Full Press Release Details
| Exhibit Number | |
| 99.1 |
| Investor Contact: | Kevin Hammons |
| President and | |
| Chief Financial Officer | |
| (615) 465-7000 |
COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2024 RESULTS
FRANKLIN, Tenn. (February 18, 2025) Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and operating results for the three months and year ended December 31, 2024.
The following highlights the financial and operating results for the three months ended December 31, 2024.
-Net operating revenues totaled $3.265 billion.
-Net loss attributable to Community Health Systems, Inc. stockholders was $(70) million, or $(0.53) per share (diluted), compared to net income of $46 million, or $0.35 per share (diluted), for the same period in 2023. Excluding the adjusting items as presented in the table in footnote (e) on page 15, net loss attributable to Community Health Systems, Inc. stockholders was $(0.42) per share (diluted), compared to $(0.41) per share (diluted) for the same period in 2023.
-Adjusted EBITDA was $428 million.
-Net cash provided by operating activities was $216 million for the three months ended December 31, 2024, compared to $90 million for the same period in 2023.
-On a same-store basis, admissions increased 3.4 percent and adjusted admissions increased 3.1 percent, compared to the same period in 2023.
Commenting on the results, Tim L. Hingtgen, chief executive officer of Community Health Systems, Inc., said, We continue to make meaningful progress in key strategic areas, and we were especially pleased with demand for our services and strong same-store volume growth. As we look forward to 2025, we remain confident in our portfolio, optimistic about our future opportunities, and grateful to our clinicians and support teams who consistently deliver high-quality care for their patients.
Three Months Ended December 31, 2024
Net operating revenues for the three months ended December 31, 2024, totaled $3.265 billion, a 2.6 percent increase compared to $3.181 billion for the same period in 2023. On a same-store basis, net operating revenues increased 6.5 percent for the three months ended December 31, 2024, compared to the same period in 2023. Net operating revenues for the three months ended December 31, 2024, reflect a 5.6 percent decrease in admissions and a 5.7 percent decrease in adjusted admissions, compared to the same period in 2023. On a same-store basis, admissions increased 3.4 percent and adjusted admissions increased 3.1 percent for the three months ended December 31, 2024, compared to the same period in 2023.
CYH Announces Fourth Quarter 2024 Results
Net loss attributable to Community Health Systems, Inc. stockholders was $(70) million, or $(0.53) per share (diluted), for the three months ended December 31, 2024, compared to net income of $46 million, or $0.35 per share (diluted), for the same period in 2023. Excluding the adjusting items as presented in the table in footnote (e) on page 15, net loss attributable to Community Health Systems, Inc. stockholders was $(0.42) per share (diluted) for the three months ended December 31, 2024, compared to $(0.41) per share (diluted) for the same period in 2023.
Adjusted EBITDA for the three months ended December 31, 2024, was $428 million compared to $386 million for the same period in 2023.
The amount of net loss attributable to Community Health Systems, Inc. stockholders for the three months ended December 31, 2024, compared to the amount of net income for the same period in 2023, is primarily attributable to period-over-period changes in impairment and (gain) loss on the sale of businesses and gain from early extinguishment of debt, partially offset by the factors that contributed to the increase in Adjusted EBITDA. The increase in Adjusted EBITDA for the three months ended December 31, 2024, compared to the same period in 2023, was driven by higher same-store volumes, increased reimbursement rates, favorable changes in payor mix, a higher net benefit from supplemental reimbursement programs and reduced expense for contract labor, partially offset by declines in acuity and non-patient revenue, increased patient claim denials and increased costs for outsourced medical specialists.
Year Ended December 31, 2024
Net operating revenues for the year ended December 31, 2024, totaled $12.634 billion, a 1.2 percent increase compared to $12.490 billion for the same period in 2023. On a same-store basis, net operating revenues increased 5.5 percent for the year ended December 31, 2024, compared to the same period in 2023. Net operating revenues for the year ended December 31, 2024, reflect a 3.2 percent decrease in admissions and a 3.4 percent decrease in adjusted admissions, compared to the same period in 2023. On a same-store basis, admissions increased 3.2 percent and adjusted admissions increased 2.7 percent for the year ended December 31, 2024, compared to the same period in 2023.
Net loss attributable to Community Health Systems, Inc. stockholders was $(516) million, or $(3.90) per share (diluted), for the year ended December 31, 2024, compared to $(133) million, or $(1.02) per share (diluted), for the same period in 2023. Excluding the adjusting items as presented in the table in footnote (e) on page 15, net loss attributable to Community Health Systems, Inc. stockholders was $(1.03) per share (diluted) for the year ended December 31, 2024, compared to $(1.39) per share (diluted) for the same period in 2023.
