Full Press Release Details
| Investor Contact: | W. Larry Cash | |
| President of Financial Services | ||
| and Chief Financial Officer | ||
| (615) 465-7000 |
COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
FIRST QUARTER 2015 RESULTS WITH NET OPERATING REVENUES OF $4.911 BILLION
FRANKLIN, Tenn. (May 5, 2015) Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and operating results for
the three months ended March 31, 2015.
The operating results of Health Management Associates, Inc. ( HMA ) are included in
the Company s consolidated results and statistical data from January 27, 2014, the date the Company completed its acquisition of HMA. For hospitals acquired in the HMA merger, same-store operating results and statistical data reflect the
periods from January 1 through March 31, 2015 and 2014, as if such hospitals were owned during both comparable periods. The Company has restated its prior period financial statements and statistical results to reflect the reclassification
as discontinued operations for two hospitals that were held for sale at December 31, 2014, of which one of the two hospitals was subsequently sold during the three months ended March 31, 2015.
Net operating revenues for the three months ended March 31, 2015, totaled $4.911 billion, a 17.6 percent increase compared with $4.176
billion for the same period in 2014. Income from continuing operations attributable to Community Health Systems, Inc. common stockholders increased to $92 million, or $0.79 per share (diluted), for the three months ended March 31, 2015,
compared with loss from continuing operations attributable to Community Health Systems, Inc. common stockholders of $(90) million, or $(0.84) per share (diluted), for the same period in 2014. The results for the three months ended March 31,
2015, include $0.04 per share (diluted) of expenses related to government legal settlements for several qui tam matters settled in principle and related costs (other than HMA legal proceedings underlying the contingent value rights ( CVR )
agreement) and $0.04 per share (diluted) related to loss from early extinguishment of debt; with these expenses partially offset by $0.03 per share (diluted) of income from fair value adjustments, net of legal expenses, related to HMA legal
proceedings underlying the CVR agreement. Excluding these items, income from continuing operations was $0.85 per share (diluted). Net income attributable to Community Health Systems, Inc. common stockholders was $0.68 per share (diluted) for the
three months ended March 31, 2015, compared with a net loss of $(1.05) per share (diluted) for the same period in 2014. Discontinued operations for the three months ended March 31, 2015, consisted of $(0.09) per share (diluted) of losses
from operations of entities sold or held for sale, $(0.01) per share (diluted) of expenses related to the impairment of long-lived assets held for sale, and $(0.01) per share (diluted) of losses on sale, net, for a total after-tax loss of
approximately $(13) million, or $(0.11) per share (diluted). Weighted-average shares outstanding (diluted) were 115 million for the three months ended March 31, 2015, and 107 million for the three months ended March 31, 2014.
Adjusted EBITDA for the three months ended March 31, 2015, was $715 million compared with $543 million for the same period in 2014,
representing a 31.7 percent increase.
The consolidated operating results for the three months ended March 31, 2015, reflect a 15.7
percent increase in total admissions, and a 17.0 percent increase in total adjusted admissions compared with the same period in 2014. On a same-store basis, admissions increased 0.4 percent while adjusted admissions increased 2.5 percent during the
three months ended March 31, 2015, compared with the same period in 2014. On a same-store basis, net operating revenues increased 5.2 percent during the three months ended March 31, 2015, compared with the same period in 2014.
CYH Announces First Quarter 2015 Results
Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, loss from early
extinguishment of debt, impairment of long-lived assets, net income attributable to noncontrolling interests, acquisition and integration expenses from the acquisition of HMA, expenses related to government legal settlements and related costs (other
than HMA legal proceedings underlying the CVR agreement), and income from fair value adjustments, net of legal expenses, related to the HMA legal proceedings underlying the CVR agreement. For information regarding why the Company believes Adjusted
EBITDA presents useful information to investors, and for a reconciliation of Adjusted EBITDA to net cash provided by operating activities, see footnote (f) to the Financial Highlights, Financial Statements and Selected Operating Data below.
Commenting on the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, We are
pleased with our financial and operating performance for the first quarter of 2015. We are especially encouraged by improved volume in the quarter, demonstrating the results of our strategic growth initiatives and the incremental benefits of the
Affordable Care Act. We remain optimistic that these positive trends will continue as a result of growth in exchange enrollment.
added, Our results for the first quarter also reflect operating synergies gained from the HMA acquisition, and we see more opportunities to gain efficiencies through our ongoing, focused efforts on effective integration. We believe we have a
sound strategy for success in today s dynamic healthcare environment as we continue to apply our centralized operating model, recruit qualified physicians, manage costs, build integrated networks, and, above all, focus on the safety and quality
of care in our hospitals.
