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): March 26, 1996
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 March 26, 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, Secretary
and General Counsel
Date: March 26, 1996
2
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EXHIBIT INDEX
Sequential
No. Subject Matter Page No.
99 The first two pages of Registrant's news release
dated March 26, 1996 ....................................................4
3
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[ORNDA HEALTHCORP NEWS RELEASE LETTERHEAD]
FOR IMMEDIATE RELEASE:
Contact: Keith B. Pitts
Executive Vice President and Chief Financial Officer
or
Trip Pilgrim
Director of Investor Relations
OrNda HealthCorp
(615) 383-8599
ORNDA HEALTHCORP REPORTS
SECOND QUARTER EPS OF $0.46
NASHVILLE, Tennessee (March 26, 1996) -- OrNda HealthCorp (NYSE:ORN) today
reported that earnings per share rose to $0.46 on 60.0 million weighted average
common and common equivalent shares for the second quarter ended February 29,
1996, compared with $0.43 on 44.6 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 second quarter of fiscal 1996 was $542.9 million
compared with $442.7 million in last year's second quarter. OrNda's EBITDA
margin improved to 15.9% for the second quarter of fiscal 1996 compared with
14.8% in the same period last year. Net income for the three months ended
February 29, 1996, was $27.5 million compared with net income of $19.9 million
last year.
Earnings per share for the six months ended February 29, 1996,
increased to $0.86 compared with $0.72 in the same period last year. For the six
months ended February 29, 1996, revenues were $1.0 billion compared with $860.7
million last year. The Company's EBITDA margin increased to 15.2% from 14.5% for
the same six-month period last year. Net income increased to $47.4 million for
the first six-month period of fiscal 1996 compared with $33.3 million in the
same period of fiscal 1995. On a fully diluted basis, earnings per share for the
six months ended February 29, 1996, and February 28, 1995, were $0.85 and $0.72,
respectively.
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ORN Reports Second Quarter Results
Page 2
March 26, 1996
Same hospital admissions increased 3.7% and same hospital revenues rose
7.2% in the second quarter of fiscal 1996 compared with the same period last
year. For the six months ended February 29, 1996, same hospital admissions
increased 3.2% and same hospital revenues increased 7.2%.
Charles N. Martin, Jr., chairman, president and chief executive officer
of OrNda HealthCorp, said, "Our continuing success in increasing admissions,
expanding ancillary services and managing resource consumption is fueling our
strong earnings and revenue growth. Also, our proactive approach to managed care
is having a beneficial impact on profitability."
Mr. Martin added, "Our favorable experience in operating hospitals
where managed care has a high penetration rate has helped us to prepare all our
facilities for the challenge of managed care. Along with our ability to manage
costs and expand services, we enhance profitability with significantly increased
patient volume. OrNda's consistent EBITDA margin improvement is testimony to our
success in operating within this cost-sensitive managed care environment. Our
pending entry into Massachusetts demonstrates the confidence we have in our
ability to operate in regions with a strong managed care presence."
The Company recently announced three major pending acquisitions. First,
OrNda announced that it was entering into a strategic partnership with The
Fallon Healthcare System in Worcester, Massachusetts, and had signed a letter of
intent to acquire Saint Vincent Healthcare System, consisting of a 432-bed acute
teaching hospital, three skilled nursing facilities and other healthcare related
companies. Terms of the transaction also would include OrNda's purchase of a
minority interest in the Fallon Clinic, a 280-member multi-specialty group
physician practice.
Second, the Company announced that it has signed a definitive agreement
to acquire the healthcare related businesses of Centinela Valley Health
Services, Inc., including Centinela Hospital Medical Center, a 400-bed acute
care facility in Inglewood, California; a group of eight primary care clinics;
Centinela Hospital Airport Medical Clinic; and other related businesses.
Centinela will be OrNda's sixteenth Los Angeles and Orange County facility.
Third, as an addition to the Company's existing network in northwest
Houston, Texas, the Company has signed a letter of intent to acquire Cypress
Fairbanks Medical Center, a 149-bed acute care hospital and related healthcare
facilities.
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.
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