10-Q 1 hca-20240930.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-11239

HCA Healthcare, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

27-3865930

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

One Park Plaza

Nashville, Tennessee

37203

(Address of principal executive offices)

(Zip Code)

(615) 344-9551

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Voting common stock, $.01 par value

HCA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Class of Common Stock

Outstanding at October 28, 2024

Voting common stock, $.01 par value

253,297,100 shares

 

 

 


2


 

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Unaudited

(Dollars in millions, except per share amounts)

 

 

 

Quarter

 

 

Nine Months

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenues

 

$

17,487

 

 

$

16,213

 

 

$

52,318

 

 

$

47,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

7,861

 

 

 

7,556

 

 

 

23,253

 

 

 

21,917

 

Supplies

 

 

2,657

 

 

 

2,417

 

 

 

7,962

 

 

 

7,318

 

Other operating expenses

 

 

3,717

 

 

 

3,379

 

 

 

10,946

 

 

 

9,316

 

Equity in (earnings) losses of affiliates

 

 

(15

)

 

 

(19

)

 

 

(13

)

 

 

6

 

Depreciation and amortization

 

 

842

 

 

 

769

 

 

 

2,456

 

 

 

2,288

 

Interest expense

 

 

515

 

 

 

483

 

 

 

1,533

 

 

 

1,447

 

Losses (gains) on sales of facilities

 

 

4

 

 

 

(2

)

 

 

(209

)

 

 

12

 

 

 

15,581

 

 

 

14,583

 

 

 

45,928

 

 

 

42,304

 

Income before income taxes

 

 

1,906

 

 

 

1,630

 

 

 

6,390

 

 

 

5,361

 

Provision for income taxes

 

 

424

 

 

 

355

 

 

 

1,419

 

 

 

1,131

 

Net income

 

 

1,482

 

 

 

1,275

 

 

 

4,971

 

 

 

4,230

 

Net income attributable to noncontrolling interests

 

 

212

 

 

 

196

 

 

 

649

 

 

 

595

 

Net income attributable to HCA Healthcare, Inc.

 

$

1,270

 

 

$

1,079

 

 

$

4,322

 

 

$

3,635

 

Per share data:

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings

 

$

4.94

 

 

$

3.98

 

 

$

16.57

 

 

$

13.26

 

Diluted earnings

 

$

4.88

 

 

$

3.91

 

 

$

16.37

 

 

$

13.07

 

Shares used in earnings per share calculations (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

256.763

 

 

 

271.173

 

 

 

260.770

 

 

 

274.171

 

Diluted

 

 

259.917

 

 

 

275.424

 

 

 

263.987

 

 

 

278.173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

3


 

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Unaudited

(Dollars in millions)

 

 

 

Quarter

 

 

Nine Months

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income

 

$

1,482

 

 

$

1,275

 

 

$

4,971

 

 

$

4,230

 

Other comprehensive income (loss) before taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

55

 

 

 

(35

)

 

 

48

 

 

 

3

 

Unrealized gains (losses) on available-for-sale securities

 

 

13

 

 

 

(7

)

 

 

10

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

Pension costs included in salaries and benefits

 

 

(1

)

 

 

1

 

 

 

(1

)

 

 

1

 

 

 

 

(1

)

 

 

1

 

 

 

(1

)

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before taxes

 

 

67

 

 

 

(41

)

 

 

57

 

 

 

(1

)

Income taxes (benefits) related to other comprehensive income items

 

 

12

 

 

 

(6

)

 

 

10

 

 

 

 

Other comprehensive income (loss)

 

 

55

 

 

 

(35

)

 

 

47

 

 

 

(1

)

Comprehensive income

 

 

1,537

 

 

 

1,240

 

 

 

5,018

 

 

 

4,229

 

Comprehensive income attributable to noncontrolling interests

 

 

212

 

 

 

196

 

 

 

649

 

 

 

595

 

Comprehensive income attributable to HCA Healthcare, Inc.

 

$

1,325

 

 

$

1,044

 

 

$

4,369

 

 

$

3,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

4


 

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(Dollars in millions)

 

 

September 30,
2024

 

 

December 31,
2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,888

 

 

$

935

 

Accounts receivable

 

 

9,915

 

 

 

9,958

 

Inventories

 

 

1,776

 

 

 

2,021

 

Other

 

 

2,083

 

 

 

2,013

 

 

 

16,662

 

 

 

14,927

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

 

61,750

 

 

 

58,548

 

Accumulated depreciation

 

 

(32,703

)

 

 

(30,833

)

 

 

29,047

 

 

 

27,715

 

 

 

 

 

 

 

 

Investments of insurance subsidiaries

 

 

553

 

 

 

477

 

Investments in and advances to affiliates

 

 

705

 

 

 

756

 

Goodwill and other intangible assets

 

 

9,982

 

 

 

9,945

 

Right-of-use operating lease assets

 

 

2,201

 

 

 

2,207

 

Other

 

 

309

 

 

 

184

 

 

$

59,459

 

 

$

56,211

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,235

 

 