Included on pages 12, 13, 14 and 15 of this press release is the Company s 2015 reaffirmed annual
earnings guidance. The 2015 guidance is based on the Company s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time.
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 communities across the country. Through its subsidiaries, the Company currently owns, leases or operates 199 affiliated hospitals in 29 states with an aggregate of approximately 30,000 licensed beds. The Company s
headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol CYH. More information about the Company can be found on its
website at www.chs.net.
Community Health Systems, Inc. will hold a conference call on Wednesday, May 6, 2015, at 10:00 a.m.
Central, 11:00 a.m. Eastern, to review financial and operating results for the three months ended March 31, 2015. 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, 2015. 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 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Net operating revenues | $ | 4,911 | $ | 4,176 | ||||
| Adjusted EBITDA (f) | 715 | 543 | ||||||
| Income (loss) from continuing operations (g), (h), (k) | 112 | (76 | ) | |||||
| Net income (loss) attributable to Community Health Systems, Inc. stockholders | 79 | (112 | ) | |||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Continuing operations (g), (h), (k) | $ | 0.80 | $ | (0.84 | ) | |||
| Discontinued operations | (0.11 | ) | (0.21 | ) | ||||
| Net income (loss) | $ | 0.69 | $ | (1.05 | ) | |||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Continuing operations (g), (h), (k), (l) | $ | 0.79 | $ | (0.84 | ) | |||
| Discontinued operations | (0.11 | ) | (0.21 | ) | ||||
| Net income (loss) (l) | $ | 0.68 | $ | (1.05 | ) | |||
| Weighted-average number of shares outstanding (i): | ||||||||
| Basic | 114 | 107 | ||||||
| Diluted | 115 | 107 | ||||||
| Net cash (used in) provided by operating activities | $ | (61 | ) | $ | 65 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Loss) (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||||||||||
| 2015 | 2014 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 5,646 | $ | 4,875 | ||||||||||||
| Provision for bad debts | 735 | 699 | ||||||||||||||
| Net operating revenues | 4,911 | 100.0 | % | 4,176 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 2,257 | 46.0 | % | 1,992 | 47.7 | % | ||||||||||
| Supplies | 762 | 15.5 | % | 632 | 15.1 | % | ||||||||||
| Other operating expenses | 1,099 | 22.4 | % | 1,019 | 24.4 | % | ||||||||||
| Government settlement and related costs (m) | 8 | 0.1 | % | % | ||||||||||||
| Electronic health records incentive reimbursement (g) | (26 | ) | (0.5 | )% | (40 | ) | (1.0 | )% | ||||||||
| Rent | 116 | 2.4 | % | 98 | 2.4 | % | ||||||||||
| Depreciation and amortization | 296 | 6.0 | % | 255 | 6.1 | % | ||||||||||
| Amortization of software to be abandoned (k) | % | 42 | 1.0 | % | ||||||||||||
| Total operating costs and expenses | 4,512 | 91.9 | % | 3,998 | 95.7 | % | ||||||||||
| Income from operations (g), (h), (k) | 399 | 8.1 | % | 178 | 4.3 | % | ||||||||||
| Interest expense, net | 241 | 4.9 | % | 224 | 5.4 | % | ||||||||||
| Loss from early extinguishment of debt | 8 | 0.2 | % | 73 | 1.7 | % | ||||||||||
| Equity in earnings of unconsolidated affiliates | (18 | ) | (0.4 | )% | (11 | ) | (0.3 | )% | ||||||||
| Impairment of long-lived assets (k) | % | 24 | 0.6 | % | ||||||||||||
| Income (loss) from continuing operations before income taxes | 168 | 3.4 | % | (132 | ) | (3.1 | )% | |||||||||
| Provision (benefit) for income taxes | 56 | 1.1 | % | (56 | ) | (1.3 | )% | |||||||||
| Income (loss) from continuing operations (g), (h), (k) | 112 | 2.3 | % | (76 | ) | (1.8 | )% | |||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities sold or held for sale | (11 | ) | (0.3 | )% | (4 | ) | (0.1 | )% | ||||||||
| Impairment of hospitals sold or held for sale | (1 | ) | (0.0 | )% | (18 | ) | (0.4 | )% | ||||||||
| Loss on sale, net | (1 | ) | (0.0 | )% | % | |||||||||||
| Loss from discontinued operations, net of taxes | (13 | ) | (0.3 | )% | (22 | ) | (0.5 | )% | ||||||||
| Net income (loss) | 99 | 2.0 | % | (98 | ) | (2.3 | )% | |||||||||
