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
FOURTH QUARTER 2013 RESULTS WITH NET OPERATING REVENUES OF $3.2 BILLION
FRANKLIN, Tenn. (February 18, 2014) - Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and
operating results for the three months and year ended December 31, 2013.
Net operating revenues for the three months ended
December 31, 2013, totaled $3.2 billion, a 1.4 percent decrease compared with $3.3 billion for the same period in 2012. Income from continuing operations decreased to $52.3 million for the three months ended December 31, 2013, compared
with $85.6 million for the same period in 2012. Both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $0.30 per share (diluted) for the three months ended December 31,
2013, compared with $0.69 per share (diluted) for the same period in 2012. The results for the three months ended December 31, 2013, include $0.02 per share (diluted) of reserves related to the settlement of claims arising from the
government s investigation into the Company s short-stay hospital admissions, a $0.12 per share (diluted) loss from the impairment of certain long-lived assets and $0.05 per share (diluted) of expenses related to the acquisition of Health
Management Associates, Inc. ( HMA ). Excluding these items, both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $0.49 per share (diluted) for the three months ended
December 31, 2013. Weighted-average shares outstanding (diluted) were 94.7 million for the three months ended December 31, 2013, and 90.8 million for the three months ended December 31, 2012.
Adjusted EBITDA for the three months ended December 31, 2013, was $441.8 million compared with $481.9 million for the same period in
2012, representing an 8.3 percent decrease. Excluding the $3.5 million of reserves related to certain legal matters and $8.8 million of expenses related to the HMA acquisition, Adjusted EBITDA was $454.1 million for the three months ended
December 31, 2013. 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 non-controlling 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 and same-store operating results for the three months ended December 31, 2013, reflect a 10.5 percent decrease in total
admissions and a 6.7 percent decrease in total adjusted admissions compared with the same period in 2012.
Net operating revenues for the
year ended December 31, 2013, totaled $13.00 billion, a 0.2 percent decrease compared with $13.03 billion for the same period in 2012. Income from continuing operations decreased to $217.3 million for the year ended December 31, 2013,
compared with $346.3 million for the same period in 2012. Both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $1.51 per share (diluted) for the year ended December 31,
2013, compared with $2.96 per share (diluted) for the same period in 2012. The results for the year ended December 31, 2013, include $0.67 per share (diluted) of reserves related to the settlement of claims arising from the government s
investigation into the Company s short-stay hospital admissions, $0.09 per share (diluted) of expenses related to the acquisition of HMA, a $0.12 per share (diluted) loss from the impairment of certain long-lived assets and a $0.01 per share
(diluted) loss from the early extinguishment of debt.
CYH Announces Fourth Quarter 2013 Results
Excluding these items, both income from continuing operations and net income attributable to Community Health
Systems, Inc. common stockholders were $2.40 per share (diluted) for the year ended December 31, 2013. Weighted-average shares outstanding (diluted) were 93.8 million for the year ended December 31, 2013, and 89.8 million for the
year ended December 31, 2012.
Adjusted EBITDA for the year ended December 31, 2013, was $1.73 billion compared with $1.98
billion for the same period in 2012, representing a 12.8 percent decrease. Excluding the $101.5 million reserve for the settlement of claims arising from the government s investigation into the Company s short-stay hospital admissions and
$14.1 million of expenses related to the HMA acquisition, Adjusted EBITDA was $1.84 billion for the year ended December 31, 2013. A reconciliation of Adjusted EBITDA to net cash provided by operating activities is included in the attached
The consolidated operating results for the year ended December 31, 2013, reflect a 6.7 percent decrease in total
admissions and a 4.0 percent decrease in total adjusted admissions compared with the same period in 2012. On a same-store basis, admissions decreased 7.2 percent while adjusted admissions decreased 4.6 percent compared with the same period in 2012.
On a same-store basis, net operating revenues decreased 0.2 percent compared with the same period in 2012.
Commenting on the results,
Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc. said, Our financial and operating results for the fourth quarter reflect a continuation of the challenging operating environment for health care providers
over the past year. As we previously announced, weakness in volume, combined with higher bad debts and a less favorable payor mix, affected our operating revenues during the fourth quarter. However, we have continued to focus on our cost management
and strategic initiatives to efficiently manage our operations in this challenging environment, and we are pleased with the progress being made across our hospital network.