Adjusted EBITDA for the year ended December 31, 2024, was $1.540 billion compared to $1.453 billion for the same period in 2023.
The increase in net loss attributable to Community Health Systems, Inc. stockholders for the year ended December 31, 2024, compared to the same period in 2023, is primarily attributable to period-over-period changes in impairment and (gain) loss on the sale of businesses as well as gain from early extinguishment of debt and a change in estimate to increase the professional liability claims accrual incurred during the year ended December 31, 2024, partially offset by a decrease in the provision for income taxes and the factors that contributed to the increase in Adjusted EBITDA. The increase in Adjusted EBITDA for the year ended December 31, 2024, compared to the same period in 2023, was driven by higher same-store volumes, increased reimbursement rates, favorable changes in payor mix, a higher net benefit from supplemental reimbursement programs, reduced expense for contract labor and reductions in supplies expense, partially offset by lower acuity, increased patient claim denials and increased costs for outsourced medical specialists.
CYH Announces Fourth Quarter 2024 Results
During 2024, the Company completed two hospital divestitures, one of which was completed on August 1, 2024, and one of which was completed on October 1, 2024. In addition, during 2025 through the date of this press release, the Company divested its 50% interest in a hospital which was completed on February 1, 2025.
Financial and statistical data presented in this press release includes the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closure. Same-store operating results and statistical information include operating results of businesses operated in the comparable current year and prior year periods and exclude businesses divested in 2024 and 2023.
Information About Non-GAAP Financial Measures
This press release presents Adjusted EBITDA, a non-GAAP financial measure, which is EBITDA adjusted to add back net income attributable to noncontrolling interests and to exclude loss (gain) from early extinguishment of debt, impairment and (gain) loss on sale of businesses, expense related to the Business Transformation Costs (as defined in footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below), expense related to government and other legal matters and related costs, expense related to employee termination benefits and other restructuring charges, the impact of a change in estimate to increase the professional liability claims accrual recorded during the fourth quarter of 2022 with respect to claims incurred in prior years related to divested locations as well as a change in estimate to increase such accrual recorded during the third quarter of 2024, and the gain on sale by HealthTrust Purchasing Group, L.P. ( HealthTrust ) of a majority interest in CoreTrust Holdings, LLC ( CoreTrust ) completed during the fourth quarter of 2022. For information regarding why the Company believes Adjusted EBITDA provides useful information to investors, and for a reconciliation of Adjusted EBITDA to net (loss) income attributable to Community Health Systems, Inc. stockholders, see footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below.
Additionally, this press release presents adjusted net loss attributable to Community Health Systems, Inc. stockholders per share (diluted), a non-GAAP financial measure, to reflect the impact on net (loss) income attributable to Community Health Systems, Inc. stockholders per share (diluted) from the selected items used in the calculation of Adjusted EBITDA. For information regarding why the Company believes this non-GAAP financial measure provides useful information to investors, and for a reconciliation of this non-GAAP financial measure to net (loss) income attributable to Community Health Systems, Inc. stockholders per share (diluted), see footnote (e) to the Financial Highlights, Financial Statements and Selected Operating Data below.
The non-GAAP financial measures set forth above are not measurements of financial performance under U.S. GAAP, and should not be considered in isolation or as a substitute for any financial measure calculated in accordance with U.S. GAAP. Additionally, the calculation of these non-GAAP financial measures may not be comparable to similarly titled measures disclosed by other companies.
Included on pages 16, 17, 18, 19 and 20 of this press release are tables setting forth the Company's 2025 annual earnings guidance. The 2025 guidance is based on the Company's historical operating performance, current trends and other assumptions the Company believes are reasonable at this time as more specifically discussed below.
CYH Announces Fourth Quarter 2024 Results
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the nation's largest healthcare companies. The Company's affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 38 distinct markets across 15 states. As of February 18, 2025, the Company's subsidiaries own or lease 75 affiliated hospitals with more than 11,000 beds and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.
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, February 19, 2025 at 10:00 a.m. Central, 11:00 a.m. Eastern, to review financial and operating results for the fourth quarter and year ended December 31, 2024. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Presentations and Webcasts link of the Company's Investor Relations website at www.chs.net/investor-relations. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will continue to be available for approximately 30 days. Copies of this press release and conference call slide show, as well as the Company's Current Report on Form 8-K (including this press release), will be available on the Company's website at www.chs.net.
