<PAGE> 1
EXHIBIT 99.1
[IASIS HEALTHCARE LOGO]
INVESTOR CONTACT: NEWS MEDIA CONTACT:
Wayne Gower Eve Hutcherson
President and Chief Operating Officer Director, Public Relations
or (615) 467-1221
John K. Crawford
Executive Vice President and
Chief Financial Officer
(615) 844-2747
IASIS HEALTHCARE NAMES DAVID R. WHITE CHIEF EXECUTIVE OFFICER
COMPANY ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS
FRANKLIN, Tennessee (November 21, 2000) -- IASIS Healthcare Corporation
announced today that David R. White, 53, Chairman of the IASIS Board of
Directors, has also been named Chief Executive Officer of the Company effective
December 1, 2000. Wayne Gower continues to serve as President of IASIS and has
also been named Chief Operating Officer.
White had been President and Chief Executive Officer of LifeTrust
America, a Nashville-based operator of assisted-living centers. Prior to joining
LifeTrust, White was President of the Atlantic Group of Columbia/HCA Healthcare
Corp., responsible for the operations of 43 hospitals in nine states. Earlier in
his career, White was Executive Vice President and Chief Operating Officer of
Community Health Systems. White and Gower have worked together at various
healthcare organizations during the past 15 years, including Community Health
Systems and Columbia/HCA.
"IASIS has just completed its first year of operations, and we have
established a strong foundation for this company," said White. "Wayne has
assembled an excellent operating team and built a solid infrastructure this past
year. I am excited about leading this team to execute the Company's strategy for
excellent performance and growth."
"We welcome David and the knowledge and capabilities he brings to our
team," said Gower. "His track record in the industry is well known, and we are
fortunate to have him joining us in the day-to-day management of the Company."
The Company also announced financial results for the fourth quarter and
year ended September 30, 2000. These results include the contribution of ten
acute care hospitals, other related facilities and assets and operations
acquired from Tenet Healthcare and a management company on October 15, 1999.
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<PAGE> 2
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 2
November 21, 2000
Net operating revenues for the fourth quarter of 2000 totaled $206.1
million compared with $44.9 million in the same quarter of last year. Earnings
before interest, income taxes, depreciation, amortization, minority interests,
recapitalization costs and losses from discontinued operations (EBITDA) for the
fourth quarter increased to $19.4 million in 2000 from $3.9 million in 1999. Net
loss from continuing operations, before preferred stock dividends and accretion,
for the fourth quarter of 2000 was $9.9 million compared with a net loss of $1.8
million in the same quarter of last year. The results for the fourth quarter
include EBITDA losses of $4.2 million at Rocky Mountain Medical Center (RMMC), a
full service, acute care hospital opened April 10, 2000, with 120 licensed beds
in Salt Lake City, Utah.
Net operating revenues for the year ended September 30, 2000, were
$815.2 million compared with $181.7 million for the year ended September 30,
1999. EBITDA for the year ended September 30, 2000, totaled $111.6 million,
including EBITDA losses of $9.0 million at RMMC, compared with EBITDA of $25.3
million for the year ended September 30, 1999. Net loss from continuing
operations, before preferred stock dividends and accretion, for the year ended
September 30, 2000, was $4.1 million compared with earnings of $1.6 million for
the year ended September 30, 1999.
On a pro forma basis, which assumes that the acquisitions of the Tenet
hospitals and the management company were effective as of the beginning of each
period, net operating revenues for the acute care services segment for the
quarter ended September 30, 2000, increased 9.4% (7.7% excluding RMMC) to $181.8
million (including $2.8 million from RMMC) compared with $166.2 million in the
same prior-year period. Acute care services pro forma EBITDA for the quarter
ended September 30, 2000, excluding EBITDA losses from RMMC, was $22.9 million
compared with $21.9 million for the same period in 1999. Pro forma net operating
revenues for the Company's health insurance business segment, Health Choice, for
the quarter ended September 30, 2000, increased 13.0% to $24.3 million compared
with $21.5 million in the same prior-year period. Health Choice EBITDA for the
quarter ended September 30, 2000, was $700,000 compared with $500,000 for the
same period in 1999.
