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LifePoint Hospitals Reports Third Quarter 2013 Results

  LifePoint Hospitals Reports Third Quarter 2013 Results

     Third Quarter Revenue Up 9.7% over Prior-Year Period to $900 Million

Business Wire

BRENTWOOD, Tenn. -- October 25, 2013

LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the third
quarter and nine months ended September 30, 2013.

For the third quarter ended September 30, 2013, revenues from continuing
operations were $899.7million, up 9.7% from $820.2 million for the same
period a year ago. Adjusted EBITDA for the third quarter ended September30,
2013, increased 25.1% to $134.3million compared with $107.3 million for the
same period a year ago. Income from continuing operations attributable to
LifePoint Hospitals, Inc. stockholders for the third quarter ended
September30, 2013, increased 69.9% to $32.5million, or $0.68 per diluted
share, compared with $19.2 million, or $0.39 per diluted share, for the same
period a year ago.

Certain significant items adversely affected the Company’s financial
performance during the third quarter ended September 30, 2012. After adjusting
for these significant items, the Company’s Adjusted Normalized EBITDA and
Adjusted Diluted EPS attributable to LifePoint Hospitals, Inc. stockholders
for the three months ended September 30, 2012, were $119.4 million and $0.60
per diluted share, respectively. As compared with these amounts, Adjusted
EBITDA for the third quarter ended September 30, 2013, increased $14.9
million, or 12.5%, and diluted earnings per share attributable to LifePoint
Hospitals, Inc. stockholders increased $0.08, or 13.3%.

For the first nine months of 2013, revenues from continuing operations were
$2,725.7million, up 9.1% from $2,498.5 million for the same period a year
ago. Adjusted EBITDA for the first nine months of 2013 decreased 5.4% to
$388.5million compared with $410.8 million for the same period a year ago.
Income from continuing operations attributable to LifePoint Hospitals, Inc.
stockholders for the first nine months of 2013 decreased 20.4% to
$91.9million, or $1.93 per diluted share, compared with $115.4 million, or
$2.38 per diluted share, for the same period last year. Results for the first
nine months of 2012 included the Medicare Rural Floor settlement, which
increased revenues by $33.0 million and increased related costs by $6.0
million, for a net impact of $0.35 per diluted share.

“We are pleased with our quarterly results, which included strong revenue and
EBITDA growth,” said William F. Carpenter III, chairman and chief executive
officer of LifePoint. “While the overall volume environment remains
challenging, our strategic initiatives drove growth in outpatient volumes. Our
M&A program remains active, with all pending acquisitions on track to close
within the next six months. Our recently acquired hospitals are performing
well, and we have a strong pipeline of potential opportunities. We have the
processes and people in place to maximize enrollment on healthcare exchanges
and in government programs, and we believe we are well positioned to benefit
from the new healthcare environment.”

A listen-only simulcast, as well as a 30-day replay, of LifePoint Hospitals’
third quarter 2013 conference call will be available on line at
www.lifepointhospitals.com/news/press-releases today, Friday, October 25,
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 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. 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                              Nine Months Ended
                  September 30,                                   September 30,
                  2013                   2012                  2013                   2012                 
                  Amount       % of       Amount     % of       Amount       % of       Amount       % of
                                Revenues               Revenues                 Revenues                 Revenues
Revenues before
provision for
doubtful          $ 1,092.9                $ 984.9                $ 3,268.8                $ 2,963.1
accounts


Provision for
doubtful           193.2                  164.7                543.1                  464.6   
accounts
Revenues            899.7       100.0  %     820.2     100.0  %     2,725.7     100.0  %     2,498.5     100.0  %
                                                                                                         
Salaries and        422.2       46.9         390.3     47.6         1,277.5     46.9         1,130.2     45.2
benefits
Supplies            140.6       15.6         129.3     15.8         429.4       15.8         382.7       15.3
Other operating     222.6       24.8         205.3     25.0         667.0       24.3         589.5       23.7
expenses
Other income        (20.0   )   (2.2   )     (12.0 )   (1.5   )     (36.7   )   (1.3   )     (14.7   )   (0.6   )
Depreciation
and                 57.4        6.3          47.7      5.9          169.1       6.2          139.7       5.6
amortization
Interest            24.0        2.7          24.5      3.0          70.5        2.6          75.7        3.0
expense, net
Gain on
settlement of
pre-acquisition     –           –            –         –            (5.6    )   (0.2   )     –           –
contingent
obligation
Debt
transaction         0.3         –            4.4       0.5          4.7         0.2          4.4         0.2
costs
Impairment         –          –          –        –          –          –          3.1        0.1    
charge
                   847.1      94.1       789.5    96.3       2,575.9    94.5       2,310.6    92.5   
                                                                                                         