$

4,233

 

Accrued salaries

 

 

2,164

 

 

 

2,127

 

Other accrued expenses

 

 

3,819

 

 

 

3,871

 

Long-term debt due within one year

 

 

4,682

 

 

 

2,424

 

 

 

14,900

 

 

 

12,655

 

 

 

 

 

 

 

 

Long-term debt, less debt issuance costs and discounts of $378 and $333

 

 

38,283

 

 

 

37,169

 

Professional liability risks

 

 

1,584

 

 

 

1,557

 

Right-of-use operating lease obligations

 

 

1,924

 

 

 

1,903

 

Income taxes and other liabilities

 

 

1,982

 

 

 

1,867

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock $0.01 par; authorized 1,800,000,000 shares; outstanding
      
254,517,700 shares — 2024 and 265,537,300 shares — 2023

 

 

3

 

 

 

3

 

Accumulated other comprehensive loss

 

 

(378

)

 

 

(425

)

Retained deficit

 

 

(1,807

)

 

 

(1,352

)

Stockholders’ deficit attributable to HCA Healthcare, Inc.

 

 

(2,182

)

 

 

(1,774

)

Noncontrolling interests

 

 

2,968

 

 

 

2,834

 

 

 

786

 

 

 

1,060

 

 

$

59,459

 

 

$

56,211

 

 

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

5


 

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Unaudited

(Dollars in millions)

 

Equity (Deficit) Attributable to HCA Healthcare, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

 

Accumulated

 

 

 

 

 

Equity

 

 

 

 

 

Common Stock

 

 

in Excess

 

 

Other

 

 

 

 

 

Attributable to

 

 

 

 

 

Shares

 

 

Par

 

 

of Par

 

 

Comprehensive

 

 

Retained

 

 

Noncontrolling

 

 

 

 

 

(in millions)

 

 

Value

 

 

Value

 

 

Loss

 

 

Deficit

 

 

Interests

 

 

Total

 

Balances, December 31, 2022

 

 

277.378

 

 

$

3

 

 

$

 

 

$

(490

)

 

$

(2,280

)

 

$

2,694

 

 

$

(73

)

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

1,363

 

 

 

180

 

 

 

1,563

 

Repurchase of common stock

 

 

(3.340

)

 

 

 

 

 

 

 

 

 

 

 

(849

)

 

 

 

 

 

(849

)

Share-based benefit plans

 

 

1.902

 

 

 

 

 

 

 

 

 

 

 

 

(87

)

 

 

 

 

 

(87

)

Cash dividends declared
   ($
0.60 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(168

)

 

 

 

 

 

(168

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(187

)

 

 

(187

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

40

 

 

 

33

 

Balances, March 31, 2023

 

 

275.940

 

 

 

3

 

 

 

 

 

 

(470

)

 

 

(2,028

)

 

 

2,727

 

 

 

232

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

1,193

 

 

 

219

 

 

 

1,426

 

Repurchase of common stock

 

 

(3.311

)

 

 

 

 

 

 

 

 

 

 

 

(924

)

 

 

 

 

 

(924

)

Share-based benefit plans

 

 

0.303

 

 

 

 

 

 

 

 

 

 

 

 

72

 

 

 

 

 

 

72

 

Cash dividends declared
   ($
0.60 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(165

)

 

 

 

 

 

(165

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(155

)

 

 

(155

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

(27

)

 

 

(25

)

Balances, June 30, 2023

 

 

272.932

 

 

 

3

 

 

 

 

 

 

(456

)

 

 

(1,850

)

 

 

2,764

 

 

 

461

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

(35

)

 

 

1,079

 

 

 

196

 

 

 

1,240

 

Repurchase of common stock

 

 

(4.167

)

 

 

 

 

 

(86

)

 

 

 

 

 

(1,065

)

 

 

 

 

 

(1,151

)

Share-based benefit plans

 

 

0.202

 

 

 

 

 

 

86

 

 

 

 

 

 

15

 

 

 

 

 

 

101

 

Cash dividends declared
   ($
0.60 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(164

)

 

 

 

 

 

(164

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(155

)

 

 

(155

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

29

 

 

 

25

 

Balances, September 30, 2023

 

 

268.967

 

 

 

3

 

 

 

 

 

 

(491

)

 

 

(1,989

)

 

 

2,834

 

 

 

357

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

66

 

 

 

1,607

 

 

 

254

 

 

 

1,927

 

Repurchase of common stock

 

 

(3.647

)

 

 

 

 

 

(86

)

 

 

 

 

 

(832

)

 

 

 

 

 

(918

)

Share-based benefit plans

 

 

0.217

 

 

 

 

 

 

86

 

 

 

 

 

 

 

 

 

 

 

 

86

 

Cash dividends declared
   ($
0.60 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(161

)

 

 

 

 

 

(161

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(143

)

 

 

(143

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

(111

)

 

 

(88

)

Balances, December 31, 2023

 

 

265.537

 

 

 

3

 

 

 

 

 

 

(425

)

 

 

(1,352

)

 

 

2,834

 

 