On a pro forma basis, net operating revenues for the acute care
services segment for the year ended September 30, 2000, increased 9.6% (8.9%
excluding RMMC) to $745.3 million (including $4.5 million from RMMC) compared
with $680.0 million in the same prior-year period. Acute care services pro forma
EBITDA for the year ended September 30, 2000, excluding EBITDA losses from RMMC,
was $118.2 million compared with $116.5 million for the same period in 1999. Pro
forma EBITDA for the year ended September 30, 1999, includes approximately $7.0
million in earnings resulting from pre-1999 cost report settlements and similar
non-recurring items. Excluding the effect of such items on 1999 pro forma EBITDA
and excluding RMMC EBITDA losses, pro forma EBITDA for the year ended September
30, 2000, for the acute care services segment increased by 7.9%. Pro forma net
operating revenues for the Company's health insurance business segment, Health
Choice, for the year ended September 30, 2000, increased 11.8% to $92.7 million
compared with $82.9 million in the same prior-year period. Pro forma Health
Choice EBITDA for the year ended September 30, 2000, was $3.3 million compared
with $3.5 million for 1999.
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<PAGE> 3
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 3
November 21, 2000
On a pro forma basis and excluding RMMC, hospital admissions and
adjusted admissions for the quarter ended September 30, 2000, increased over the
prior year period by 12.0% and 11.0%, respectively, and for the year ended
September 30, 2000, hospital admissions and adjusted admissions increased over
the prior year period by 7.8% and 9.3%, respectively.
The Company's financial results from continuing operations exclude the
results of Clinicare, the Company's physician practice operations consisting of
31 physicians in 13 offices. The Company is exiting this business by selling the
assets of its physician practices and closing its practice support offices.
Revenues and expenses associated with these operations are reported separately
as losses from discontinued operations, net of tax expense.
The Company incurred losses from its discontinued physician practice
operations in the fourth quarter of 2000 of $8.5 million compared with losses of
$200,000 in 1999. The Company incurred losses from discontinued operations for
the year ended September 30, 2000 of $10.6 million compared to losses of
$600,000 in 1999. The loss from discontinued operations for both the fourth
quarter and the year ended September 30, 2000, includes a charge of $7.4 million
to provide for costs associated with the discontinuation and disposal of the
physician practices operations.
On October 26, 2000, the Company's Board of Directors and JLL
Healthcare, LLC, the holder of a majority of the outstanding Common Stock and
Preferred Stock of the Company, agreed to exchange the Company's mandatorily
redeemable Series A and Series B Preferred Stock for common stock. The exchange
will be recorded in the first quarter of fiscal year 2001 and will increase the
Company's shareholders' equity by approximately $189.3 million. The transaction
will not impact the Company's cash flow.
In commenting on the year-end results, Wayne Gower, President and Chief
Operating Officer of IASIS Healthcare, said, "We are improving the delivery and
quality of healthcare in our markets by recruiting physicians, adding new
services, investing in our facilities and controlling costs. We are excited
about the management team we have assembled this year and the opportunities we
have for growth in the markets we serve. While we are continuing to experience
significant losses at RMMC, we are aggressively taking steps to improve
financial results by: pursuing important additional managed care contracts;
recruiting new physicians, including leading cardiology, primary care and
orthopedic groups; marketing our services to consumers; and investing in our
diagnostic and operating capabilities.
"We are optimistic about the future of our company. As we expected, the
high growth markets in which we operate have proven to be beneficial for us. The
potential for improvement in our existing facilities and services is
substantial, volumes are strong and the reimbursement climate is improving. We
believe that, for the first time in recent memory, the government is realizing
the need to increase reimbursement rather than reduce it. These factors bode
well for our company."
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<PAGE> 4
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 4
November 21, 2000
A listen-only simulcast and 30-day replay of IASIS Healthcare
Corporation's fourth quarter and year-end conference call will be available
through the Company's website at www.iasishealthcare.com beginning at 11:00 a.m.
Eastern time on November 21, 2000.
IASIS Healthcare Corporation, headquartered in Franklin, Tennessee,
owns and operates 15 general, acute-care hospitals with a total of 2,194
operating beds. IASIS focuses on networks of medium-sized hospitals, each with
100 to 400 beds. The Company currently operates hospitals in Salt Lake City,
Utah; Phoenix, Arizona; Tampa-St. Petersburg, Florida; and three markets within
the state of Texas. IASIS also operates four ambulatory surgery centers and a
Medicaid managed health plan serving over 43,000 members in Arizona.
