Province Healthcare Reports First Quarter 2002 Results

Brentwood, TN, April 24, 2001 - Province Healthcare Company (Nasdaq:PRHC) today announced results for its first quarter ended March 31, 2002. Net operating revenues for the first quarter of 2002 increased 35% to $165,601,000, compared with $122,436,000 in the same quarter of last year. Earnings before interest, income taxes, depreciation, amortization, loss on sale of assets and minority interest (EBITDA) rose 30% to $31,327,000, compared with $24,101,000 in last year's first quarter. Net income for the quarter was $11,692,000 or $0.35 per diluted share, a 35% increase over last year's $0.26 per diluted share on net income of $8,508,000.

      There were 26% more diluted shares outstanding in the first quarter of 2002 compared with the first quarter of 2001, primarily as a result of the effect of the Convertible Subordinated Notes. Effective January 1, 2002, the Company adopted SFAS-142, "Goodwill and Other Intangible Assets." The effect of the change in accounting treatment would have resulted in an increase in net income of $1.1 million, or $0.03 per diluted share, during the first quarter of 2001.

      Province ended the first quarter of 2002 with 18 owned or leased hospitals, of which 14 are same-store hospitals. Excluded from same-store results is Vaughan Regional Medical Center in Selma, Alabama, the consolidated hospital resulting from the acquisition of the two hospitals in Selma, Alabama, Selma Baptist Hospital on July 1, 2001 and Vaughan Regional Medical Center on October 1, 2001.

      Also excluded from same-store results are Ashland Regional Medical Center in Ashland, Pennsylvania, acquired on August 16, 2001; the Medical Center of Southern Indiana in Charlestown, Indiana, acquired on October 4, 2001; and Teche Regional Hospital in Morgan City, Louisiana, acquired on December 6, 2001. In the 14 same-store hospitals, net patient service revenue increased 8.1% over the first quarter of last year. Contributing to the same-store revenue growth was an increase of 1.1% in same-store admissions, over last year's 16.7% growth, and a 12.2% increase in outpatient revenue.

      On April 9, 2002, the Company announced a 3-for-2 stock split to be distributed in the form of a 50% stock dividend on April 30, 2002, to holders of record on April 20, 2002. Adjusting for this stock split, net income per share would have been $0.23 in the first quarter of 2002, compared with $0.17 in the same quarter last year. Province Healthcare is a provider of health care services in attractive non-urban markets in the United States. The Company owns or leases 18 general acute care hospitals in 11 states with a total of 2,031 licensed beds. The Company also provides management services to 34 primarily non-urban hospitals in 13 states with a total of 2,748 licensed beds. Back to TOC.

Correctional Properties Trust Reports 20% Quarterly FFO Growth Per Share

Correctional Properties Trust (NYSE: CPV - news), a real estate investment trust (REIT), today announced funds from operations for the three months ended March 31, 2002, of $4.2 million, or $0.59 per diluted share, on revenue of $7.5 million. Net income for the first quarter of 2002 was $2.4 million or $0.34 per diluted share. The Trust reported funds from operations of $3.5 million for the first quarter of 2001, or $0.49 per diluted share, on revenue of $5.8 million. Net income for the first quarter of 2001 was $2.1 million or $0.30 per diluted share.

      Correctional Properties Trust also announced that its Board of Trustees declared a quarterly dividend of $0.40 (forty cents) per share on each common share of beneficial interest, payable May 31, 2002, to shareholders of record at the close of business May 15, 2002.

      Charles R. Jones, President and CEO stated, "The 20% growth reflected in the Company's FFO this quarter is primarily the result of the acquisitions made in 2001. These two accretive acquisitions, met several Company objectives, and have positioned us favorably for 2002."

      Correctional Properties Trust, based in Palm Beach Gardens, Florida, was formed in February 1998, to capitalize on the growing trend toward privatization in the corrections industry. Correctional Properties Trust is dedicated to ownership of correctional facilities under long-term, triple-net leases without occupancy risk or development risk.

