Full Press Release Details
COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
FIRST QUARTER 2014 RESULTS WITH NET OPERATING REVENUES OF $4.2 BILLION
FRANKLIN, Tenn. (May 6, 2014) - Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and operating
results for the three months ended March 31, 2014.
As previously announced, on January 27, 2014, the Company completed its
acquisition of Health Management Associates, Inc. ( HMA ). Financial and statistical data reported in this earnings release includes HMA s operating results from January 27, 2014, the date of completion of the HMA acquisition.
Prior period consolidated results and statistical data reflect only Community Health Systems, Inc. and its subsidiaries for the period prior to the HMA acquisition. Same-store operating results and statistical data includes comparable information
for hospitals acquired as a result of the HMA acquisition for the months of February and March 2014 and 2013.
Net operating revenues for
the three months ended March 31, 2014, totaled $4.195 billion, a 28.1 percent increase compared with $3.274 billion for the same period in 2013. Income from continuing operations decreased to a loss of $78 million, or $(0.86) per share
(diluted), for the three months ended March 31, 2014, compared with income of $98 million, or $0.88 per share (diluted), for the same period in 2013. The results for the three months ended March 31, 2014, include $0.30 per share (diluted)
of expenses related to acquisition and integration expenses from the acquisition of HMA; $0.02 per share (diluted) of legal expenses related to HMA legal proceedings underlying the contingent value rights ( CVR ) agreement; $0.42 per share
(diluted) of expenses related to the loss from early extinguishment of debt; $0.14 per share (diluted) of expenses related to the impairment of software costs taken out of service; and $0.24 per share (diluted) of expenses related to accelerating
amortization on software to be abandoned. Excluding these expenses, income from continuing operations was $0.27 per share (diluted). Net loss attributable to Community Health Systems, Inc. common stockholders was $(1.04) per share (diluted) for the
three months ended March 31, 2014, compared with net income of $0.86 per share (diluted) for the same period in 2013. Discontinued operations consisted of $0.02 per share (diluted) of losses from operations of entities held for sale and $0.17
per share (diluted) of expenses related to the impairment of long-lived assets held for sale for a total after-tax loss of approximately $20 million, or $(0.19) per share (diluted). Weighted-average shares outstanding (diluted) were 107 million
for the three months ended March 31, 2014, and 92 million for the three months ended March 31, 2013.
for the three months ended March 31, 2014, was $485 million compared with $495 million for the same period in 2013, representing a 2 percent decrease. Excluding the acquisition, integration and legal expenses related to the HMA acquisition,
Adjusted EBITDA was $541 million for the three months ended March 31, 2014. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, loss from early extinguishment of debt, impairment of long-lived assets and net income
attributable to noncontrolling interests. The Company uses Adjusted EBITDA as a measure of liquidity. A reconciliation of Adjusted EBITDA to net cash provided by operating activities is included in the attached footnotes.
The consolidated operating results for the three months ended March 31, 2014, reflect a 24.7 percent increase in total admissions and a
28.4 percent increase in total adjusted admissions compared with the same period in 2013. On a same-store basis, admissions decreased 8.1 percent while adjusted admissions decreased 5.3 percent compared with the same period in 2013. On a same-store
basis, net operating revenues decreased 4.0 percent compared with the same period in 2013.
CYH Announces First Quarter 2014 Results
Commenting on the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc. said, We are pleased
with our accomplishments for the first quarter of 2014 during what has been a challenging, yet significant period for Community Health Systems. This is the first quarter that we have reported our combined operations with HMA, and we have been fully
engaged in the integration of these additional hospitals. Overall, our results for the quarter were affected by the severe winter weather in several key markets and lower flu volumes compared with the previous year. However, we have started to see
some positive trends in our operations related to the implementation of The Affordable Care Act. We continue to focus on our volume trends and expense management in this evolving healthcare environment.
Smith added, With the completion of the HMA acquisition, we are excited about the long-term benefits for Community Health Systems and
our shareholders. We have a significant opportunity to leverage our assets and apply our disciplined approach to providing quality healthcare in more local communities across the United States. We have already identified areas for operating
improvements and believe we are making measurable progress toward achieving the synergies we have previously estimated. We remain focused on the key strategic areas for success in our business a proven centralized operating model, effective
cost management, quality initiatives, integrated networks in certain markets and a successful physician recruitment program as we continue to move Community Health Systems forward in 2014.