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 the common stock of HMA for $10.50 in cash, 0.06942 of a share of the Company s common stock, and a Contingent Value Right ( 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 relating 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 located in Gadsden, Alabama, and Carolina Pines Regional Medical Center, a 116-bed hospital in Hartsville, South Carolina.
CYH Announces Fourth Quarter 2013 Results
Included on pages 16, 17, 18 and 19 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 206 hospitals in 29 states with
an aggregate of approximately 30,900 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, February 19, 2014, at 10:00 a.m. Central, 11:00 a.m. Eastern, to
review financial and operating results for the fourth quarter ended December 31, 2013. 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 March 19, 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 Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)
(In thousands, except per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net operating revenues | $ | 3,231,321 | $ | 3,276,946 | $ | 12,997,693 | $ | 13,028,985 | ||||||||
| Adjusted EBITDA (c) | 441,809 | 481,872 | 1,725,079 | 1,977,715 | ||||||||||||
| Income from continuing operations (d), (e) | 52,262 | 85,626 | 217,268 | 346,269 | ||||||||||||
| Net income attributable to Community Health Systems, Inc. stockholders | 28,181 | 62,574 | 141,203 | 265,640 | ||||||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (g): | ||||||||||||||||
| Continuing operations (d), (e) | $ | 0.30 | $ | 0.70 | $ | 1.52 | $ | 2.98 | ||||||||
| Discontinued operations | (0.01 | ) | ||||||||||||||
| Net income | $ | 0.30 | $ | 0.70 | $ | 1.52 | $ | 2.98 | ||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (g), (h): | ||||||||||||||||
| Continuing operations (d), (e) | $ | 0.30 | $ | 0.69 | $ | 1.51 | $ | 2.96 | ||||||||
| Discontinued operations | (0.01 | ) | ||||||||||||||
| Net income | $ | 0.30 | $ | 0.69 | $ | 1.51 | $ | 2.96 | ||||||||
| Weighted-average number of shares outstanding (f): | ||||||||||||||||
| Basic | 93,372 | 89,882 | 92,633 | 89,243 | ||||||||||||
| Diluted | 94,703 | 90,828 | 93,815 | 89,807 | ||||||||||||
| Net cash provided by operating activities | $ | 647,619 | $ | 502,255 | $ | 1,088,719 | $ | 1,280,120 |
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (a)(b)
(In thousands, except per share amounts)
| Three Months Ended December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 3,743,291 | $ | 3,761,599 | ||||||||||||
| Provision for bad debts | 511,970 | 484,653 | ||||||||||||||
| Net operating revenues | 3,231,321 | 100.0 | % | 3,276,946 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 1,542,956 | 47.8 | % | 1,556,399 | 47.5 | % | ||||||||||
| Supplies | 511,871 | 15.8 | % | 500,971 | 15.3 | % | ||||||||||
| Other operating expenses | 720,629 | 22.3 | % | 729,761 | 22.2 | % | ||||||||||
| Government settlement and related costs | 3,500 | 0.1 | % | 0.0 | % | |||||||||||
| Electronic health records incentive reimbursement (d) | (55,570 | ) | (1.7 | )% | (53,142 | ) | (1.6 | )% | ||||||||
| Rent | 72,392 | 2.2 | % | 70,505 | 2.2 | % | ||||||||||
| Depreciation and amortization | 200,071 | 6.2 | % | 189,196 | 5.8 | % | ||||||||||
| Total operating costs and expenses | 2,995,849 | 92.7 | % | 2,993,690 | 91.4 | % | ||||||||||
| Income from operations (d), (e) | 235,472 | 7.3 | % | 283,256 | 8.6 | % | ||||||||||
| Interest expense, net | 149,412 | 4.7 | % | 160,586 | 4.9 | % | ||||||||||
| Equity in earnings of unconsolidated affiliates | (6,266 | ) | (0.2 | )% | (9,420 | ) | (0.3 | )% | ||||||||
| Impairment of long-lived assets | 20,100 | 0.6 | % | 10,000 | 0.3 | % | ||||||||||
| Income from continuing operations before income taxes | 72,226 | 2.2 | % | 122,090 | 3.7 | % | ||||||||||
| Provision for income taxes | 19,964 | 0.6 | % | 36,464 | 1.1 | % | ||||||||||
