NAPLES, Fla.--(BUSINESS WIRE)--Health Management Associates, Inc. (NYSE: HMA) today announced its consolidated financial results for the second quarter and six months ended June 30, 2012.
Key metrics from continuing operations for the second quarter (all percentage changes compare the second quarter of 2012 to the second quarter of 2011) include:
- As shown in the tables accompanying this press release, excluding the impact of approximately $22.3 million, or $0.05 per diluted share, for interest rate swap accounting as well as a mark-to-market adjustment on the swap due to interest rate conditions, diluted earnings per share from continuing operations increased 5.0% to $0.21 as compared to $0.20 per diluted share for the same quarter a year ago;
- Net revenue increased 20.2% to $1.472 billion;
- Adjusted EBITDA increased 14.5% to $233.3 million;
- Admissions increased 7.1% while adjusted admissions increased 13.1%;
- Same hospital net revenue increased 6.1% to $1.299 billion;
- Same hospital net revenue per adjusted admission increased 6.3%;
- Same hospital Adjusted EBITDA increased 7.4% to $255.4 million, resulting in a 30 basis point improvement in margin to 19.7%; and
- Same hospital surgeries and emergency room visits increased 2.9% and 3.8%, respectively.
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 second quarter increased $74.9 million or 6.1%, to $1.299 billion compared to the same quarter in the prior year. Adjusted EBITDA from same hospital operations grew 7.4% to $255.4 million, representing 19.7% of net revenue, as compared to $237.8 million and 19.4%, respectively, for the same quarter a year ago. Same hospital Adjusted EBITDA includes $2.9 million of Medicare and Medicaid Healthcare Information Technology (“HCIT”) incentive payments, which is offset by $5.5 million of government program payment reductions. Declines in uninsured admissions and increases in observation stays greater than 24-hours contributed to a 4.0% decline in second quarter same hospital admissions while same hospital adjusted admissions were essentially flat. Had uninsured volumes and observations stays greater than 24-hours been the same as prior year, second quarter same hospital admissions would have declined 2.4% and same hospital adjusted admissions would have increased 1.5%. We believe ongoing sluggish economic conditions with high unemployment and insured patient preference for outpatient services rather than inpatient stays are affecting our inpatient volume.
“We continued to deliver strong revenue and earnings growth in the second quarter by adhering to our proven operating strategy and achieving efficiencies throughout our organization,” said Gary D. Newsome, Health Management’s President and Chief Executive Officer. “We believe our focus on improving quality, and creating an effective and efficient work environment with a patient centered approach is the right thing to do for our patients, associates and physicians. As a result, hospitals seeking a strategic partner with a similar culture, access to capital and operating expertise are contacting Health Management in increasing numbers, and we are excited about these partnership opportunities.”
For the second quarter, Health Management’s provision for doubtful accounts, or bad debt expense, was $214.6 million, or 12.7% of net revenue before the provision for doubtful accounts, compared to $170.8 million, or 12.2% of net revenue before the provision of doubtful accounts, for the same quarter a year ago.
Uninsured self-pay patient discounts for the second quarter were $311.9 million, compared to $232.5 million for the same quarter a year ago. Charity/indigent care write-offs were $24.3 million for the second quarter, compared to $23.4 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 before the provision for doubtful accounts, uninsured discounts and charity/indigent write-offs (which Health Management refers to as its Uncompensated Patient Care Percentage) was 27.2% for the second quarter, compared to 25.8% for the second quarter a year ago, and 26.1% for the quarter ended March 31, 2012. 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 second quarter was $228.9 million, after cash interest and cash tax payments aggregating $78.8 million. Health Management’s cash flows in the second quarter reflect the benefit of the collection of Tennova receivables, as post-acquisition Medicare tie-in notices were received in early April 2012. Health Management’s total leverage ratio was 3.9 and interest coverage ratio was 4.1 at June 30, 2012, well within its debt requirements.
