HCA Healthcare reports second quarter 2023 results

HCA Healthcare, Inc., announced financial and operating results for the second quarter ended June 30, 2023.

Key second quarter metrics (all percentage changes compare 2Q 2023 to 2Q 2022 unless otherwise noted):

• Revenues totaled $15.861 billion
• Net income attributable to HCA Healthcare, Inc. totaled $1.193 billion, or $4.29 per diluted share
• Adjusted EBITDA totaled $3.056 billion
• Cash flows from operating activities totaled $2.475 billion
• Same facility admissions increased 2.2 percent and same facility equivalent admissions increased 3.7 percent

“The company produced solid results in the second quarter driven by continued strong demand for our services and good execution by our teams. I want to thank our colleagues for their dedication and great work,” said Sam Hazen, Chief Executive Officer of HCA Healthcare.

Revenues in the second quarter of 2023 increased to $15.861 billion, compared to $14.820 billion in the second quarter of 2022. Net income attributable to HCA Healthcare, Inc. totaled $1.193 billion, or $4.29 per diluted share, compared to $1.155 billion, or $3.90 per diluted share, in the second quarter of 2022. The second quarter of 2022 results included losses on sales of facilities of $32 million, or $0.11 per diluted share, and losses on retirement of debt of $78 million, or $0.20 per diluted share.

For the second quarter of 2023, Adjusted EBITDA totaled $3.056 billion, compared to $3.042 billion in the second quarter of 2022. Adjusted EBITDA is a non-GAAP financial measure. A table providing supplemental information on Adjusted EBITDA and reconciling net income attributable to HCA Healthcare, Inc. to Adjusted EBITDA is included in this release.

Same facility admissions increased 2.2 percent and same facility equivalent admissions increased 3.7 percent in the second quarter of 2023, compared to the prior year period. Same facility emergency room visits increased 3.7 percent in the second quarter of 2023, compared to the prior year period. Same facility inpatient surgeries increased 1.8 percent while same facility outpatient surgeries increased 3.3 percent in the second quarter of 2023, compared to the same period of 2022. Same facility revenue per equivalent admission increased 2.4 percent in the second quarter of 2023, compared to the second quarter of 2022.

Six months ended June 30, 2023
Revenues for the six months ended June 30, 2023 totaled $31.452 billion, compared to $29.765 billion in the same period of 2022. Net income attributable to HCA Healthcare, Inc. was $2.556 billion, or $9.14 per diluted share, compared to $2.428 billion, or $8.05 per diluted share, for the first six months of 2022. Results for the six months ended June 30, 2023 include losses on sales of facilities of $14 million, or $0.08 per diluted share. Results for the six months ended June 30, 2022 included losses on sales of facilities of $22 million, or $0.08 per diluted share, and losses on retirement of debt of $78 million, or $0.20 per diluted share.

Balance sheet and cash flows from operations
As of June 30, 2023, HCA Healthcare, Inc.’s balance sheet reflected cash and cash equivalents of $862 million, total debt of $38.932 billion, and total assets of $53.594 billion. During the second quarter of 2023, capital expenditures totaled $1.241 billion, excluding acquisitions. Cash flows provided by operating activities in the second quarter totaled $2.475 billion, compared to $1.630 billion in the second quarter of 2022.

During the second quarter of 2023, the Company repurchased 3.3 million shares of its common stock at a cost of $915 million. The Company had $2.825 billion remaining under its repurchase authorization as of June 30, 2023. As of June 30, 2023, the Company had $6.875 billion of availability under its credit facilities.

Dividend
HCA announced that its Board of Directors declared a quarterly cash dividend of $0.60 per share on the Company’s common stock. The dividend will be paid on September 29, 2023 to stockholders of record at the close of business on September 15, 2023.

The declaration and payment of any future dividend will be subject to the discretion of the Board of Directors and will depend on a variety of factors, including the Company’s financial condition and results of operations and contractual restrictions. Future dividends are expected to be funded by cash balances and future cash flows from operations.

2023 revised guidance
The 2023 guidance ranges for the year have been revised from our first quarter release as follows:

Capital expenditures for 2023, excluding acquisitions, are estimated to be approximately $4.7 billion compared to $4.6 billion previously.

The Company’s 2023 guidance contains a number of assumptions, including, among others, the Company’s current expectations regarding the impact of the Covid-19 pandemic, patient volumes and payor mix as well as general economic conditions, including inflation, and excludes the impact of items such as, but not limited to, gains or losses on sales of facilities, losses on retirement of debt, legal claims costs and impairment of long-lived assets.

Adjusted EBITDA is a non-GAAP financial measure. A table reconciling forecasted net income attributable to HCA Healthcare, Inc. to forecasted Adjusted EBITDA is included in this release.

The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below in the Company’s “Forward-Looking Statements.”
MB Bureau