EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles, and the items excluded from EBITDA are significant components in understanding and assessing financial performance. EBITDA should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the combined financial statements as an indicator of financial performance or liquidity. Because EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, EBITDA as presented may not be comparable to other similarly titled measures of other companies. (b) This table does not include any operating statistics, except for admissions, for the joint ventures and facilities leased to others. (c) Licensed beds are those beds for which a facility has been granted approval to operate from the applicable state licensing agency. (d) Available beds are those beds a facility actually has in use. (e) Represents the total number of patients admitted (in the facility for a period in excess of 23 hours) to Triad's facilities and is used by management and certain investors as a general measure of inpatient volume. (f) Adjusted admissions are used by management and certain investors as a general measure of combined inpatient and outpatient volume. Adjusted admissions are computed by multiplying admissions (inpatient volume) by the sum of gross inpatient revenue and gross outpatient revenue and then dividing the resulting amount by gross inpatient revenue. The adjusted admissions computation "adjusts" outpatient revenue to the volume measure (admissions) used to measure inpatient volume resulting in a general measure of combined inpatient and outpatient volume. (g) Represents the total number of days each patient stays in Triad's hospitals. (h) Adjusted patient days are used by management and certain investors as a general measure of combined inpatient and outpatient volume. Adjusted patient days are computed by multiplying patient days (inpatient volume) by the sum of gross inpatient revenue and gross outpatient revenue and then dividing the resulting amount by gross inpatient revenue. The adjusted patient days computation "adjusts" outpatient revenue to the volume measure (patient days) used to measure inpatient volume resulting in a general measure of combined inpatient and outpatient volume. (i) Represents the average number of days an admitted patient stays in Triad's hospitals. Average length of stay has declined due to the continuing pressures from managed care and other payers to restrict admissions and reduce the number of days that are covered by the payers for certain procedures, and by technological and pharmaceutical improvements. (j) Represents the average number of patients in Triad's hospital beds each day. (k) Represents the percentage of hospital available beds occupied by patients. Both average daily census and occupancy rate provide measures of the utilization of inpatient rooms. The declining occupancy rate is primarily attributed to the trend toward more services, that were previously performed in an inpatient setting, being performed on an outpatient basis and the decline in average length of stay per admission. (l) Operating expenses are defined as salaries and benefits, supplies, provision for doubtful accounts and other operating expenses.
On a core (pro forma) basis, revenues increased 1.1% to $1,037.7 million in the year ended December 31, 1998 compared to $1,026.1 million in the year ended December 31, 1997. Inpatient admissions increased 1.8% and adjusted admissions increased 4.8% in the year ended December 31, 1998 compared to the year ended December 31, 1997 on a core (pro forma) basis. Revenues per adjusted admissions decreased 3.5% in the year ended December 31, 1998 compared to the year ended
On June 1, 1999 Triad completed a swap of its facility in Laredo, Texas for a facility in Victoria, Texas and $4.4 million in cash.