hey its only money..so what if it kills you and loved ones
Reuters
HCA sees earnings below estimates
Thursday October 13, 11:41 am ET
By Julie Steenhuysen


CHICAGO (Reuters) - Hospital operator HCA Inc. (NYSE:HCA - News) on Thursday forecast earnings that would fall below analysts' expectations and said it expects $33 million in third-quarter costs related to Hurricanes Rita and Katrina.
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HCA, the nation's largest hospital operator, also said it would buy back about 11 percent of its shares in a modified Dutch auction tender offer at a price of between $43 and $50 a share as it moves to bolster shareholder value.

The company said it expects to report earnings for the third quarter of 2005 ranging from about 61 cents per share to 63 cents per share, including an estimated adverse financial impact from the storms of about 5 cents per share.

But the company said third-quarter results are also expected to include a tax benefit of about $22 million, or 5 cents per share, from the repatriation of foreign earnings.

Analysts on average had expected earnings of 65 cents a share, according to Reuters Estimates.

HCA forecast 2006 results in a range of $3.25 per share to $3.45 per share, well below the analysts' average estimate of $3.53 per share, according to Reuters Estimates.

Shares of HCA rose 69 cents, or 1.41 percent, to $47.35 in morning trade on the New York Stock Exchange.

FTN Midwest Securities analyst Rob Eich said shares traded higher on the share buyback program and on relief that the news was not as bad as some investors had expected.

"I think investors expected an earnings shortfall in the third quarter. The good news is the shortfall isn't larger than it is," he said.

For the third quarter, HCA expects to report revenue of about $6 billion. Same-facility revenue rose about 4.6 percent in the quarter, but same-facility admissions fell about 0.7 percent as HCA felt the impact of the hurricanes.

HCA said it expects its provision for doubtful accounts -- or unpaid patient bills that are unlikely to be collected -- to be about $618 million in the third quarter, or 10.3 percent of revenue, compared with $688 million, or 11.9 percent of revenue a year earlier.

On a same-facility basis, uninsured admissions in the quarter rose about 15 percent and emergency room visits rose about 14 percent compared with a year earlier. Uninsured emergency room visits rose to 21.5 percent of total same-facility emergency room visits in the quarter, up from 19.7 percent in the same period last year.

HCA said its full-year 2005 earnings should range from $3.10 per share to $3.20 per share, excluding a number of items, including the impact of the $2.5 billion share repurchase program. Analysts on average have expected earnings of $3.11, according to Reuters Estimates.

In a separate statement, the Nashville, Tennessee-based company announced a $2.5 billion share repurchase program in the form of a modified "Dutch auction" tender offer.

HCA said it will buy back up to 50 million of its 452.7 million outstanding common shares at a single price of no more than $50 each and no less than $43. It will finance the buyback with about $500 million in cash and borrowings of about $1 billion from an existing revolving credit facility. It has also secured a commitment for a short-term loan facility of $1 billion. The offer starts October 14 and expires November 14 unless extended.
- posted by Samuel Bell @ 8:49 AM