Investment Rating HOLD Pricing (11/8/05) Closing Price $40.86 52 Week High $56.17 52 Week Low $34.48 Valuation Dil EPS P/E TTM $2.712 $15.07 2005E $12.65 Profitability & Effectiveness ROA (ttm) 6.04% ROE (ttm) 8.82% Net Profit Margin (ttm) 4.6% Operating Margin (ttm) 9.68% Market Data Total Assets (as of 12/04) $4,981,400 Debt/Equity 0.595 Volume 514,200 Market Cap $3.52 B Avg. Vol.(3mon)1,053,500 EPS (ttm) 2.712 P/E (ttm) 15.07 Forward P/E 12.65 Tiffany Newman [email protected]*ttm-trailing 12 months Triad Hospitals, Inc. (TRI) I. Investment Highlights Company Profile Headquartered in Plano, Texas, Triad Hospitals Incorporated, owns and manages hospitals and ambulatory surgery centers in small cities and selected larger urban markets. Led by Chairman, President, and CEO, James Shelton, Triad Hospitals currently operates 54 hospitals and 15 ambulatory centers in 15 states with approximately 9,125 licensed beds. Triad hospitals provide a range of services, such as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics, obstetrics, diagnostic, and emergency services. These hospitals also offer outpatient and ancillary health care services, such as outpatient surgery, laboratory, radiology, respiratory
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Investment RatingHOLD
Pricing (11/8/05)
Closing Price $40.8652 Week High $56.1752 Week Low $34.48
I. Investment HighlightsCompany ProfileHeadquartered in Plano, Texas, Triad Hospitals Incorporated, owns and manages hospitals and ambulatory surgery centers in small cities and selected larger urban markets. Led by Chairman, President, and CEO, James Shelton, Triad Hospitals currently operates 54 hospitals and 15 ambulatory centers in 15 states with approximately 9,125 licensed beds. Triad hospitals provide a range of services, such as internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics, obstetrics, diagnostic, and emergency services. These hospitals also offer outpatient and ancillary health care services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. Through its subsidiary, Quorum Health Resources, LLC; Triad supplies hospital management, consulting, and advisory services to over 180 independent health systems all over the United States. Triad hospitals are primarily located in Southern, Midwestern, and Western states, broken into fives divisions each consisting of a Division President and CFO. The main competitors of Triad are HCA Inc. and Tenet Healthcare Corporation. Triad’s formation in 1999 was a spin off of from the Pacific Health group, HCA. Triad is also a minority investor in three joint ventures that own seven acute care centers in Georgia and Nevada.
Growth Dynamics This past quarter revenue rose 9.6 percent to $1.19 billion. From 2003 to 2004 Triad Hospitals increased facility revenues 8.3% and continuing operations increased from $104.5 million to $138 million while operating expenses as a percentage of revenue remained constant at 18.7%. Impatient and outpatient surgeries increased from 4.4% to 5% respectively over the last year. Triad also expects that revenues will be up 5-6% this year compared to 2004. Due to new services and enhanced capacity from recent completed capital projects, Triad was able to increase admissions. After the acquisition of eight hospitals and the opening of another between 2003 and 2004, Triad was able to
increase revenues, admissions, surgeries, and visits. II. Executive Summary
Triad Hospitals is a Fortune 500 company, publicly traded and is listed on the New York Stock Exchange. Currently, Triad owns and operates 54 hospitals and 13 ambulatory surgery centers, and manages 200 non-profit hospitals around the country. Triad Hospitals, Inc. is one of the largest publicly owned hospital companies in the United States and currently employees over 38, 600 people. Three out of 54 hospitals are represented by labor unions and Triad does not expect this do affect its ongoing operations in the future. Triad has new hospitals under construction in Palmer, Alaska, and Dublin, Ireland. Recently, the company announced plans to build new facilities in Clarksville, Tennessee, Birmingham, Alabama, and Cedar Park, Texas. Physicians are generally not employees of Triad’s hospitals and are usually contracted under a term of service. Triad Hospitals, Inc. plans to continue expanding services through acquisitions, subsidiaries, joint ventures, and non-profit hospitals.
