|
|
|
|
17
|
.9
|
|
|
|
11
|
.7
|
Increase (decrease) in cash from operating assets and liabilities,
net of effects from acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
3
|
.5
|
|
|
|
2
|
.4
|
|
|
|
38
|
.7
|
|
|
|
(54
|
.3)
|
Inventories, prepaid expenses and other current assets
|
|
|
|
(32
|
.4)
|
|
|
|
(45
|
.7)
|
|
|
|
19
|
.9
|
|
|
|
(18
|
.6)
|
Accounts payable, accrued salaries and other current liabilities
|
|
|
|
(30
|
.1)
|
|
|
|
(11
|
.5)
|
|
|
|
(24
|
.7)
|
|
|
|
(14
|
.4)
|
Income taxes payable/receivable
|
|
|
|
23
|
.7
|
|
|
|
10
|
.5
|
|
|
|
61
|
.9
|
|
|
|
(35
|
.5)
|
Other
|
|
|
|
0
|
.3
|
|
|
|
(0
|
.5)
|
|
|
|
(1
|
.1)
|
|
|
|
1
|
.5
|
Net cash provided by operating activities
|
|
|
|
84
|
.8
|
|
|
|
104
|
.4
|
|
|
|
627
|
.1
|
|
|
|
412
|
.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(121
|
.3)
|
|
|
|
(116
|
.4)
|
|
|
|
(274
|
.7)
|
|
|
|
(207
|
.1)
|
Acquisitions, net of cash acquired
|
|
|
|
(444
|
.9)
|
|
|
|
(5
|
.7)
|
|
|
|
(619
|
.4)
|
|
|
|
(265
|
.6)
|
Proceeds from sale of hospital
|
|
|
|
–
|
|
|
|
|
–
|
|
|
|
|
18
|
.8
|
|
|
|
–
|
|
Other
|
|
|
|
(1
|
.5)
|
|
|
|
0
|
.5
|
|
|
|
(1
|
.0)
|
|
|
|
(0
|
.5)
|
Net cash used in investing activities
|
|
|
|
(567
|
.7)
|
|
|
|
(121
|
.6)
|
|
|
|
(876
|
.3)
|
|
|
|
(473
|
.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings
|
|
|
|
500
|
.0
|
|
|
|
–
|
|
|
|
|
500
|
.0
|
|
|
|
412
|
.0
|
Payments of borrowings
|
|
|
|
(5
|
.6)
|
|
|
|
(2
|
.8)
|
|
|
|
(16
|
.9)
|
|
|
|
(585
|
.4)
|
Repurchases of common stock
|
|
|
|
(32
|
.5)
|
|
|
|
(50
|
.0)
|
|
|
|
(134
|
.5)
|
|
|
|
(222
|
.3)
|
Payments of debt issuance costs
|
|
|
|
(6
|
.9)
|
|
|
|
(0
|
.5)
|
|
|
|
(7
|
.2)
|
|
|
|
(7
|
.2)
|
Proceeds from exercise of stock options
|
|
|
|
0
|
.4
|
|
|
|
0
|
.8
|
|
|
|
11
|
.5
|
|
|
|
23
|
.9
|
Other
|
|
|
|
(1
|
.7)
|
|
|
|
(1
|
.8)
|
|
|
|
(11
|
.2)
|
|
|
|
(6
|
.5)
|
Net cash provided by (used in) financing activities
|
|
|
|
453
|
.7
|
|
|
|
(54
|
.3)
|
|
|
|
341
|
.7
|
|
|
|
(385
|
.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
|
(29
|
.2)
|
|
|
|
(71
|
.5)
|
|
|
|
92
|
.5
|
|
|
|
(446
|
.4)
|
Cash and cash equivalents at beginning of period
|
|
|
|
313
|
.2
|
|
|
|
263
|
.0
|
|
|
|
191
|
.5
|
|
|
|
637
|
.9
|
Cash and cash equivalents at end of period
|
|
|
$
|
284
|
.0
|
|
|
$
|
191
|
.5
|
|
|
$
|
284
|
.0
|
|
|
$
|
191
|
.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payments
|
|
|
$
|
47
|
.6
|
|
|
$
|
47
|
.9
|
|
|
$
|
103
|
.2
|
|
|
$
|
112
|
.8
|
Capitalized interest
|
|
|
$
|
0
|
.9
|
|
|
$
|
0
|
.4
|
|
|
$
|
2
|
.2
|
|
|
$
|
1
|
.0
|
Income tax payments, net
|
|
|
$
|
25
|
.0
|
|
|
$
|
2
|
.9
|
|
|
$
|
62
|
.0
|
|
|
$
|
80
|
.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
%
Change
|
|
|
2015
|
|
|
2014
|
|
|
%
Change
|
|
Consolidated: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
|
|
|
67
|
|
|
|
67
|
|
|
-%
|
|
|
|
67
|
|
|
|
67
|
|
|
-%
|
|
Admissions
|
|
|
|
59,219
|
|
|
|
60,252
|
|
|
(1.7)
|
|
|