 

1,060

 

Comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

1,591

 

 

 

211

 

 

 

1,794

 

Repurchase of common stock

 

 

(3.894

)

 

 

 

 

 

 

 

 

 

 

 

(1,187

)

 

 

 

 

 

(1,187

)

Share-based benefit plans

 

 

1.573

 

 

 

 

 

 

 

 

 

 

 

 

(68

)

 

 

 

 

 

(68

)

Cash dividends declared
   ($
0.66 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(176

)

 

 

 

 

 

(176

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(152

)

 

 

(152

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

(8

)

 

 

(1

)

Balances, March 31, 2024

 

 

263.216

 

 

 

3

 

 

 

 

 

 

(433

)

 

 

(1,185

)

 

 

2,885

 

 

 

1,270

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,461

 

 

 

226

 

 

 

1,687

 

Repurchase of common stock

 

 

(4.217

)

 

 

 

 

 

(68

)

 

 

 

 

 

(1,312

)

 

 

 

 

 

(1,380

)

Share-based benefit plans

 

 

0.239

 

 

 

 

 

 

68

 

 

 

 

 

 

68

 

 

 

 

 

 

136

 

Cash dividends declared
   ($
0.66 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(174

)

 

 

 

 

 

(174

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(186

)

 

 

(186

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28

)

 

 

14

 

 

 

(14

)

Balances, June 30, 2024

 

 

259.238

 

 

 

3

 

 

 

 

 

 

(433

)

 

 

(1,170

)

 

 

2,939

 

 

 

1,339

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

55

 

 

 

1,270

 

 

 

212

 

 

 

1,537

 

Repurchase of common stock

 

 

(4.948

)

 

 

 

 

 

(88

)

 

 

 

 

 

(1,724

)

 

 

 

 

 

(1,812

)

Share-based benefit plans

 

 

0.228

 

 

 

 

 

 

88

 

 

 

 

 

 

 

 

 

 

 

 

88

 

Cash dividends declared
   ($
0.66 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(170

)

 

 

 

 

 

(170

)

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(192

)

 

 

(192

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

9

 

 

 

(4

)

Balances, September 30, 2024

 

 

254.518

 

 

$

3

 

 

$

 

 

$

(378

)

 

$

(1,807

)

 

$

2,968

 

 

$

786

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

6


 

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Unaudited

(Dollars in millions)

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

4,971

 

 

$

4,230

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Increase (decrease) in cash from operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

55

 

 

 

(168

)

Inventories and other assets

 

 

184

 

 

 

(274

)

Accounts payable and accrued expenses

 

 

77

 

 

 

211

 

Depreciation and amortization

 

 

2,456

 

 

 

2,288

 

Income taxes

 

 

(67

)

 

 

61

 

Losses (gains) on sales of facilities

 

 

(209

)

 

 

12

 

Amortization of debt issuance costs and discounts

 

 

26

 

 

 

26

 

Share-based compensation

 

 

275

 

 

 

205

 

Other

 

 

187

 

 

 

166

 

Net cash provided by operating activities

 

 

7,955

 

 

 

6,757

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(3,590

)

 

 

(3,585

)

Acquisition of hospitals and health care entities

 

 

(224

)

 

 

(281

)

Sales of hospitals and health care entities

 

 

312

 

 

 

183

 

Change in investments

 

 

(85

)

 

 

(30

)

Other

 

 

 

 

 

(7

)

Net cash used in investing activities

 

 

(3,587

)

 

 

(3,720

)

Cash flows from financing activities:

 

 

 

 

 

 

Issuance of long-term debt

 

 

7,495

 

 

 

3,220

 

Net change in revolving credit facilities

 

 

(1,880

)

 

 

(1,420

)

Repayment of long-term debt

 

 

(2,346

)

 

 

(691

)

Distributions to noncontrolling interests

 

 

(530

)

 

 

(497

)

Payment of debt issuance costs

 

 

(67

)

 

 

(31

)

Payment of dividends

 

 

(525

)

 

 

(501

)

Repurchase of common stock

 

 

(4,342

)

 

 

(2,901

)

Other

 

 

(224

)

 

 

(234

)

Net cash used in financing activities

 

 

(2,419

)

 

 

(3,055

)

Effect of exchange rate changes on cash and cash equivalents

 

 

4

 

 

 

1

 

Change in cash and cash equivalents

 

 

1,953

 

 

 

(17

)

Cash and cash equivalents at beginning of period

 

 

935

 

 

 

908

 

Cash and cash equivalents at end of period

 

$

2,888

 

 

$

891

 

Interest payments

 

$

1,405

 

 

$

1,460

 

Income tax payments, net

 

$

1,486

 

 

$

1,070

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

7


HCA HEALTHCARE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

HCA Healthcare, Inc. is a holding company whose affiliates own and operate hospitals and related health care entities. The term “affiliates” includes direct and indirect subsidiaries of HCA Healthcare, Inc. and partnerships and joint ventures in which such subsidiaries are partners. At September 30, 2024, these affiliates owned and operated 187 hospitals,