This press release contains forward-looking statements within the
meaning of the federal securities laws, which are intended to be covered by the
safe harbors created thereby. These forward-looking statements include all
statements that are not historical statements of fact and those regarding the
intent, belief or expectations of the Company or its management including, but
not limited to, the discussions of the Company's operating and growth strategy
(including possible acquisitions and dispositions), projections of revenue,
income or loss, and future operations. Forward-looking statements involve known
and unknown risks and uncertainties that may cause the Company's actual results
in future periods to differ materially from those anticipated in the
forward-looking statements. Those risks and uncertainties include, among others,
risks and uncertainties associated with general economic and business
conditions; the effect of existing and future governmental regulations,
including the Balanced Budget Act of 1997 and the Balanced Budget Refinement
Act; changes in Medicare and Medicaid reimbursement levels; the highly
competitive nature of the healthcare industry; the possible enactment of Federal
or state healthcare reform; the impact of possible future governmental
investigations; the ability to attract and retain qualified management and
personnel - including physicians; the ability to enter into managed care
provider arrangements on acceptable terms; the ability to successfully negotiate
agreements with payors at Rocky Mountain Medical Center and build census levels
there; the ability to successfully manage the risks of our Medicaid managed care
plan, Health Choice; the ability to successfully convert our management
information systems; the ability to service our significant indebtedness; the
ability to implement successfully the Company's acquisition and development
strategy and to obtain financing therefore; and those risks, uncertainties and
others matters detailed from time to time in the Company's filings with the
Securities and Exchange Commission. Although the Company believes that the
assumptions underlying the forward-looking statements contained herein are
reasonable, any of these assumptions could prove to be inaccurate, and,
therefore, there can be no assurance that the forward-looking statements
included in this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives and plans
of the Company will be achieved. The Company undertakes no obligation to
publicly release any revisions to any forward-looking statements contained
herein to reflect events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events.
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<PAGE> 5
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 5
November 21, 2000
IASIS HEALTHCARE CORPORATION
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------- ----------------------------
2000 1999 2000 1999
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
Net revenue $ 206,076 $ 44,948 $ 815,163 $ 181,689
Cost and expenses:
Salaries and benefits 75,799 16,332 285,451 63,021
Supplies 30,784 6,823 123,376 25,968
Other operating expenses 63,459 12,973 234,176 47,150
Provision for bad debts 16,651 3,205 60,579 13,625
Interest, net 16,775 2,441 62,352 10,966
Depreciation and amortization 13,311 3,371 47,559 12,784
Allocated management fees -- 1,685 -- 6,674
Recapitalization costs -- -- 3,478 --
--------- -------- --------- ---------
Total costs and expenses 216,779 46,830 816,971 180,188
--------- -------- --------- ---------
Earnings (loss) from continuing operations
before minority interests and income taxes (10,703) (1,882) (1,808) 1,501
Minority interests (178) (75) 74 (126)
--------- -------- --------- ---------
Earnings (loss) from continuing operations
before income taxes (10,525) (1,807) (1,882) 1,627
Income tax expense (benefit) (634) -- 2,219 --
--------- -------- --------- ---------
Net earnings (loss) from continuing operations (9,891) (1,807) (4,101) 1,627
Discontinued operations:
Losses from operations of discontinued
physician practice operations (1,111) (196) (3,226) (644)
Loss on disposal of physician practice
operations, including provision of $941
for operating losses during phase out period (7,376) -- (7,376) --
--------- -------- --------- ---------
Net earnings (loss) (18,378) (2,003) (14,703) 983
Preferred stock dividends and accretion 6,627 -- 25,402 --
