LifePoint Hospitals Reports Fourth Quarter and Year-End 2012 Results

  LifePoint Hospitals Reports Fourth Quarter and Year-End 2012 Results

   Fourth Quarter Revenue of $893.3 Million Up 14.3% Over Prior Year Period

     Company Issues 2013 Adjusted EBITDA Guidance of $540 – $570 million

Business Wire

BRENTWOOD, Tenn. -- February 15, 2013

LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the
fourth quarter and year ended December 31, 2012.

For the fourth quarter ended December 31, 2012, revenues from continuing
operations were $893.3million, up 14.3% from $781.3 million for the same
period a year ago. Income from continuing operations attributable to LifePoint
Hospitals, Inc. stockholders for the fourth quarter ended December 31, 2012,
decreased 3.3% to $36.5million, or $0.76 per diluted share, compared with
$37.7 million, or $0.78 per diluted share, for the same period a year ago.

For the year ended December 31, 2012, revenues from continuing operations were
$3,391.8million, up 12.1% from $3,026.1 million for 2011. Income from
continuing operations attributable to LifePoint Hospitals, Inc. stockholders
for 2012 decreased 6.6% to $151.9million, or $3.14 per diluted share,
compared with $162.7 million, or $3.22 per diluted share, for 2011.

In commenting on the results, William F. Carpenter III, chairman and chief
executive officer of LifePoint Hospitals, said, “In the fourth quarter,
LifePoint delivered improved volumes, good cost controls, strong cash flow
from operations and earnings at the top end of our revised guidance range. We
are identifying new opportunities to purchase hospitals that we believe will
complement our strategy to develop regional integrated health systems. Our
balanced approach to capital deployment has allowed us to create value for
shareholders, and we look forward to the opportunities ahead in 2013.”

On February 6, 2013, the Company amended its senior secured credit agreement
with, among others, Citibank, N.A., as administrative agent, and the lenders
party thereto pursuant to which it issued $325.0million of incremental term
loans (the “Incremental Term Loans”). The Company currently intends to use the
proceeds from the Incremental Term Loans to repurchase $225.0 million of its
3¼% convertible senior subordinated debentures due August 15, 2025, that are
putable by the holders thereof to the Company on February 15, 2013, and,
subject to market conditions, callable by the Company on or after February20,
2013, as well as to pay fees and expenses related to the issuance of the
Incremental Term Loans. The Company intends to use the remaining proceeds of
the Incremental Term Loans for general corporate purposes.

                                                       
The Company also issued the following guidance for
2013:
                                                         
Estimated Net Revenue                                    $3.65 - $3.75 billion
Estimated Adjusted EBITDA                                $540 - $570 million
Estimated Diluted EPS                                    $2.73 - $3.11
                                                         

A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals’
fourth quarter and year-end 2012 conference call will be available on line at
www.lifepointhospitals.com/news/press-releases and www.earnings.com today,
Friday, February 15, 2013, beginning at 10:00 a.m. Eastern Time.

LifePoint Hospitals, Inc. is a leading hospital company focused on providing
quality healthcare services close to home. Through its subsidiaries, LifePoint
operates 57 hospital campuses in 20 states. With a mission of “Making
Communities Healthier®,” LifePoint is the sole community hospital provider in
the majority of the communities it serves. More information about the Company,
which is headquartered in Brentwood, Tennessee, can be found on its website,
www.LifePointHospitals.com. All references to “LifePoint,” “LifePoint
Hospitals,” or the “Company” used in this release refer to LifePoint
Hospitals, Inc. or its affiliates.

