HCA Previews Third Quarter 2012 Results

  HCA Previews Third Quarter 2012 Results

   Announces Intention to Declare Special Cash Dividend of $2.50 per Share

Business Wire

NASHVILLE, Tenn. -- October 16, 2012

HCA Holdings, Inc. (NYSE: HCA) today announced preliminary financial and
operating results for the third quarter ended September 30, 2012. The
financial results are subject to finalization of the Company’s quarterly
financial and accounting procedures.

HCA anticipates revenues for the third quarter will approximate $8.062
billion, compared to $7.258 billion in the third quarter of 2011. Net income
attributable to HCA Holdings, Inc. for the third quarter of 2012 is
anticipated to be approximately $360 million, compared to $61 million in the
third quarter of 2011, which included pretax losses on retirement of debt of
$406 million ($256 million net-of-tax or $0.49 per diluted share). Earnings
per diluted share (EPS) is estimated to be $0.78 for the third quarter of 2012
compared to $0.11 per share in the third quarter of 2011. Adjusted EBITDA for
the third quarter is expected to approximate $1.533 billion, compared to
$1.412 billion for the same period in 2011. Adjusted EBITDA is a non-GAAP
measure and a table reconciling estimated net income attributable to HCA
Holdings, Inc. to estimated Adjusted EBITDA is included in this release.
Preliminary results indicate same facility admissions for the third quarter of
2012 increased approximately 2.1 percent while same facility equivalent
admissions increased 2.6 percent compared to the prior year period.

The Company also announced today that it intends, subject to applicable legal
and contractual restrictions, to declare and pay a special cash dividend of
$2.50 per share to stockholders during the fourth quarter of 2012. The
dividend is expected to be funded through borrowings under the Company’s
existing revolving credit facilities and/or incurrence of additional
indebtedness. HCA’s ratio of debt-to-Adjusted EBITDA at September 30, 2012 was
approximately 4.1x compared to 4.5x at December 31, 2011. The Company’s ratio
of debt-to-Adjusted EBITDA is estimated to have been approximately 4.3x on
September 30, 2012 adjusted for the anticipated impact of the special dividend
and incremental financing. There can be no assurance that the special dividend
will be declared and paid.

The Company will report its complete financial results for the third quarter
on, or about, November 1, 2012 and will conduct its quarterly investor call at
such time.

Cautionary Statement about Preliminary Results and Other Forward-Looking
Information

This press release contains forward-looking statements based on current
management expectations. Those forward-looking statements include all
statements other than those made solely with respect to historical fact,
including statements with respect to our estimated results of operations for
the third quarter ended September 30, 2012, which are subject to finalization
and contingencies associated with the Company’s third quarter financial and
accounting procedures, and the proposed special dividend and related debt
financing. Numerous risks, uncertainties and other factors may cause actual
results to differ materially from those expressed in any forward-looking
statements. These factors include, but are not limited to, (1) the ability to
fund and the determination to declare and pay the special dividend, (2) the
impact of our substantial indebtedness and the ability to refinance such
indebtedness on acceptable terms, (3) the effects related to the enactment and
implementation of the Budget Control Act of 2011 and the Patient Protection
and Affordable Care Act, as amended by the Health Care and Education
Reconciliation Act (collectively, the “Health Reform Law”), the possible
enactment of additional federal or state health care reforms and possible
changes to the Health Reform Law and other federal, state or local laws or
regulations affecting the health care industry, (4) increases in the amount
and risk of collectability of uninsured accounts and deductibles and copayment
amounts for insured accounts, (5) the ability to achieve operating and
financial targets, and attain expected levels of patient volumes and control
the costs of providing services, (6) possible changes in the Medicare,
Medicaid and other state programs, including Medicaid upper payment limit
programs or Waiver Programs, that may impact reimbursements to health care
providers and insurers, (7) the highly competitive nature of the health care
business, (8) changes in service mix, revenue mix and surgical volumes,
including potential declines in the population covered under managed care
agreements, the ability to enter into and renew managed care provider
agreements on acceptable terms and the impact of consumer driven health plans
and physician utilization trends and practices, (9) the efforts of insurers,
health care providers and others to contain health care costs, (10) the
outcome of our continuing efforts to monitor, maintain and comply with
appropriate laws, regulations, policies and procedures, (11) increases in
wages and the ability to attract and retain qualified management and
personnel, including affiliated physicians, nurses and medical and technical
support personnel, (12) the availability and terms of capital to fund the
expansion of our business and improvements to our existing facilities, (13)
changes in accounting practices, (14) changes in general economic conditions
nationally and regionally in our markets, (15) future divestitures which may
result in charges and possible impairments of long-lived assets, (16) changes
in business strategy or development plans, (17) delays in receiving payments
for services provided, (18) the outcome of pending and any future tax audits,
appeals and litigation associated with our tax positions, (19) potential
adverse impact of known and unknown government investigations, litigation and
other claims that may be made against us, (20) our ongoing ability to
demonstrate meaningful use of certified electronic health record technology
and recognize income for the related Medicare or Medicaid incentive payments,
and (21) other risk factors described in our annual report on Form 10-K for
the year ended December 31, 2011 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” and “HCA” as used throughout this release refer to
HCA Holdings, Inc. and its affiliates.

HCA Holdings, Inc.
Supplemental Non-GAAP Disclosures
Operating Results Summary
(Dollars in millions, except per share amounts)
                                                            
                                                                     
                                                                     
                                                 Third Quarter
                                                 2012               2011
                                                                     
                                                 (Preliminary
                                                 Estimated
                                                 Amounts)
                                                                     
Revenues                                         $8,062              $7,258
                                                                     
Net income attributable to HCA Holdings, Inc.    $360                $61
          Losses (gains) on sales of             (5          )       1
          facilities (net of tax)
          Losses on retirement of debt (net      -                  256
          of tax)
Net income attributable to HCA
Holdings, Inc., excluding losses
(gains) on sales of facilities and
losses on retirement of debt (a)                 355                 318
          Depreciation and amortization          417                 362
          Interest expense                       446                 519
          Provision for income taxes             220                 128
          Net income attributable to             95                 85
          noncontrolling interests
                                                                     
          Adjusted EBITDA (a)                    $1,533             $1,412
                                                                     
Diluted earnings per share:
          Net income attributable to HCA         $0.78               $0.11
          Holdings, Inc.
          Losses (gains) on sales of             (0.01       )       -
          facilities
          Losses on retirement of debt           -                  0.49
               Net income attributable to
               HCA Holdings, Inc.,
               excluding losses (gains)
               on sales of facilities
               and losses on retirement of       $0.77              $0.60
               debt (a)
                                                                     
          Shares used in computing diluted       459,515             527,515
          earnings per share (000)
                                                                     
                   
                                                                     
          Net income attributable to HCA Holdings, 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 Holdings, Inc., excluding
          losses (gains) on sales of facilities and losses on retirement of
          debt and Adjusted EBITDA are important measures that supplement
(a)       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 Holdings, 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 hospital facilities and their
          management teams.
          
          Management and investors review both the overall performance
          (including; net income attributable to HCA Holdings, Inc., excluding
          losses (gains) on sales of facilities and losses on retirement of
          debt and GAAP net income attributable to HCA Holdings, 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 Holdings, 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 Holdings, 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 Holdings, 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 Holdings, 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.

Contact:

HCA Holdings, Inc.
Investor Contact:
Mark Kimbrough, 615-344-2688
or
Media Contact:
Ed Fishbough, 615-344-2810