Investment Recommendation: HOLD Pros:
+ Global expansion and opportunity for growth+ Outperformed S&P over the previous year+ Growth through acquisitions+ Increasing NI over the last two years+ Low Beta Balances our portfolio
Cons:-- Decreased third quarter earnings-- Rising costs to operate a hospital facility-- Government control over Medicare/Medicaid-- Hospital Industry highly competitive-- Litigations and claims against QHR--Decrease and under the market over the last three months
III. Company Description
Triad Hospital’s acute-care facilities provide a full range of services, including internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics, obstetrics, diagnostics, and emergency services. Triad's acute care hospitals also provide outpatient and ancillary services such as outpatient surgery, laboratory, radiology, respiratory therapy, and physical therapy. These outpatient services are also offered through Triad's ambulatory surgery centers. Through the joint ventures, Triad admits over 5,000 patients out of the total 318,000.
Triad Subsidiaries
Quorum Health Resources, LLC (QHR) and Triad Hospitals, Inc. completed its merger in 2001 and since, QHR provides over 180 acute care hospitals around the United States with management and consulting services. QHR asses each hospital and in return assists them in improving their financial performance and scope of their services. QHR has five regional offices located throughout the United States. The five year contracts that QHR enters into with a hospital typically have a 79% renewal rate.
Leadership
James Shelton a member of the board of trustees of the American Hospital Association is currently serving as a Chairman of the Board, President, and Chief Executive Officer of Triad since its spin off from HCA. Prior to Triad, Mr. Shelton served as Vice President of the Central Division of what now is known as Tenet Healthcare and President of the Pacific Group of HCA. Both Tenet and HCA are Triad’s main competitors. Shelton completed his master’s degree in Public Administration from the University of Missouri in 1977.
Michael Parson has also served with Triad since the spin off from HCA in 1999 and previously worked with the Pacific Group of HCA. Parsons currently is the Executive Vice President and Chief Operating Officer and Director of Triad.
MAJOR DIRECT HOLDERS (FORMS 3 & 4)
Holder Shares Reported
SHELTON, JAMES D. 350,740 3-Oct-05
FRIST, THOMAS F. III 183,985 24-May-05
WHITMAN, BURKE W. 99,124 3-Oct-05
PARSONS, MICHAEL J. 50,047 1-Nov-05
LOVE, W. STEPHEN 23,462 25-Feb-05
A total of 1% of all shares held are by insiders and 5% owners.
IV. Economic and Industry Environment
In the third quarter of 2005, Triad's hospitals and ambulatory surgery centers in Mississippi, Louisiana, and Texas were directly and indirectly impacted by the hurricanes. Also, recent articles on Monday, October 24th, reported slightly lower third-quarter profit on slowing patient admissions which lowered the range of its full-year earnings forecast, sending its shares down 4.7 percent. Triad had to evacuate the facilities in Louisiana and Texas and therefore was not operational for three to eight days.
The facility in Louisiana was not operational until the first week of October. There was also property damage at the facilities in Mississippi and Louisiana. According to Triad’s quarterly annual report, it estimates the 2005 revenues were reduced by $2.7 million and income from continuing operations was reduced by $1.6 million, or $0.02 per diluted share. As of September, Triad had over $2.9 million of accrued estimated costs, in addition to costs paid during the quarter, and has recorded an estimated receivable for insurance reimbursement of approximately $3.8 million.
In addition to the hurricanes, Triad also needs to be concerned with the government’s actions with Medicare and Medicaid. The amounts under the Medicare and Medicaid programs are significantly less than the hospital’s customary charges. Medicare has special provisions with sole-community hospitals (those without competition within 35 miles), 8 hospitals of which Triad operates falls into this category. This includes a higher reimbursement rate and a guarantee capital reimbursement of 90% of capital cost. Triad received an $11 million reimbursement from MMA; a law changing some provisions of Medicare signed in 2003, and anticipates $13 million in 2005. As government wants to reduce the amount of Medicaid funding while expanding the benefits provided, this could affect future reimbursement levels for Triad. According to an article found on Reuters, US Medicare will increase payments 5.2% in 2006, which would provide a 3.7% increase to acute care centers, like Triad. Medicare stated community hospitals in rural areas that serve as the sole provider will receive 7.1% in addition. The article mentioned this is all due to inflation.