Income from
continuing
operations          52.6        5.9          30.7      3.7          149.8       5.5          187.9       7.5
before

income taxes
Provision for      18.5       2.1        11.4     1.4        55.5       2.0        69.8       2.8    
income taxes
Income from
continuing          34.1        3.8          19.3      2.3          94.3        3.5          118.1       4.7
operations
Income from
discontinued       0.3        –          –        –          0.7        –          0.2        –      
operations, net
of income taxes
Net income          34.4        3.8          19.3      2.3          95.0        3.5          118.3       4.7
Less: Net
income
attributable to    (1.6    )   (0.2   )    (0.1  )   (0.1   )    (2.4    )   (0.1   )    (2.7    )   (0.1   )
noncontrolling
interests
Net income
attributable to   $ 32.8       3.6    %   $ 19.2     2.2    %   $ 92.6       3.4    %   $ 115.6      4.6    %
LifePoint
Hospitals, Inc.
                                                                                                         
Earnings per
share
attributable to
LifePoint
Hospitals, Inc.
stockholders:
Basic:
Continuing        $ 0.70                   $ 0.40                 $ 1.99                   $ 2.44
operations
Discontinued       –                      –                    0.01                   0.01    
operations
                  $ 0.70                  $ 0.40                $ 2.00                  $ 2.45    
                                                                                                         
Diluted:
Continuing        $ 0.68                   $ 0.39                 $ 1.93                   $ 2.38
operations
Discontinued       –                      –                    0.01                   –       
operations
                  $ 0.68                  $ 0.39                $ 1.94                  $ 2.38    
                                                                                                         
Amounts
attributable to
LifePoint
Hospitals, Inc.
stockholders:
Income from
continuing        $ 32.5                   $ 19.2                 $ 91.9                   $ 115.4
operations, net
of income taxes
Income from
discontinued       0.3                    –                    0.7                    0.2     
operations, net
of income taxes
Net income        $ 32.8                  $ 19.2                $ 92.6                  $ 115.6   


LIFEPOINT HOSPITALS, INC.

UNAUDITED EARNINGS PER SHARE CALCULATIONS

In millions, except per share amounts
                                                       
                                    Three Months Ended    Nine Months Ended
                                    September 30,         September 30,
                                     2013    2012     2013    2012  
Income from continuing operations   $ 34.1     $ 19.3     $ 94.3     $ 118.1
Less: Net income attributable to     (1.6 )    (0.1 )    (2.4 )    (2.7  )
noncontrolling interests
Income from continuing operations
attributable to
                                      32.5       19.2       91.9       115.4
LifePoint Hospitals, Inc.
stockholders
Income from discontinued             0.3      –        0.7      0.2   
operations, net of income taxes
Net income attributable to          $ 32.8    $ 19.2    $ 92.6    $ 115.6 
LifePoint Hospitals, Inc.
                                                                     
Weighted average shares               46.5       47.5       46.3       47.3
outstanding – basic
Effect of dilutive securities:
stock options and other              1.3      1.3      1.3      1.2   
stock-based awards
Weighted average shares              47.8     48.8     47.6     48.5  
outstanding – diluted
                                                                     
Earnings per share attributable
to LifePoint Hospitals, Inc.
stockholders:
Basic:
Continuing operations               $ 0.70     $ 0.40     $ 1.99     $ 2.44
Discontinued operations              –        –        0.01     0.01  
                                    $ 0.70    $ 0.40    $ 2.00    $ 2.45  
Diluted:
Continuing operations               $ 0.68     $ 0.39     $ 1.93     $ 2.38
Discontinued operations              –        –        0.01     –     
                                    $ 0.68    $ 0.39    $ 1.94    $ 2.38  


LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

In millions
                                                               
                                                   Sept. 30,      Dec. 31,
                                                   2013           2012
ASSETS
Current assets:
Cash and cash equivalents                          $ 194.8        $ 85.0
Accounts receivable, less allowances for
doubtful accounts of $719.7 and $558.4 at            569.1          518.8
September 30, 2013, and December 31, 2012,
respectively
Inventories                                          96.3           97.0
Prepaid expenses                                     29.9           31.8
Deferred tax assets                                  179.4          142.5
Other current assets                                62.6         50.2     
                                                     1,132.1        925.3
                                                                  
