HCA Healthcare Reports Second Quarter 2024 Results
Raises 2024 Guidance
Key second quarter metrics (all percentage changes compare 2Q 2024 to 2Q 2023 unless otherwise noted):
-
Revenues totaled
$17.492 billion -
Net income attributable to
HCA Healthcare, Inc. totaled$1.461 billion , or$5.53 per diluted share -
Adjusted EBITDA totaled
$3.550 billion -
Cash flows from operating activities totaled
$1.971 billion - Same facility admissions increased 5.8 percent while same facility equivalent admissions increased 5.2 percent
“The company’s results for the second quarter were positive and reflected strong demand for our services. Our teams continued to execute our strategic plan effectively and produce positive outcomes for our patients. I want to thank our HCA colleagues for their outstanding work and their continued pursuits to innovate and deliver on our mission,” said
Revenues in the second quarter of 2024 totaled
For the second quarter of 2024, Adjusted EBITDA totaled
Same facility admissions increased 5.8 percent while same facility equivalent admissions increased 5.2 percent in the second quarter of 2024, compared to the prior year period. Same facility emergency room visits increased 5.5 percent in the second quarter of 2024, compared to the prior year period. Same facility inpatient surgeries increased 2.6 percent, and same facility outpatient surgeries declined 2.1 percent in the second quarter of 2024, compared to the same period of 2023. Same facility revenue per equivalent admission increased 4.4 percent in the second quarter of 2024, compared to the second quarter of 2023.
Six Months Ended
Revenues for the six months ended
Balance Sheet and Cash Flows from Operations
As of
During the second quarter of 2024, the Company repurchased 4.217 million shares of its common stock at a cost of
Dividend
HCA today announced that its Board of Directors declared a quarterly cash dividend of
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, results of operations, and contractual restrictions. Future dividends are expected to be funded by cash balances and future cash flows from operations.
2024 Revised Guidance
Today, the Company revised its 2024 estimated guidance ranges issued on
|
Previous 2024 |
|
Revised 2024 |
Revenues |
|
|
|
Net Income Attributable to |
|
|
|
Adjusted EBITDA |
|
|
|
EPS (diluted) |
|
|
|
Capital expenditures for 2024, excluding acquisitions, are estimated to be in the range of
The Company’s revised 2024 guidance contains a number of assumptions, including, among others, the Company’s current expectations regarding 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
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
About the Company
As of
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 the Company’s financial guidance for the year ending
|
||||||||||||
Condensed Consolidated Comprehensive Income Statements | ||||||||||||
Second Quarter | ||||||||||||
Unaudited | ||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||
2024 |
|
2023 |
||||||||||
Amount |
Ratio |
Amount |
Ratio |
|||||||||
Revenues |
$ |
17,492 |
|
100.0 |
|
% |
$ |
15,861 |
|
100.0 |
% |
|
Salaries and benefits |
|
7,685 |
|
43.9 |
|
|
7,277 |
|
45.9 |
|||
Supplies |
|
2,634 |
|
15.1 |
|
|