On January 27, 2014, the Company completed its acquisition of HMA (formerly NYSE: HMA). Under the terms of the transaction, the Company
acquired each issued and outstanding share of common stock of HMA for $10.50 in cash, 0.06942 of a share of the Company s common stock, and a CVR, which could yield additional cash consideration of up to $1.00 per CVR, depending on the outcome
of certain litigation matters. Pursuant to an agreement with the Federal Trade Commission related to the acquisition, the Company is required to divest two acute care facilities and related outpatient businesses that were acquired upon the
acquisition of HMA: Riverview Regional Medical Center, a 281-bed hospital in Gadsden, Alabama, and Carolina Pines Regional Medical Center, a 116-bed hospital in Hartsville, South Carolina.
Included on pages 12, 13, 14, and 15 of this press release are tables setting forth the Company s 2014 annual earnings guidance. The 2014
guidance is based on the Company s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time.
Located in the Nashville, Tennessee suburb of Franklin, Community Health Systems, Inc. is one of the largest publicly-traded hospital
companies in the United States and a leading operator of general acute-care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 208 hospitals in 29 states with
an aggregate of approximately 31,300 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care.
Community Health Systems, Inc. will hold a conference call on Wednesday, May 7, 2014, at 10:00 a.m. Central, 11:00 a.m. Eastern, to
review financial and operating results for the first quarter ended March 31, 2014. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Relations link of the
Company s website at www.chs.net. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast,
a replay will be available shortly after the call and will continue to be available through June 7, 2014. Copies of the Company s current report on Form 8-K (including this press release) and conference call slide show will be
available on the Company s website at www.chs.net
CYH Announces First Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)(c)(e)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Net operating revenues | $ | 4,195 | $ | 3,274 | ||||
| Adjusted EBITDA (f) | 485 | 495 | ||||||
| (Loss) income from continuing operations (g), (h), (k) | (78 | ) | 98 | |||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders | (112 | ) | 79 | |||||
| Basic (loss) earnings per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Continuing operations (g), (h), (k) | $ | (0.86 | ) | $ | 0.89 | |||
| Discontinued operations | (0.19 | ) | (0.02 | ) | ||||
| Net (loss) income | $ | (1.05 | ) | $ | 0.87 | |||
| Diluted (loss) earnings per share attributable to Community Health Systems, Inc. common stockholders (m): | ||||||||
| Continuing operations (g), (h), (k), (l) | $ | (0.86 | ) | $ | 0.88 | |||
| Discontinued operations | (0.19 | ) | (0.02 | ) | ||||
| Net (loss) income | $ | (1.04 | ) | $ | 0.86 | |||
| Weighted-average number of shares outstanding (i): | ||||||||
| Basic | 107 | 91 | ||||||
| Diluted | 107 | 92 | ||||||
| Net cash provided by operating activities | $ | 65 | $ | 57 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of (Loss) Income (a)(b)(c)(e)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||||||||||
| 2014 | 2013 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 4,900 | $ | 3,752 | ||||||||||||
| Provision for bad debts | 705 | 478 | ||||||||||||||
| Net operating revenues | 4,195 | 100.0 | % | 3,274 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 2,004 | 47.8 | % | 1,555 | 47.5 | % | ||||||||||
| Supplies | 635 | 15.1 | % | 494 | 15.1 | % | ||||||||||
| Other operating expenses | 1,023 | 24.4 | % | 696 | 21.3 | % | ||||||||||
| Electronic health records incentive reimbursement (g) | (40 | ) | (1.0 | )% | (19 | ) | (0.6 | )% | ||||||||
| Rent | 99 | 2.4 | % | 70 | 2.1 | % | ||||||||||
| Depreciation and amortization | 257 | 6.1 | % | 190 | 5.8 | % | ||||||||||
| Amortization of software to be abandoned (k) | 42 | 1.0 | % | |||||||||||||
| Total operating costs and expenses | 4,020 | 95.8 | % | 2,986 | 91.2 | % | ||||||||||
| Income from operations (g), (h), (k) | 175 | 4.2 | % | 288 | 8.8 | % | ||||||||||
| Interest expense, net | 224 | 5.4 | % | 156 | 4.8 | % | ||||||||||
| Loss from early extinguishment of debt | 73 | 1.7 | % | 1 | 0.0 | % | ||||||||||
| Equity in earnings of unconsolidated affiliates | (11 | ) | (0.3 | )% | (16 | ) | (0.5 | )% | ||||||||
