Total Number of Pages: 6
Exhibit Index on Sequential Page No.: 3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 25, 1996
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ORNDA HEALTHCORP
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-11591 75-1776092
(Commission File Number) (IRS Employer Identification No.)
3401 West End Avenue, Nashville, Tennessee 37203
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (615) 383-8599
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Item 5. Other Events.
The Registrant hereby incorporates by reference the information about
the Registrant set forth in Exhibit 99 attached hereto.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
99 The first two pages of Registrant's news release dated
June 25, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ORNDA HEALTHCORP
(Signature)
Ronald P. Soltman
Senior Vice President
Date: June 25, 1996
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EXHIBIT INDEX
Sequential
No. Subject Matter Page No.
99 The first two pages of Registrant's news release dated June 25, 1996... 4
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Exhibit 99
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[OrNda Letterhead]
FOR IMMEDIATE RELEASE:
Contact: Keith B. Pitts
Executive Vice President and Chief Financial Officer
or
Thomas A. Bartels
Director of Investor Relations
OrNda HealthCorp
(615) 383-8599
ORNDA NET INCOME UP 32.6%
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THIRD QUARTER EPS OF $0.49
NASHVILLE, Tennessee (June 25, 1996) -- OrNda HealthCorp (NYSE:ORN) today
reported that net income for the three months ended May 31, 1996, increased
32.6% to $29.3 million from $22.1 million in the third quarter of last year.
Third quarter earnings from continuing operations were $29.3 million, up 36.2%
from third quarter 1995 earnings from continuing operations of $21.5 million.
Earnings per share rose to $0.49 on 60.4 million weighted average common and
common equivalent shares for the third quarter ended May 31, 1996, compared with
$0.47 on 45.6 million weighted average common and common equivalent shares for
the same period last year. The majority of the increase in weighted average
common and common equivalent shares is due to the issuance of 11.5 million
common shares and the conversion of 1.4 million shares of convertible preferred
stock to common shares in November 1995.
Revenue for the third quarter of fiscal 1996 was $557.9 million
compared with $497.9 million in last year's third quarter. OrNda's EBITDA margin
improved to 16.3% for the third quarter of fiscal 1996 compared with 14.4% in
the same period last year.
Net income increased to $76.7 million for the first nine months of
fiscal 1996 compared with $55.4 million in the same period of fiscal 1995,
representing an increase of 38.5%. Income from continuing operations for
the nine months ended May 31, 1996, increased to $76.7 million from $54.8
million for the same period in the prior year, an increase of 40.0%.
Earnings per share for the nine months ended May 31, 1996, rose to $1.35
from $1.20 for the same period last year. For the nine months ended May 31,
1996, revenues were $1.6 billion compared with $1.4 billion last year. The
Company's EBITDA margin increased to 15.6% from 14.5% for the same
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<PAGE>
ORN Reports Third Quarter Results
Page 2
June 25, 1996
nine-month period last year. On a fully diluted basis, earnings per share for
the nine months ended May 31, 1996 and 1995, were $1.34 and $1.20, respectively.
For the nine months ended May 31, 1996, on a same hospital basis,
revenues increased by 6.9%, admissions increased by 2.7%, and adjusted
admissions increased by 6.1% over the prior year. For the third quarter, same
hospital revenues rose by 4.7% compared with the same period last year. Same
hospital admissions for the quarter were relatively flat and adjusted admissions
rose by 2.9% over the prior year.
Charles N. Martin, Jr., chairman, president and chief executive officer
of OrNda HealthCorp, said, "We continue to be successful in obtaining more
managed care business, particularly capitated contracts. Our success in managing
medical utilization under these contracts has contributed positively to our
operating margins. I am pleased to report that we are well positioned in our
markets to implement our operational strategy which includes expansion of
outpatient services and the continued development of integrated health care
delivery networks."
As previously announced, OrNda has signed definitive agreements to
purchase The Fallon Healthcare System's Saint Vincent Healthcare System in
Worcester, Massachusetts, and Centinela Hospital Medical Center in Inglewood,
California. A letter of intent has also been signed with Cypress Fairbanks
Medical Center in Houston, Texas. These three acquisitions are expected to add
approximately $400 million in annual revenue to OrNda's operations.
OrNda HealthCorp, based in Nashville, Tennessee, is the third largest
investor-owned hospital management company in the United States. It is a leading
provider of health care services, delivering a broad range of inpatient and
outpatient health care services principally through the operation of 48
hospitals located in urban and suburban communities in 14 states. For additional
information on the Company, visit OrNda HealthCorp's Web site:
http://www.orndahealth.com
Additional Media Contact: Paula Lovell
Lovell Communications Inc.
(615) 297-7766
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