For the six months ended June 30, 2012, Health Management reported a 19.3% growth in net revenue to $2.957 billion and a 13.6% increase in Adjusted EBITDA to $472.8 million. Excluding approximately $7.5 million of Medicare and Medicaid HCIT incentive reimbursement for 2012, Adjusted EBITDA increased 11.8% to $465.3 million. As shown in the tables accompanying this press release, excluding the impact of approximately $59.0 million, or $0.14 per diluted share, for interest rate swap accounting as well as significant mark-to-market adjustments on the swap due to interest rate conditions, for the six months ended June 30, 2012, diluted earnings per share from continuing operations increased 7.1% to $0.45 as compared to $0.42 per diluted share for the same six month period a year ago. Consolidated diluted earnings per share from continuing operations are $0.31 for the six months ended June 30, 2012.
Health Management hospitals recognized approximately $2.9 million of Medicare and Medicaid HCIT incentive reimbursement in the second quarter ended June 30, 2012. As previously announced, Health Management expects to recognize approximately $90 to $120 million of Medicare and Medicaid HCIT incentive reimbursement during the year ending December 31, 2012. The bulk of these payments are expected to be recorded in the fourth quarter of 2012.
Health Management is also affirming its diluted EPS from continuing operations objective range for the year ending December 31, 2012 to be between $0.80 and $0.90. This diluted EPS range for 2012 does not include approximately $98 million, or $0.25 per diluted share, of impact expected from interest rate swap accounting and mark-to-market adjustments nor does it include approximately $90 to $120 million of anticipated Medicare and Medicaid HCIT incentive reimbursement. Health Management is updating its 2012 annual same hospital admissions objective range. The company now expects same hospital admissions for 2012 to decline between 1.0% and 3.0%. In addition, the Company is adding a 2012 annual same hospital adjusted admissions objective range. The Company expects same hospital adjusted admissions growth for 2012 to be between a growth 1.0% and (1.0%).
As previously announced on April 2, 2012, subsidiaries of Health Management completed a joint venture transaction with respect to five INTEGRIS Health Oklahoma hospitals. Under the joint venture, which was effective April 1, 2012, Health Management now owns an 80% controlling interest in the five hospitals and manages their day-to-day operations. The INTEGRIS Health hospital partners include: 53-bed Integris Blackwell Regional Hospital, located in Blackwell; 56-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 218 licensed beds and generated approximately $95 million of net revenue before the provision for doubtful accounts over the twelve months immediately prior to the joint venture. The integration of this partnership is progressing as expected.
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 and six months ended June 30, 2012 on Tuesday, July 24, 2012 at 11:00 a.m. EDT. 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, operates 70 hospitals with approximately 10,500 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," “intends,” "plans," “may,” “continues,” “should,” "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, debt structure, bad debt expense, capital structure, repayment of indebtedness, the amount and timing of funds under the meaningful use measurement standard of various HCIT incentive programs, 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 potential for future acquisitions and perceived benefits of acquisitions), statements of future economic performance, statements regarding legal proceedings and other loss contingencies, statements regarding market risk exposures, 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, including under the heading 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.