CYH Announces Fourth Quarter 2024 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)
(In millions, except per share amounts)
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Net operating revenues | $ | 3,265 | $ | 3,181 | $ | 12,634 | $ | 12,490 | ||||||||||||
| Net (loss) income (f) | (28 | ) | 85 | (362 | ) | 16 | ||||||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders | (70 | ) | 46 | (516 | ) | (133 | ) | |||||||||||||
| Adjusted EBITDA (c) | 428 | 386 | 1,540 | 1,453 | ||||||||||||||||
| Net cash provided by operating activities | 216 | 90 | 480 | 210 | ||||||||||||||||
| (Loss) earnings per share attributable to Community Health Systems, Inc. stockholders: | ||||||||||||||||||||
| Basic (f) | $ | (0.53 | ) | $ | 0.35 | $ | (3.90 | ) | $ | (1.02 | ) | |||||||||
| Diluted (e), (f) | (0.53 | ) | 0.35 | (3.90 | ) | (1.02 | ) | |||||||||||||
| Weighted-average number of shares outstanding (d): | ||||||||||||||||||||
| Basic | 132 | 131 | 132 | 130 | ||||||||||||||||
| Diluted | 132 | 132 | 132 | 130 |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
| COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||||||||
| Condensed Consolidated Statements of (Loss) Income (a)(b) | |||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||
| % of Net | % of Net | ||||||||||||||||||
| Operating | Operating | ||||||||||||||||||
| Amount | Revenues | Amount | Revenues | ||||||||||||||||
| Net operating revenues | $ | 3,265 | 100.0 | % | $ | 3,181 | 100.0 | % | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Salaries and benefits | 1,363 | 41.8 | % | 1,374 | 43.2 | % | |||||||||||||
| Supplies | 507 | 15.5 | % | 509 | 16.0 | % | |||||||||||||
| Other operating expenses | 905 | 27.7 | % | 849 | 26.7 | % | |||||||||||||
| Lease cost and rent | 75 | 2.3 | % | 79 | 2.5 | % | |||||||||||||
| Depreciation and amortization | 129 | 4.0 | % | 121 | 3.8 | % | |||||||||||||
| Impairment and (gain) loss on sale of businesses, net (f) | 7 | 0.2 | % | (78 | ) | (2.5 | ) | % | |||||||||||
| Total operating expenses | 2,986 | 91.5 | % | 2,854 | 89.7 | % | |||||||||||||
| Income from operations (f) | 279 | 8.5 | % | 327 | 10.3 | % | |||||||||||||
| Interest expense, net | 218 | 6.6 | % | 209 | 6.6 | % | |||||||||||||
| Gain from early extinguishment of debt | - | - | % | (72 | ) | (2.3 | ) | % | |||||||||||
| Equity in earnings of unconsolidated affiliates | (3 | ) | (0.1 | ) | % | (3 | ) | (0.1 | ) | % | |||||||||
| Income before income taxes | 64 | 2.0 | % | 193 | 6.1 | % | |||||||||||||
| Provision for income taxes | 92 | 2.9 | % | 108 | 3.4 | % | |||||||||||||
| Net (loss) income (f) | (28 | ) | (0.9 | ) | % | 85 | 2.7 | % | |||||||||||
| Less: Net income attributable to noncontrolling interests | 42 | 1.2 | % | 39 | 1.3 | % | |||||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (70 | ) | (2.1 | ) | % | $ | 46 | 1.4 | % | |||||||||
| (Loss) earnings per share attributable to Community Health Systems, Inc. stockholders: | |||||||||||||||||||
| Basic (f) | $ | (0.53 | ) | $ | 0.35 | ||||||||||||||
| Diluted (e), (f) | $ | (0.53 | ) | $ | 0.35 | ||||||||||||||
| Weighted-average number of shares outstanding (d): | |||||||||||||||||||
| Basic | 132 | 131 | |||||||||||||||||
| Diluted | 132 | 132 |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Loss (a)(b)
(In millions, except per share amounts)
| Year Ended December 31, | |||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||
| % of Net | % of Net | ||||||||||||||||||
| Operating | Operating | ||||||||||||||||||
| Amount | Revenues | Amount | Revenues | ||||||||||||||||
| Net operating revenues | $ | 12,634 | 100.0 | % | $ | 12,490 | 100.0 | % | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Salaries and benefits | 5,418 | 42.9 | % | 5,415 | 43.4 | % | |||||||||||||
| Supplies | 1,946 | 15.4 | % | 1,993 | 16.0 | % | |||||||||||||
| Other operating expenses | 3,642 | 28.8 | % | 3,388 | 27.0 | % | |||||||||||||
| Lease cost and rent | 299 | 2.4 | % | 319 | 2.6 | % | |||||||||||||
| Depreciation and amortization | 486 | 3.8 | % | 505 | 4.0 | % | |||||||||||||
