LifePoint considers acquisitions, OKs $100 million share repurchase

By Lisa Kerner

Charlotte, N.C., Aug. 7 - LifePoint Hospitals, Inc. chief financial officer Jeff Sherman said the company's strong balance sheet, strong cash flows and ample liquidity allow LifePoint to "consider selective acquisition opportunities as they arise" and that make sense for the company.

Sherman made his remarks during a second-quarter earnings call on Friday.

"We have seen some increased activity in potential acquisitions in the first six months of this year and expect this trend to accelerate over the next 12 to 18 months," Sherman said.

Sherman also announced that LifePoint's board of directors approved a $100 million share repurchase program to take place over the next 18 months.

According to LifePoint, it had approximately 54.8 million shares of common stock outstanding as of July 31.

While it is not obligated to repurchase any specific number of shares under the program, LifePoint said that based on its closing share price of $27.66 on July 31, it could repurchase about 3.6 million shares, or 6.6% of its shares outstanding, for $100 million.

LifePoint said it would fund the share repurchases with a portion of its cash on hand or cash generated from operations.

Company president and chief executive officer William F. Carpenter III said LifePoint is where it is expected to be for the quarter and for the year. The company is tracking at the upper end of its full-year guidance, which it is "reiterating and tightening."

LifePoint is a Brentwood, Tenn.-based owner and operator of general acute care hospitals.

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