      Correctional Properties Trust currently owns and is the lessor of 13 correctional facilities in nine states, all of which are leased, with an aggregate initial design capacity of 7,282 beds. Back to TOC.

America Online and WebMD Launch New Online Health Resource for Consumers

America Online, Inc., the world's leading interactive services company, and WebMD Corporation (NASDAQ: HLTH - news) today announced the launch of the new AOL Health Channel with WebMD. The newly launched channel, found at AOL Keyword: Health, combines WebMD's objective and credible healthcare content, tools and educational services with America Online's convenient and easy-to-use online features.

      The new AOL Health Channel with WebMD is part of the comprehensive strategic alliance between America Online and WebMD Corporation announced last year. Under thatagreement, WebMD became the primary provider of healthcare content, tools and services across all America Online brands. Through this alliance, WebMD's wide array of health and wellness offerings, including information on diseases and conditions, expert Q&A and health e-tools, are available to the tens of millions of AOL members and the users of AOL's other Web-based brands.

      "The new AOL Health Channel with WebMD provides our members with the best content, products and community in an area important to them, all wrapped in AOL's user-friendly and convenient package," said Donn Davis, President of AOL's Vertical Markets Group. "In addition, we believe we have developed new compelling opportunities for advertisers and partners to connect with this audience."

      "As the site most trusted by consumers and most recommended by physicians, WebMD is committed to providing the highest quality health information available online and to developing objective programming and content that helps consumers make informed decisions about their health," said Roger Holstein, CEO, WebMD Health. "Our broad reach - which is enhanced by our relationship with AOL - enables us to distribute our content, tools and services to the largest and most targeted group of action-oriented, health-involved consumers online."

      As part of the previously announced alliance, AOL and WebMD will join forces to offer creative and compelling advertising, commerce and programming solutions for pharmaceutical, medical device and consumer packaged goods companies. These solutions will help advertisers and partners reach the broadest consumer health audience online, bringing valued customers to their brands and services. AOL and WebMD will share revenue from these opportunities.

      WebMD is expected to announce the first profit before a one time charge on May 7. AOL just took a $52 billion charge for the most recent period. Back to TOC.

Health Management Associates Reports Record 2nd Q Net Revenue Of 21%

Health Management Associates, Inc. (NYSE: HMA - news) announced today that net patient service revenue grew 21% to $579.9million for the quarter ended March 31, 2002, up $98.8 million from $481.1 million for the same period a year ago. Net income for the quarter ended March 31, 2002 increased 17% to $69.2 million, up $10.1 million from $59.1 million, before a non-recurring, non-cash charge for the same quarter a year ago. Earnings per share (diluted) for the quarter were $.27 per share, up more than 17% from $.23 per share, before a non-recurring, non-cash charge for the same quarter a year ago.

      Net patient service revenue at hospitals owned and operated by HMA for one year or more was up 6.2%. This represents the 54th consecutive quarter of same hospital revenue growth.Among the factors contributing to the growth were a 3.4% increase in surgeries and a 2.4% increase in adjusted admissions.

      For the six months ended March 31, 2002, net earnings increased 21% to $119.7 million or $0.47 per share (diluted) compared to $99.3 million or $0.39 per share (diluted) before the non-cash, non-recurring charge in the same period a year ago. The Company reported total net patient service revenue for the period of $1.08 billion, an increase of 18% from $915.4 million in the comparable six-month period.

      Same hospital salaries and benefits as a percent of revenue increased only 30 basis points during the quarter, while total salaries and benefits expense for all hospitals increased 90 basis points during the quarter. This level of salary and benefit expense is a normal function of integrating our recent acquisitions, and provides HMA with an opportunity to reduce labor expense as our flexible staffing program is implemented over time.