Important Legal Information. Certain statements contained in this release,
including LifePoint’s guidance for the year ended December 31, 2013, 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, whether due to a change
in our revenue mix, service mix, reduction in commercial rates or otherwise;
(v) our ability to acquire hospitals and other healthcare providers on
favorable terms, the business risks and costs associated therewith and the
uncertainty in operating and integrating such hospitals and other providers;
(vi) our ongoing ability to demonstrate meaningful use of certified electronic
health record technology and recognize income for the related Medicare or
Medicaid incentive payments ; (vii) the failure or closure of employers in our
markets, especially those that are dependent on a small number of local
employers; (viii) the growth of “bad debt” and “patient due” accounts, the
number of individuals without insurance coverage (or who are underinsured) who
seek care at our hospitals, and deterioration in the collectability of these
accounts; (ix) changes in general economic conditions nationally and
regionally in our markets; (x) whether our core strategies will result in
anticipated operating results, including measureable quality and satisfaction
improvements; (xi) whether our efforts to reduce the cost of providing
healthcare while increasing the quality of care are successful; (xii) the
ability to attract, recruit and retain qualified physicians, nurses, medical
technicians and other healthcare professionals and the increasing costs
associated with doing so, including the direct costs associated with employing
physicians and other healthcare professionals; (xiii) the loss of certain
physicians in markets where such a loss can have a disproportionate impact on
our hospital in such market; (xiv) 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; (xv)
any interruption of or restriction in our access to licensed information (and
information technology systems) or failure in our ability to integrate changes
to LifePoint’s existing information systems or information systems of acquired
hospitals; (xvi) the highly competitive nature of the health care business;
(xvii) adverse events in states where a large portion of our revenues are
concentrated; (xviii) the availability and terms of capital to fund the
expansion of our business and improvements to our existing facilities, and any
changes in accounting practices; (xix) liabilities resulting from potential
malpractice and related legal claims brought against our hospitals or the
healthcare providers associated with, or employed by, such hospitals or
affiliated entities; (xx) 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; (xxi) the continued viability of
Duke – LifePoint Healthcare and our partnership with Duke University Medical
Center; and (xxii) those other risks and uncertainties described from time to
time in our filings with the Securities and Exchange Commission.

Specifically, without limiting the cautionary statements made above, with
respect to our guidance for the year ended December 31, 2013, management has
assumed, among other things, that (1) RAC activity and the level of one day
stays in 2013 will be similar to that in 2012 and (2) governmental and
commercial payor reimbursements will remain as projected. 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.

All references to “our,” “LifePoint,” “LifePoint Hospitals” and the “Company”
as used throughout this release refer to LifePoint Hospitals, Inc. and its
subsidiaries.

                                                              
LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in millions, except per share amounts
                                                                 
                 Three Months Ended                              Year Ended
                 December 31,                                    December 31,
                 2012                    2011                   2012                    2011
                 Amount       % of       Amount     % of       Amount       % of       Amount       % of
                               Revenues               Revenues                 Revenues                 Revenues
Revenues
before
provision for    $ 1,053.1                $ 916.4                $ 4,016.2                $ 3,544.6
doubtful
accounts
Provision for
doubtful          159.8                  135.1                624.4                  518.5   
accounts
Revenues           893.3       100.0  %     781.3     100.0  %     3,391.8     100.0  %     3,026.1     100.0  %
                                                                                                        
Salaries and       424.3       47.5         353.5     45.2         1,554.5     45.8         1,364.7     45.1
benefits
Supplies           141.9       15.9         122.8     15.7         524.6       15.5         469.5       15.5
Other
operating          209.6       23.4         186.6     24.0         799.1       23.5         682.4       22.6
expenses
Other income       (17.3   )   (1.9   )     (11.5 )   (1.5   )     (32.0   )   (0.9   )     (26.7   )   (0.9   )
Depreciation
and                53.4        6.0          44.8      5.7          193.1       5.7          165.8       5.5
amortization
Interest           24.3        2.7          25.5      3.3          100.0       3.0          107.1       3.5
expense, net
Debt
extinguishment     –           –            –         –            4.4         0.1          –           –
costs
Impairment        0.9        0.1        –        –          4.0        0.1        –          –      
charges
                  837.1      93.7       721.7    92.4       3,147.7    92.8       2,762.8    91.3   
                                                                                                        
Income from
continuing
operations         56.2        6.3          59.6      7.6          244.1       7.2          263.3       8.7
before income
taxes
Provision for     18.7       2.1        21.3     2.7        88.5       2.6        97.8       3.2    
income taxes
Income from
continuing         37.5        4.2          38.3      4.9          155.6       4.6          165.5       5.5
operations
(Loss) income
from
discontinued      (0.2    )   –          –        –          –          –          0.2        –      
operations,
net of income
taxes
Net income         37.3        4.2          38.3      4.9          155.6       4.6          165.7       5.5
Less: Net
income
attributable      (1.0    )   (0.1   )    (0.6  )   (0.1   )    (3.7    )   (0.1   )    (2.8    )   (0.1   )
to
noncontrolling
interests
Net income
attributable
to LifePoint     $ 36.3       4.1    %   $ 37.7     4.8    %   $ 151.9      4.5    %   $ 162.9      5.4    %
Hospitals,
Inc.
                                                                                                        