| Impairment of long-lived assets (k) | 24 | 0.6 | % | |||||||||||||
| (Loss) income from continuing operations before income taxes | (135 | ) | (3.2 | )% | 147 | 4.5 | % | |||||||||
| (Benefit) provision for income taxes | (57 | ) | (1.4 | )% | 49 | 1.5 | % | |||||||||
| (Loss) income from continuing operations (g), (h), (k) | (78 | ) | (1.8 | )% | 98 | 3.0 | % | |||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities held for sale | (2 | ) | (0.0 | )% | (2 | ) | (0.1 | )% | ||||||||
| Impairment of hospitals held for sale | (18 | ) | (0.5 | )% | ||||||||||||
| Loss from discontinued operations, net of taxes | (20 | ) | (0.5 | )% | (2 | ) | (0.1 | )% | ||||||||
| Net (loss) income | (98 | ) | (2.3 | )% | 96 | 2.9 | % | |||||||||
| Less: Net income attributable to noncontrolling interests | 14 | 0.4 | % | 17 | 0.5 | % | ||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (112 | ) | (2.7 | )% | $ | 79 | 2.4 | % | |||||||
| Basic (loss) earnings per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | (0.86 | ) | $ | 0.89 | |||||||||||
| Discontinued operations | (0.19 | ) | (0.02 | ) | ||||||||||||
| Net (loss) income | $ | (1.05 | ) | $ | 0.87 | |||||||||||
| Diluted (loss) earnings per share attributable to Community Health Systems, Inc. common stockholders (m): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | (0.86 | ) | $ | 0.88 | |||||||||||
| Discontinued operations | (0.19 | ) | (0.02 | ) | ||||||||||||
| Net (loss) income | $ | (1.04 | ) | $ | 0.86 | |||||||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 107 | 91 | ||||||||||||||
| Diluted | 107 | 92 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive (Loss) Income (c)(e)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Net (loss) income | $ | (98 | ) | $ | 96 | |||
| Other comprehensive income, net of income taxes: | ||||||||
| Net change in fair value of interest rate swaps, net of tax | 9 | 16 | ||||||
| Net change in fair value of available-for-sale securities, net of tax | 2 | |||||||
| Amortization and recognition of unrecognized pension cost components,net of tax | 1 | |||||||
| Other comprehensive income | 9 | 19 | ||||||
| Comprehensive (loss) income | (89 | ) | 115 | |||||
| Less: Comprehensive income attributable to noncontrolling interests | 14 | 17 | ||||||
| Comprehensive (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (103 | ) | $ | 98 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(d)(j)
(Dollars in millions)
| For the Three Months Ended March 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store (1) | |||||||||||||||||||||||
| 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 197 | 130 | 196 | 195 | ||||||||||||||||||||
| Licensed beds (at end of period) | 29,672 | 19,840 | 29,192 | 29,470 | ||||||||||||||||||||
| Beds in service (at end of period) | 25,899 | 16,746 | 25,419 | 26,376 | ||||||||||||||||||||
| Admissions | 213,720 | 171,392 | 24.7 | % | 206,228 | 224,289 | -8.1 | % | ||||||||||||||||
| Adjusted admissions | 437,664 | 340,842 | 28.4 | % | 424,125 | 448,094 | -5.3 | % | ||||||||||||||||
| Patient days | 973,486 | 778,002 | 940,281 | 1,015,252 | ||||||||||||||||||||
| Average length of stay (days) | 4.6 | 4.5 | 4.6 | 4.5 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 47.9 | % | 51.6 | % | 46.9 | % | 48.7 | % | ||||||||||||||||
| Net operating revenues | $ | 4,195 | $ | 3,274 | 28.1 | % | $ | 4,054 | $ | 4,222 | -4.0 | % | ||||||||||||
| Net inpatient revenues as a % of operating revenues before provision for bad debts | 44.9 | % | 45.5 | % | 44.8 | % | 46.5 | % | ||||||||||||||||
| Net outpatient revenues as a % of operating revenues before provision for bad debts | 55.1 | % | 54.5 | % | 55.2 | % | 53.5 | % | ||||||||||||||||
| Income from operations (g), (h), (k) | $ | 175 | $ | 288 | -39.2 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 4.2 | % | 8.8 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 299 | $ | 190 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (11 | ) | $ | (16 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (f) | $ | 485 | $ | 495 | -2.0 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 11.6 | % | 15.1 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 65 | $ | 57 | ||||||||||||||||||||
| Net cash provided by operating activities a % of net operating revenues | 1.5 | % | 1.7 | % |
For footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (b)
(In millions, except share data)