      During the quarter, HMA added 390 licensed beds to the existing complement by acquiring the 85-bed Fentress County Community Hospital in Jamestown, Tennessee, the 129-bed Santa Rosa Medical Center in Milton, Florida, and the 176-bed Medical Center of Mesquite in Mesquite, Texas. When combined with HMA's acquisition of the 88-bed Lehigh Regional Medical Center in Lehigh Acres, Florida, completed in the first quarter of fiscal year 2002, HMA has achieved the high end of its stated objective range of two to four acquisitions for fiscal year 2002. "The quarter began with the acquisition of three new hospitals.This transaction represented the largest acquisition of hospitals in a single day in the history of the Company, and was completed a month ahead of schedule; a testament to our people, systems and financial strength," added Vumbacco. Back to TOC.

HCA Shares Drop

Shares of HCA Inc. fell Monday along with the broader market after the hospital operator reported a first-quarter profit comfortably ahead of Wall Street's consensus. The shares, which moved as high as $48.96 in early dealings, closed the day off $1.01 to $47. The hospital segment has been a strong component within the universe of publicly traded health-care companies, which have been stellar performers in the stock market.

      HCA posted net earnings of $385 million, or 74 cents a share, up from the prior year's $343 million, or 62 cents a share. Adjusted to exclude one-time items including adoption of new accounting rules regarding the amortization of goodwill, the company turned a quarterly profit of $396 million, or 76 cents a share, as compared to $348 million, or 63 cents, for the year-earlier period.

      On this basis, HCA continued its impressive run of year-over-year profit-per-share growth coming in at a rate of 20 percent or higher. Earnings benefited from fewer shares outstanding in the latest quarter. According to a survey conducted by Thomson Financial/First Call, analysts who follow the company had been looking for HCA to achieve a profit of 72 cents a share.

      The company's profit growth outpaced growth in revenue, which rose 8.3 percent to nearly $4.9 billion in the latest quarter from the prior year's $4.5 billion. "Strong revenue growth combined with sound cost management led to another excellent quarter," said Chairman and Chief Executive Jack Bovender Jr. in a statement. Revenue generated by HCA's hospital properties open a year or longer, a key industry benchmark, rose 11.1 percent from the year-ago quarter. Back to TOC.

Anthem to Buy Trigon for $4 Billion

Health insurer Anthem Inc. (NYSE:ATH - news), an operator of Blue Cross and Blue Shield insurance plans, said on Monday it would buy Trigon Healthcare Inc. in a $4 billion deal aimed at boosting its presence in the southeastern United States. The cash-and-stock deal folds Trigon, Virginia's largest health insurer and provider of Blue Cross and Blue Shield plans to 2.2 million people, into Indianapolis-based Anthem's growing national network of "Blues" plans. Trigon shares closed 17.4 percent higher on Monday, while shares of Anthem fell 5.7 percent.

      "For Anthem, strategically it gives them a very good property in a good market," said Deutsche Banc Alex. Brown analyst Eric Veiel. "Trigon is a highly efficient, well-managed company." Anthem, from its origins as Indiana's Blue Cross and Blue Shield operator, has emerged as the nation's fifth-largest publicly traded health insurance company, largely through acquiring the Blues plans of other states. Richmond, Virginia-based Trigon would be Anthem's biggest purchase yet.

      Both Anthem, which went public in October, and Trigon also reported higher first-quarter earnings on Monday and raised their profit outlooks for the full year. The pair, like many health insurers, are prospering despite an uncertain economy by charging higher premium rates to employers to keep ahead of rising medical expenses. Anthem, which owns Blue Cross and Blue Shield health insurance plans in eight states from Nevada to Maine, said Trigon shareholders would receive $30 in cash plus 1.062 Anthem shares for each Trigon share they own. That values Trigon at just over $105 a share, or a premium of about 25 percent. "For Trigon shareholders, they are certainly getting a good price," said Veiel.

LifePoint Hospitals Inc. (NasdaqNM:LPNT news) on Monday said its first-quarter profit rose sharply, helped by growth of admissions and the number of surgeries and diagnostic tests performed at its network of almost two dozen hospitals. LifePoint earned $13.7 million, or 36 cents per share, in the quarter, including an extraordinary loss of 2 cents per share on early retirement of debt. LifePoint earned $8.6 million, or 25 cents per share, on revenue of $154 million in last year's first quarter. Excluding unusual items, LifePoint reported earnings of 38 cents per share, compared with 24 cents per share in the 2001 quarter.Cont. at Top of Column 2.