| Impairment and (gain) loss on sale of businesses, net (f) | 301 | 2.4 | % | (87 | ) | (0.7 | ) | % | |||||||||||
| Total operating expenses | 12,092 | 95.7 | % | 11,533 | 92.3 | % | |||||||||||||
| Income from operations (f) | 542 | 4.3 | % | 957 | 7.7 | % | |||||||||||||
| Interest expense, net | 860 | 6.8 | % | 830 | 6.7 | % | |||||||||||||
| Gain from early extinguishment of debt | (25 | ) | (0.2 | ) | % | (72 | ) | (0.6 | ) | % | |||||||||
| Equity in earnings of unconsolidated affiliates | (10 | ) | (0.1 | ) | % | (8 | ) | (0.1 | ) | % | |||||||||
| (Loss) income before income taxes | (283 | ) | (2.2 | ) | % | 207 | 1.7 | % | |||||||||||
| Provision for income taxes | 79 | 0.7 | % | 191 | 1.6 | % | |||||||||||||
| Net (loss) income (f) | (362 | ) | (2.9 | ) | % | 16 | 0.1 | % | |||||||||||
| Less: Net income attributable to noncontrolling interests | 154 | 1.2 | % | 149 | 1.2 | % | |||||||||||||
| Net loss attributable to Community Health Systems, Inc. stockholders | $ | (516 | ) | (4.1 | ) | % | $ | (133 | ) | (1.1 | ) | % | |||||||
| Loss per share attributable to Community Health Systems, Inc. stockholders: | |||||||||||||||||||
| Basic (f) | $ | (3.90 | ) | $ | (1.02 | ) | |||||||||||||
| Diluted (e), (f) | $ | (3.90 | ) | $ | (1.02 | ) | |||||||||||||
| Weighted-average number of shares outstanding (d): | |||||||||||||||||||
| Basic | 132 | 130 | |||||||||||||||||
| Diluted | 132 | 130 |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive (Loss) Income
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net (loss) income | $ | (28 | ) | $ | 85 | $ | (362 | ) | $ | 16 | |||||||||
| Other comprehensive (loss) income, net of income taxes: | |||||||||||||||||||
| Net change in fair value of available-for-sale debt securities, net of tax | (4 | ) | 7 | - | 6 | ||||||||||||||
| Amortization and recognition of unrecognized pension cost components, net of tax | 3 | 1 | 4 | 1 | |||||||||||||||
| Other comprehensive (loss) income | (1 | ) | 8 | 4 | 7 | ||||||||||||||
| Comprehensive (loss) income | (29 | ) | 93 | (358 | ) | 23 | |||||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | 42 | 39 | 154 | 149 | |||||||||||||||
| Comprehensive (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (71 | ) | $ | 54 | $ | (512 | ) | $ | (126 | ) |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
| COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
| Selected Operating Data (a) | ||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store | |||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) (h) | 76 | 78 | 75 | 75 | ||||||||||||||||||||
| Licensed beds (at end of period) | 11,403 | 11,902 | 11,195 | 10,899 | ||||||||||||||||||||
| Beds in service (at end of period) | 9,641 | 10,234 | 9,641 | 9,727 | ||||||||||||||||||||
| Admissions | 104,644 | 110,874 | -5.6 | % | 104,644 | 101,223 | 3.4 | % | ||||||||||||||||
| Adjusted admissions | 238,581 | 252,875 | -5.7 | % | 238,517 | 231,305 | 3.1 | % | ||||||||||||||||
| Patient days | 448,101 | 503,631 | 448,103 | 453,550 | ||||||||||||||||||||
| Average length of stay (days) | 4.3 | 4.5 | 4.3 | 4.5 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 50.5 | % | 53.5 | % | 50.5 | % | 50.7 | % | ||||||||||||||||
| Net operating revenues | $ | 3,265 | $ | 3,181 | 2.6 | % | $ | 3,231 | $ | 3,033 | 6.5 | % | ||||||||||||
| Net inpatient revenues as a % of net operating revenues | 48.3 | % | 46.0 | % | 48.1 | % | 45.3 | % | ||||||||||||||||
| Net outpatient revenues as a % of net operating revenues | 51.7 | % | 54.0 | % | 51.9 | % | 54.7 | % | ||||||||||||||||
| Income from operations (f) | $ | 279 | $ | 327 | -14.7 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 8.5 | % | 10.3 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 129 | $ | 121 | ||||||||||||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (70 | ) | $ | 46 | -252.2 | % | |||||||||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders as a % of net operating revenues | -2.1 | % | 1.4 | % | ||||||||||||||||||||