|
236,474
|
|
|
|
221,587
|
|
|
6.7
|
|
Equivalent admissions (2)
|
|
|
|
157,280
|
|
|
|
153,538
|
|
|
2.4
|
|
|
|
617,434
|
|
|
|
550,422
|
|
|
12.2
|
|
Revenues per equivalent admission
|
|
|
$
|
8,715
|
|
|
$
|
8,226
|
|
|
5.9
|
|
|
$
|
8,445
|
|
|
$
|
8,145
|
|
|
3.7
|
|
Medicare case mix index
|
|
|
|
1.47
|
|
|
|
1.38
|
|
|
6.5
|
|
|
|
1.43
|
|
|
|
1.38
|
|
|
3.6
|
|
Average length of stay (days)
|
|
|
|
4.9
|
|
|
|
4.9
|
|
|
-
|
|
|
|
4.9
|
|
|
|
4.9
|
|
|
-
|
|
Inpatient surgeries
|
|
|
|
16,635
|
|
|
|
16,012
|
|
|
3.9
|
|
|
|
65,432
|
|
|
|
59,231
|
|
|
10.5
|
|
Outpatient surgeries
|
|
|
|
63,013
|
|
|
|
59,775
|
|
|
5.4
|
|
|
|
243,820
|
|
|
|
214,130
|
|
|
13.9
|
|
Total surgeries
|
|
|
|
79,648
|
|
|
|
75,787
|
|
|
5.1
|
|
|
|
309,252
|
|
|
|
273,361
|
|
|
13.1
|
|
Emergency room visits
|
|
|
|
371,508
|
|
|
|
378,643
|
|
|
(1.9)
|
|
|
|
1,477,113
|
|
|
|
1,363,459
|
|
|
8.3
|
|
Outpatient factor (2)
|
|
|
|
2.65
|
|
|
|
2.55
|
|
|
4.0
|
|
|
|
2.61
|
|
|
|
2.48
|
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-hospital: (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of hospitals
|
|
|
|
63
|
|
|
|
63
|
|
|
-%
|
|
|
|
55
|
|
|
|
55
|
|
|
-%
|
|
Admissions
|
|
|
|
55,363
|
|
|
|
57,802
|
|
|
(4.2)
|
|
|
|
184,191
|
|
|
|
190,859
|
|
|
(3.5)
|
|
Equivalent admissions (2)
|
|
|
|
146,490
|
|
|
|
148,089
|
|
|
(1.1)
|
|
|
|
479,265
|
|
|
|
473,330
|
|
|
1.3
|
|
Revenues per equivalent admission
|
|
|
$
|
8,803
|
|
|
$
|
8,323
|
|
|
5.8
|
|
|
$
|
8,515
|
|
|
$
|
8,286
|
|
|
2.8
|
|
Medicare case mix index
|
|
|
|
1.47
|
|
|
|
1.39
|
|
|
5.8
|
|
|
|
1.43
|
|
|
|
1.39
|
|
|
2.9
|
|
Average length of stay (days)
|
|
|
|
5.0
|
|
|
|
5.0
|
|
|
-
|
|
|
|
4.9
|
|
|
|
4.8
|
|
|
2.1
|
|
Inpatient surgeries
|
|
|
|
15,379
|
|
|
|
15,529
|
|
|
(1.0)
|
|
|
|
49,351
|
|
|
|
51,348
|
|
|
(3.9)
|
|
Outpatient surgeries
|
|
|
|
58,199
|
|
|
|
58,169
|
|
|
0.1
|
|
|
|
192,480
|
|
|
|
189,310
|
|
|
1.7
|
|
Total surgeries
|
|
|
|
73,578
|
|
|
|
73,698
|
|
|
(0.2)
|
|
|
|
241,831
|
|
|
|
240,658
|
|
|
0.5
|
|
Emergency room visits
|
|
|
|
353,084
|
|
|
|
359,436
|
|
|
(1.8)
|
|
|
|
1,208,488
|
|
|
|
1,171,697
|
|
|
3.1
|
|
Outpatient factor (2)
|
|
|
|
2.65
|
|
|
|
2.56
|
|
|
3.3
|
|
|
|
2.60
|
|
|
|
2.48
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated information includes the results of our health
support center, our same-hospital operations and the results of
our recent acquisitions. Additionally, consolidated information
includes the results of our hospitals that have previously been
disposed.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Management and investors use equivalent admissions as a general
measure of combined inpatient and outpatient volume. We compute
equivalent admissions by multiplying admissions (inpatient
volumes) by the outpatient factor (the sum of gross inpatient
revenue and gross outpatient revenue and then dividing the
resulting amount by gross inpatient revenue). The equivalent