 

In This Issue--Also See Archive

Province Healthcare Q1 Results

Brentwood, TN, April 24, 2001 - Province Healthcare Company (Nasdaq:PRHC)...

FFO Strong at Correctional Properties

Correctional Properties Trust (NYSE: CPV - news), a real estate investment trust...

AOL Teams with WebMD.com

America Online, Inc., the world's leading interactive services company, and WebMD Corporation...

HMA Posts Record Q2 Net

Health Management Associates, Inc. (NYSE: HMA - news) announced today that net patient service revenue grew...

HCA Profits Up, Stock Down

Shares of HCA Inc. fell Monday along with the broader market after the hospital operator reported a first-quarter profit...

Anthem to Buy Trigon

Health insurer Anthem Inc. (NYSE:ATH news), an operator of Blue Cross and Blue Shield insurance...

Humana Posts Q2 Results

First quarter net income of $46.8 million, or $.28 per diluted share...

LifePoint Profits from Strong Admissions

LifePoint Hospitals Inc. (Nasdaq NM:LPNT news) on Monday said its first-quarter profit rose...

WellPoint Acquires MethodistCare

WellPoint Health Networks Inc. (NYSE:WLP - news), one of the nation's largest publicly traded health...

Tenet Sees Record Profit Margin

Tenet Healthcare (NYSE: THC - news) Corp. posted a 41% in fiscal third-quarter net income...

Anthem Buys Trigon
(Cont. from col. 1)

Credit Suisse First Boston analyst Joseph France said the deal's valuation is rich but not out of line, noting Anthem in the past had focused on acquiring underperforming Blue Cross plans such as those in New Hampshire, Colorado and Maine. "We like both companies, and we like this deal, as Trigon will easily become Anthem's strongest plan," he said. David Frick, Anthem's chief legal officer, said buying Trigon gives Anthem a foothold in a fourth U.S. region after expansion in the Midwest, Northeast and West. "The Southeast part of the U.S. is clearly a population growth area," Frick said in an interview.

      The combined company will have over 10 million medical members, with assets of nearly $9 billion and operating revenues of $13 billion. It would remain the No. 5 publicly traded health insurer upon adding Trigon's 2.2 million members. UnitedHealth Group Inc. (NYSE:UNH - news), the nation's largest HMO, has just over 16 million customers, followed by Aetna Inc. (NYSE:AET - news), which has about 15 million customers.

      The deal is expected to close in three to six months and will be neutral to Anthem's earnings in 2003 but add to earnings after that, the companies said. The merger requires approvals from shareholders and regulators. Anthem expects the deal to generate at least $40 million pretax savings in 2003 and about $75 million in cost savings on an annual basis by 2004. Anthem is also in the process of trying to buy Blue Cross and Blue Shield of Kansas, but the state insurance commissioner blocked the deal in February. Anthem is appealing.

      News of the deal came as both companies reported higher first-quarter profits and raised earnings outlooks for the year. Anthem posted a 45 percent profit jump to $99.8 million, while Trigon's earnings rose 19 percent to $42.1 million. Per-share profits far surpassed Wall Street forecasts. Anthem raised its earnings forecast for the year to a profit range of between $3.85 and $3.95 a share, up from its earlier forecast of between $3.65 and $3.75 a share. Earnings for the second quarter are expected to come in between 95 cents and a $1 a share, Anthem said.

      Trigon raised its outlook for 2002 to a profit range of between $4.83 a share and $4.88 a share, compared with its earlier forecast of between $4.73 a share and $4.78 a share. Shares of Trigon rose $14.62 to close at $98.87 on the New York Stock Exchange, after hitting an all-time high of $100.51 earlier Monday. Anthem's shares fell $4.05 to close at $66.65. Back to TOC.