|
HEALTH MANAGEMENT ASSOCIATES, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except per share amounts) |
|||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Net revenue before the provision for doubtful accounts | $ | 1,686,541 | $ | 1,395,353 | $ | 3,373,059 | $ | 2,822,182 | |||||||
| Provision for doubtful accounts | (214,563 | ) | (170,787 | ) | (415,824 | ) | (342,856 | ) | |||||||
| Net revenue | 1,471,978 | 1,224,566 | 2,957,235 | 2,479,326 | |||||||||||
| Salaries and benefits | 645,933 | 546,198 | 1,305,017 | 1,115,236 | |||||||||||
| Supplies | 226,154 | 185,789 | 460,597 | 380,255 | |||||||||||
| Rent expense | 43,839 | 36,774 | 88,864 | 72,621 | |||||||||||
| Other operating expenses | 325,635 | 252,037 | 637,415 | 494,975 | |||||||||||
| Medicare and Medicaid HCIT incentive payments | (2,871 | ) | - | (7,461 | ) | - | |||||||||
| Depreciation and amortization | 85,712 | 64,201 | 164,106 | 128,829 | |||||||||||
| Interest expense | 75,166 | 51,033 | 163,929 | 102,070 | |||||||||||
| Other | (1,022 | ) | (139 | ) | 618 | (333 | ) | ||||||||
| 1,398,546 | 1,135,893 | 2,813,085 | 2,293,653 | ||||||||||||
| Income from continuing operations before income taxes | 73,432 | 88,673 | 144,150 | 185,673 | |||||||||||
| Provision for income taxes | (25,291 | ) | (31,757 | ) | (50,018 | ) | (66,791 | ) | |||||||
| Income from continuing operations | 48,141 | 56,916 | 94,132 | 118,882 | |||||||||||
| Loss from discontinued operations, net of income taxes | (3,021 | ) | (1,583 | ) | (4,416 | ) | (1,437 | ) | |||||||
| Consolidated net income | 45,120 | 55,333 | 89,716 | 117,445 | |||||||||||
| Net income attributable to noncontrolling interests | (8,166 | ) | (6,722 | ) | (15,072 | ) | (13,310 | ) | |||||||
| Net income attributable to Health Management Associates, Inc. | $ | 36,954 | $ | 48,611 | $ | 74,644 | $ | 104,135 | |||||||
| Earnings (loss) per share attributable to Heath Management | |||||||||||||||
| Associates, Inc. common stockholders: | |||||||||||||||
| Basic and Diluted: | |||||||||||||||
| Continuing operations | $ | 0.16 | $ | 0.20 | $ | 0.31 | $ | 0.42 | |||||||
| Discontinued operations | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | |||||||
| Net income | $ | 0.14 | $ | 0.19 | $ | 0.29 | $ | 0.41 | |||||||
| Weighted average number of shares outstanding: | |||||||||||||||
| Basic | 254,496 | 251,765 | 253,906 | 250,898 | |||||||||||
| Diluted | 256,030 | 255,235 | 255,864 | 254,478 | |||||||||||
| Net income attributable to Health Management Associates, Inc. | |||||||||||||||
| Income from continuing operations, net of income taxes | $ | 39,975 | $ | 50,194 | $ | 79,060 | $ | 105,572 | |||||||
| Loss from discontinued operations, net of income taxes | (3,021 | ) | (1,583 | ) | (4,416 | ) | (1,437 | ) | |||||||
| Net income attributable to Health Management Associates, Inc. | $ | 36,954 | $ | 48,611 | $ | 74,644 | $ | 104,135 | |||||||
|
HEALTH MANAGEMENT ASSOCIATES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) |
|||||||||
| Six Months Ended June 30, | |||||||||
| 2012 | 2011 | ||||||||
| Cash flows from operating activities: | |||||||||
| Consolidated net income | $ | 89,716 | $ | 117,445 | |||||
| Adjustments to reconcile consolidated net income to net cash | |||||||||
| provided by continuing operating activities: | |||||||||
| Depreciation and amortization | 169,612 | 132,162 |
|
||||||
| Amortization related to interest rate swap contract | 40,533 | - |
|
||||||
| Fair value adjustment related to interest rate swap contract | 18,448 | - |
|
||||||
| Provision for doubtful accounts | 415,824 | 342,856 |
|
||||||
| Stock-based compensation expense | 13,204 | 12,945 | |||||||
| Losses on sales of assets, net | 2,191 | 794 | |||||||
| Gains on sales of available-for-sale securities, net | (583 | ) | (7 | ) | |||||
| Deferred income tax (benefit) expense | (22,092 | ) | 13,615 | ||||||
