HCA's Net Income Rises Nearly $400M in Q4 2020

The Nashville-based for-profit hospital operator's top line revenues exceeded $14.2 billion during the final quarter of 2020.

HCA Healthcare recorded a net income of $1.4 billion in Q4 2020, up nearly $400 million year-over-year, according to the company's latest earnings report released Tuesday morning.

Including the return or repayment of more than $6 billion in CARES Act funds, HCA saw cash flows used in operating activities total more than $3.5 billion during the quarter.

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The Nashville-based for-profit hospital operator's top line revenues also exceeded $14.2 billion during the final quarter of 2020.

Forward-looking, HCA projected revenues in the range of $53.5 billion to $55 billion in 2021 along with an adjusted EBITDA between $10.3 billion to $10.9 billion.

C-suite perspective:

"In the face of the highest surge yet of the COVID-19 pandemic, we finished the year with strong financial results in the fourth quarter. These results were driven, once again, by highly acute inpatient volumes coupled with solid cost management," Sam Hazen, CEO of HCA, said in a statement. "We are incredibly proud of our colleagues and our accomplishments in 2020, which included returning over $6 billion of CARES Act funds to the federal government. Our performance this past year gives us confidence to believe that we will be able to navigate successfully through future challenges as well."

HCA announced that the company's share repurchase program, which was suspended in March 2020, has resumed pursuant to which $2.8 billion "remained available for utilization prior to its suspension." The company's board of directors also authorized a share repurchase program for $6 billion of outstanding common stock.

Additionally, HCA saw its adjusted EBITDA grow to $3.1 billion.

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Despite the positive financial metrics, HCA continued to face admissions challenges related to the ongoing COVID-19 pandemic as same facility admissions and equivalent admissions fell 3.4% and 7.5%, respectively.

The company's same facility emergency room visits fell 21%, while same facility inpatient surgeries dropped 6.7%, and same facility outpatient surgeries slipped 5.1%.

Much like the share repurchase program, HCA resumed its quarterly dividend program that was suspended in April 2020. HCA declared a quarterly cash dividend of $0.48 per share on its common stock which will be paid on March 31.

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For the quarter, HCA reported capital expenditures of $748 million, excluding acquisitions, while cash flows provided by operating activities rose to more than $3.5 billion.

At the end of 2020, HCA had cash and cash equivalents of nearly $1.8 billion, total debt of just over $31 billion, and total assets of about $47.5 billion.

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For complete financial information, review HCA's filing with the Securities and Exchange Commission.