The hospital industry as well as Triad, has been affected by the trend toward more out patient procedures rather than in patient procedures. This is due to the increased advancement of medical technology and pharmaceuticals. Triad expects the growth rate in outpatient services to increase continually in the future and therefore has recently enhanced the hospitals outpatient capabilities in many ways. Triad has been reconfiguring hospitals to become more effective by providing a more convenient registration, separate entrances, and reconstructing surgical centers to allow a greater number and range of procedures to be preformed.
Revenue Estimates Current Qtr Next Qtr Current Year Next Year
Avg. Estimate 1.26B 1.35B 4.86B 5.35B
No. of Analysts 17 11 20 19
Low Estimate 1.18B 1.28B 4.79B 5.10B
High Estimate 1.35B 1.42B 5.05B 5.67B
Year Ago Sales N/A 1.21B N/A 4.86B
Sales Growth N/A 11.1% N/A 9.9%
Competition
The hospital industry remains highly competitive among health care providers and hospitals for patients. Mainly in urban areas, Triad hospitals compete with facilities that offer more extensive medical research and education programs that are not offered at Triad. These larger hospitals provide highly specialized equipment and services that are causing patients to migrate away from Triad. HCA, Inc. recently opened ten new hospitals in Texas. Triad Hospitals currently owns seven hospitals through joint venture entities where Triad is the minority owner and HCA is the majority owner. In addition, some of the hospitals that compete with Triad are non-profit or sponsored by government agencies, endowments, and charity. Therefore these hospitals can make large capital expenditures and be exempt from taxes.
Company Symbol Price Change Market Cap P/E
HCA Inc. HCA 48.14 -0.02% 21.79B 15.25
Health Management Associates Inc. HMA 20.99 -0.05% 5.19B 15.37
Tenet Healthcare Corp. THC 7.90 -3.66% 3.71B N/A
Triad Hospitals Inc. TRI 41.60 -0.22% 3.58B 15.34
Community Health Systems, Inc. CYH 36.98 +0.30% 3.27B 21.60
Universal Health Services Inc. UHS 45.97 -1.56% 2.56B 10.62
The above chart ranks Triad Hospital’s biggest competitors according to market capital. V. Company Position
Market Information
Most of Triad’s facilities are located in the Southern, Midwestern, and Western United States with ¾ of those hospitals in small cities with a population less than 150,000 and more than 60 miles from an urban center. Triad operates hospitals in over 15 states with more than half of those facilities found in Texas, Arkansas, Alabama, and Indiana.
Product Development
In 2004, eight of the hospitals operated by Triad implemented the use of Medstat, a market intelligence program, to increase and monitor the quality of patient care.
The small cities will be able to support specialty services that Triad provides and generally those services generate higher revenues than other health care services. Since managed care is lower in rural areas Triad is in a good position to negotiate favorable contracts for managed care. Inside the urban markets that Triad provides acute care centers, Triad faces competition from other health care providers, higher managed care penetration, and more programs such as HMO’s and PPO’s.
Triad believes that small cities are attractive to health care providers because of the favorable demographic, economic, and competitive conditions. Therefore Triad primarily prefers to open facilities in rural and small city environments. This decreases competition from larger hospitals.
Threat of Substitution
Within the small cities that Triad operates, 22 of these hospitals are the sole provider of healthcare, and 18 hospitals are only competing with one or two others. Only 12 of the 52 hospitals that Triad operates are located in larger urban areas where they are subject to more direct competition.
Image
Triad continuously strives to improve the quality of healthcare services provided to the communities it serves. The foundation of its operating strategy works cooperatively and collaboratively with physicians, communities, and employees to actively involve everyone in decision making. Networking with non-for-profit hospitals helps Triad become a preferred partner helping them improve performance.
Management Quality
QHR, Triad’s subsidiary, provides management and consulting services to over 180 non-for-profit hospitals. The Physicians Leadership Group (PLG) and the Nursing Leadership Group (NLG) involves meeting with key employees at each hospital monthly to maintain good relations and discuss how to improve operations. Triad believes this increases morale, retention, and higher patient satisfaction.