| March 31, 2014 | December 31, 2013 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 613 | $ | 373 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $3,437 and $2,439 at March 31, 2014 and December 31, 2013, respectively | 3,129 | 2,328 | ||||||
| Supplies | 529 | 373 | ||||||
| Prepaid income taxes | 220 | 107 | ||||||
| Deferred income taxes | 294 | 101 | ||||||
| Prepaid expenses and taxes | 204 | 127 | ||||||
| Other current assets (including assets of hospitals held for sale of $72 and $32 at March 31, 2014 and December 31, 2013, respectively) | 638 | 339 | ||||||
| Total current assets | 5,627 | 3,748 | ||||||
| Property and equipment | 14,174 | 10,493 | ||||||
| Less accumulated depreciation and amortization | (3,602 | ) | (3,425 | ) | ||||
| Property and equipment, net | 10,572 | 7,068 | ||||||
| Goodwill | 8,373 | 4,430 | ||||||
| Other assets, net (including assets of hospitals held for sale of $148 and $69 at March 31, 2014 and December 31, 2013, respectively) | 2,390 | 1,871 | ||||||
| Total assets | $ | 26,962 | $ | 17,117 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | 199 | $ | 167 | ||||
| Accounts payable | 1,016 | 951 | ||||||
| Deferred income taxes | 3 | |||||||
| Accrued interest | 165 | 112 | ||||||
| Accrued liabilities (including liabilities of hospitals held for sale of $31 and $19 at March 31, 2014 and December 31, 2013, respectively) | 1,746 | 1,225 | ||||||
| Total current liabilities | 3,126 | 2,458 | ||||||
| Long-term debt | 16,799 | 9,286 | ||||||
| Deferred income taxes | 1,134 | 906 | ||||||
| Other long-term liabilities | 1,425 | 977 | ||||||
| Total liabilities | 22,484 | 13,627 | ||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 692 | 358 | ||||||
| EQUITY | ||||||||
| Community Health Systems, Inc. stockholders equity | ||||||||
| Preferred stock, $.01 par value per share, 100,000,000 shares authorized; none issued | ||||||||
| Common stock, $.01 par value per share, 300,000,000 shares authorized; 116,236,453 shares issued and 115,260,904 shares outstanding at March 31, 2014, and 95,987,032 shares issued and 95,011,483 shares outstanding at December 31, 2013 | 1 | 1 | ||||||
| Additional paid-in capital | 1,995 | 1,256 | ||||||
| Treasury stock, at cost, 975,549 shares at March 31, 2014 and December 31, 2013 | (7 | ) | (7 | ) | ||||
| Accumulated other comprehensive loss | (58 | ) | (67 | ) | ||||
| Retained earnings | 1,774 | 1,885 | ||||||
| Total Community Health Systems, Inc. stockholders equity | 3,705 | 3,068 | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 81 | 64 | ||||||
| Total equity | 3,786 | 3,132 | ||||||
| Total liabilities and equity | $ | 26,962 | $ | 17,117 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (b)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Cash flows from operating activities | ||||||||
| Net (loss) income | $ | (98 | ) | $ | 96 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 302 | 192 | ||||||
| Stock-based compensation expense | 11 | 10 | ||||||
| Impairment of long-lived assets and hospitals held for sale | 42 | |||||||
| Loss from early extinguishment of debt | 73 | 1 | ||||||
| Excess tax benefit relating to stock-based compensation | (3 | ) | (5 | ) | ||||
| Other non-cash expenses, net | 6 | 6 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||
| Patient accounts receivable | (171 | ) | (148 | ) | ||||
| Supplies, prepaid expenses and other current assets | 14 | (2 | ) | |||||
| Accounts payable, accrued liabilities and income taxes | (83 | ) | (98 | ) | ||||
| Other | (28 | ) | 5 | |||||
| Net cash provided by operating activities | 65 | 57 | ||||||
| Cash flows from investing activities | ||||||||
| Acquisitions of facilities and other related equipment | (2,774 | ) | (5 | ) | ||||
| Purchases of property and equipment | (181 | ) | (113 | ) | ||||
| Proceeds from sale of property and equipment | 1 | |||||||
| Purchases of available-for-sale securities | (78 | ) | ||||||
| Proceeds from sales of available-for-sale securities | 76 | |||||||
| Increase in other investments | (99 | ) | (69 | ) | ||||
| Net cash used in investing activities | (3,056 | ) | (186 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of stock options | 6 | 72 | ||||||
| Repurchase of restricted stock shares for payroll tax withholding requirements | (11 | ) | (14 | ) | ||||
| Stock buy-back | (19 | ) | ||||||
| Deferred financing costs and other debt-related costs | (269 | ) | (1 | ) | ||||
| Excess tax benefit relating to stock-based compensation | 3 | 5 | ||||||
| Redemption of noncontrolling investments in joint ventures | (5 | ) | ||||||