admissions computation “equates” outpatient revenue to the volume
measure (admissions) used to measure inpatient volume resulting in
a general measure of combined inpatient and outpatient volume.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Same-hospital information includes the results of our health
support center and the same 63 hospitals operated during the three
months ended December 31, 2015 and 2014, and the same 55 hospitals
operated during the years ended December 31, 2015 and 2014.
Same-hospital information excludes our hospitals that have
previously been disposed.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Dollars
in millions
Adjusted EBITDA is defined by the Company as earnings before
depreciation and amortization; interest expense, net; impairment
charges; other non-operating gain; provision for income taxes; and net
income attributable to noncontrolling interests and redeemable
noncontrolling interests. LifePoint’s management and Board of Directors
use Adjusted EBITDA to evaluate the Company’s operating performance and
as a measure of performance for incentive compensation purposes.
LifePoint’s credit facilities use Adjusted EBITDA, subject to further
permitted adjustments, for certain financial covenants. The Company
believes Adjusted EBITDA is a measure of performance used by some
investors, equity analysts and others to make informed investment
decisions. In addition, multiples of current or projected Adjusted
EBITDA are used to estimate current or prospective enterprise value.
Adjusted EBITDA should not be considered as a measure of financial
performance under U.S. generally accepted accounting principles
(“GAAP”), and the items excluded from Adjusted EBITDA are significant
components in understanding and assessing financial performance.
Adjusted EBITDA should not be considered in isolation or as an
alternative to net income, cash flows generated by operating, investing
or financing activities or other financial statement data presented in
the condensed consolidated financial statements as an indicator of
financial performance or liquidity. Because Adjusted EBITDA is not a
measurement determined in accordance with GAAP and is susceptible to
varying calculations, Adjusted EBITDA as presented may not be comparable
to other similarly titled measures of other companies.
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
Amount
|
|
|
% of Revenues
|
|
|
Amount
|
|
|
% of Revenues
|
|
|
Amount
|
|
|
% of Revenues
|
|
|
Amount
|
|
|
% of Revenues
|
Revenues before provision
for doubtful accounts
|
|
|
$
|
1,570
|
.7
|
|
|
|
|
|
$
|
1,483
|
.7
|
|
|
|
|
|
$
|
6,014
|
.4
|
|
|
|
|
|
$
|
5,300
|
.9
|
|
|
|
Provision for doubtful accounts
|
|
|
|
200
|
.0
|
|
|
|
|
|
|
220
|
.8
|
|
|
|
|
|
|
800
|
.1
|
|
|
|
|
|
|
817
|
.8
|
|
|
|
Revenues
|
|
|
|
1,370
|
.7
|
|
|
100
|
.0%
|
|
|
|
1,262
|
.9
|
|
|
100
|
.0%
|
|
|
|
5,214
|
.3
|
|
|
100
|
.0%
|
|
|
|
4,483
|
.1
|
|
|
100
|
.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