| Less: Net income attributable to noncontrolling interests | 20 | 0.4 | % | 14 | 0.4 | % | ||||||||||
| Net income (loss) attributable to Community Health Systems, Inc. stockholders | $ | 79 | 1.6 | % | $ | (112 | ) | (2.7 | )% | |||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | 0.80 | $ | (0.84 | ) | |||||||||||
| Discontinued operations | (0.11 | ) | (0.21 | ) | ||||||||||||
| Net income (loss) | $ | 0.69 | $ | (1.05 | ) | |||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | 0.79 | $ | (0.84 | ) | |||||||||||
| Discontinued operations | (0.11 | ) | (0.21 | ) | ||||||||||||
| Net income (loss) (l) | $ | 0.68 | $ | (1.05 | ) | |||||||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 114 | 107 | ||||||||||||||
| Diluted | 115 | 107 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss) (c)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Net income (loss) | $ | 99 | $ | (98 | ) | |||
| Other comprehensive (loss) income, net of income taxes: | ||||||||
| Net change in fair value of interest rate swaps, net of tax | (9 | ) | 9 | |||||
| Net change in fair value of available-for-sale securities, net of tax | 1 | |||||||
| Amortization and recognition of unrecognized pension cost components, net of tax | 1 | |||||||
| Other comprehensive (loss) income | (7 | ) | 9 | |||||
| Comprehensive income (loss) | 92 | (89 | ) | |||||
| Less: Comprehensive income attributable to noncontrolling interests | 20 | 14 | ||||||
| Comprehensive income (loss) attributable to Community Health Systems, Inc. stockholders | $ | 72 | $ | (103 | ) |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(d)(j)
(Dollars in millions)
| Three Months Ended March 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store (1) | |||||||||||||||||||||||
| 2015 | 2014 | % Change | 2015 | 2014 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 197 | 195 | 193 | 193 | ||||||||||||||||||||
| Licensed beds (at end of period) | 30,256 | 29,423 | 29,267 | 29,336 | ||||||||||||||||||||
| Beds in service (at end of period) | 26,498 | 25,771 | 25,718 | 25,710 | ||||||||||||||||||||
| Admissions | 246,015 | 212,696 | 15.7 | % | 236,883 | 235,922 | 0.4 | % | ||||||||||||||||
| Adjusted admissions | 509,719 | 435,613 | 17.0 | % | 492,194 | 480,133 | 2.5 | % | ||||||||||||||||
| Patient days | 1,127,077 | 968,852 | 1,081,155 | 1,076,938 | ||||||||||||||||||||
| Average length of stay (days) | 4.6 | 4.6 | 4.6 | 4.6 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 47.1 | % | 47.9 | % | 46.5 | % | 46.5 | % | ||||||||||||||||
| Net operating revenues | $ | 4,911 | $ | 4,176 | 17.6 | % | $ | 4,781 | $ | 4,544 | 5.2 | % | ||||||||||||
| Net inpatient revenues as a % of net patient revenues before provision for bad debts | 44.2 | % | 45.3 | % | 44.1 | % | 45.9 | % | ||||||||||||||||
| Net outpatient revenues as a % of net patient revenues before provision for bad debts | 55.8 | % | 54.7 | % | 55.9 | % | 54.1 | % | ||||||||||||||||
| Income from operations (g), (h), (k) | $ | 399 | $ | 178 | 124.2 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 8.1 | % | 4.3 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 296 | $ | 297 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (18 | ) | $ | (11 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (f) | $ | 715 | $ | 543 | 31.7 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 14.6 | % | 13.0 | % | ||||||||||||||||||||
| Net cash (used in) provided by operating activities | $ | (61 | ) | $ | 65 | |||||||||||||||||||
| Net cash (used in) provided by operating activities a % of net operating revenues | (1.2 | %) | 1.6 | % |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (b)
(In millions, except share data)
| March 31, 2015 | December 31, 2014 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 222 | $ | 509 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $3,628 and $3,504 at March 31, 2015 and December 31, 2014, respectively | 3,606 | 3,409 | ||||||
| Supplies | 561 | 557 | ||||||
| Prepaid income taxes | 30 | |||||||
| Deferred income taxes | 341 | 341 | ||||||
| Prepaid expenses and taxes | 189 | 192 | ||||||
| Other current assets (including assets of hospitals held for sale of $7 and $38 at March 31, 2015 and December 31, 2014, respectively) | 507 | 528 | ||||||