--------- -------- --------- ---------
Net earnings (loss) attributable
to common shareholders $ (25,005) $ (2,003) $ (40,105) $ 983
========= ======== ========= =========
EBITDA $ 19,383 $ 3,930 $ 111,581 $ 25,251
========= ======== ========= =========
EBITDA Margin 9.41% 8.74% 13.69% 13.90%
</TABLE>
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<PAGE> 6
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 6
November 21, 2000
IASIS HEALTHCARE CORPORATION
CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
SEPT. 30, JUNE 30, SEPT. 30,
2000 2000 1999
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ -- $ 3,345 $ --
Accounts receivable, net of allowance for doubtful accounts
of $31,403, 37,691 and $10,850, respectively 146,744 145,885 19,674
Inventories 19,874 19,729 4,501
Current deferred tax assets 1,146 -- --
Prepaid expenses and other current assets 13,181 29,322 4,283
--------- --------- ---------
Total Current Assets 180,945 198,281 28,458
Property and equipment, net 361,293 429,940 136,927
Goodwill and other intangible assets, net 302,380 219,426 46,988
Deferred debt financing costs, net 23,472 24,103 --
Deferred tax assets 2,036 -- --
Other assets 3,713 5,305 886
--------- --------- ---------
Total Assets $ 873,839 $ 877,055 $ 213,259
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 31,707 $ 41,438 $ 15,739
Salaries and benefits payable 13,040 17,078 5,229
Accrued interest payable 20,020 6,601 --
Medical claims payable 16,530 16,467 --
Other accrued expenses and other current liabilities 20,739 18,541 3,102
Current portion of accrued loss on discontinued operations 4,008 -- --
Current maturities of long-term debt and capital lease obligations 9,883 7,996 701
--------- --------- ---------
Total Current Liabilities 115,927 108,121 24,771
Due to Paracelsus -- -- 270,814
Long-term accrued loss on discontinued operations 3,184 -- --
Long-term debt and capital lease obligations 547,771 549,513 798
Other long-term liabilities 10,188 3,825 --
Minority interest 2,060 2,238 1,461
Series A Preferred Stock - $0.01 par value, authorized 500,000 shares;
160,000 shares issued and outstanding at September 30, 2000
(liquidation preference value of $184,533 at September 30, 2000) 183,199 176,784 --
Series B Preferred Stock - $0.01 par value, authorized 50,000 shares;
5,311 shares issued and outstanding at September 30, 2000
(liquidation preference value of $6,125 at September 30, 2000) 6,079 5,868 --
--------- --------- ---------
Total Liabilities 868,408 846,349 297,844
Shareholders' Equity:
Common stock - $0.01 par value, authorized 5,000,000 shares;
1,371,490 shares issued and outstanding at September 30, 2000 14 14 --
Additional paid-in capital 259,784 266,667 --
Treasury stock (at cost) (155,025) (155,025) --
Accumulated deficit (99,342) (80,950) (84,585)
--------- --------- ---------
Total Shareholders' Equity (Deficit) 5,431 30,706 (84,585)
--------- --------- ---------
Total Liabilities and Shareholders' Equity $ 873,839 $ 877,055 $ 213,259
========= ========= =========
</TABLE>
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<PAGE> 7
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 7
November 21, 2000
IASIS HEALTHCARE CORPORATION
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPT. 30, SEPT. 30,
2000 1999
---------- ----------
<S> <C> <C>
Cash Flow from Operating Activities:
Net earnings (loss) $ (14,703) $ 983
Adjustments to reconcile net earnings (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 47,559 12,784
Minority interests 74 (126)
Deferred tax assets, net (3,182) --
Loss accrual for discontinued operations 7,376 --
Changes in operating assets and liabilities, net of the
effect of acquisitions:
Accounts receivable (117,440) 10,066
Supplies, prepaid expenses and other current assets (8,525) 175
Accounts payable and other accrued liabilities 49,467 1,887
--------- ---------
Net cash provided by (used in) operating activities (39,374) 25,769
--------- ---------
Cash Flows From Investing Activities:
Purchases of property and equipment (53,692) (17,391)
Payments for acquisitions, net (436,918) --
(Increase) decrease in other assets (1,250) 16
--------- ---------
Net cash used in investing activities (491,860) (17,375)
--------- ---------
Cash Flows from Financing Activities:
Proceeds from issuance of preferred stock 160,000 --
Proceeds from issuance of common stock 35 --