Basic earnings
(loss) per
share
attributable
to LifePoint
Hospitals,
Inc.
stockholders:
Continuing       $ 0.78                   $ 0.80                 $ 3.22                   $ 3.30
operations
Discontinued      (0.01   )               –                    –                      –       
operations
Net income       $ 0.77                  $ 0.80                $ 3.22                  $ 3.30    
                                                                                                        
Diluted
earnings
(loss) per
share
attributable
to LifePoint
Hospitals,
Inc.
stockholders:
Continuing       $ 0.76                   $ 0.78                 $ 3.14                   $ 3.22
operations
Discontinued      (0.01   )               –                    –                      –       
operations
Net income       $ 0.75                  $ 0.78                $ 3.14                  $ 3.22    
                                                                                                        
Amounts
attributable
to LifePoint
Hospitals,
Inc.
stockholders:
Income from
continuing
operations,      $ 36.5                   $ 37.7                 $ 151.9                  $ 162.7
net of income
taxes
(Loss) income
from
discontinued      (0.2    )               –                    –                      0.2     
operations,
net of income
taxes
Net income       $ 36.3                  $ 37.7                $ 151.9                 $ 162.9   
                                                                                                        

                                                      
LIFEPOINT HOSPITALS, INC.

UNAUDITED EARNINGS PER SHARE CALCULATIONS

In millions, except per share amounts
                                                         
                                  Three Months Ended     Year Ended
                                  December 31,           December 31,
                                  2012       2011       2012       2011
Income from continuing            $ 37.5      $ 38.3     $ 155.6     $ 165.5
operations
Less: Net income attributable      (1.0  )    (0.6 )    (3.7  )    (2.8  )
to noncontrolling interests
Income from continuing
operations attributable to          36.5        37.7       151.9       162.7
LifePoint Hospitals, Inc.
stockholders
(Loss) income from discontinued    (0.2  )    –        –         0.2   
operations, net of income taxes
Net income attributable to        $ 36.3     $ 37.7    $ 151.9    $ 162.9 
LifePoint Hospitals, Inc.
                                                                     
Weighted average shares             46.8        46.8       47.2        49.3
outstanding – basic
Effect of dilutive securities:
stock options and other            1.3       1.3      1.2       1.2   
stock-based awards
Weighted average shares            48.1      48.1     48.4      50.5  
outstanding – diluted
                                                                     
Basic earnings (loss) per share
attributable to LifePoint
Hospitals, Inc. stockholders:
Continuing operations             $ 0.78      $ 0.80     $ 3.22      $ 3.30
Discontinued operations            (0.01 )    –        –         –     
Net income                        $ 0.77     $ 0.80    $ 3.22     $ 3.30  
                                                                     
Diluted earnings (loss) per
share attributable to LifePoint
Hospitals, Inc. stockholders:
Continuing operations             $ 0.76      $ 0.78     $ 3.14      $ 3.22
Discontinued operations            (0.01 )    –        –         –     
Net income                        $ 0.75     $ 0.78    $ 3.14     $ 3.22  
                                                                     

                                                               
LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

In millions
                                                                  
                                                   Dec. 30,       Dec. 31,
                                                   2012           2011
ASSETS
Current assets:
Cash and cash equivalents                          $ 85.0         $ 126.2
Accounts receivable, less allowances for
doubtful accounts of $558.4 and $537.4 at            518.8          430.6
December 31, 2012, and December 31, 2011,
respectively
Inventories                                          97.0           87.2
Prepaid expenses                                     31.8           26.4
Deferred tax assets                                  142.5          125.7
Other current assets                                50.2         43.9     
                                                     925.3          840.0
                                                                  