| Total current assets | 5,426 | 5,566 | ||||||
| Property and equipment, gross | 14,400 | 14,264 | ||||||
| Less accumulated depreciation and amortization | (4,309 | ) | (4,095 | ) | ||||
| Property and equipment, net | 10,091 | 10,169 | ||||||
| Goodwill | 8,954 | 8,951 | ||||||
| Other assets, net (including assets of hospitals held for sale of $36 and $90 at March 31, 2015 and December 31, 2014, respectively) | 2,648 | 2,735 | ||||||
| Total assets | $ | 27,119 | $ | 27,421 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | 229 | $ | 235 | ||||
| Accounts payable | 1,192 | 1,293 | ||||||
| Income tax payable | 13 | |||||||
| Deferred income taxes | 23 | 23 | ||||||
| Accrued interest | 157 | 227 | ||||||
| Accrued liabilities (including liabilities of hospitals held for sale of $2 and $10 at March 31, 2015 and December 31, 2014, respectively) | 1,547 | 1,811 | ||||||
| Total current liabilities | 3,161 | 3,589 | ||||||
| Long-term debt | 16,740 | 16,681 | ||||||
| Deferred income taxes | 844 | 845 | ||||||
| Other long-term liabilities | 1,694 | 1,692 | ||||||
| Total liabilities | 22,439 | 22,807 | ||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 520 | 531 | ||||||
| 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; 119,000,326 shares issued and 118,024,777 shares outstanding at March 31, 2015, and 117,701,087 shares issued and 116,725,538 shares outstanding at December 31, 2014 | 1 | 1 | ||||||
| Additional paid-in capital | 2,101 | 2,095 | ||||||
| Treasury stock, at cost, 975,549 shares at March 31, 2015 and December 31, 2014 | (7 | ) | (7 | ) | ||||
| Accumulated other comprehensive loss | (70 | ) | (63 | ) | ||||
| Retained earnings | 2,056 | 1,977 | ||||||
| Total Community Health Systems, Inc. stockholders equity | 4,081 | 4,003 | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 79 | 80 | ||||||
| Total equity | 4,160 | 4,083 | ||||||
| Total liabilities and equity | $ | 27,119 | $ | 27,421 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (b)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 99 | $ | (98 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 296 | 302 | ||||||
| Government settlement and related costs (m) | 8 | |||||||
| Stock-based compensation expense | 14 | 11 | ||||||
| Loss on sale, net | 1 | |||||||
| Impairment of long-lived assets and hospitals sold or held for sale | 2 | 42 | ||||||
| Loss from early extinguishment of debt | 8 | 73 | ||||||
| Excess tax benefit relating to stock-based compensation | (3 | ) | ||||||
| Other non-cash expenses, net | (7 | ) | 6 | |||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||
| Patient accounts receivable | (202 | ) | (171 | ) | ||||
| Supplies, prepaid expenses and other current assets | 14 | 14 | ||||||
| Accounts payable, accrued liabilities and income taxes | (284 | ) | (83 | ) | ||||
| Other | (10 | ) | (28 | ) | ||||
| Net cash (used in) provided by operating activities | (61 | ) | 65 | |||||
| Cash flows from investing activities | ||||||||
| Acquisitions of facilities and other related equipment | (13 | ) | (2,774 | ) | ||||
| Purchases of property and equipment | (241 | ) | (181 | ) | ||||
| Proceeds from disposition of hospitals and other ancillary operations | 62 | |||||||
| Proceeds from sale of property and equipment | 3 | |||||||
| Purchases of available-for-sale securities | (59 | ) | (78 | ) | ||||
| Proceeds from sales of available-for-sale securities | 56 | 76 | ||||||
| Increase in other investments | (39 | ) | (99 | ) | ||||
| Net cash used in investing activities | (231 | ) | (3,056 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of stock options | 17 | 6 | ||||||
| Repurchase of restricted stock shares for payroll tax withholding requirements | (20 | ) | (11 | ) | ||||
| Deferred financing costs and other debt-related costs | (20 | ) | (269 | ) | ||||
| Excess tax benefit relating to stock-based compensation | 3 | |||||||
| Redemption of noncontrolling investments in joint ventures | (7 | ) | (5 | ) | ||||
| Distributions to noncontrolling investors in joint ventures | (23 | ) | (19 | ) | ||||
| Borrowings under credit agreements | 1,251 | 7,079 | ||||||
| Issuance of long-term debt | 4,000 | |||||||