VI. Financial Statement Analysis
Accounting Procedures
Inventory Evaluation: Triad Hospitals, Inc. has an increased amount of inventory from $111.7 to $117.5 million in 2003 and 2004 respectively. Deprecation: Primarily due to the acquisition of seven hospitals in the last quarter of 2003 and some capital projects in 2004, depreciation and amortization have both increased. From the year ended 2003, $165.6 million to the year ended 2004, $186.4 million.Intangibles: Triad evaluates the carrying value of intangible assets to be long lived assets and recognizes impairment losses when the fair value is less than the carrying value. Pensions: Triad’s employee benefit plans include a defined benefit plan for both unionized and non-unionized employees. Triad contributes to these plans periodically throughout the year. In 2004, Triad recorded expenses of $41.4 million.
Financial Ratios
Trend Analysis (Triad Hospitals vs. S&P500)
It appears that overall Triad Hospitals has out performed the S&P over the last year at every interval except at the year ending 2004 it did the same as the S&P.
Triad Hospitals vs. Industry and S&P500 (five most recent days as of Nov. 4th)
Here we notice that Triad Hospitals is highly correlated to both the industry and S&P movement.
The chart above shows Triad Hospitals vs. the S&P500 over the last 3 months and shows that Triad has been decreasing since August.
Direct Competitor Comparison to Industry and Competitors
Direct Competitor Comparison Triad Ascension HCA Tenet
Net Income (ttm): 225.90M N/A 1.42B -1.64B 220.60M
EPS (ttm): 2.712 N/A 3.156 -4.525 2.71
P/E (ttm): 15.30 N/A 15.25 N/A 15.17
PEG (5 yr expected): 0.96 N/A 1.33 N/A 1.24
P/S (ttm): 0.75 N/A 0.90 0.39 0.64
Triad Hospitals is not the largest in the hospital industry by market capital or revenue, but they continue to have a higher growth rate than its competitors. According to EPS, HCA has a greater value than Triad, over the last year. While the P/E ratio is higher at Triad than HCA meaning that there could be high hopes in the future of Triad’s stock.
EPS Trends Current Qtr Next Qtr Current Year Next Year
Current Estimate 0.70 0.87 2.85 3.23
7 Days Ago 0.74 0.91 2.89 3.32
30 Days Ago 0.74 0.90 2.90 3.32
60 Days Ago 0.74 0.90 2.90 3.32
90 Days Ago 0.74 0.90 2.90 3.32
From the earnings chart we can notice that earning are projected to be less in the next quarter from previous estimates, this could be from the affects of the hurricanes and the increasing inflation. This decrease in estimated earnings could cause concern for Triad’s stock price if the company does not meet its earnings estimates.
Growth Estimates and Trend Analysis
Growth Estimates TRI Industry
Current Qtr. N/A 11.8%
Next Qtr. N/A 11.9%
This Year 16.8% 16.7%
Next Year 13.3% 15.0%
Next 5 Years (per annum) 15.0% 14.65%
Price/Earnings (avg. for comparison categories) 14.4 21.53
The growth estimates for Triad appears to out perform the industry in the long run of 5 years. This year’s estimates are higher than the industry by 0.1% and less than the industry in the following year by 1.7%. This shows that next year is not an estimated growing year but the years to come in the future will be.
VII. Analysis of Risk
Marketability
Triad Hospitals Inc. is traded on the New York Stock Exchange and the average volume in the last three months is 1,041,070.
Total Risk
The price for Triad Hospitals 52 week low is $34.11 and the high is $56.17.
Systematic RiskThe standard deviation is 7.056The correlation with market is 0.015019
The Beta according to Reuters.com was -.28The Beta calculated with the excess returns over the last year is .665 and the Beta calculated using the last six years of returns was -.0227.
IX. Fundamental Valuation
Estimation of Required Rate of Return
The required rate of return is estimated using estimates from the previous years. The current federal funds rate is 4.0% and the historical equity premium on the market is 6.38%. Using the Beta Reuters.com has estimated on Triad Hospitals of -0.28 and the risk free rate is 4.3, the required rate of return using the Capital Asset Pricing Model is 2.5%.Re = Rf + β (Equity Risk Premium)
Re = 4.3 + (-0.28) (6.38) = 2.5136 %
Using the Beta calculated with the 1 year excess returns over the market, the required rate of return is higher at 8.5427%
Re = 4.3 + (.665) (6.38) = 8.5427%
Dividends
Triad Hospitals, Inc. currently does not pay out dividends and is restricted from paying dividends by certain indebtedness covenants. (Triad Hospitals, Inc. annual report)
Valuation
Both the Future Dividends with Constant Growth and Value of Stock using the Constant Growth Model can not be used due to the fact that Triad Hospitals, Inc. does not pay out dividends.