| Changes in assets and liabilities of continuing operations, | |||||||||
| net of the effects of acquisitions: | |||||||||
| Accounts receivable | (446,976 | ) | (355,170 | ) | |||||
| Supplies, prepaid expenses and other current assets | (2,673 | ) | (6,722 | ) | |||||
| Prepaid and recoverable income taxes | 53,931 | 10,448 | |||||||
| Deferred charges and other long-term assets | 18 | (3,333 | ) | ||||||
| Accounts payable, accrued expenses and other liabilities | (43,161 | ) | 7,946 | ||||||
| Equity compensation excess income tax benefits | (1,407 | ) | (2,919 | ) | |||||
| Loss from discontinued operations, net of income taxes | 4,416 | 1,437 | |||||||
| Net cash provided by continuing operating activities | 291,001 | 271,497 | |||||||
| Cash flows from investing activities: | |||||||||
| Additions to property, plant and equipment | (194,175 | ) | (133,034 | ) | |||||
| Acquisitions of hospitals and other | (66,673 | ) | (42,891 | ) | |||||
| Proceeds from sales of assets and insurance recoveries | 1,367 | 1,329 | |||||||
| Proceeds from sale of discontinued operations | 1,392 | - | |||||||
| Purchases of available-for-sale securities | (901,735 | ) | (687,218 | ) | |||||
| Proceeds from sales of available-for-sale securities | 906,117 | 604,219 | |||||||
| Increase in restricted funds | (1,783 | ) | (11,559 | ) | |||||
| Net cash used in continuing investing activities | (255,490 | ) | (269,154 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Principal payments on debt and capital lease obligations | (61,072 | ) | (19,741 | ) | |||||
| Proceeds from exercises of stock options | - | 14,067 | |||||||
| Proceeds from long-term borrowings | 17,000 | - | |||||||
| Cash received from noncontrolling shareholders | 3,591 | - | |||||||
| Cash payments to noncontrolling shareholders | (23,281 | ) | (16,285 | ) | |||||
| Equity compensation excess income tax benefits | 1,407 | 2,919 | |||||||
| Net cash used in continuing financing activities | (62,355 | ) | (19,040 | ) | |||||
| Net decrease in cash and cash equivalents before | |||||||||
| discontinued operations | (26,844 | ) | (16,697 | ) | |||||
| Net increases (decreases) in cash and cash equivalents | |||||||||
| from discontinued operations: | |||||||||
| Operating activities | (864 | ) | 5,248 | ||||||
| Investing activities | (135 | ) | (56 | ) | |||||
| Net decrease in cash and cash equivalents | (27,843 | ) | (11,505 | ) | |||||
| Cash and cash equivalents at the beginning of the period | 64,143 | 101,812 | |||||||
| Cash and cash equivalents at the end of the period | $ | 36,300 | $ | 90,307 | |||||
| $ | - | $ | - | ||||||
|
HEALTH MANAGEMENT ASSOCIATES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AND STATISTICS |
||||||
| June 30, | December 31, | |||||
| (unaudited, dollars in thousands) | 2012 | 2011 | ||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 36,300 | $ | 64,143 | ||
| Available-for-sale securities | 120,016 | 122,277 | ||||
| Accounts receivable, net | 924,027 | 903,517 | ||||
| Other current assets | 258,934 | 305,640 | ||||
| Assets of discontinued operations | 9,619 | 14,561 | ||||
| Property, plant and equipment, net | 3,377,695 | 3,263,172 | ||||
| Restricted funds | 104,497 | 96,244 | ||||
| Other assets | 1,344,519 | 1,234,635 | ||||
| Total assets | $ | 6,175,607 | $ | 6,004,189 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | $ | 847,871 | $ | 803,824 | ||
| Deferred income taxes | 259,064 | 234,080 | ||||
| Other long-term liabilities | 675,992 | 691,680 | ||||
| Long-term debt | 3,483,444 | 3,489,489 | ||||
| Stockholders' equity | 909,236 | 785,116 | ||||
| Total liabilities and stockholders' equity | $ | 6,175,607 | $ | 6,004,189 | ||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2012 | 2011 | % Change | 2012 | 2011 | % Change | |||||||||||||||||
| Continuing Operations | ||||||||||||||||||||||