Property and equipment:
Land                                                 103.1          101.9
Buildings and improvements                           1,833.5        1,815.2
Equipment                                            1,382.4        1,289.7
Construction in progress                            91.1         81.0     
                                                     3,410.1        3,287.8
Accumulated depreciation                            (1,408.5 )    (1,256.9 )
                                                     2,001.6        2,030.9
                                                                  
Deferred loan costs, net                             21.6           21.9
Intangible assets, net                               76.5           84.5
Other                                                38.2           47.8
Goodwill                                            1,627.7      1,611.8  
Total assets                                       $ 4,897.7     $ 4,722.2  
                                                                  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                                   $ 103.9        $ 117.4
Accrued salaries                                     121.0          128.2
Income taxes payable                                 34.9           0.7
Other current liabilities                            211.2          185.3
Current maturities of long-term debt                577.6        13.3     
                                                     1,048.6        444.9
                                                                  
Long-term debt                                       1,151.8        1,696.5
Deferred income tax liabilities                      230.8          249.2
Long-term portion of reserves for self-insurance     142.6          133.0
claims
Other long-term liabilities                          95.5           79.2
Long-term income tax liability                      16.7         16.9     
Total liabilities                                   2,686.0      2,619.7  
                                                                  
Redeemable noncontrolling interests                  30.6           29.4
                                                                  
Equity:
LifePoint Hospitals, Inc. stockholders’ equity:
Preferred stock                                      –              –
Common stock                                         0.6            0.6
Capital in excess of par value                       1,458.0        1,403.5
Accumulated other comprehensive income               0.2            0.2
Retained earnings                                    1,311.4        1,218.8
Common stock in treasury, at cost                   (611.1   )    (572.6   )
Total LifePoint Hospitals, Inc. stockholders’        2,159.1        2,050.5
equity
Noncontrolling interests                            22.0         22.6     
Total equity                                        2,181.1      2,073.1  
Total liabilities and equity                       $ 4,897.7     $ 4,722.2  



LIFEPOINT HOSPITALS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in millions
                                                    
                              Three Months Ended       Nine Months Ended
                              September 30,            September 30,
                               2013     2012       2013      2012   
Cash flows from operating
activities:
Net income                    $ 34.4      $ 19.3       $ 95.0       $ 118.3
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Income from discontinued        (0.3  )     –            (0.7   )     (0.2   )
operations
Stock-based compensation        6.0         7.0          19.1         20.3
Depreciation and                57.4        47.7         169.1        139.7
amortization
Amortization of physician       4.1         4.9          13.1         14.7
minimum revenue guarantees
Amortization of debt
discounts and deferred loan     6.8         7.8          19.9         23.4
costs
Gain on settlement of
pre-acquisition contingent      –           –            (5.6   )     –
obligation
Debt transaction costs          0.3         4.4          4.7          4.4
Impairment charge               –           –            –            3.1
Deferred income tax benefit     (9.9  )     (9.4   )     (53.6  )     (48.0  )
Reserve for self-insurance      0.8         1.8          7.5          (1.0   )
claims, net of payments
Increase (decrease) in cash
from operating assets and
liabilities, net of effects
from acquisitions and
divestitures:


Accounts receivable             (7.6  )     (6.7   )     (26.2  )     (42.4  )
Inventories and other           (9.1  )     (9.5   )     (4.3   )     (2.2   )
current assets
Accounts payable and            6.6         40.3         (19.4  )     22.2
accrued expenses
Income taxes                    14.7        (22.9  )     34.2         9.7
payable/receivable
Other                          (0.1  )    (0.4   )    0.6        0.3    
Net cash provided by
operating activities –          104.1       84.3         253.4        262.3
continuing operations
Net cash provided by (used
in) operating activities –     0.2       –          –          (0.7   )
discontinued operations
Net cash provided by           104.3     84.3       253.4      261.6  
operating activities
                                                                    
Cash flows from investing
activities:
Purchases of property and       (32.7 )     (47.3  )     (108.5 )     (157.4 )
equipment
Acquisitions, net of cash       (12.2 )     (162.3 )     (18.4  )     (182.4 )
acquired
Other                          (1.7  )    (0.1   )    (0.3   )    (0.4   )
Net cash used in investing     (46.6 )    (209.7 )    (127.2 )    (340.2 )
activities
                                                                    