Using the P/E valuation method, Triad’s stock is valued at $41.46.
Est. P/E * EPS = 15.30*2.71 = $41.46
After calculating numbers using the affordable dividend growth model, it estimates that the stock is not over or under valued.D=d*EPSD=0.81*2.712=2.196This means that Triad would be able to afford to pay out dividends of $2.20.
Affordable Dividend Payout Ratio
Estimate p
d 0.814034 2004 2003 2002
EBT 337 298 372
g 0.09 Sales 4,450 3,865 3,541
i 0.3 EBT/S 0.076 0.077 0.105 0.086
p 0.08 0.151358 0.0915
t 0.25
L 1.22 Estimate tax rate
Tax 85 65 94
Tax rate 0.252226 0.218121 0.252688 0.24
EPS 2.712
d 0.814034 Estimate L
2.207661 Total liab 2,638 2,659 2,427
Equity 2,343 2,076 1,954
D/E 1.13 1.28 1.24 1.22
Estimate f
Cap exp 436 281 296
Deprec 186 176 167
int rate 0.067827 f 0.247863 -0.07407
risk pr 0.05
rr 0.117827 Estimate w
0.12 CA 1,014 927 844
w 0.148718 0.256173
80.21168
i 0.396581 0.182099 0.29
Financial Summary
The key statistics of Triad Hospital’s performance and relevant ratios as of November 5, 2005 (information taken from Reuters.com and finance.yahoo.com)
General Information
Revenue (ttm): 4.79B
Revenue Per Share (ttm): 60.122
Qtrly Revenue Growth (yoy): 6.60%
Gross Profit (ttm): 2.66B
EBITDA (ttm): 716.40M
Net Income Avl to Common (ttm):
225.90M
Diluted EPS (ttm): 2.712
Qtrly Earnings Growth (yoy): -5.90%
Total Cash (mrq): 373.70M
Total Cash Per Share (mrq): 4.343
Total Debt (mrq): 1.70B
Total Debt/Equity (mrq): 0.595
Current Ratio (mrq): 2.879
Book Value Per Share (mrq): 35.015999
From Operations (ttm):
427.50M
Free Cashflow (ttm): -1.24M
HoldersTOP INSTITUTIONAL HOLDERSHolder Shares % Out Value* Reported
EQUINOX CAPITAL 4,595,125 5.34 $208,021,308 30-Sep-05
VANGUARD GROUP, INC. (THE) 1,991,973 2.31 $108,841,404 30-Jun-05
TOP MUTUAL FUND HOLDERS
Holder Shares % Out Value* Reported
CALAMOS GROWTH FUND 1,950,000 2.27 $106,548,000 30-Jun-05
VANGUARD/WINDSOR II 1,846,195 2.15 $94,617,493 30-Apr-05
VANGUARD SELECTED VALUE FUND
1,704,600 1.98 $87,360,750 30-Apr-05
WADDELL & REED ADVISORS FDS-SCIENCE & TECHNOLOGY FUND
1,498,700 1.74 $81,888,968 30-Jun-05
BRANDYWINE FUND, INC. 1,361,400 1.58 $74,386,896 30-Jun-05
FIDELITY VALUE FUND 1,086,750 1.26 $53,978,872 31-Jul-05
PIONEER MID CAP VALUE FUND
825,000 .96 $42,281,250 30-Apr-05
COLLEGE RETIREMENT EQUITIES FUND-STOCK ACCOUNT
800,741 .93 $40,117,124 31-Mar-05
FIDELITY ADVISOR EQUITY GROWTH FUND
710,900 .83 $36,056,848 31-May-05
Other Issues:
In 2004, Triad Hospitals, Inc. implemented a self pay discount program to offer discounts to uninsured patients based on financial and personal need. Due to this new program, revenues in the 4th quarter of 2004 decreased $10.8 million and Triad is anticipating this number to increase this year.
