HCA(HCA) - 2024 Q2 - Quarterly Results

HCA Healthcare Second Quarter 2024 Earnings Release Financial & Operating Highlights HCA Healthcare reported strong Q2 and H1 2024 financial and operational growth, raising full-year guidance Second Quarter 2024 Performance Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $17.492 billion | $15.861 billion | +10.3% | | Net Income Attributable to HCA | $1.461 billion | $1.193 billion | +22.5% | | Diluted EPS | $5.53 | $4.29 | +28.9% | | Adjusted EBITDA | $3.550 billion | $3.056 billion | +16.2% | - Q2 2024 results included gains on sales of facilities of $12 million, or $0.03 per diluted share[3] Q2 2024 Same Facility Operating Metrics (YoY) | Metric | % Change | | :--- | :--- | | Admissions | +5.8% | | Equivalent Admissions | +5.2% | | Emergency Room Visits | +5.5% | | Inpatient Surgeries | +2.6% | | Outpatient Surgeries | -2.1% | | Revenue per Equivalent Admission | +4.4% | Year-to-Date 2024 Performance Six Months Ended June 30, 2024 Key Financials (vs. 2023) | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $34.831 billion | $31.452 billion | +10.7% | | Net Income Attributable to HCA | $3.052 billion | $2.556 billion | +19.4% | | Diluted EPS | $11.47 | $9.14 | +25.5% | - Results for the first six months of 2024 include gains on sales of facilities of $213 million ($0.61 per diluted share), compared to losses of $14 million ($0.08 per diluted share) in the same period of 2023[6] Balance Sheet and Cash Flow Key Balance Sheet and Cash Flow Items (as of June 30, 2024) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $831 million | | Total Debt | $40.880 billion | | Total Assets | $57.379 billion | | Q2 2024 Capital Expenditures | $1.281 billion | | Q2 2024 Cash Flow from Operations | $1.971 billion | - Cash flows from operating activities decreased to $1.971 billion in Q2 2024 from $2.475 billion in Q2 2023[7] Shareholder Returns - The company repurchased 4.217 million shares of its common stock for $1.367 billion during the second quarter of 2024[8] - As of June 30, 2024, HCA had $4.228 billion remaining under its share repurchase authorization[8] - The Board of Directors declared a quarterly cash dividend of $0.66 per share, payable on September 30, 2024[9] 2024 Revised Guidance HCA Healthcare raised its full-year 2024 guidance for key financial metrics, reflecting strong first-half performance Revised 2024 Full-Year Guidance | Metric | Previous Guidance | Revised Guidance | | :--- | :--- | :--- | | Revenues | $67.75 - $70.25 B | $69.75 - $71.75 B | | Net Income Attributable to HCA | $5.20 - $5.60 B | $5.675 - $5.975 B | | Adjusted EBITDA | $12.85 - $13.55 B | $13.75 - $14.25 B | | EPS (diluted) | $19.70 - $21.20 | $21.60 - $22.80 | - Capital expenditures for 2024, excluding acquisitions, are estimated to remain in the range of $5.1 to $5.3 billion[12] - The revised guidance is based on current expectations for patient volumes and payor mix, and excludes potential impacts from items like gains/losses on facility sales or legal costs[13] Financial Statements This section presents the unaudited condensed consolidated financial statements for Q2 and H1 2024 Condensed Consolidated Comprehensive Income Statements Q2 2024 Income Statement Highlights (vs Q2 2023) | Line Item | Q2 2024 ($M) | Q2 2023 ($M) | | :--- | :--- | :--- | | Revenues | 17,492 | 15,861 | | Salaries and benefits | 7,685 | 7,277 | | Income before income taxes | 2,237 | 1,809 | | Net Income Attributable to HCA | 1,461 | 1,193 | H1 2024 Income Statement Highlights (vs H1 2023) | Line Item | H1 2024 ($M) | H1 2023 ($M) | | :--- | :--- | :--- | | Revenues | 34,831 | 31,452 | | Salaries and benefits | 15,392 | 14,361 | | Income before income taxes | 4,484 | 3,731 | | Net Income Attributable to HCA | 3,052 | 2,556 | Condensed Consolidated Balance Sheets Balance Sheet Summary (as of June 30, 2024) | Account | June 30, 2024 ($M) | Dec 31, 2023 ($M) | | :--- | :--- | :--- | | Cash and cash equivalents | 831 | 935 | | Total Assets | 57,379 | 56,211 | | Long-term debt (including current portion) | 40,880 | 39,593 | | Total Stockholders' Equity | 1,339 | 1,060 | Condensed Consolidated Statements of Cash Flows Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | | Net cash provided by operating activities | 4,440 | 4,278 | | Net cash used in investing activities | (2,235) | (2,408) | | Net cash used in financing activities | (2,309) | (1,923) | | Change in cash and cash equivalents | (104) | (46) | Operating Statistics Operating statistics for Q2 and H1 2024 show broad volume growth, with a slight decline in outpatient surgeries Q2 2024 Same Facility Key Metrics (% Change YoY) | Metric | % Change | | :--- | :--- | | Admissions | +5.8% | | Equivalent Admissions | +5.2% | | Revenue per Equivalent Admission | +4.4% | | Inpatient Surgery Cases | +2.6% | | Outpatient Surgery Cases | -2.1% | | Emergency Room Visits | +5.5% | H1 2024 Same Facility Key Metrics (% Change YoY) | Metric | % Change | | :--- | :--- | | Admissions | +6.0% | | Equivalent Admissions | +5.2% | | Revenue per Equivalent Admission | +3.9% | | Inpatient Surgery Cases | +2.2% | | Outpatient Surgery Cases | -2.1% | | Emergency Room Visits | +6.4% | - As of June 30, 2024, HCA operated 188 hospitals, an increase from 182 in the prior year[28] Supplemental Non-GAAP Disclosures This section reconciles non-GAAP financial measures, including Adjusted EBITDA, for historical and forecasted results Reconciliation of Historical Results Q2 2024 Adjusted EBITDA Reconciliation | Line Item | Amount ($M) | | :--- | :--- | | Net Income Attributable to HCA | 1,461 | | Provision for income taxes | 547 | | Interest expense | 506 | | Depreciation and amortization | 819 | | Net income attributable to noncontrolling interests | 226 | | Losses (gains) on sales of facilities (net of tax) | (9) | | Adjusted EBITDA | 3,550 | - The Adjusted EBITDA margin for Q2 2024 was 20.3%, an increase from 19.3% in Q2 2023[31] Reconciliation of 2024 Forecast 2024 Forecasted Adjusted EBITDA Reconciliation (Midpoint) | Line Item | Amount ($M) | | :--- | :--- | | Net Income Attributable to HCA | 5,825 | | Depreciation and amortization | 3,270 | | Interest expense | 2,080 | | Provision for income taxes | 1,905 | | Net income attributable to noncontrolling interests | 920 | | Adjusted EBITDA | 14,000 | - The company does not forecast certain items like gains/losses on facility sales or legal claim costs due to the inability to predict them with sufficient accuracy[39]