HCA Holdings, Inc. (NYSE:HCA) Q4 2017 Earnings Conference Call Transcript

Jan 30, 2018 • 10:00 am ET


HCA Holdings, Inc. (NYSE:HCA) Q4 2017 Earnings Conference Call Transcript


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Good day everyone, and welcome to the HCA Fourth Quarter 2017 Earnings Conference Call. Today's conference is being recorded. At this time for opening remarks and introductions, I'd like to turn the call over to Senior Vice President, Mr. Vic Campbell. Please go ahead, sir.

Victor L. Campbell

All right. Thank you, Tony, and good morning, everyone. Mark Kimbrough, our Chief Investor Relations Officer, and I would like to welcome everyone on today's call, also to those of you that are listening to our webcast. Here this morning with me is our Chairman and CEO, Milton Johnson; Sam Hazen, our present Chief Operating Officer; Bill Rutherford, Chief Financial Officer and Executive Vice President.

Before I turn the call over to Milton, let me remind everyone that today's call contain any forward-looking statements. They are based on management's current expectations. Numerous risk, 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 Healthcare, excluding losses, 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 Healthcare to adjusted EBITDA is included in the Company's fourth quarter earnings release. As always, the call is being recorded and a replay will be available later today.

With that, I'll turn the call over to Milton.

Milton Johnson

Alright. Thank you, Vic, and good morning to everyone joining us on our call and webcast this morning. This morning, we issued our fourth quarter and full-year 2017 earnings release. And this morning's release also included our announcement of the initiation of a regular quarterly dividend, our three-year capital expenditure plan and guidance related to 2018 earnings expectations.

Before discussing the release and certain details of the quarter, I want to take a few minutes to reflect on our 2017 performance. During 2017, we continued to invest in our growth agenda as we focused on adding access points to our networks, broadening service line capabilities, and expanding our depth in clinical service offerings. Over the course of the first three quarters of the year, our results were challenged by lower-than-expected volume growth and from losses associated from the effects of hurricanes Harvey and Irma.

We closed 2017 with a solid performance in the fourth quarter with same facility adjusted admission growth of 2.3% over last year's fourth quarter. Adjusted EBITDA growth was