Triad’s patient accounts receivable from patient responsibility accounts is the largest component of the bad debt expense. To improve upfront collections, Triad instituted an incentive program for its employees.
Triad continues to expand through acquisitions of acute care centers in select markets and formation of joint ventures with other providers including non-profit health centers. Triad entered into an agreement to lease a hospital in Dublin, Ireland and predicts it to commence in 2006. Triad’s capital expenditures of expanding and acquiring new hospitals is funded with operating cash flows, its existing credit facility, and proceeds from the sale of securities. At the end of 2004, Triad’s contract obligations total over $2138.9 million.
There are currently three false claims litigations against, Triad’s subsidiary, QHR from 2001, 2003, and 2004. Complaints are for submitting false claims for reimbursement from the government and improper allocation of costs. If QHR is guilty for violations of federal or state laws relating to Medicare or Medicaid, Triad could be excluded in the future from the participation in government programs such as these. Investigation is still underway and if convicted, Triad will be faced with large fines. Negotiating a settlement is a possibility, but could also adversely affect Triad’s operations and financial position.
XI. Conclusion
After evaluating the information in this paper, there are some concerns with the performance of Triad Hospitals, Inc. and the overall industry. Triad is in a highly saturated market with lots of competition from other health care providers. Currently Triad is trying to expand globally; this may increase the opportunity to find new markets. The growth through acquisitions of non-profit organizations may also bring about a positive outcome for Triad’s revenue and performance.
Statistics show that Triad has had an increasing Net Income over the last two years and outperformed the S&P over the last year. Both of these things are attractive to investors. At the same time, in response to the damages and loss that the hurricanes brought about, Triad’s third quarter earnings and the estimated earnings for the future both demonstrate a decrease. Therefore current stock prices are decreasing. There is still uncertainty as for the litigations and claims against QHR, Inc; they still are waiting for a verdict. The hospital industry as a whole is experiencing the rising prices to operate facilities, pay salaries, and to continue to keep up with medical advancements.
Investment Recommendation: HOLD After analyzing Triad Hospitals, Inc. and reviewing the industry as well as their performance, determining whether to hold or sell the shares is a difficult decision. Although the current performance is not extremely great, there is opportunity for growth
in the future. Holding the stock would be the overall suggestion at least until a sign of upward movement in the stock price.
Pros:+ Global expansion and opportunity for growth+ Outperformed S&P over the previous year+ Growth through acquisitions+ Increasing NI over the last two years+ Balances our portfolio with a very low Beta
Cons:-- Decreased third quarter earnings-- Rising costs to operate a hospital facility-- Government control over Medicare/Medicaid-- Hospital Industry highly competitive-- Litigations and claims against QHR--Decrease and under the market over the last three months
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------------------------------------------------------------- Disclaimer: This analysis does not necessarily reflect the beliefs of the University of Missouri-Columbia or the College of Business. The insights and opinions are of the students of Investment Funds Management and should not be used in personal investment decisions. The University of Missouri and the authors of this analysis take no responsibility for the validity of the valuation and analysis
APPENDIX
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Location Map
E. Practices Performed
F. Evaluation of Excess Returns
a. 1 yearb. 6 years
INCOME STATEMENT 31-Dec-04 31-Dec-03 31-Dec-02
Total Revenue 4,450,200 3,865,900 3,541,100
Cost of Revenue 1,791,400 1,577,100 1,547,400