Property and equipment:
Land                                                 101.9          93.5
Buildings and improvements                           1,815.2        1,631.6
Equipment                                            1,289.7        1,084.0
Construction in progress                            81.0         105.7    
                                                     3,287.8        2,914.8
Accumulated depreciation                            (1,256.9 )    (1,084.4 )
                                                     2,030.9        1,830.4
                                                                  
Deferred loan costs, net                             21.9           21.7
Intangible assets, net                               84.5           89.5
Other                                                47.8           19.8
Goodwill                                            1,611.8      1,568.7  
Total assets                                       $ 4,722.2     $ 4,370.1  
                                                                  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                                   $ 117.4        $ 99.6
Accrued salaries                                     128.2          103.1
Other current liabilities                            186.0          168.2
Current maturities of long-term debt                13.3         1.9      
                                                     444.9          372.8
                                                                  
Long-term debt                                       1,696.5        1,595.4
Deferred income tax liabilities                      249.2          259.0
Long-term portion of reserves for self-insurance     133.0          118.3
claims
Other long-term liabilities                          79.2           20.8
Long-term income tax liability                      16.9         18.0     
Total liabilities                                   2,619.7      2,384.3  
                                                                  
Redeemable noncontrolling interests                  29.4           26.2
                                                                  
Equity:
LifePoint Hospitals, Inc. stockholders’ equity:
Preferred stock                                      –              –
Common stock                                         0.6            0.6
Capital in excess of par value                       1,403.5        1,354.8
Accumulated other comprehensive income               0.2            –
Retained earnings                                    1,218.8        1,066.9
Common stock in treasury, at cost                   (572.6   )    (477.1   )
Total LifePoint Hospitals, Inc. stockholders’        2,050.5        1,945.2
equity
Noncontrolling interests                            22.6         14.4     
Total equity                                        2,073.1      1,959.6  
Total liabilities and equity                       $ 4,722.2     $ 4,370.1  
                                                                             

                                                    
LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in millions
                                                       
                              Three Months Ended       Year Ended
                              December 31,             December 31,
                              2012       2011         2012        2011
Cash flows from operating
activities:
Net income                    $ 37.3      $ 38.3       $ 155.6      $ 165.7
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Loss (income) from              0.2         –            –            (0.2   )
discontinued operations
Stock-based compensation        7.1         6.3          27.4         24.0
Depreciation and                53.4        44.8         193.1        165.8
amortization
Amortization of physician       4.9         5.5          19.6         19.8
minimum revenue guarantees
Amortization of convertible     6.8         6.3          26.0         24.3
debt discounts
Amortization of deferred        1.2         1.5          5.4          5.9
loan costs
Debt extinguishment costs       –           –            4.4          –
Impairment charges              0.9         –            4.0          –
Deferred income taxes           23.8        57.8         (24.2  )     23.1
(benefit)
Reserve for self-insurance      2.6         8.3          1.6          18.0
claims, net of payments
Increase (decrease) in cash
from operating assets and
liabilities, net of effects
from acquisitions and
divestitures:
Accounts receivable             (0.9  )     (17.1  )     (43.3  )     (29.5  )
Inventories and other           (7.5  )     (14.6  )     (9.7   )     (20.1  )
current assets
Accounts payable and            (2.7  )     5.5          19.5         2.9
accrued expenses
Income taxes                    (7.4  )     (59.7  )     2.3          3.9
receivable/payable
Other                          0.9       –          1.2        (2.4   )
Net cash provided by
operating activities –          120.6       82.9         382.9        401.2
continuing operations
Net cash provided by (used
in) operating activities –     –         0.1        (0.7   )    0.3    
discontinued operations
Net cash provided by           120.6     83.0       382.2      401.5  
operating activities
                                                                    
Cash flows from investing
activities:
Purchases of property and       (64.0 )     (66.1  )     (221.4 )     (219.9 )
equipment
Acquisitions, net of cash       (17.3 )     (57.9  )     (199.7 )     (121.0 )
acquired
Other                          (0.6  )    –          (1.0   )    (1.2   )
Net cash used in investing     (81.9 )    (124.0 )    (422.1 )    (342.1 )
activities
                                                                    