| Income from continuing operations (d), (e) | 52,262 | 1.6 | % | 85,626 | 2.6 | % | ||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities sold | % | 0.0 | % | |||||||||||||
| Loss from discontinued operations, net of taxes | % | 0.0 | % | |||||||||||||
| Net income | 52,262 | 1.6 | % | 85,626 | 2.6 | % | ||||||||||
| Less: Net income attributable to noncontrolling interests | 24,081 | 0.7 | % | 23,052 | 0.7 | % | ||||||||||
| Net income attributable to Community Health Systems, Inc. stockholders | $ | 28,181 | 0.9 | % | $ | 62,574 | 1.9 | % | ||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (d), (e) | $ | 0.30 | $ | 0.70 | ||||||||||||
| Discontinued operations | ||||||||||||||||
| Net income | $ | 0.30 | $ | 0.70 | ||||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: (h) | ||||||||||||||||
| Continuing operations (d), (e) | $ | 0.30 | $ | 0.69 | ||||||||||||
| Discontinued operations | ||||||||||||||||
| Net income | $ | 0.30 | $ | 0.69 | ||||||||||||
| Weighted-average number of shares outstanding (f): | ||||||||||||||||
| Basic | 93,372 | 89,882 | ||||||||||||||
| Diluted | 94,703 | 90,828 |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (a)(b)
(In thousands, except per share amounts)
| Year Ended December 31, | ||||||||||||||||
| 2013 | 2012 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 15,078,074 | $ | 14,988,179 | ||||||||||||
| Provision for bad debts | 2,080,381 | 1,959,194 | ||||||||||||||
| Net operating revenues | 12,997,693 | 100.0 | % | 13,028,985 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 6,217,747 | 47.8 | % | 6,103,931 | 46.9 | % | ||||||||||
| Supplies | 1,994,116 | 15.3 | % | 1,973,491 | 15.1 | % | ||||||||||
| Other operating expenses | 2,880,357 | 22.2 | % | 2,869,786 | 22.0 | % | ||||||||||
| Government settlement and related costs | 101,500 | 0.8 | % | 0.0 | % | |||||||||||
| Electronic health records incentive reimbursement (d) | (165,877 | ) | (1.3 | )% | (126,734 | ) | (1.0 | )% | ||||||||
| Rent | 287,412 | 2.2 | % | 272,829 | 2.1 | % | ||||||||||
| Depreciation and amortization | 782,675 | 6.0 | % | 725,558 | 5.6 | % | ||||||||||
| Total operating costs and expenses | 12,097,930 | 93.0 | % | 11,818,861 | 90.7 | % | ||||||||||
| Income from operations (d), (e) | 899,763 | 7.0 | % | 1,210,124 | 9.3 | % | ||||||||||
| Interest expense, net | 615,147 | 4.7 | % | 622,933 | 4.7 | % | ||||||||||
| Loss from early extinguishment of debt | 1,295 | 0.0 | % | 115,453 | 0.9 | % | ||||||||||
| Equity in earnings of unconsolidated affiliates | (42,641 | ) | (0.3 | )% | (42,033 | ) | (0.3 | )% | ||||||||
| Impairment of long-lived assets | 20,100 | 0.2 | % | 10,000 | 0.1 | % | ||||||||||
| Income from continuing operations before income taxes | 305,862 | 2.4 | % | 503,771 | 3.9 | % | ||||||||||
| Provision for income taxes | 88,594 | 0.7 | % | 157,502 | 1.2 | % | ||||||||||
| Income from continuing operations (d), (e) | 217,268 | 1.7 | % | 346,269 | 2.7 | % | ||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities sold | 0.0 | % | (466 | ) | 0.0 | % | ||||||||||
| Loss from discontinued operations, net of taxes | 0.0 | % | (466 | ) | 0.0 | % | ||||||||||
| Net income | 217,268 | 1.7 | % | 345,803 | 2.7 | % | ||||||||||
| Less: Net income attributable to noncontrolling interests | 76,065 | 0.6 | % | 80,163 | 0.7 | % | ||||||||||
| Net income attributable to Community Health Systems, Inc. stockholders | $ | 141,203 | 1.1 | % | $ | 265,640 | 2.0 | % | ||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: (g) | ||||||||||||||||
| Continuing operations (d), (e) | $ | 1.52 | $ | 2.98 | ||||||||||||
| Discontinued operations | (0.01 | ) | ||||||||||||||
| Net income | $ | 1.52 | $ | 2.98 | ||||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: (g), (h) | ||||||||||||||||
| Continuing operations (d), (e) | $ | 1.51 | $ | 2.96 | ||||||||||||
| Discontinued operations | (0.01 | ) | ||||||||||||||