| Adjusted EBITDA (c) | $ | 428 | $ | 386 | 10.9 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 13.1 | % | 12.1 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 216 | $ | 90 | 140.0 | % |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)
(Dollars in millions)
| Year Ended December 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store | |||||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) (h) | 76 | 78 | 75 | 75 | ||||||||||||||||||||
| Licensed beds (at end of period) | 11,403 | 11,902 | 11,195 | 10,899 | ||||||||||||||||||||
| Beds in service (at end of period) | 9,641 | 10,234 | 9,641 | 9,727 | ||||||||||||||||||||
| Admissions | 422,040 | 435,913 | -3.2 | % | 412,226 | 399,383 | 3.2 | % | ||||||||||||||||
| Adjusted admissions | 958,531 | 992,552 | -3.4 | % | 937,404 | 912,530 | 2.7 | % | ||||||||||||||||
| Patient days | 1,853,387 | 1,957,536 | 1,802,121 | 1,788,074 | ||||||||||||||||||||
| Average length of stay (days) | 4.4 | 4.5 | 4.4 | 4.5 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 52.5 | % | 52.4 | % | 51.1 | % | 50.4 | % | ||||||||||||||||
| Net operating revenues | $ | 12,634 | $ | 12,490 | 1.2 | % | $ | 12,426 | $ | 11,773 | 5.5 | % | ||||||||||||
| Net inpatient revenues as a % of net operating revenues | 47.8 | % | 46.6 | % | 47.6 | % | 46.2 | % | ||||||||||||||||
| Net outpatient revenues as a % of net operating revenues | 52.2 | % | 53.4 | % | 52.4 | % | 53.8 | % | ||||||||||||||||
| Income from operations (f) | $ | 542 | $ | 957 | -43.4 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 4.3 | % | 7.7 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 486 | $ | 505 | ||||||||||||||||||||
| Net loss attributable to Community Health Systems, Inc. stockholders | $ | (516 | ) | $ | (133 | ) | -288.0 | % | ||||||||||||||||
| Net loss attributable to Community Health Systems, Inc. stockholders as a % of net operating revenues | -4.1 | % | -1.1 | % | ||||||||||||||||||||
| Adjusted EBITDA (c) | $ | 1,540 | $ | 1,453 | 6.0 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 12.2 | % | 11.6 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 480 | $ | 210 | 128.6 | % |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions, except share data)
| December 31, 2024 | December 31, 2023 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 37 | $ | 38 | ||||||
| Patient accounts receivable | 2,286 | 2,231 | ||||||||
| Supplies | 331 | 328 | ||||||||
| Prepaid income taxes | 53 | 76 | ||||||||
| Prepaid expenses and taxes | 236 | 260 | ||||||||
| Other current assets | 358 | 275 | ||||||||
| Total current assets | 3,301 | 3,208 | ||||||||
| Property and equipment: | ||||||||||
| Land and improvements | 427 | 474 | ||||||||
| Buildings and improvements | 5,658 | 5,951 | ||||||||
| Equipment and fixtures | 3,075 | 3,086 | ||||||||
| Property and equipment | 9,160 | 9,511 | ||||||||
| Less accumulated depreciation and amortization | (4,384 | ) | (4,304 | ) | ||||||
| Property and equipment, net | 4,776 | 5,207 | ||||||||
| Goodwill | 3,789 | 3,958 | ||||||||
| Deferred income taxes | 13 | 29 | ||||||||
| Other assets, net of accumulated amortization of $1,501 and $1,518 at December 31, 2024 and 2023, respectively | 2,175 | 2,053 | ||||||||
| Total assets | $ | 14,054 | $ | 14,455 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||
| Current liabilities | ||||||||||
| Current maturities of long-term debt | $ | 20 | $ | 21 | ||||||
| Current operating lease liabilities | 115 | 124 | ||||||||
| Accounts payable | 913 | 912 | ||||||||
| Accrued liabilities: | ||||||||||
| Employee compensation | 596 | 571 | ||||||||
| Accrued interest | 222 | 160 | ||||||||
| Other | 479 | 354 | ||||||||
| Total current liabilities | 2,345 | 2,142 | ||||||||
| Long-term debt (g) | 11,432 | 11,466 | ||||||||
| Deferred income taxes | 231 | 369 | ||||||||
| Long-term operating lease liabilities | 535 | 563 | ||||||||
| Other long-term liabilities | 828 | 739 | ||||||||
| Total liabilities | 15,371 | 15,279 | ||||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 359 | 323 | ||||||||
| STOCKHOLDERS ' DEFICIT | ||||||||||