2,478 |
|
15.6 |
|||
Other operating expenses |
|
3,623 |
|
20.7 |
|
|
3,043 |
|
19.2 |
|||
Equity in losses of affiliates |
|
- |
|
- |
|
|
7 |
|
- |
|||
Depreciation and amortization |
|
819 |
|
4.7 |
|
|
763 |
|
4.8 |
|||
Interest expense |
|
506 |
|
2.9 |
|
|
485 |
|
3.1 |
|||
Gains on sales of facilities |
|
(12 |
) |
(0.1 |
) |
|
(1 |
) |
- |
|||
|
15,255 |
|
87.2 |
|
|
14,052 |
|
88.6 |
||||
Income before income taxes |
|
2,237 |
|
12.8 |
|
|
1,809 |
|
11.4 |
|||
Provision for income taxes |
|
550 |
|
3.2 |
|
|
397 |
|
2.5 |
|||
Net income |
|
1,687 |
|
9.6 |
|
|
1,412 |
|
8.9 |
|||
Net income attributable to noncontrolling interests |
|
226 |
|
1.2 |
|
|
219 |
|
1.4 |
|||
Net income attributable to |
$ |
1,461 |
|
8.4 |
|
$ |
1,193 |
|
7.5 |
|||
Diluted earnings per share |
$ |
5.53 |
|
$ |
4.29 |
|
||||||
Shares used in computing diluted earnings per share (millions) |
|
264.071 |
|
|
278.198 |
|
||||||
Comprehensive income attributable to |
$ |
1,461 |
|
$ |
1,207 |
|
|
|||||||||||
Condensed Consolidated Comprehensive Income Statements | |||||||||||
For the Six Months Ended |
|||||||||||
Unaudited | |||||||||||
(Dollars in millions, except per share amounts) | |||||||||||
2024 |
2023 |
||||||||||
Amount |
Ratio |
Amount |
Ratio |
||||||||
Revenues |
$ |
34,831 |
|
100.0 |
|
% |
$ |
31,452 |
100.0 |
% |
|
Salaries and benefits |
|
15,392 |
|
44.2 |
|
|
14,361 |
45.7 |
|||
Supplies |
|
5,305 |
|
15.2 |
|
|
4,901 |
15.6 |
|||
Other operating expenses |
|
7,229 |
|
20.8 |
|
|
5,937 |
18.8 |
|||
Equity in losses of affiliates |
|
2 |
|
- |
|
|
25 |
0.1 |
|||
Depreciation and amortization |
|
1,614 |
|
4.6 |
|
|
1,519 |
4.8 |
|||
Interest expense |
|
1,018 |
|
2.9 |
|
|
964 |
3.1 |
|||
Losses (gains) on sales of facilities |
|
(213 |
) |
(0.6 |
) |
|
14 |
- |
|||
|
30,347 |
|
87.1 |
|
|
27,721 |
88.1 |
||||
Income before income taxes |
|
4,484 |
|
12.9 |
|
|
3,731 |
11.9 |
|||
Provision for income taxes |
|
995 |
|
2.9 |
|
|
776 |
2.5 |
|||
Net income |
|
3,489 |
|
10.0 |
|
|
2,955 |
9.4 |
|||
Net income attributable to noncontrolling interests |
|
437 |
|
1.2 |
|
|
399 |
1.3 |
|||
Net income attributable to |
$ |
3,052 |
|
8.8 |
|
$ |
2,556 |
8.1 |
|||
Diluted earnings per share |
$ |
11.47 |
|
$ |
9.14 |
||||||
Shares used in computing diluted earnings per share (millions) |
|
266.044 |
|
|
279.573 |
||||||
Comprehensive income attributable to |
$ |
3,044 |
|
$ |
2,590 |
||||||
|
|||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
Unaudited | |||||||||||
(Dollars in millions) | |||||||||||
|
|
|
|||||||||
|
2024 |
|
|
2024 |
|
|
2023 |
|
|||
Current assets: | |||||||||||
Cash and cash equivalents |
$ |
831 |
|
$ |
1,284 |
|
$ |
935 |
|
||
Accounts receivable |
|
10,239 |
|
|
10,044 |
|
|
9,958 |
|
||
Inventories |
|
1,800 |
|
|
1,903 |
|
|
2,021 |
|
||
Other |
|
2,303 |
|
|
2,051 |
|
|
2,013 |
|
||
|
15,173 |
|
|
15,282 |
|
|
14,927 |
|
|||
Property and equipment, at cost |
|
60,625 |
|
|
59,440 |
|
|
58,548 |
|
||
Accumulated depreciation |
|
(31,986 |
) |
|
(31,344 |
) |
|
(30,833 |
) |
||
|
28,639 |
|
|
28,096 |
|
|
27,715 |
|
|||
Investments of insurance subsidiaries |
|
483 |
|
|
471 |
|
|
477 |
|
||
Investments in and advances to affiliates |
|
702 |
|
|
736 |
|
|
756 |
|
||