Cash flows from financing
activities:
Proceeds from borrowings        –           490.0        323.0        490.0
Payments of borrowings          (3.7  )     (443.7 )     (320.9 )     (443.7 )
Repurchases of common stock     (31.3 )     (0.3   )     (38.5  )     (6.2   )
Payment of debt financing       (7.3  )     (9.6   )     (8.3   )     (9.6   )
costs
Proceeds from exercise of       6.2         15.9         34.4         21.4
stock options
Proceeds from (refunds of)
employee stock purchase         –           0.8          (0.2   )     1.3
plans
Distributions to                (1.3  )     (1.4   )     (4.1   )     (2.8   )
noncontrolling interests
Sales of redeemable             –           –            –            1.6
noncontrolling interests
Capital lease payments and     (0.5  )    (0.7   )    (1.8   )    (1.7   )
other
Net cash (used in) provided    (37.9 )    51.0       (16.4  )    50.3   
by financing activities
                                                                    
Change in cash and cash         19.8        (74.4  )     109.8        (28.3  )
equivalents
Cash and cash equivalents      175.0     172.3      85.0       126.2  
at beginning of period
Cash and cash equivalents     $ 194.8    $ 97.9      $ 194.8     $ 97.9   
at end of period
                                                                    
Supplemental disclosure of
cash flow information:
Interest payments             $ 5.3      $ 7.0       $ 40.7      $ 43.8   
Capitalized interest          $ 0.4      $ 0.6       $ 1.1       $ 1.9    
Income tax payments, net      $ 14.0     $ 43.7      $ 75.4      $ 108.3  

       LIFEPOINT HOSPITALS, INC.
     
       UNAUDITED STATISTICS
                                                        
                        Three Months Ended                 Nine Months Ended
                        September 30,                      September 30,
                         2013      2012     %          2013      2012     %      
                                                Change                             Change
       Continuing
       Operations:
       ^(1)
       Number of
       hospitals at       57          56        1.8    %     57          56        1.8    %
       end of period
       Admissions         48,671      48,766    (0.2   )     150,140     148,326   1.2
       Equivalent
       admissions         117,097     113,147   3.5          350,577     335,365   4.5
       ^(2)
       Revenues per
       equivalent       $ 7,683     $ 7,249     6.0        $ 7,775     $ 7,450     4.4
       admission
       Medicare case      1.37        1.29      6.2          1.37        1.29      6.2
       mix index
       Average length     4.5         4.5       –            4.6         4.4       4.5
       of stay (days)
       Inpatient          13,341      13,283    0.4          40,173      40,008    0.4
       surgeries
       Outpatient         45,514      41,379    10.0         135,410     127,402   6.3
       surgeries
       Emergency room     296,240     293,657   0.9          876,840     851,182   3.0
       visits
       Outpatient         2.40        2.32      3.4          2.34        2.26      3.5
       factor ^(2)
                                                                                   
       Same-hospital:
       ^(3)
       Number of
       hospitals at       53          53        –      %     53          53        –      %
       end of period
       Admissions         44,896      46,899    (4.3   )     138,936     145,524   (4.5   )
       Equivalent
       admissions         106,772     108,223   (1.3   )     320,525     328,157   (2.3   )
       ^(2)
       Revenues per
       equivalent       $ 7,364     $ 7,204     2.2        $ 7,522     $ 7,451     1.0
       admission
       Medicare case      1.35        1.30      3.8          1.34        1.30      3.1
       mix index
       Average length     4.3         4.3       –            4.4         4.4       –
       of stay (days)
       Inpatient          12,005      12,668    (5.2   )     36,206      39,141    (7.5   )
       surgeries
       Outpatient         41,101      39,720    3.5          122,559     125,015   (2.0   )
       surgeries
       Emergency room     277,836     281,736   (1.4   )     822,485     833,485   (1.3   )
       visits
       Outpatient         2.38        2.31      3.0          2.31        2.26      2.2
       factor ^(2)
                                                                                          
       Continuing operations information includes the results of (i) our hospital support
       center, (ii) our same-hospital operations, (iii) the results of Scott Memorial
       Hospital (“Scott Memorial”), which we acquired effective January 1, 2013, though our
       joint venture with Norton Healthcare, Inc., (iv) Marquette General Health System
^(1)   (“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, each through Duke LifePoint Healthcare and (v) Woods Memorial
       Hospital (“Woods Memorial”), which we acquired effective July 1, 2012.

       
       
       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
^(2)   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.
       