Humana Reports First Quarter 2002 Results

• First quarter net income of $46.8 million, or $.28 per diluted share
• Cash flows from operating activities of $76.5 million (including the usual adjustment for the timing of the CMS premium payment)
• Commercial segment medical membership increases 60,400 members sequentially
• Total medical membership of 6,534,900 at March 31, 2002

Humana Inc. (NYSE: HUM - news) today reported earnings of $.28 per diluted share for the first quarter ended March 31, 2002 versus $.24 adjusted earnings per diluted share for the first quarter of 2001. (Adjusted earnings for 2001 exclude amortization expense for goodwill. New accounting rules require all companies to cease amortizing goodwill effective January 1, 2002.)

      Net income for the first quarter of 2002 was $46.8 million versus adjusted net income of $39.6 million for the same period in the prior year. Income before income taxes for the first quarter increased to $68.8 million versus adjusted income before income taxes of $55.2 million a year ago. Pre-tax earnings increased to $68.8 million versus adjusted pre-tax earnings of $55.2 million for the first quarter of 2001. Pre-tax margin improved to 2.5 percent compared with 2.2 percent in the prior year's quarter, on an adjusted basis.

Revenue and Membership

      Revenues in the first quarter were $2.73 billion versus $2.46 billion in the first quarter of 2001. First quarter revenues increased sequentially from $2.62 billion in the fourth quarter of 2001. Total medical membership at March 31, 2002 was 6,534,900 versus 4,927,300 a year ago and 6,435,800 at December 31, 2001.

      First quarter premium revenues and administrative services fees for the Commercial segment totaled $1.45 billion, an increase over both the first and fourth quarters of 2001. Commercial segment premium revenues and administrative services fees for the first quarter 2001 were $1.33 billion and $1.36 billion in the fourth quarter 2001. Medical membership for the Commercial segment increased by 60,400 members to 2,954,200 at March 31, 2002 from 2,893,800 at December 31, 2001. Fully insured medical business within the segment averaged premium yields of 12 to 14 percent for the first quarter of 2002 compared to 10 to 11 percent in the fourth quarter of 2001.

      Government segment premium revenues and administrative services fees totaled $1.26 billion in the first quarter of 2002 versus $1.10 billion for the prior year's quarter and $1.24 billion in the fourth quarter of 2001. Medicare+Choice membership at March 31, 2002 was 363,700 versus 393,900 at December 31, 2001, a decline of 30,200 members. The company's Medicare+Choice line averaged premium yields of 6 to 8 percent during the first quarter versus 10 to 11 percent in the fourth quarter of 2001 as new Medicare+Choice benefit designs and related premiums became effective on January 1, 2002. Back to TOC.

LifePoint Hospitals Profit Up as Admissions Rise

Analysts polled by Thomson Financial/First Call on average had forecast earnings for the first quarter of 31 cents. First-quarter revenue rose almost 18 percent to $182 million, driven by an 8.7 percent increase in patient admissions and a 17 percent increase in the number of surgeries performed at its hospitals.Universal Health Services, Inc. Reports 25% First Quarter EPS Growth

      Universal Health Services, Inc. announced today that its earnings per share (diluted) for the three-month period ended March 31, 2002 were $.71, a 25% increase from the earnings per share recorded in the same period of the prior year. Net revenues and net income for the quarter were $804.4 million and $45.7 million, increases of 19% and 26% respectively from the results of the same period in the prior year. At March 31, 2002, the Company's net balance sheet debt was approximately $690 million and its shareholders' equity was approximately $854 million.

      Patient admissions to the Company's hospitals owned in both the three months ended March 31, 2002 and March 31, 2001 increased 5.6% in the Company's acute care hospitals and 4.6% in the Company's behavioral health hospitals. For the Company's acute care hospitals owned in both periods, revenues increased 11.4% and revenue per adjusted patient day increased 5.4%. For the Company's behavioral health hospitals owned in both periods, revenues increased 4.0% and revenue per adjusted patient day remained relatively unchanged.