| Occupancy | 39.6 | % | 42.7 | % | 42.2 | % | 45.2 | % | ||||||||||||||
| Patient days | 361,924 | 343,107 | 5.5 | % | 763,029 | 723,650 | 5.4 | % | ||||||||||||||
| Admissions | 86,467 | 80,753 | 7.1 | % | 179,845 | 168,896 | 6.5 | % | ||||||||||||||
| Adjusted admissions | 172,194 | 152,216 | 13.1 | % | 350,148 | 311,390 | 12.4 | % | ||||||||||||||
| Average length of stay | 4.2 | 4.2 | 4.2 | 4.3 | ||||||||||||||||||
| Surgeries | 100,164 | 82,509 | 21.4 | % | 200,383 | 165,333 | 21.2 | % | ||||||||||||||
| Emergency room visits | 453,964 | 378,125 | 20.1 | % | 897,079 | 768,862 | 16.7 | % | ||||||||||||||
| Net revenue (in thousands) | $ | 1,471,978 | $ | 1,224,566 | 20.2 | % | $ | 2,957,235 | $ | 2,479,326 | 19.3 | % | ||||||||||
| Net revenue per adjusted admission | $ | 8,548 | $ | 8,045 | 6.3 | % | $ | 8,446 | $ | 7,962 | 6.1 | % | ||||||||||
| Total inpatient revenue percentage | 45.1 | % | 47.6 | % | 46.1 | % | 49.0 | % | ||||||||||||||
| Total outpatient revenue percentage | 54.9 | % | 52.4 | % | 53.9 | % | 51.0 | % | ||||||||||||||
| Same Hospitals | ||||||||||||||||||||||
| Occupancy | 40.3 | % | 42.7 | % | 42.5 | % | 45.2 | % | ||||||||||||||
| Patient days | 324,806 | 343,107 | -5.3 | % | 686,379 | 723,650 | -5.2 | % | ||||||||||||||
| Admissions | 77,488 | 80,753 | -4.0 | % | 161,943 | 168,896 | -4.1 | % | ||||||||||||||
| Adjusted admissions | 151,908 | 152,216 | -0.2 | % | 310,710 | 311,390 | -0.2 | % | ||||||||||||||
| Average length of stay | 4.2 | 4.2 | 4.2 | 4.3 | ||||||||||||||||||
| Surgeries | 84,893 | 82,509 | 2.9 | % | 170,907 | 165,333 | 3.4 | % | ||||||||||||||
| Emergency room visits | 392,461 | 378,125 | 3.8 | % | 785,594 | 768,862 | 2.2 | % | ||||||||||||||
| Net revenue (in thousands) | $ | 1,299,430 | $ | 1,224,566 | 6.1 | % | $ | 2,625,422 | $ | 2,479,326 | 5.9 | % | ||||||||||
| Net revenue per adjusted admission | $ | 8,554 | $ | 8,045 | 6.3 | % | $ | 8,450 | $ | 7,962 | 6.1 | % | ||||||||||
| Total inpatient revenue percentage | 45.4 | % | 47.6 | % | 46.3 | % | 49.0 | % | ||||||||||||||
| Total outpatient revenue percentage | 54.6 | % | 52.4 | % | 53.7 | % | 51.0 | % | ||||||||||||||
|
HEALTH MANAGEMENT ASSOCIATES, INC. SUPPLEMENTAL CONSOLIDATED STATEMENTS OF INCOME INFORMATION (unaudited, dollars in thousands) |
|||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Net revenue | $ | 1,471,978 | $ | 1,224,566 | $ | 2,957,235 | $ | 2,479,326 | |||||||
| Less acquisitions | 172,548 | - | 331,813 | - | |||||||||||
| Same hospital net revenue | $ | 1,299,430 | $ | 1,224,566 | $ | 2,625,422 | $ | 2,479,326 | |||||||
| Consolidated net income | $ | 45,120 | $ | 55,333 | $ | 89,716 | $ | 117,445 | |||||||
| Adjustments: | |||||||||||||||
| Loss from discontinued operations, net of income taxes | 3,021 | 1,583 | 4,416 | 1,437 | |||||||||||
| Provision for income taxes | 25,291 | 31,757 | 50,018 | 66,791 | |||||||||||
| (Gains) losses on sales of assets, net | (166 | ) | 854 | 2,191 | 794 | ||||||||||
| Interest and other income, net | (856 | ) | (993 | ) | (1,573 | ) | (1,127 | ) | |||||||
| Interest expense | 75,166 | 51,033 | 163,929 | 102,070 | |||||||||||
| Depreciation and amortization | 85,712 | 64,201 | 164,106 | 128,829 | |||||||||||
| Adjusted EBITDA (a) | 233,288 | 203,768 | 472,803 | 416,239 | |||||||||||
| Adjustment for acquisitions, corporate and other | 22,109 | 33,987 | 46,586 | 69,233 | |||||||||||
| Same hospital operating Adjusted EBITDA (a) | $ | 255,397 | $ | 237,755 | $ | 519,389 | $ | 485,472 | |||||||
| Same hospital operating Adjusted EBITDA margins = | |||||||||||||||
| Same hospital operating Adjusted EBITDA / Same hospital net revenue (a) | 19.7 | % | 19.4 | % | 19.8 | % | 19.6 | % | |||||||
|
(a) 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, 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. |
|||||||||||||||
HEALTH MANAGEMENT ASSOCIATES, INC.