|
652
|
.7
|
|
|
47
|
.6
|
|
|
|
612
|
.4
|
|
|
48
|
.5
|
|
|
|
2,496
|
.9
|
|
|
47
|
.9
|
|
|
|
2,134
|
.5
|
|
|
47
|
.6
|
Supplies
|
|
|
|
218
|
.4
|
|
|
15
|
.9
|
|
|
|
199
|
.0
|
|
|
15
|
.8
|
|
|
|
815
|
.0
|
|
|
15
|
.6
|
|
|
|
699
|
.0
|
|
|
15
|
.6
|
Other operating expenses
|
|
|
|
330
|
.9
|
|
|
24
|
.2
|
|
|
|
299
|
.9
|
|
|
23
|
.7
|
|
|
|
1,246
|
.4
|
|
|
24
|
.0
|
|
|
|
1,087
|
.3
|
|
|
24
|
.3
|
Other income
|
|
|
|
(15
|
.5)
|
|
|
(1
|
.1)
|
|
|
|
(22
|
.4)
|
|
|
(1
|
.8)
|
|
|
|
(49
|
.7)
|
|
|
(1
|
.0)
|
|
|
|
(71
|
.9)
|
|
|
(1
|
.6)
|
|
|
|
|
1,186
|
.5
|
|
|
86
|
.6
|
|
|
|
1,088
|
.9
|
|
|
86
|
.2
|
|
|
|
4,508
|
.6
|
|
|
86
|
.5
|
|
|
|
3,848
|
.9
|
|
|
85
|
.9
|
Adjusted EBITDA
|
|
|
$
|
184
|
.2
|
|
|
13
|
.4%
|
|
|
$
|
174
|
.0
|
|
|
13
|
.8%
|
|
|
|
705
|
.7
|
|
|
13
|
.5%
|
|
|
$
|
634
|
.2
|
|
|
14
|
.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Adjusted EBITDA as presented above to net
income attributable to LifePoint Health, Inc. as reflected in the
unaudited condensed consolidated statements of operations:
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Adjusted EBITDA
|
|
|
$
|
184
|
.2
|
|
|
$
|
174
|
.0
|
|
|
$
|
705
|
.7
|
|
|
$
|
634
|
.2
|
Less: Depreciation and amortization
|
|
|
|
71
|
.9
|
|
|
|
59
|
.7
|
|
|
|
279
|
.0
|
|
|
|
250
|
.5
|
Interest expense, net
|
|
|
|
29
|
.7
|
|
|
|
29
|
.2
|
|
|
|
114
|
.4
|
|
|
|
123
|
.0
|
Impairment charges
|
|
|
|
-
|
|
|
|
|
45
|
.5
|
|
|
|
13
|
.8
|
|
|
|
57
|
.7
|
Other non-operating gain
|
|
|
|
(4
|
.0)
|
|
|
|
-
|
|
|
|
|
(4
|
.0)
|
|
|
|
-
|
|
Provision for income taxes
|
|
|
|
31
|
.2
|
|
|
|
12
|
.9
|
|
|
|
109
|
.5
|
|
|
|
68
|
.1
|
Net income attributable to noncontrolling interests and redeemable
noncontrolling interests
|
|
|
|
2
|
.4
|
|
|
|
4
|
.3
|
|
|
|
11
|
.1
|
|
|
|
8
|
.8
|
Net income attributable to LifePoint Health, Inc.
|
|
|
$
|
53
|
.0
|
|
|
$
|
22
|
.4
|
|
|
$
|
181
|
.9
|
|
|
$
|
126
|
.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEPOINT HEALTH, INC.
UNAUDITED SUPPLEMENTAL INFORMATION (Continued)
Dollars in millions, except Diluted EPS amounts
|
|
The following table reconciles Estimated Adjusted EBITDA as
presented for the Company’s 2016 guidance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low End
|
|
|
High End
|
Estimated Adjusted EBITDA
|
|
|
$
|
765.0
|
|
|
$
|
795.0
|
Less: Depreciation and amortization
|
|
|
|
330.0
|
|
|
|
340.0
|
Interest expense, net
|
|
|
|
150.5
|
|
|
|
150.5
|
Provision for income taxes
|
|
|
|
103.8
|
|
|
|
111.3
|
Net income attributable to noncontrolling interests and redeemable
noncontrolling interests
|
|
|
|
11.3
|
|
|
|
11.7
|
Net income from continuing operations attributable to LifePoint
Health, Inc.
|
|
|
$
|
169.4
|
|
|
$
|
181.5
|
|
|
|
|
|
|
|
CONTACT:
LifePoint Health, Inc.
Leif Murphy, 615-920-7664
Executive
Vice President and
Chief Financial Officer
LifePoint Health, Inc. (NASDAQ:LPNT)
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