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Mar 31, 2020
HCA Q1 2020 Earnings Report
HCA Healthcare's financial performance declined in Q1 2020 due to COVID-19 impact and losses on debt retirement.
Key Takeaways
HCA Healthcare's Q1 2020 results were impacted by the COVID-19 pandemic, leading to a decrease in net income despite a slight increase in revenues. The company has withdrawn its 2020 guidance due to uncertainty related to the pandemic.
Revenues increased to $12.861 billion compared to $12.517 billion in Q1 2019.
Net income attributable to HCA Healthcare, Inc. decreased to $581 million, or $1.69 per diluted share, from $1.039 billion, or $2.97 per diluted share, in Q1 2019.
Adjusted EBITDA totaled $2.200 billion, down from $2.541 billion in Q1 2019.
The company withdrew its previously issued guidance for 2020 due to the uncertainty caused by COVID-19.
HCA
HCA
Forward Guidance
Due to the uncertainty related to the COVID-19 pandemic, HCA Healthcare has withdrawn its previously issued guidance for 2020.
Positive Outlook
- Implemented certain cost reduction initiatives
- Suspended its authorized share repurchase program
- Reduced certain planned capital expenditures
- Executed a new $2 billion 364-day term loan facility (which was undrawn at March 31, 2020) to supplement revolver availability
- Requested accelerated Medicare payments as provided for in the Coronavirus Aid, Relief, and Economic Security (CARES) Act subsequent to March 31, 2020
Challenges Ahead
- The extent of COVID-19’s adverse impact on its operating results and financial condition will be driven by many factors, most of which are beyond the Company’s control and ability to forecast.
- Changes in revenues due to declining patient volumes, changes in payor mix and deteriorating macroeconomic conditions
- Potential increased expenses related to labor, supply chain or other expenditures
- Workforce disruptions and supply shortages and disruptions
- Suspended its quarterly dividend program