|
|
9,963 |
|
|
9,967 |
|
|
9,945 |
|
||
Right-of-use operating lease assets |
|
2,179 |
|
|
2,211 |
|
|
2,207 |
|
||
Other |
|
240 |
|
|
199 |
|
|
184 |
|
||
$ |
57,379 |
|
$ |
56,962 |
|
$ |
56,211 |
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable |
$ |
4,029 |
|
$ |
4,735 |
|
$ |
4,233 |
|
||
Accrued salaries |
|
1,993 |
|
|
1,759 |
|
|
2,127 |
|
||
Other accrued expenses |
|
3,705 |
|
|
3,619 |
|
|
3,871 |
|
||
Long-term debt due within one year |
|
4,574 |
|
|
3,028 |
|
|
2,424 |
|
||
|
14,301 |
|
|
13,141 |
|
|
12,655 |
|
|||
Long-term debt, less debt issuance costs and discounts of |
|
36,306 |
|
|
37,163 |
|
|
37,169 |
|
||
Professional liability risks |
|
1,573 |
|
|
1,571 |
|
|
1,557 |
|
||
Right-of-use operating lease obligations |
|
1,894 |
|
|
1,912 |
|
|
1,903 |
|
||
Income taxes and other liabilities |
|
1,966 |
|
|
1,905 |
|
|
1,867 |
|
||
Stockholders' equity: | |||||||||||
Stockholders' deficit attributable to |
|
(1,600 |
) |
|
(1,615 |
) |
|
(1,774 |
) |
||
Noncontrolling interests |
|
2,939 |
|
|
2,885 |
|
|
2,834 |
|
||
|
1,339 |
|
|
1,270 |
|
|
1,060 |
|
|||
$ |
57,379 |
|
$ |
56,962 |
|
$ |
56,211 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
For the Six Months Ended |
||||||||
Unaudited | ||||||||
(Dollars in millions) | ||||||||
|
2024 |
|
|
2023 |
|
|||
Cash flows from operating activities: | ||||||||
Net income |
$ |
3,489 |
|
$ |
2,955 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Increase (decrease) in cash from operating assets and liabilities: | ||||||||
Accounts receivable |
|
(285 |
) |
|
306 |
|
||
Inventories and other assets |
|
(68 |
) |
|
(301 |
) |
||
Accounts payable and accrued expenses |
|
(459 |
) |
|
(505 |
) |
||
Depreciation and amortization |
|
1,614 |
|
|
1,519 |
|
||
Income taxes |
|
(4 |
) |
|
3 |
|
||
Losses (gains) on sales of facilities |
|
(213 |
) |
|
14 |
|
||
Amortization of debt issuance costs and discounts |
|
17 |
|
|
17 |
|
||
Share-based compensation |
|
199 |
|
|
133 |
|
||
Other |
|
150 |
|
|
137 |
|
||
Net cash provided by operating activities |
|
4,440 |
|
|
4,278 |
|
||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment |
|
(2,399 |
) |
|
(2,438 |
) |
||
Acquisition of hospitals and health care entities |
|
(131 |
) |
|
(124 |
) |
||
Sales of hospitals and health care entities |
|
311 |
|
|
172 |
|
||
Change in investments |
|
(14 |
) |
|
(16 |
) |
||
Other |
|
(2 |
) |
|
(2 |
) |
||
Net cash used in investing activities |
|
(2,235 |
) |
|
(2,408 |
) |
||
Cash flows from financing activities: | ||||||||
Issuances of long-term debt |
|
4,483 |
|
|
3,218 |
|
||
Net change in revolving credit facilities |
|
(1,030 |
) |
|
(1,840 |
) |
||
Repayment of long-term debt |
|
(2,269 |
) |
|
(608 |
) |
||
Distributions to noncontrolling interests |
|
(338 |
) |
|
(342 |
) |
||
Payment of debt issuance costs |
|
(40 |
) |
|
(30 |
) |
||
Payment of dividends |
|
(356 |
) |
|
(339 |
) |
||
Repurchase of common stock |
|
(2,547 |
) |
|
(1,761 |
) |
||
Other |
|
(212 |
) |
|
(221 |
) |
||
Net cash used in financing activities |
|
(2,309 |
) |
|
(1,923 |
) |
||
Effect of exchange rate changes on cash and cash equivalents |
|
- |
|
|
7 |
|
||
Change in cash and cash equivalents |
|
(104 |
) |
|
(46 |
) |
||