| Net income | $ | 1.51 | $ | 2.96 | ||||||||||||
| Weighted-average number of shares outstanding (f): | ||||||||||||||||
| Basic | 92,633 | 89,243 | ||||||||||||||
| Diluted | 93,815 | 89,807 |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net income | $ | 52,262 | $ | 85,626 | $ | 217,268 | $ | 345,803 | ||||||||
| Other comprehensive income, net of income taxes: | ||||||||||||||||
| Net change in fair value of interest rate swaps | 12,545 | 17,643 | 60,304 | 46,409 | ||||||||||||
| Net change in fair value of available-for-sale securities | (660 | ) | (497 | ) | 2,181 | 3,012 | ||||||||||
| Amortization and recognition of unrecognized pension cost components | 13,125 | (13,735 | ) | 15,320 | (10,252 | ) | ||||||||||
| Other comprehensive income | 25,010 | 3,411 | 77,805 | 39,169 | ||||||||||||
| Comprehensive income | 77,272 | 89,037 | 295,073 | 384,972 | ||||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | 24,081 | 23,052 | 76,065 | 80,163 | ||||||||||||
| Comprehensive income attributable to Community Health Systems, Inc. stockholders | $ | 53,191 | $ | 65,985 | $ | 219,008 | $ | 304,809 |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (b)
| For the Three Months Ended December 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store | |||||||||||||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 135 | 135 | 135 | 135 | ||||||||||||||||||||
| Licensed beds (at end of period) | 20,180 | 20,334 | 20,180 | 20,334 | ||||||||||||||||||||
| Beds in service (at end of period) | 17,320 | 17,265 | 17,320 | 17,265 | ||||||||||||||||||||
| Admissions | 155,145 | 173,392 | -10.5 | % | 155,145 | 173,392 | -10.5 | % | ||||||||||||||||
| Adjusted admissions | 329,291 | 352,855 | -6.7 | % | 329,291 | 352,855 | -6.7 | % | ||||||||||||||||
| Patient days | 687,463 | 756,217 | 687,463 | 756,217 | ||||||||||||||||||||
| Average length of stay (days) | 4.4 | 4.4 | 4.4 | 4.4 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 43.1 | % | 47.6 | % | 43.1 | % | 47.6 | % | ||||||||||||||||
| Net operating revenues | $ | 3,231,321 | $ | 3,276,946 | -1.4 | % | $ | 3,231,129 | $ | 3,276,450 | -1.4 | % | ||||||||||||
| Net inpatient revenues as a % of operating revenues before provision for bad debts | 41.4 | % | 43.8 | % | 41.4 | % | 43.8 | % | ||||||||||||||||
| Net outpatient revenues as a % of operating revenues before provision for bad debts | 56.7 | % | 54.3 | % | 56.7 | % | 54.3 | % | ||||||||||||||||
| Income from operations (d), (e) | $ | 235,472 | $ | 283,256 | -16.9 | % | $ | 251,495 | $ | 299,919 | -16.1 | % | ||||||||||||
| Income from operations as a % of net operating revenues | 7.3 | % | 8.6 | % | 7.8 | % | 9.2 | % | ||||||||||||||||
| Depreciation and amortization | $ | 200,071 | $ | 189,196 | $ | 200,072 | $ | 189,195 | ||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (6,266 | ) | $ | (9,420 | ) | $ | (6,266 | ) | $ | (9,420 | ) | ||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (c) | $ | 441,809 | $ | 481,872 | -8.3 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 13.7 | % | 14.7 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 647,619 | $ | 502,255 | ||||||||||||||||||||
| Net cash provided by operating activities a % of net operating revenues | 20.0 | % | 15.3 | % |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (b)
| For the Year Ended December 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store | |||||||||||||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 135 | 135 | 135 | 135 | ||||||||||||||||||||
| Licensed beds (at end of period) | 20,180 | 20,334 | 20,180 | 20,334 | ||||||||||||||||||||
| Beds in service (at end of period) | 17,320 | 17,265 | 17,320 | 17,265 | ||||||||||||||||||||
| Admissions | 654,945 | 701,837 | -6.7 | % | 651,044 | 701,837 | -7.2 | % | ||||||||||||||||
| Adjusted admissions | 1,362,344 | 1,418,472 | -4.0 | % | 1,353,195 | 1,418,472 | -4.6 | % | ||||||||||||||||
