HCA Holdings, Inc. (NYSE:HCA) Q4 2014 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 10:00 am ET

Previous

HCA Holdings, Inc. (NYSE:HCA) Q4 2014 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
operator

Welcome to the HCA fourth quarter 2014 earnings conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Vic Campbell, Senior Vice President, Please go ahead, sir.

Executive
Victor Campbell

Chenelle, thank you, and good morning, everyone. Mark Kimbrough, our Chief Investor Relations Officer and I would like to welcome everyone here today on the call, as well as those of you who are listening to the webcast. With me here this morning are Chairman and CEO, Milton Johnson; Sam Hazen, our Chief Operating Officer; and Bill Rutherford, our CFO.

Before I turn the call over to Milton, (Forward Looking Cautionary Statements)

Executive
Victor Campbell

(Forward Looking Cautionary Statements) On this morning's call we may reference measures such as adjusted EBITDA and net income of attributable to HCA Holdings, Inc. excluding losses or gains on sales of facilities, losses on retirement of debt and legal claims costs, which are non-GAAP financial measures. A table providing supplemental information on adjusted EBITDA and reconciling to net income attributable to HCA Holdings, Inc. to adjusted EBITDA is included in the company's fourth quarter earnings release.

As you heard, the call is being recorded and a replay will be made available later today.And with that, I'll turn the call over to Milton.

Executive
Milton Johnson

Thank you, Vic, and good morning to everyone for joining us on the call or on the webcast. I hope each of you has had the chance to review the release issued this morning, which is fairly consistent with the company's preview for the fourth quarter issued on January 9. I'll discuss the year and few other items, and turn the call over to Bill and Sam to provide additional details on the quarter, health reform and 2015 guidance.

We are extremely pleased with our results for the fourth quarter and for the full year 2014. The fourth quarter performance was highlighted by strong volume metrics, favorable payer mix and excellent cost management. As a result, we produced revenue growth of 9.1%, adjusted EBITDA growth of 14.1% and diluted EPS growth of 29.3% over the prior year's fourth quarter.

Earnings per diluted share, excluding the gains and losses on sales of facilities and losses on retirement of debt, increased 44.6% over the prior year's fourth quarter. For the full year 2014, revenues totaled $36.9 billion compared to $34.2 billion last year, an increase of 8% compared to $6.574 billion in 2013.

Diluted earnings per share increased to $4.16 compared to $3.37 per share last year, an increase of 23.4%. EPS per diluted share, excluding gains and losses on sales of facilities, losses on retirement of debt and legal claims cost, increased to $4.70 compared to $3.41 per share last year, an increase of 37.8%.

Executive
Milton Johnson

Our results clearly exceeded our internal expectations for 2014.One of our key strength is our ability to create shareholder value through capital deployment. For the full year 2014, we generated $4.45 billion of cash flows from operating activities, up 20.9%