Cash and cash equivalents at beginning of period |
|
935 |
|
|
908 |
|
||
Cash and cash equivalents at end of period |
$ |
831 |
|
$ |
862 |
|
||
Interest payments |
$ |
943 |
|
$ |
925 |
|
||
Income tax payments, net |
$ |
999 |
|
$ |
773 |
|
|
|||||||||||||||||
Operating Statistics |
|||||||||||||||||
For the Six Months | |||||||||||||||||
Second Quarter |
Ended |
||||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||
Operations: | |||||||||||||||||
Number of Hospitals |
|
188 |
|
|
182 |
|
|
188 |
|
|
182 |
|
|||||
Number of Freestanding Outpatient Surgery Centers* . |
|
123 |
|
|
126 |
|
|
123 |
|
|
126 |
|
|||||
Licensed Beds at End of Period |
|
49,844 |
|
|
49,063 |
|
|
49,844 |
|
|
49,063 |
|
|||||
Weighted Average Beds in Service |
|
42,624 |
|
|
41,802 |
|
|
42,594 |
|
|
41,743 |
|
|||||
Reported: | |||||||||||||||||
Admissions |
|
554,456 |
|
|
522,996 |
|
|
1,115,325 |
|
|
1,048,231 |
|
|||||
% Change |
|
6.0 |
% |
|
6.4 |
% |
|||||||||||
Equivalent Admissions |
|
994,835 |
|
|
938,834 |
|
|
1,976,356 |
|
|
1,855,369 |
|
|||||
% Change |
|
6.0 |
% |
|
6.5 |
% |
|||||||||||
Revenue per Equivalent Admission |
$ |
17,583 |
|
$ |
16,894 |
|
$ |
17,624 |
|
$ |
16,952 |
|
|||||
% Change |
|
4.1 |
% |
|
4.0 |
% |
|||||||||||
Inpatient Revenue per Admission |
$ |
18,814 |
|
$ |
17,689 |
|
$ |
18,869 |
|
$ |
17,759 |
|
|||||
% Change |
|
6.4 |
% |
|
6.3 |
% |
|||||||||||
|
|
2,662,550 |
|
|
2,558,563 |
|
|
5,444,146 |
|
|
5,196,466 |
|
|||||
% Change |
|
4.1 |
% |
|
4.8 |
% |
|||||||||||
Equivalent |
|
4,779,234 |
|
|
4,594,604 |
|
|
9,647,027 |
|
|
9,197,745 |
|
|||||
% Change |
|
4.0 |
% |
|
4.9 |
% |
|||||||||||
Inpatient Surgery Cases |
|
135,860 |
|
|
132,447 |
|
|
269,258 |
|
|
262,907 |
|
|||||
% Change |
|
2.6 |
% |
|
2.4 |
% |
|||||||||||
Outpatient Surgery Cases |
|
258,967 |
|
|
263,601 |
|
|
511,802 |
|
|
519,572 |
|
|||||
% Change |
|
-1.8 |
% |
|
-1.5 |
% |
|||||||||||
Emergency Room Visits |
|
2,414,960 |
|
|
2,294,205 |
|
|
4,843,874 |
|
|
4,546,874 |
|
|||||
% Change |
|
5.3 |
% |
|
6.5 |
% |
|||||||||||
Outpatient Revenues as a | |||||||||||||||||
Percentage of Patient Revenues |
|
38.2 |
% |
|
39.8 |
% |
|
37.6 |
% |
|
38.7 |
% |
|||||
Average Length of Stay (days) |
|
4.802 |
|
|
4.892 |
|
|
4.881 |
|
|
4.957 |
|
|||||
Occupancy** |
|
71.9 |
% |
|
71.1 |
% |
|
73.6 |
% |
|
72.6 |
% |
|||||
Same Facility: | |||||||||||||||||
Admissions |
|
550,610 |
|
|
520,520 |
|
|
1,106,303 |
|
|
1,043,978 |
|
|||||
% Change |
|
5.8 |
% |
|
6.0 |
% |
|||||||||||
Equivalent Admissions |
|
975,130 |
|
|
926,526 |
|
|
1,936,030 |
|
|
1,839,489 |
|
|||||
% Change |
|
5.2 |
% |
|
5.2 |
% |
|||||||||||
Revenue per Equivalent Admission |
$ |
17,503 |
|
$ |
16,766 |
|
$ |
17,534 |
|
$ |
16,876 |
|
|||||
% Change |
|
4.4 |
% |
|
3.9 |
% |
|||||||||||
Inpatient Revenue per Admission |
$ |
18,845 |
|
$ |
17,718 |
|
$ |
18,904 |
|
$ |
17,755 |
|
|||||
% Change |
|
6.4 |
% |
|
6.5 |
% |
|||||||||||
Inpatient Surgery Cases |
|
135,129 |
|
|
131,656 |
|
|
267,294 |
|
|
261,584 |
|
|||||
% Change |
|
2.6 |
% |
|
2.2 |
% |
|||||||||||
Outpatient Surgery Cases |
|
254,371 |
|
|
259,733 |
|
|
502,037 |
|
|
512,575 |
|
|||||
% Change |
|
-2.1 |
% |
|
-2.1 |
% |
|||||||||||
Emergency Room Visits |
|