| Proceeds from receivables facility | 75 | 133 | ||||||
| Repayments of long-term indebtedness | (1,268 | ) | (7,686 | ) | ||||
| Net cash provided by financing activities | 5 | 3,231 | ||||||
| Net change in cash and cash equivalents | (287 | ) | 240 | |||||
| Cash and cash equivalents at beginning of period | 509 | 373 | ||||||
| Cash and cash equivalents at end of period | $ | 222 | $ | 613 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2015 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
The following table presents the impact of the recorded amounts as described above as
applied to the CVR and the $18 million deductible and 10% co-insurance amounts (in millions):
| As of March 31, 2015 | ||||
| Legal and other related costs incurred to date | $ | 24 | ||
| Settlements | 3 | |||
| Estimated liability for probable contingencies | 24 | |||
| Estimated liability for unresolved contingencies at fair value | 256 | |||
| Costs incurred plus certain estimated liabilities for CVR-related matters | 307 | |||
| Less: | ||||
| CHS deductible of $18 million | (18 | ) | ||
| CHS co-insurance at 10% | (29 | ) | ||
| Impact of recorded amounts under CVR agreement after giving effect to deductible and co-insurance | $ | 260 | ||
| CVRs outstanding | 265 |
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Income (loss) from continuing operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Income (loss) from continuing operations, net of taxes | $ | 112 | $ | (76 | ) | |||
| Less: Income from continuing operations attributable to noncontrolling interests | 20 | 14 | ||||||
| Income (loss) from continuing operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | 92 | $ | (90 | ) | |||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Loss from discontinued operations, net of taxes | $ | (13 | ) | $ | (22 | ) | ||
| Less: Loss from discontinued operations attributable to noncontrolling interests | ||||||||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | (13 | ) | $ | (22 | ) |
CYH Announces First Quarter 2015 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)
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.
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, | ||||||||
| 2015 | 2014 | |||||||
| Adjusted EBITDA | $ | 715 | $ | 543 | ||||
| Interest expense, net | (241 | ) | (224 | ) | ||||
| Provision for income taxes | (56 | ) | 56 | |||||
| Loss from operations of entities sold or held for sale, net of taxes | (11 | ) | (4 | ) | ||||
| Other non-cash expenses, net | 18 | 18 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures | (486 | ) | (324 | ) | ||||
| Net cash (used in) provided by operating activities | $ | (61 | ) | $ | 65 |
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Weighted-average number of shares outstanding - basic | 114 | 107 | ||||||
| Add effect of dilutive securities: | ||||||||
| Stock awards and options | 1 | |||||||
| Weighted-average number of shares outstanding - diluted | 115 | 107 |
CYH Announces First Quarter 2015 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| (per share - diluted) | ||||||||
| Income (loss) from continuing operations, as reported | $ | 0.79 | $ | (0.84 | ) | |||
| Adjustments: | ||||||||
| Loss from early extinguishment of debt | 0.04 | 0.42 | ||||||
| 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 | |||||||
| Government settlement and related costs | 0.04 | |||||||
| (Income) expense from fair value adjustments, net of legal expenses, related to cases covered by the CVR | (0.03 | ) | 0.02 | |||||
| Income from continuing operations, excluding adjustments | $ | 0.85 | $ | 0.29 |
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| (per share - diluted) | ||||||||
| Net income (loss), as reported | $ | 0.68 | $ | (1.05 | ) | |||
| Adjustments: | ||||||||
| Loss from early extinguishment of debt | 0.04 | 0.42 | ||||||
| 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 | |||||||
| Government settlement and related costs | 0.04 | |||||||
| (Income) expense from fair value adjustments, net of legal expenses, related to cases covered by the CVR | (0.03 | ) | 0.02 | |||||
| Net income, excluding adjustments | $ | 0.74 | $ | 0.08 |
CYH Announces First Quarter 2015 Results
Regulation FD Disclosure