Cash flows from financing
activities:
Proceeds from borrowings        65.0        –            555.0        –
Payments of borrowings          (25.6 )     –            (469.3 )     (0.1   )
Repurchases of common stock     (89.3 )     (33.4  )     (95.5  )     (174.6 )
Payment of debt financing       (0.4  )     –            (10.0  )     (0.4   )
costs
Proceeds from exercise of       0.4         4.4          21.8         39.0
stock options
(Refunds of) proceeds from
employee stock purchase         (0.1  )     –            1.2          1.2
plans
Distributions to                (1.0  )     (0.4   )     (3.8   )     (1.8   )
noncontrolling interests
(Repurchases) sales of
redeemable noncontrolling       –           (2.3   )     1.6          (2.3   )
interests
Capital lease payments and     (0.6  )    (0.5   )    (2.3   )    (1.6   )
other
Net cash used in financing     (51.6 )    (32.2  )    (1.3   )    (140.6 )
activities
                                                                    
Change in cash and cash         (12.9 )     (73.2  )     (41.2  )     (81.2  )
equivalents
Cash and cash equivalents      97.9      199.4      126.2      207.4  
at beginning of period
Cash and cash equivalents     $ 85.0     $ 126.2     $ 85.0      $ 126.2  
at end of period
                                                                    
Supplemental disclosure of
cash flow information:
Interest payments             $ 26.2     $ 14.2      $ 70.0      $ 79.2   
Capitalized interest          $ 0.4      $ 0.7       $ 2.3       $ 2.0    
Income tax payments, net      $ 2.2      $ 23.2      $ 110.5     $ 71.0   
                                                                    

                                               
LIFEPOINT HOSPITALS, INC.

UNAUDITED STATISTICS
                                                  
                 Three Months Ended               Year Ended

                 December 31,                     December 31,
                 2012       2011       %        2012         2011         %
                                         Change                               Change
Continuing
Operations:
^(1)
Number of
hospitals at       56          54        3.7  %     56            54          3.7  %
end of period
Admissions         51,488      48,354    6.5        199,814       195,974     2.0
Equivalent
admissions         117,414     106,850   9.9        452,779       424,676     6.6
^(2)
Revenues per
equivalent       $ 7,608     $ 7,313     4.0      $ 7,491       $ 7,126       5.1
admission
Medicare case      1.35        1.30      3.4        1.31          1.29        1.6
mix index
Average length     4.5         4.4       2.3        4.4           4.3         2.3
of stay (days)
Inpatient          13,688      13,055    4.8        53,696        53,017      1.3
surgeries
Outpatient         43,844      40,404    8.5        171,246       158,240     8.2
surgeries
Emergency room     298,119     257,046   16.0       1,149,301     1,024,273   12.2
visits
Outpatient         2.28        2.21      3.5        2.27          2.17        4.6
factor ^(2)
                                                                              
Same-hospital:
^(3)
Number of
hospitals at       51          51        –    %     51            51          –    %
end of period
Admissions         46,081      47,061    (2.1 )     186,447       194,681     (4.2 )
Equivalent
admissions         103,086     103,269   (0.2 )     416,523       421,095     (1.1 )
^(2)
Revenues per
equivalent       $ 7,412     $ 7,364     0.7      $ 7,462       $ 7,137       4.6
admission
Medicare case      1.32        1.31      1.5        1.31          1.29        1.1
mix index
Average length     4.2         4.3       (2.3 )     4.2           4.3         (2.3 )
of stay (days)
Inpatient          11,846      12,756    (7.1 )     49,564        52,718      (6.0 )
surgeries
Outpatient         38,707      39,348    (1.6 )     158,954       157,184     1.1
surgeries
Emergency room     266,313     246,185   8.2        1,054,501     1,013,412   4.1
visits
Outpatient         2.24        2.19      2.1        2.23          2.16        3.2
factor ^(2)
                                                                              