2,400,248 |
|
|
2,275,021 |
|
|
4,800,438 |
|
|
4,513,084 |
|
|||||
% Change |
|
5.5 |
% |
|
6.4 |
% |
|||||||||||
* Excludes freestanding endoscopy centers (23 centers at |
|||||||||||||||||
** Reflects the rate of occupancy (patient days and observations) based on weighted average beds in service. |
|
||||||||||||||||||
Supplemental Non-GAAP Disclosures | ||||||||||||||||||
Operating Results Summary | ||||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||||
For Six Months | ||||||||||||||||||
Second Quarter |
Ended |
|||||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||
Revenues |
$ |
17,492 |
|
$ |
15,861 |
|
$ |
34,831 |
|
$ |
31,452 |
|
||||||
Net income attributable to |
$ |
1,461 |
|
$ |
1,193 |
|
$ |
3,052 |
|
$ |
2,556 |
|
||||||
Losses (gains) on sales of facilities (net of tax) |
|
(9 |
) |
|
- |
|
|
(163 |
) |
|
22 |
|
||||||
Net income attributable to |
|
1,452 |
|
|
1,193 |
|
|
2,889 |
|
|
2,578 |
|
||||||
Depreciation and amortization |
|
819 |
|
|
763 |
|
|
1,614 |
|
|
1,519 |
|
||||||
Interest expense |
|
506 |
|
|
485 |
|
|
1,018 |
|
|
964 |
|
||||||
Provision for income taxes |
|
547 |
|
|
396 |
|
|
945 |
|
|
768 |
|
||||||
Net income attributable to noncontrolling interests |
|
226 |
|
|
219 |
|
|
437 |
|
|
399 |
|
||||||
Adjusted EBITDA (a) |
$ |
3,550 |
|
$ |
3,056 |
|
$ |
6,903 |
|
$ |
6,228 |
|
||||||
Adjusted EBITDA margin (a) |
|
20.3 |
% |
|
19.3 |
% |
|
19.8 |
% |
|
19.8 |
% |
||||||
Diluted earnings per share: | ||||||||||||||||||
Net income attributable to |
$ |
5.53 |
|
$ |
4.29 |
|
$ |
11.47 |
|
$ |
9.14 |
|
||||||
Losses (gains) on sales of facilities |
|
(0.03 |
) |
|
- |
|
|
(0.61 |
) |
|
0.08 |
|
||||||
Net income attributable to |
$ |
5.50 |
|
$ |
4.29 |
|
$ |
10.86 |
|
$ |
9.22 |
|
||||||
Shares used in computing diluted earnings per share (millions) |
|
264.071 |
|
|
278.198 |
|
|
266.044 |
|
|
279.573 |
|
||||||
(a) | Net income attributable to |
|||||||||||||||||
Management and investors review both the overall performance (including net income attributable to |
||||||||||||||||||
Net income attributable to |
|
||||||||
Supplemental Non-GAAP Disclosures | ||||||||
2024 Operating Results Forecast | ||||||||
(Dollars in millions, except per share amounts) | ||||||||
For the Year Ending | ||||||||
|
||||||||
Low | High | |||||||
Revenues |
$ |
69,750 |
$ |
71,750 |
||||
Net income attributable to |
$ |
5,675 |
$ |
5,975 |
||||
Depreciation and amortization |
|
3,245 |
|
3,295 |
||||
Interest expense |
|
2,065 |
|
2,095 |
||||
Provision for income taxes |
|
1,860 |
|
1,950 |
||||
Net income attributable to noncontrolling interests |
|
905 |
|
935 |
||||
Adjusted EBITDA (a) (b) |
$ |
13,750 |
$ |
14,250 |
||||
Diluted earnings per share: | ||||||||
Net income attributable to |
$ |
21.60 |
$ |
22.80 |
||||
Shares used in computing diluted earnings per share (millions) |
|
262.000 |
|
262.000 |
||||
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 |
||||||||
Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income attributable to |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723606355/en/
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615-344-2688
MEDIA CONTACT:
615-344-1851
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