Repurchase of common stock (155,025) --
Proceeds from senior bank debt borrowings 330,000 --
Proceeds from issuance of senior subordinated notes 230,000 --
Payment of debt and capital leases (4,249) (1,235)
Common and preferred stock issuance costs incurred (2,625) --
Debt financing costs incurred (26,902) --
Net decrease in amount due to Paracelsus -- (11,164)
--------- ---------
Net cash provided by (used in) financing activities 531,234 (12,399)
--------- ---------
Decrease in cash and cash equivalents -- (4,005)
Cash and cash equivalents at beginning of period -- 4,005
--------- ---------
Cash and cash equivalents at end of period $ -- $ --
========= =========
Supplemental Disclosure of Noncash Investing and Financing Activities:
Effects of acquisitions, net:
Assets acquired, net of cash $(487,731) $ --
Liabilities assumed 41,353 --
Issuance of preferred and common stock, net 9,460 --
--------- ---------
Payment for acquisitions, net $(436,918) $ --
========= =========
</TABLE>
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<PAGE> 8
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 8
November 21, 2000
IASIS HEALTHCARE CORPORATION
SEGMENT INFORMATION (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPT. 30, SEPT. 30,
2000 1999
---------- ----------
<S> <C> <C>
ACUTE CARE SERVICES:
Net patient service revenue $ 732,814 $ 181,689
Capitation premiums -- --
Revenue between segments (7,073) --
--------- ---------
Net revenue 725,741 181,689
Operating expenses (1) 617,458 156,438
Earnings (loss) before minority interests and
income taxes (1) (1,337) 1,501
Interest expense, net 62,214 10,966
Depreciation and amortization 47,406 12,784
Segment assets 870,501 211,934
Earnings (loss) before minority interests and
income taxes (1) (1,337) 1,501
Recapitalization costs 3,478 --
Minority interests 74 (126)
--------- ---------
Earnings (loss) before income taxes $ (4,889) $ 1,627
========= =========
HEALTH CHOICE:
Net patient service revenue $ -- $ --
Capitation premiums 89,422 --
Revenue between segments -- --
--------- ---------
Net revenue 89,422 --
Operating expenses (1) 86,124 --
Earnings before minority interests and
income taxes (1) 3,007 --
Interest expense, net 138 --
Depreciation and amortization 153 --
Segment assets 2,695 --
Earnings before minority interests and
income taxes (1) 3,007 --
Minority interests -- --
--------- ---------
Earnings before income taxes $ 3,007 $ --
========= =========
PHYSICIAN PRACTICE OPERATIONS:
Net patient service revenue $ 11,739 $ 4,650
Capitation premiums -- --
Revenue between segments -- --
--------- ---------
Net revenue 11,739 4,650
Operating expenses (1) 14,965 5,294
Losses before minority interests and income taxes (1) (3,226) (644)
Interest expense, net -- --
Depreciation and amortization -- --
Segment assets 643 1,325
Losses before minority interests and income
taxes (1) (3,226) (644)
Loss on disposal of physician practice operations 7,376 --
Minority interests -- --
--------- ---------
Losses before income taxes $ (10,602) $ (644)
========= =========
</TABLE>
(1) Amounts exclude recapitalization costs and loss on disposal of physician
practice operations.
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<PAGE> 9
IASIS Healthcare Names New CEO and
Announces Fourth Quarter and Year-End Results
Page 9
November 21, 2000
IASIS HEALTHCARE CORPORATION
PROFORMA COMBINED OPERATING STATISTICS(1) (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- -----------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Number of hospitals at end of period 15 15 15 15
Licensed beds at end of period 2,684 2,564 2,684 2,564
Beds in service at end of period 2,194 2,144 2,194 2,144
Admissions 19,187 16,924 76,306 70,443
Adjusted admissions 30,866 27,433 124,211 112,966
Average length of stay 4.37 4.48 4.46 4.60
Patient days 83,824 75,887 340,386 324,274
Adjusted patient days 130,993 122,130 537,929 513,055
Occupancy rates (average beds in service)(2) 42.5% 38.5% 43.4% 41.4%
</TABLE>
(1)Unaudited historical and pro forma combined operating statistics as if the
acquisition of the Tenet hospitals was effective as of the beginning of each
period.
(2)Excludes 71 beds at RMMC placed in service on April 10, 2000. If these beds
are included, occupancy rates would have been 41.5% and 42.9% for the three
months and year ended September 30, 2000, respectively.
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