^(1) Continuing operations information includes the results of (i) our hospital
support center; (ii) our same-hospital operations; (iii) the results of Marquette
General Health System (“Marquette General”), which we acquired effective September
1, 2012; Twin County Regional Hospital (“Twin County”), in which we acquired an 80%
interest effective April 1, 2012; Maria Parham Medical Center (“Maria Parham”), in
which we acquired an 80% interest effective November 1, 2011; and Person Memorial
Hospital (“Person Memorial”), which we acquired effective October1, 2011, each
through Duke LifePoint Healthcare, in which we own a controlling interest with a
wholly-controlled affiliate of Duke University Health System, Inc. and (iv) Woods
Memorial Hospital (“Woods Memorial”), which we acquired effective July 1, 2012.
^(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 hospital support center
and the same 51 hospitals operated during the three months and year ended December
31, 2012 and 2011. Same-hospital information excludes the results of Marquette
General, Woods Memorial, Twin County, Maria Parham and Person Memorial.
                                                                              

                          LIFEPOINT HOSPITALS, INC.
                      UNAUDITED SUPPLEMENTAL INFORMATION
               Dollars in millions, except Diluted EPS amounts

Adjusted EBITDA is defined by the Company as earnings before depreciation and
amortization; interest expense, net; debt extinguishment costs; impairment
charges; provision for income taxes; loss (income) from discontinued
operations, net of income taxes; and net income attributable to 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 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 is 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 is
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 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                              Year Ended

            December 31,                                    December 31,
            2012                    2011                   2012                    2011
            Amount       % of       Amount     % of       Amount       % of       Amount       % of
                          Revenues               Revenues                 Revenues                 Revenues
Revenues
before
provision   $ 1,053.1                $ 916.4                $ 4,016.2                $ 3,544.6
for
doubtful
accounts
Provision
for          159.8                  135.1                624.4                  518.5   
doubtful
accounts
Revenues      893.3       100.0  %     781.3     100.0  %     3,391.8     100.0  %     3,026.1     100.0  %
                                                                                                   
Salaries
and           424.3       47.5         353.5     45.2         1,554.5     45.8         1,364.7     45.1
benefits
Supplies      141.9       15.9         122.8     15.7         524.6       15.5         469.5       15.5
Other
operating     209.6       23.4         186.6     24.0         799.1       23.5         682.4       22.6
expenses
Other        (17.3   )   (1.9   )    (11.5 )   (1.5   )    (32.0   )   (0.9   )    (26.7   )   (0.9   )
income
             758.5      84.9       651.4    83.4       2,846.2    83.9       2,489.9    82.3   
Adjusted    $ 134.8      15.1   %   $ 129.9    16.6   %   $ 545.6      16.1   %   $ 536.2      17.7   %
EBITDA
                                                                                                   

The following table reconciles Adjusted EBITDA as presented above to net
income attributable to LifePoint Hospitals, Inc. as reflected in the unaudited
condensed consolidated statements of operations:

                                                        
                                      Three Months Ended   Year Ended
                                      December 31,         December 31,
                                      2012      2011      2012     2011
Adjusted EBITDA                       $  134.8   $ 129.9   $ 545.6   $ 536.2
Less: Depreciation and amortization      53.4      44.8      193.1     165.8
Interest expense, net                    24.3      25.5      100.0     107.1
Debt extinguishment costs                –         –         4.4       –
Impairment charges                       0.9       –         4.0       –
Provision for income taxes               18.7      21.3      88.5      97.8
Loss (income) from discontinued          0.2       –         –         (0.2  )
operations, net of income taxes
Net income attributable to              1.0      0.6      3.7      2.8   
noncontrolling interests
Net income attributable to            $  36.3    $ 37.7    $ 151.9   $ 162.9 
LifePoint Hospitals, Inc.
                                                                     

The following table reconciles Estimated Adjusted EBITDA as presented for the
Company’s 2013 guidance:

                                                                    
                                                             Low       High
                                                                       End
                                                             End
Adjusted EBITDA                                              $ 540.0   $ 570.0
Less: Depreciation and amortization                            227.0     227.0
Interest expense, net                                          94.0      94.0
Debt extinguishment costs                                      5.1       5.1
Provision for income taxes                                     80.7      92.2
Net income attributable to noncontrolling interests           3.2      3.2
Net income from continuing operations attributable to        $ 130.0   $ 148.5
LifePoint Hospitals, Inc.
                                                                       

Contact:

LifePoint Hospitals, Inc.
Jeff Sherman,615-372-8501
Executive Vice President and
Chief Financial Officer
 
Press spacebar to pause and continue. Press esc to stop.