       Same-hospital information includes the results of our hospital support center and
^(3)   the same 53 hospitals operated during the three months and nine months ended
       September 30, 2013 and 2012.Same-hospital information excludes the results of
       Scott Memorial, Marquette General, Twin County and Woods 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; gain on settlement of pre-acquisition contingent obligation; debt transaction costs;
impairment charge; provision for income taxes; 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 are 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 are 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                              Nine Months Ended
           September 30,                                  September 30,

                                                           
            2013                   2012                  2013                   2012                 
            Amount       % of       Amount     % of       Amount       % of       Amount       % of
                          Revenues               Revenues                 Revenues                 Revenues
Revenues
before
provision
            $ 1,092.9                $ 984.9                $ 3,268.8                $ 2,963.1
for
doubtful
accounts
Provision
for          193.2                  164.7                543.1                  464.6   
doubtful
accounts
Revenues      899.7       100.0  %     820.2     100.0  %     2,725.7     100.0  %     2,498.5     100.0  %
                                                                                                   
Salaries
and           422.2       46.9         390.3     47.6         1,277.5     46.9         1,130.2     45.2
benefits
Supplies      140.6       15.6         129.3     15.8         429.4       15.8         382.7       15.3
Other
operating     222.6       24.8         205.3     25.0         667.0       24.3         589.5       23.7
expenses
Other        (20.0   )   (2.2   )    (12.0 )   (1.5   )    (36.7   )   (1.3   )    (14.7   )   (0.6   )
income
             765.4      85.1       712.9    86.9       2,337.2    85.7       2,087.7    83.6   
Adjusted    $ 134.3      14.9   %   $ 107.3    13.1   %   $ 388.5      14.3   %   $ 410.8      16.4   %
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           Nine Months Ended
                     September 30,                September 30,
                       2013         2012        2013         2012   
Adjusted EBITDA      $  134.3        $  107.3     $  388.5        $  410.8
Less:
Depreciation and        57.4            47.7         169.1           139.7
amortization
Interest expense,       24.0            24.5         70.5            75.7
net
Gain on
settlement of
pre-acquisition         –               –            (5.6   )        –
contingent
obligation
Debt transaction        0.3             4.4          4.7             4.4
costs
Impairment charge       –               –            –               3.1
Provision for           18.5            11.4         55.5            69.8
income taxes
Income from
discontinued            (0.3   )        –            (0.7   )        (0.2   )
operations, net
of income taxes
Net income
attributable to        1.6           0.1         2.4           2.7    
noncontrolling
interests
Net income
attributable to      $  32.8        $  19.2      $  92.6        $  115.6  
LifePoint
Hospitals, Inc.

LIFEPOINT HOSPITALS, INC.

UNAUDITED SUPPLEMENTAL INFORMATION (Continued)

Dollars in millions, except Diluted EPS amounts
                               
The Company provides the following table for certain items that adversely
affected the Company’s financial performance for the three months ended
September 30, 2012:
                                     
                                     Three Months Ended
                                     September 30, 2012
                                                           Impact on
                                     Amount               Diluted
                                                           EPS
Adjusted EBITDA                      $     107.3
Plus significant items
incurred:
Acquisition transaction                    6.2             $     (0.08    )
expenses
Prior period repayment                     2.6                   (0.03    )
obligation expense
Retention and severance                    1.8                   (0.02    )
expenses
Hurricane Isaac impact                    1.5                  (0.02    )
Net impact to Adjusted EBITDA             12.1            $     (0.15    )
Adjusted Normalized EBITDA           $     119.4

                                                              
                                                                Three Months
                                                                Ended
                                                                Sept. 30, 2012

                                                                
Diluted EPS attributable to LifePoint Hospitals, Inc.           $     0.39
stockholders
Significant items incurred and summarized above ($12.1                0.15
million)
Debt transaction costs ($4.4 million)                                0.06
Adjusted Diluted EPS attributable to LifePoint Hospitals,       $     0.60
Inc. stockholders

The following table reconciles Adjusted Normalized 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
                                                    Sept. 30, 2012

                                                    
Adjusted Normalized EBITDA                          $           119.4
Less: Significant items incurred                                12.1
Depreciation and amortization                                   47.7
Interest expense, net                                           24.5
Debt transaction costs                                          4.4
Provision for income taxes                                      11.4
Net income attributable to noncontrolling                      0.1
interests
Net income attributable to LifePoint                $           19.2
Hospitals, Inc.

Contact:

LifePoint Hospitals, Inc.
Leif Murphy, 615-372-1447
Executive Vice President and Chief Financial Officer
 
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