Gross Profit 2,658,800 2,288,800 1,993,700
Operating Expenses
Research Development - - -
Selling General and Administrative 1,623,400 1,381,600 1,204,600
Non Recurring - 54,800 (14,900)
Others 640,100 573,600 440,200
Total Operating Expenses - - -
Operating Income or Loss 395,300 278,800 363,800
Income from Continuing Operations
Total Other Income/Expenses Net (73,400) 28,100 23,400
Earnings Before Interest And Taxes 337,000 298,800 372,400
Interest Expense 113,700 133,800 136,700
Income Before Tax 223,300 165,000 235,700
Income Tax Expense 85,300 65,600 94,200
Minority Interest (5,400) (8,100) (14,800)
Net Income From Continuing Ops 138,000 99,400 141,500
Non-recurring Events
Discontinued Operations 53,000 (4,200) -
Extraordinary Items - - -
Net Income 191,000 95,200 141,500
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares $191,000 $95,200 $141,500
BALANCE SHEET 31-Dec-04 31-Dec-03 31-Dec-02
Assets
Current Assets
Cash And Cash Equivalents 56,800 15,200 68,300
Short Term Investments - - -
Net Receivables 711,900 643,500 569,700
Inventory 117,500 111,700 95,500
Other Current Assets 128,100 156,800 110,900
Total Current Assets 1,014,300 927,200 844,400
Long Term Investments 198,900 191,100 179,700
Property Plant and Equipment 2,338,700 2,168,600 1,955,200
Goodwill 1,253,000 1,253,100 1,224,000
Intangible Assets 72,000 71,500 72,000
Accumulated Amortization - - -
Other Assets 104,500 123,900 106,300
Deferred Long Term Asset Charges - - -
Total Assets 4,981,400 4,735,400 4,381,600
Liabilities
Current Liabilities
Accounts Payable 261,400 277,600 272,800
Short/Current Long Term Debt 79,700 74,500 73,100
Other Current Liabilities 161,600 155,000 99,300
Total Current Liabilities 502,700 507,100 445,200
Long Term Debt 1,587,300 1,685,000 1,618,900
Other Liabilities 139,000 118,100 86,600
Deferred Long Term Liability Charges 218,300 174,700 151,100
Minority Interest 190,800 174,200 125,300
Total Liabilities 2,638,100 2,659,100 2,427,100
Stockholders' Equity
Common Stock 800 800 700
Retained Earnings 381,200 190,200 95,000
Capital Surplus 1,976,800 1,904,600 1,883,500
Other Stockholder Equity (15,500) (19,300) (24,700)
Total Stockholder Equity 2,343,300 2,076,300 1,954,500
Net Tangible Assets $1,018,300 $751,700 $658,500
CASH FLOW STATEMENT 31-Dec-04 31-Dec-03 31-Dec-02
Net Income 191,000 95,200 141,500
Operating Activities, Cash Flows Provided By or Used In
Depreciation 186,400 176,400 167,400
Adjustments To Net Income 482,100 505,500 365,300
Changes In Accounts Receivables (497,100) (463,900) (332,700)
Changes In Liabilities (7,500) 43,900 18,200
Changes In Inventories (14,000) (19,500) (23,100)
Changes In Other Operating Activities 17,100 26,200 21,700
Total Cash Flow From Operating Activities 358,000 363,800 358,300
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (436,000) (281,100) (296,600)
Investments - - -
Other Cashflows from Investing Activities 226,100 (155,400) 34,800
Total Cash Flows From Investing Activities (209,900) (436,500) (261,800)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid - (7,600) (11,700)
Sale Purchase of Stock 63,500 14,800 52,500
Net Borrowings (169,300) 12,400 (85,300)
Other Cash Flows from Financing Activities - - -
Total Cash Flows From Financing Activities (105,800) 19,600 (44,500)
Effect Of Exchange Rate Changes - - -
Change In Cash and Cash Equivalents $42,300 ($53,100) $52,000
A majority of the acute care facilities run by Triad Hospitals, Inc are located in the southern part of the United States.
SPECIALTIES
Anesthesiology NeurosurgeryBariatric Surgery Obstetrics & GynecologyCardiology Occupational TherapyCardiothoracic Surgery Oncology and SubspecialtiesColon-rectal Surgery OphthalmologyDermatology OrthopedicsEar, Nose & Throat Pain ManagementEmergency Medicine PathologyEndocrinology PediatricsFamily Practice Pediatric CardiologyGastroenterology Pediatric SurgeryGeneral Surgery Physical Medicine & RehabilitationGeriatrics Plastic SurgeryHospitalist PsychiatryInfectious Disease PulmonaryInternal Medicine RadiologyNephrology RheumatologyNeurology Urology Wound Care
The chart below shows stock prices and the correlation with the market over the last year. Date StkX MeanX (X-M) (X-M)² MarketY Mean Y (Y-Mean) (Y-Mn)² ER X ExRetX ER Y Ex Y