HCA Holdings Inc.
) reported third-quarter 2013 operating net income of 79 cents
per share, in line with the Zacks Consensus Estimate. However,
the results exceeded the prior-year earnings by a couple of
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Several clinical and operating initiatives taken by the company
in the face of a changing healthcare environment have helped to
strengthen its bottom line during the quarter.
Quarterly Operational Update
Total revenues of HCA Holdings amounted to $8.46 billion,
surpassing the Zacks Consensus Estimate of $8.42 billion by a
mere 0.5%. Results also increased 4.9% from $8.06 billion
reported in the prior-year quarter. The top-line growth is
attributable to improvements in volume and greater revenue per
Revenue per equivalent admission rose 3.9% on a same facility
basis. Growth was aided by changes in payor mix and increasing
Same facility equivalent admissions increased 1.1% year over year
during the reported quarter for HCA Holdings. Same facility
admissions also rose 0.7% year over year in the quarter under
Operating expense per equivalent admission increased 3.1% year
over in third quarter of 2013.
Total expenses of HCA Holdings came at $7.75 billion during the
quarter, up 5% year over year. The increase in expenses was
driven by higher salaries and benefits, supplies and other
Adjusted earnings before interest tax depreciation and
amortization (EBITDA) increased 4.6% year over year to $1.60
billion in the reported quarter.
HCA Holdings operated with 162 hospitals during the reported
quarter, in line with the year ago quarter.
The company also operated in 114 freestanding outpatient surgery
centers during the reported quarter, which is higher than 112
centers reported in the year ago quarter.
Quarterly Financial Update
HCA Holdings exited the third quarter of 2013 with total assets
of $28.39 billion, up 1.1% from $28.07 billion at the end of
As of Sep 30, 2013, HCA Holdings had cash and cash equivalents of
$484 million which increased 2.5% from the prior-year quarter-end
Net cash flow from operations came in at $900 million, surging
37.4% year over year. The improvement came on the back of
favorable working capital changes and lower income taxes.
Long-term debt of HCA Holdings stood at $27.39 billion at the end
of Sep, 2013. It improved 0.4% from Dec 31, 2012-level.
On Nov 1, 2013, HCA Holdings repurchased nearly 10.6 million
shares for approximately $500 million from some of its sponsors
using the draws under its revolving credit facilities.
HCA Holdings now expects its 2013 adjusted EBITDA to lie near the
upper end of the previously announced guidance range of
$6.25-$6.50 per share.
Tenet Healthcare Corp.
) reported third-quarter 2013 income from continuing operations
of 45 cents per share that missed the Zacks Consensus Estimate of
46 cents per share. However, earnings improved from 33 cents
earned in the year-ago quarter.
Universal Health Services Inc.
) reported its third-quarter 2013 operating net income of $1.10
per share, surpassing the Zacks Consensus Estimate by 8.9%. The
results also exceeded the prior-year quarter number by 20.9%.
Acadia Healthcare Company Inc.
) reported its third-quarter 2013 operating net income of 30
cents per share. Earnings beat the Zacks Consensus Estimate of 27
cents and also surged 76.5% year over year.
HCA Holdings presently holds a Zacks Rank #3 (Hold).