| Patient days | 2,897,491 | 3,058,931 | 2,882,332 | 3,058,931 | ||||||||||||||||||||
| Average length of stay (days) | 4.4 | 4.4 | 4.4 | 4.4 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 45.9 | % | 48.6 | % | 45.9 | % | 48.6 | % | ||||||||||||||||
| Net operating revenues | $ | 12,997,693 | $ | 13,028,985 | -0.2 | % | $ | 12,922,186 | $ | 12,943,565 | -0.2 | % | ||||||||||||
| Net inpatient revenues as a % of operating revenues before provision for bad debts | 43.2 | % | 44.7 | % | 43.2 | % | 44.4 | % | ||||||||||||||||
| Net outpatient revenues as a % of operating revenues before provision for bad debts | 55.0 | % | 53.4 | % | 54.9 | % | 53.7 | % | ||||||||||||||||
| Income from operations (d), (e) | $ | 899,763 | $ | 1,210,124 | -25.6 | % | $ | 1,034,005 | $ | 1,182,538 | -12.6 | % | ||||||||||||
| Income from operations as a % of net operating revenues | 7.0 | % | 9.3 | % | 8.0 | % | 9.1 | % | ||||||||||||||||
| Depreciation and amortization | $ | 782,675 | $ | 725,558 | $ | 779,291 | $ | 725,557 | ||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (42,641 | ) | $ | (42,033 | ) | $ | (42,641 | ) | $ | (42,105 | ) | ||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (c) | $ | 1,725,079 | $ | 1,977,715 | -12.8 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 13.3 | % | 15.2 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 1,088,719 | $ | 1,280,120 | ||||||||||||||||||||
| Net cash provided by operating activities as a % of net operating revenues | 8.4 | % | 9.8 | % |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
| December 31, 2013 | December 31, 2012 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 373,403 | $ | 387,813 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $2,448,432 and $2,201,875 at December 31, 2013 and 2012, respectively | 2,353,308 | 2,067,379 | ||||||
| Supplies | 377,005 | 368,172 | ||||||
| Prepaid income taxes | 107,077 | 49,888 | ||||||
| Deferred income taxes | 101,372 | 117,045 | ||||||
| Prepaid expenses and taxes | 128,476 | 126,561 | ||||||
| Other current assets | 307,322 | 302,284 | ||||||
| Total current assets | 3,747,963 | 3,419,142 | ||||||
| Property and equipment | 10,606,750 | 10,145,408 | ||||||
| Less accumulated depreciation and amortization | (3,492,287 | ) | (2,993,535 | ) | ||||
| Property and equipment, net | 7,114,463 | 7,151,873 | ||||||
| Goodwill | 4,444,135 | 4,408,138 | ||||||
| Other assets, net | 1,810,734 | 1,627,182 | ||||||
| Total assets | $ | 17,117,295 | $ | 16,606,335 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | 166,902 | $ | 89,911 | ||||
| Accounts payable | 958,593 | 825,914 | ||||||
| Deferred income taxes | 3,183 | |||||||
| Accrued interest | 111,891 | 110,702 | ||||||
| Accrued liabilities | 1,216,914 | 1,116,693 | ||||||
| Total current liabilities | 2,457,483 | 2,143,220 | ||||||
| Long-term debt | 9,286,495 | 9,451,394 | ||||||
| Deferred income taxes | 906,101 | 808,489 | ||||||
| Other long-term liabilities | 977,336 | 1,039,045 | ||||||
| Total liabilities | 13,627,415 | 13,442,148 | ||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 358,410 | 367,666 | ||||||
| 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; 95,987,032 shares issued and 95,011,483 shares outstanding at December 31, 2013, and 92,925,715 shares issued and 91,950,166 shares outstanding at December 31, 2012 | 960 | 929 | ||||||
| Additional paid-in capital | 1,255,855 | 1,138,274 | ||||||
| Treasury stock, at cost, 975,549 shares at December 31, 2013 and December 31, 2012 | (6,678 | ) | (6,678 | ) | ||||
| Accumulated other comprehensive loss | (67,505 | ) | (145,310 | ) | ||||
| Retained earnings | 1,885,195 | 1,743,992 | ||||||
| Total Community Health Systems, Inc. stockholders equity | 3,067,827 | 2,731,207 | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 63,643 | 65,314 | ||||||
| Total equity | 3,131,470 | 2,796,521 | ||||||