| Community Health Systems, Inc. stockholders' deficit: | ||||||||||
| 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; 138,919,641 shares issued and outstanding at December 31, 2024, and 136,774,911 shares issued and outstanding at December 31, 2023 | 1 | 1 | ||||||||
| Additional paid-in capital | 2,175 | 2,185 | ||||||||
| Accumulated other comprehensive loss | (10 | ) | (14 | ) | ||||||
| Accumulated deficit | (4,080 | ) | (3,564 | ) | ||||||
| Total Community Health Systems, Inc. stockholders' deficit | (1,914 | ) | (1,392 | ) | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 238 | 245 | ||||||||
| Total stockholders ' deficit | (1,676 | ) | (1,147 | ) | ||||||
| Total liabilities and stockholders ' deficit | $ | 14,054 | $ | 14,455 |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
| Year Ended December 31, | |||||||||
| 2024 | 2023 | ||||||||
| Cash flows from operating activities | |||||||||
| Net (loss) income | $ | (362 | ) | $ | 16 | ||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 486 | 505 | |||||||
| Deferred income taxes | (116 | ) | 35 | ||||||
| Stock-based compensation expense | 17 | 22 | |||||||
| Impairment and (gain) loss on sale of businesses, net (f) | 301 | (87 | ) | ||||||
| Gain from early extinguishment of debt | (25 | ) | (72 | ) | |||||
| Other non-cash expenses, net | 188 | 181 | |||||||
| Changes in operating assets and liabilities, net of effects of | |||||||||
| acquisitions and divestitures: | |||||||||
| Patient accounts receivable | (66 | ) | (193 | ) | |||||
| Supplies, prepaid expenses and other current assets | (75 | ) | (82 | ) | |||||
| Accounts payable, accrued liabilities and income taxes | 137 | (50 | ) | ||||||
| Other | (5 | ) | (65 | ) | |||||
| Net cash provided by operating activities | 480 | 210 | |||||||
| Cash flows from investing activities | |||||||||
| Acquisitions of facilities and other related businesses | (25 | ) | (38 | ) | |||||
| Purchases of property and equipment | (360 | ) | (467 | ) | |||||
| Proceeds from disposition of hospitals and other ancillary operations | 174 | 432 | |||||||
| Proceeds from sale of property and equipment | 5 | 28 | |||||||
| Purchases of available-for-sale debt securities and equity securities | (81 | ) | (137 | ) | |||||
| Proceeds from sales of available-for-sale debt securities and equity securities | 80 | 232 | |||||||
| Purchases of investments in unconsolidated affiliates | (9 | ) | (11 | ) | |||||
| Increase in other investments | (59 | ) | (65 | ) | |||||
| Net cash used in investing activities | (275 | ) | (26 | ) | |||||
| Cash flows from financing activities | |||||||||
| Repurchase of restricted stock shares for payroll tax withholding requirements | (1 | ) | (4 | ) | |||||
| Deferred financing costs and other debt-related costs | (9 | ) | (3 | ) | |||||
| Proceeds from noncontrolling investors in joint ventures | 1 | 5 | |||||||
| Redemption of noncontrolling investments in joint ventures | (3 | ) | (1 | ) | |||||
| Distributions to noncontrolling investors in joint ventures | (155 | ) | (141 | ) | |||||
| Other borrowings | 25 | 39 | |||||||
| Issuance of long-term debt | 1,236 | 989 | |||||||
| Proceeds from ABL Facility | 3,763 | 3,176 | |||||||
| Repayments of long-term indebtedness | (5,063 | ) | (4,324 | ) | |||||
| Net cash used in financing activities | (206 | ) | (264 | ) | |||||
| Net change in cash and cash equivalents | (1 | ) | (80 | ) | |||||
| Cash and cash equivalents at beginning of period | 38 | 118 | |||||||
| Cash and cash equivalents at end of period | $ | 37 | $ | 38 |
For footnotes, see pages 13, 14 and 15.
CYH Announces Fourth Quarter 2024 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
(a)Both financial and statistical results include the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closing. Same-store operating results and statistical information include operating results of businesses operated in the comparable current year and prior year periods and exclude businesses divested in 2024 and 2023. There were no discontinued operations reported for the periods presented.