SUPPLEMENTAL CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(unaudited, in thousands, except per share amounts)
The following table provides information regarding income from continuing operations attributable to Health Management, excluding the impact of the interest rate swap amortization and mark-to-market adjustments. This table is a non-GAAP presentation; nonetheless, Health Management believes that providing this detail is beneficial to investors and other readers of Health Management's financial statements due to the significant impact these items had on income from continuing operations attributable to Health Management.
| Three Months Ended June 30, 2012 | ||||||||||||
| Interest Rate Swap | ||||||||||||
| Amortization and | ||||||||||||
| Continuing | Mark-To-Market | Total, As | ||||||||||
| Operations | Adjustments | Reported | ||||||||||
| Income from continuing operations before income taxes | $ | 95,692 | $ | (22,260 | ) | $ | 73,432 | |||||
| Net income from continuing operations attributable to noncontrolling interests | (8,166 | ) | - | (8,166 | ) | |||||||
| Income from continuing operations before income taxes attributable to | ||||||||||||
| Health Management Associates, Inc. | 87,526 | (22,260 | ) | 65,266 | ||||||||
| Provision for income taxes | (33,917 | ) | 8,626 | (25,291 | ) | |||||||
| Income from continuing operations attributable to Health Management | ||||||||||||
| Associates, Inc. common stockholders | $ | 53,609 | $ | (13,634 | ) | $ | 39,975 | |||||
| Earnings per share from continuing operations attributable to | ||||||||||||
| Health Management Associates, Inc. common stockholders: | ||||||||||||
| Basic | $ | 0.21 | $ | (0.05 | ) | $ | 0.16 | |||||
| Diluted | $ | 0.21 | $ | (0.05 | ) | $ | 0.16 | |||||
| Six Months Ended June 30, 2012 | ||||||||||||
| Interest Rate Swap | ||||||||||||
| Amortization and | ||||||||||||
| Continuing | Mark-To-Market | Total, As | ||||||||||
| Operations | Adjustments | Reported | ||||||||||
| Income from continuing operations before income taxes | $ | 203,131 | $ | (58,981 | ) | $ | 144,150 | |||||
| Net income from continuing operations attributable to noncontrolling interests | (15,072 | ) | - | (15,072 | ) | |||||||
| Income from continuing operations before income taxes attributable to | ||||||||||||
| Health Management Associates, Inc. | 188,059 | (58,981 | ) | 129,078 | ||||||||
| Provision for income taxes | (72,873 | ) | 22,855 | (50,018 | ) | |||||||
| Income from continuing operations attributable to Health Management | ||||||||||||
| Associates, Inc. common stockholders | $ | 115,186 | $ | (36,126 | ) | $ | 79,060 | |||||
| Earnings per share from continuing operations attributable to | ||||||||||||
| Health Management Associates, Inc. common stockholders: | ||||||||||||
| Basic | $ | 0.45 | $ | (0.14 | ) | $ | 0.31 | |||||
| Diluted | $ | 0.45 | $ | (0.14 | ) | $ | 0.31 | |||||