      During the quarter, the Company commenced construction of a new 176-bed hospital in Las Vegas. The Company also commenced construction of a 90-bed addition of its Northwest Texas Hospital in Amarillo, Texas, and a 40-bed addition at its Auburn Regional Medical Center in Auburn, Washington. The Company expects to complete construction of the new 371-bed George Washington University Hospital in June and commence operations in late August. The Company is reviewing other investment opportunities and anticipates capital expenditures will be approximately $225 million in 2002.

      Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory surgery and radiation centers nationwide, in Puerto Rico, and in France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust. Back to TOC.

WellPoint Completes Acquisition of MethodistCare

WellPoint Health Networks Inc. (NYSE:WLP - news), one of the nation's largest publicly traded health care companies, today announced that it has completed its acquisition of MethodistCare, Inc. and Methodist Health Insurance Company, the managed care subsidiaries of Methodist Health Care System in Houston, Texas.

      Subject to regulatory approval, the MethodistCare HMO and POS plans will be renamed UNICARE Health Plans of Texas, Inc., and the health insurer, which offers PPO products, will be renamed UNICARE Health Insurance Company of Texas. With the completion of this transaction, UNICARE, WellPoint's national operating unit, will serve 422,300 members throughout Texas, and 215,540 members in the Metropolitan Houston area.

      "This transaction significantly enhances our product portfolio in the Houston area and gives us an opportunity to build our UNICARE brand," said Leonard D. Schaeffer, WellPoint's chairman and chief executive officer. "This transaction also gives UNICARE members increased access to affordable, high-quality care by strengthening our relationship with Methodist Health Care System. Its flagship, Methodist, is recognized as one of the leading hospitals in the United States and is one of the top centers in numerous clinical areas."

      WellPoint is committed to offering a range of products that deliver choice and flexibility and put members in control of their health care. "This acquisition enables UNICARE to expand its product line for all group market segments by offering HMO products along with other open access products," said Sandra Van Trease, UNICARE's president. "The combination of UNICARE's business with MethodistCare's comprehensive line of products will allow us to enhance and strengthen our presence in the Houston market."

      WellPoint Health Networks Inc. serves the health care needs of more than 13 million medical members and approximately 42.6 million specialty members nationwide through Blue Cross of California, Blue Cross and Blue Shield of Georgia, Blue Cross and Blue Shield of Missouri, HealthLink and UNICARE. Back to TOC.

Tenet Posts 41% Jump in 3rd-Quarter Net, Raises Fiscal-Year Target

Tenet Healthcare (NYSE: THC - news) Corp. posted a 41% in fiscal third-quarter net income on a record profit margin, and the company raised its earnings outlook for the full fiscal year. The owner and operator of acute-care hospitals Tuesday reported net income of $280 million, or 84 cents a share, for the quarter ended Feb. 28,up from $198 million, or 60 cents a share, a year earlier.

      The latest results also included a charge of $8 million, or two cents a share, from repurchasing about $145 million in senior subordinated notes. Excluding that item, as well as unspecified acquisition-related charges from both periods, Tenet said it earned $309 million, or 92 cents a share, compared with $219 million, or 66 cents a share, a year earlier. Tenet said last month its third-quarter earnings from operations would " comfortably" exceed analysts' estimates of 81 cents a share.

      Revenue jumped 15% to $3.48 billion from $3.04 billion, boosted by strong admission and unit-revenue trends, as has been the case in prior quarters. Admissions to Tenet hospitals rose 7.4%, while same-facility admissions climbed 2.1% despite the weakest flu season in years. Same-facility revenue per admission jumped 11%. The revenue gain, along with cost controls, resulted in the company posting a profit margin of 20.7%, a record for Tenet. Looking ahead, the firm is anticipating earnings from operations of at least 90 cents a share for the fourth quarter and earnings of at least $3.20 a share for the fiscal year ending May 31 . Tenet previously had projected fiscal-year earnings of at least $3.10 a share.

      Analysts surveyed by Thomson Financial/First Call are looking for fourth- quarter earnings of 87 cents a share. Year-earlier earnings were 68 cents in the fourth quarter and $2.30 a share for fiscal 2001.