(b)The following table provides information needed to calculate net (loss) income attributable to Community Health Systems, Inc. stockholders, which is adjusted for income attributable to noncontrolling interests (in millions):
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders: | |||||||||||||||||||
| Net (loss) income | $ | (28 | ) | $ | 85 | $ | (362 | ) | $ | 16 | |||||||||
| Less: Income attributable to noncontrolling interests, net of taxes | 42 | 39 | 154 | 149 | |||||||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders basic and diluted | $ | (70 | ) | $ | 46 | $ | (516 | ) | $ | (133 | ) |
(c)EBITDA is a non-GAAP financial measure which consists of net (loss) income attributable to Community Health Systems, Inc. before interest, income taxes, and depreciation and amortization. Adjusted EBITDA, also a non-GAAP financial measure, is EBITDA adjusted to add back net income attributable to noncontrolling interests and to exclude loss (gain) from early extinguishment of debt, impairment and (gain) loss on sale of businesses, expense from third-party consulting costs associated with significant process and systems redesign across multiple functions (the Business Transformation Costs ) as part of the Company's previously disclosed multi-year initiative to modernize and consolidate technology platforms and associated processes, expense related to government and other legal matters and related costs, expense related to employee termination benefits and other restructuring charges, the impact of a change in estimate to increase the professional liability claims accrual recorded during the fourth quarter of 2022 with respect to claims incurred in prior years related to divested locations as well as a change in estimate to increase such accrual recorded during the third quarter of 2024, and the gain on sale by HealthTrust of a majority interest in CoreTrust completed during the fourth quarter of 2022. The Company has from time to time sold noncontrolling interests in certain of its subsidiaries or acquired subsidiaries with existing noncontrolling interest ownership positions. The Company believes that it is useful to present Adjusted EBITDA because it adds back the portion of EBITDA attributable to these third-party interests. The Company reports Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by management to assess the operating performance of the Company's hospital operations and to make decisions on the allocation of resources. Adjusted EBITDA is also used to evaluate the performance of the Company's executive management team and is one of the primary metrics used in connection with determining short-term cash incentive compensation and the achievement of vesting criteria with respect to performance-based equity awards. In addition, management utilizes Adjusted EBITDA in assessing the Company's consolidated results of operations and operational performance and in comparing the Company's results of operations between periods.
CYH Announces Fourth Quarter 2024 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)
The Company believes it is useful to provide investors and other users of the Company's financial statements this performance measure to align with how management assesses the Company's results of operations. Adjusted EBITDA also is comparable to a similar metric called Consolidated EBITDA, as defined in the Company's asset-based loan facility (the ABL Facility ) and the Company's existing note indentures, which is a key component in the determination of the Company's compliance with certain covenants under the ABL Facility and such note indentures (including the Company's ability to service debt and incur capital expenditures), and is used to determine the interest rate and commitment fee payable under the ABL Facility (although Adjusted EBITDA does not include all of the adjustments described in the ABL Facility). Adjusted EBITDA includes the Adjusted EBITDA attributable to hospitals that were divested during the course of such year, but in each case solely to the extent relating to the period prior to the consummation of the applicable divestiture.
Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. It should not be considered in isolation or as a substitute for net income, operating income, or any other performance measure calculated in accordance with U.S. GAAP. The items excluded from Adjusted EBITDA are significant components in understanding and evaluating financial performance. The Company believes such adjustments are appropriate as the magnitude and frequency of such items can vary significantly and are not related to the assessment of normal operating performance. Additionally, this calculation of Adjusted EBITDA may not be comparable to similarly titled measures disclosed by other companies.