| Distributions to noncontrolling investors in joint ventures | (19 | ) | (15 | ) | ||||
| Borrowings under credit agreements | 7,079 | 101 | ||||||
| Issuance of long-term debt | 4,000 | |||||||
| Proceeds from receivables facility | 133 | 300 | ||||||
| Repayments of long-term indebtedness | (7,686 | ) | (403 | ) | ||||
| Net cash provided by financing activities | 3,231 | 26 | ||||||
| Net change in cash and cash equivalents | 240 | (103 | ) | |||||
| Cash and cash equivalents at beginning of period | 373 | 388 | ||||||
| Cash and cash equivalents at end of period | $ | 613 | $ | 285 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2014 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Income from continuing operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| (Loss) income from continuing operations, net of taxes | $ | (78 | ) | $ | 98 | |||
| Less: Income from continuing operations attributable to noncontrolling interests | 14 | 17 | ||||||
| (Loss) income from continuing operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | (92 | ) | $ | 81 | |||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Loss from discontinued operations, net of taxes | $ | (20 | ) | $ | (2 | ) | ||
| Less: Loss from discontinued operations attributable to noncontrolling interests | ||||||||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | (20 | ) | $ | (2 | ) |
Adjusted EBITDA is not a measurement of financial performance or liquidity under U.S. GAAP. It should not be considered in isolation or as a
substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with U.S. GAAP. The items excluded from Adjusted EBITDA are significant components in
understanding and evaluating financial performance and liquidity. This calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
CYH Announces First Quarter 2014 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)
The following table reconciles Adjusted EBITDA, as defined, to net cash
provided by operating activities as derived directly from the condensed consolidated financial statements (in millions):
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Adjusted EBITDA | $ | 485 | $ | 495 | ||||
| Interest expense, net | (224 | ) | (156 | ) | ||||
| (Benefit) provision for income taxes | 57 | (49 | ) | |||||
| Loss from operations of entities held for sale, net of taxes | (2 | ) | (2 | ) | ||||
| Other non-cash expenses, net | 17 | 11 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures | (268 | ) | (242 | ) | ||||
| Net cash provided by operating activities | $ | 65 | $ | 57 |
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Weighted-average number of shares outstanding - basic | 107 | 91 | ||||||
| Add effect of dilutive securities: | ||||||||
| Stock awards and options | 0 | 1 | ||||||
| Weighted-average number of shares outstanding - diluted | 107 | 92 |
CYH Announces First Quarter 2014 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| (per share - diluted) | ||||||||
| Income from continuing operations, as reported | $ | (0.86 | ) | $ | 0.88 | |||
| Adjustments: | ||||||||
| Loss from early extinguishment of debt | 0.42 | 0.01 | ||||||
| Amortization of software to be abandoned | 0.24 | |||||||
| Impairment of long-lived assets | 0.14 | |||||||
| Expenses related to the acquisition and integration of HMA | 0.30 | |||||||
| Legal expenses related to cases covered by the CVR | 0.02 | |||||||
| Income from continuing operations, excluding adjustments | $ | 0.27 | $ | 0.89 |
| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| (per share - diluted) | ||||||||
| Net income, as reported | $ | (1.04 | ) | $ | 0.86 | |||
| Adjustments: | ||||||||
| Loss from early extinguishment of debt | 0.42 | 0.01 | ||||||
| Amortization of software to be abandoned | 0.24 | |||||||
| Impairment of long-lived assets | 0.14 | |||||||
| Expenses related to the acquisition and integration of HMA | 0.30 | |||||||
| Legal expenses related to cases covered by the CVR | 0.02 | |||||||
| Net income, excluding adjustments | $ | 0.08 | $ | 0.87 |
CYH Announces First Quarter 2014 Results
Regulation FD Disclosure
The following tables set forth selected information concerning the Company s projected consolidated operating results for the year ending
December 31, 2014. These projections update selected preliminary guidance provided on February 18, 2014, and are based on the Company s historical operating performance, current trends and other assumptions that the Company believes