| Total liabilities and equity | $ | 17,117,295 | $ | 16,606,335 |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
| Year Ended December 31, | ||||||||
| 2013 | 2012 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 217,268 | $ | 345,803 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 782,675 | 725,558 | ||||||
| Deferred income taxes | 69,284 | 53,407 | ||||||
| Government settlement and related costs | 101,500 | |||||||
| Stock-based compensation expense | 38,403 | 40,896 | ||||||
| Impairment of long-lived assets | 20,100 | 10,000 | ||||||
| Loss from early extinguishment of debt | 1,295 | 115,453 | ||||||
| Excess tax benefit relating to stock-based compensation | (6,715 | ) | (3,973 | ) | ||||
| Other non-cash expenses, net | 60,839 | 33,251 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||
| Patient accounts receivable | (285,437 | ) | (204,151 | ) | ||||
| Supplies, prepaid expenses and other current assets | (8,453 | ) | (99,799 | ) | ||||
| Accounts payable, accrued liabilities and income taxes | 72,474 | 246,301 | ||||||
| Other | 25,486 | 17,374 | ||||||
| Net cash provided by operating activities | 1,088,719 | 1,280,120 | ||||||
| Cash flows from investing activities | ||||||||
| Acquisitions of facilities and other related equipment | (43,743 | ) | (322,315 | ) | ||||
| Purchases of property and equipment | (613,992 | ) | (768,790 | ) | ||||
| Proceeds from sale of property and equipment | 6,409 | 5,897 | ||||||
| Increase in other investments | (339,942 | ) | (297,994 | ) | ||||
| Net cash used in investing activities | (991,268 | ) | (1,383,202 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of stock options | 110,660 | 20,858 | ||||||
| Repurchase of restricted stock shares for payroll tax withholding requirements | (14,896 | ) | (9,314 | ) | ||||
| Payment of special dividend to stockholders | (22,535 | ) | ||||||
| Stock buy-back | (27,133 | ) | ||||||
| Deferred financing costs | (13,199 | ) | (141,219 | ) | ||||
| Excess tax benefit relating to stock-based compensation | 6,715 | 3,973 | ||||||
| Proceeds from noncontrolling investors in joint ventures | 289 | 535 | ||||||
| Redemption of noncontrolling investments in joint ventures | (9,304 | ) | (44,287 | ) | ||||
| Distributions to noncontrolling investors in joint ventures | (75,583 | ) | (68,344 | ) | ||||
| Borrowings under credit agreements | 1,194,575 | 3,975,866 | ||||||
| Issuance of long-term debt | 3,825,000 | |||||||
| Proceeds from receivables facility | 338,000 | 350,000 | ||||||
| Repayments of long-term indebtedness | (1,621,985 | ) | (7,529,503 | ) | ||||
| Net cash (used in) provided by financing activities | (111,861 | ) | 361,030 | |||||
| Net change in cash and cash equivalents | (14,410 | ) | 257,948 | |||||
| Cash and cash equivalents at beginning of period | 387,813 | 129,865 | ||||||
| Cash and cash equivalents at end of period | $ | 373,403 | $ | 387,813 |
footnotes, see pages 12, 13, 14 and 15.
CYH Announces Fourth Quarter 2013 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Income from continuing operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Income from continuing operations, net of taxes | $ | 52,262 | $ | 85,626 | $ | 217,268 | $ | 346,269 | ||||||||
| Less: Income from continuing operations attributable to noncontrolling interests, net of taxes | 24,081 | 23,052 | 76,065 | 80,163 | ||||||||||||
| Income from continuing operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | 28,181 | $ | 62,574 | $ | 141,203 | $ | 266,106 | ||||||||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Loss from discontinued operations, net of taxes | $ | $ | $ | $ | (466 | ) | ||||||||||
| Less: Loss from discontinued operations attributable to noncontrolling interests, net of taxes | ||||||||||||||||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | $ | $ | $ | (466 | ) |
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