HCA Holdings, Inc. (NYSE:HCA) Q1 2015 Earnings Conference Call - Final Transcript

May 05, 2015 • 11:00 am ET


HCA Holdings, Inc. (NYSE:HCA) Q1 2015 Earnings Conference Call - Final Transcript


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Hello and welcome to the HCA First Quarter 2015 Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I'd like to turn the conference over to the Senior Vice President, Mr. Vic Campbell. Please go ahead, sir.

Victor L. Campbell

Good morning, everyone. Thank you, Charlotte. Mark Kimbrough, our Chief Investor Relations Officer, and I would like to welcome all of you on today's call and including those of you listening to the webcast. With me here this morning, as usual, our Chairman and CEO, Milton Johnson; Sam Hazen, our Chief Operating Officer; and Bill Rutherford, our CFO.

Before I turn the call over to Milton, let me remind everyone that should today's call contain any forward-looking statements, they're based on management's current expectations. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those that might be expressed today. Many of these factors are listed in today's press release and in our various SEC filings.

Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict. In light of the significant uncertainties inherent in any forward-looking statements, you should not place undue reliance on these statements. The company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events.

On this morning's call, we may reference measures such as adjusted EBITDA and net income 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. This morning's call is being recorded. A replay will be available later today.

With that, let me turn the call over to Milton.

R. Milton Johnson

Thank you, Vic, and good morning to everyone joining us on the call or the webcast. I trust most of you have had the opportunity to review our full quarterly earnings release issued this morning, which is consistent with the company's April 15th preview for the quarter. I will make a few remarks, then turn the call over to Sam and Bill to provide more detail on the quarter's results.

We were extremely pleased with our first quarter performance. The quarter's performance was once again highlighted by strong volume trends, favorable payer mix and excellent expense management. Adjusted EBITDA for the quarter increased 19.3% to $1.961 billion compared to $1.644 billion in last year's first quarter. If you adjust the quarter's performance for electronic health record incentive income and share based compensation, adjusted EBITDA increased 20.6% over the prior year.

Net income attributable to HCA Holdings, excluding gains on sales of facilities and legal claims cost, increased 53%. And diluted earnings per share increased 60.7% over the prior year's first quarter. The same-facility admissions increased 5.1% and adjusted