The following table reflects the reconciliation of Adjusted EBITDA, as defined, to net (loss) income attributable to Community Health Systems, Inc. stockholders from our condensed consolidated financial statements (in millions):
| Three Months Ended | Year Ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Net (loss) income attributable to Community Health | |||||||||||||||||||||
| Systems, Inc. stockholders | $ | (70 | ) | $ | 46 | $ | (516 | ) | $ | (133 | ) | ||||||||||
| Adjustments: | |||||||||||||||||||||
| Provision for income taxes | 92 | 108 | 79 | 191 | |||||||||||||||||
| Depreciation and amortization | 129 | 121 | 486 | 505 | |||||||||||||||||
| Net income attributable to noncontrolling interests | 42 | 39 | 154 | 149 | |||||||||||||||||
| Interest expense, net | 218 | 209 | 860 | 830 | |||||||||||||||||
| Gain from early extinguishment of debt | - | (72 | ) | (25 | ) | (72 | ) | ||||||||||||||
| Impairment and (gain) loss on sale of businesses, net | 7 | (78 | ) | 301 | (87 | ) | |||||||||||||||
| Expense from government and other legal matters and related costs | - | 3 | - | 36 | |||||||||||||||||
| Expense from business transformation costs | 10 | 9 | 52 | 22 | |||||||||||||||||
| Expense related to employee termination benefits and other restructuring charges | - | 1 | - | 12 | |||||||||||||||||
| Change in estimate for professional claims liability | - | - | 149 | - | |||||||||||||||||
| Adjusted EBITDA | $ | 428 | $ | 386 | $ | 1,540 | $ | 1,453 |
(d)The following table sets forth components reconciling the basic weighted-average number of shares to the diluted weighted-average number of shares (in millions):
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Weighted-average number of shares outstanding - basic | 132 | 131 | 132 | 130 | ||||||||||||
| Add effect of dilutive securities: | ||||||||||||||||
| Stock awards and options | - | 1 | - | - | ||||||||||||
| Weighted-average number of shares outstanding - diluted | 132 | 132 | 132 | 130 |
CYH Announces Fourth Quarter 2024 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)
The Company generated a net loss attributable to Community Health Systems, Inc. stockholders for the three months ended December 31, 2024 and the years ended December 31, 2024 and 2023, so the effect of dilutive securities is not considered because their effect would be antidilutive. If the Company had generated net income, the effect of stock awards and options on the diluted shares calculation would have been an increase of 2,141,387 shares during the three months ended December 31, 2024, and an increase of 1,333,424 shares and 422,487 shares during the years ended December 31, 2024 and 2023, respectively.
(e)The following supplemental table reconciles net (loss) income attributable to Community Health Systems, Inc. stockholders, as reported, on a per share (diluted) basis, to net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) with the adjustments described herein (total per share amounts may not add due to rounding). The Company believes that the presentation of non-GAAP adjusted net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) presents useful information to investors by highlighting the impact on net (loss) income attributable to Community Health Systems, Inc. stockholders per share (diluted) of selected items used in calculating Adjusted EBITDA which may not reflect the Company's underlying operating performance and assisting in comparing the Company's results of operations between periods.
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income per share (diluted), as reported | $ | (0.53 | ) | $ | 0.35 | $ | (3.90 | ) | $ | (1.02 | ) | ||||
| Adjustments: | |||||||||||||||
| Gain from early extinguishment of debt | - | (0.47 | ) | (0.20 | ) | (0.47 | ) | ||||||||
| Impairment and (gain) loss on sale of businesses, net | 0.05 | (0.37 | ) | 1.89 | (0.33 | ) | |||||||||
| Expense from government and other legal matters and related costs | - | 0.02 | - | 0.22 | |||||||||||
| Expense from business transformation costs | 0.06 | 0.05 | 0.31 | 0.13 | |||||||||||
| Expense related to employee termination benefits and other restructuring charges | - | - | - | 0.07 | |||||||||||
| Change in estimate for professional claims liability | - | - | 0.88 | - | |||||||||||
| Net loss per share (diluted), excluding adjustments | $ | (0.42 | ) | $ | (0.41 | ) | $ | (1.03 | ) | $ | (1.39 | ) |
(f)Both income from operations and net (loss) income included a net non-cash impairment expense of $7 million and income of $78 million for the three months ended December 31, 2024 and 2023, respectively, and a net non-cash impairment expense of $301 million and income of $87 million for the years ended December 31, 2024 and 2023, respectively. The impairment expense for 2024 was primarily from impairment expense to reduce the carrying value of several assets that were idled, disposed of or held-for-sale and partially offset by gains on the sale of certain businesses during the period. The income for 2023 was primarily from gains and losses on the sale of certain businesses during the period and impairment charges to reduce the value of certain long-lived assets at businesses the Company identified for sale. These gains, losses and impairment charges do not have an impact on the calculation of the Company's financial covenants under the ABL Facility.
(g)The maximum aggregate principal amount under the ABL Facility is $1.0 billion, subject to borrowing base capacity. At December 31, 2024, the Company had outstanding borrowings of $341 million and approximately $491 million of additional borrowing capacity (after taking into consideration $66 million of outstanding letters of credit) under the ABL Facility.
(h)Effective December 31, 2024, the number of hospitals reflected in the chart above was updated to separately distinguish facilities providing inpatient, acute-care services other than on the primary hospital campus. The number of hospitals presented for the prior-year comparative periods has been updated to conform with the aforementioned change.
CYH Announces Fourth Quarter 2024 Results
Regulation FD Disclosure