Full Press Release Details
Investor Contact: W. Larry Cash
President of Financial Services
and Chief Financial Officer
COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
SECOND QUARTER 2014 RESULTS WITH NET OPERATING REVENUES OF $4.779 BILLION
FRANKLIN, Tenn. (July 31, 2014) - Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and operating results for the
three and six months ended June 30, 2014.
Financial and statistical data reported in this earnings release includes Health
Management Associates, Inc. s ( HMA ) operating results from January 27, 2014, the date the Company completed its acquisition of HMA. Prior period consolidated results and statistical data reflect only the Company and its
subsidiaries for the period prior to the HMA acquisition. Same-store operating results and statistical data includes comparable information for hospitals acquired as a result of the HMA acquisition for the months of February through June 2014 and
Net operating revenues for the three months ended June 30, 2014, totaled $4.779 billion, a 49.8 percent increase compared with
$3.191 billion for the same period in 2013. Income from continuing operations increased to $75 million, or $0.42 per share (diluted), for the three months ended June 30, 2014, compared with income from continuing operations of $53 million, or
$0.38 per share (diluted), for the same period in 2013. The results for the three months ended June 30, 2014, include $0.07 per share (diluted) of expenses related to acquisition and integration expenses from the acquisition of HMA; $0.06 per
share (diluted) of legal expenses related to HMA legal proceedings underlying the contingent value rights ( CVR ) agreement; and $0.19 per share (diluted) of expenses related to accelerating amortization on software to be abandoned.
Excluding these expenses, income from continuing operations was $0.74 per share (diluted). Net income attributable to Community Health Systems, Inc. common stockholders was $0.37 per share (diluted) for the three months ended June 30, 2014,
compared with net income of $0.32 per share (diluted) for the same period in 2013. Discontinued operations for the three months ended June 30, 2014 consisted of a loss of $(0.04) per share (diluted). Weighted-average shares outstanding
(diluted) were 113 million for the three months ended June 30, 2014, and 94 million for the three months ended June 30, 2013.
Adjusted EBITDA for the three months ended June 30, 2014, was $677 million compared with $420 million for the same period in 2013,
representing a 61.2 percent increase. Excluding acquisition and integration expenses from the acquisition of HMA and legal expenses related to the HMA legal proceedings underlying the CVR agreement, ADJUSTED EBITDA was $699 million for the three
months ended June 30, 2014. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, loss from early extinguishment of debt, impairment of long-lived assets and net income attributable to noncontrolling interests. The Company uses
Adjusted EBITDA as a measure of liquidity. A reconciliation of Adjusted EBITDA to net cash provided by operating activities is included in the attached footnotes.
The consolidated operating results for the three months ended June 30, 2014, reflect a 47.8 percent increase in total admissions and a
51.6 percent increase in total adjusted admissions compared with the same period in 2013. On a same-store basis, admissions decreased 4.8 percent while adjusted admissions decreased 1.2 percent compared with the same period in 2013. On a same-store
basis, net operating revenues increased 0.4 percent compared with the same period in 2013.
Net operating revenues for the six months
ended June 30, 2014, totaled $8.964 billion, a 38.9 percent increase compared with $6.453 billion for the same period in 2013. Income from continuing operations decreased to a loss of less than $1.0 million, or $(0.39) per share (diluted), for
the six months ended June 30, 2014, compared with income from continuing operations of $152 million, or $1.27 per share (diluted), for the same period in 2013. The results for the six
CYH Announces Second Quarter 2014 Results
months ended June 30, 2014, include $0.37 per share (diluted) of expenses related to acquisition and integration expenses from the acquisition of HMA; $0.07 per share (diluted) of legal
expenses related to HMA legal proceedings underlying the CVR agreement; $0.41 per share (diluted) of expenses related to the loss from early extinguishment of debt; $0.14 per share (diluted) of expenses related to the impairment of software costs
taken out of service; and $0.43 per share (diluted) of expenses related to accelerating amortization on software to be abandoned. Excluding these expenses, income from continuing operations was $1.03 per share (diluted). Net loss attributable to
Community Health Systems, Inc. common stockholders was $(0.64) per share (diluted) for the six months ended June 30, 2014, compared with net income of $1.17 per share (diluted) for the same period in 2013. Discontinued operations for the six
months ended June 30, 2014, consisted of $0.04 per share (diluted) of losses from operations of entities held for sale and approximately $0.21 per share (diluted) of expenses related to the impairment of long-lived assets held for sale for a
total after-tax loss of approximately $27 million, or $(0.25) per share (diluted). Weighted-average shares outstanding (diluted) were 110 million for the six months ended June 30, 2014, and 93 million for the six months ended
Adjusted EBITDA for the six months ended June 30, 2014, was $1.163 billion compared with $914 million for the
same period in 2013, representing a 27.2 percent increase. Excluding acquisition and integration expenses from the acquisition of HMA and legal expenses related to the HMA legal proceedings underlying the CVR agreement, ADJUSTED EBITDA was $1.241
billion for the six months ended June 30, 2014.
The consolidated operating results for the six months ended June 30, 2014,
reflect a 36.1 percent increase in total admissions and a 40.1 percent increase in total adjusted admissions compared with the same period in 2013. On a same-store basis, admissions decreased 6.3 percent while adjusted admissions decreased 3.2
percent compared with the same period in 2013. On a same-store basis, net operating revenues decreased 1.7 percent compared with the same period in 2013.
Commenting on the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, We are pleased
with our performance for the second quarter of fiscal 2014 and our ability to execute our strategy in an evolving healthcare environment. These results reflect improved operating synergies from the integration of the HMA hospitals and a more
favorable operating environment with less weather disruptions than we experienced early in the year. At the same time, we have continued to position the Company to capitalize on the opportunities created by implementation of The Affordable Care Act.
We have already realized the early benefits of healthcare reform in the second quarter with a decline in uninsured admissions and a modest shift in payor mix, and we expect this trend to continue with further expansion of insurance coverage. While
we were pleased with the sequential improvement in our volume trends over the first quarter, we are focused on initiatives to drive our overall admissions.
Our integration of the HMA facilities is progressing on target, and we expect to achieve our estimated operating synergies for 2014. Our
results to date reflect our ability to leverage our successful model into an expanded operation that enhances the performance of our hospitals and, in turn, benefits more communities. Importantly, we continue to identify additional opportunities to
drive operating efficiencies from these acquired hospitals and we look for further improvement in the second half of 2014.
on pages 15, 16, 17 and 18 of this press release are tables setting forth the Company s updated 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, including with respect to the HMA acquisition.
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 31,100 licensed beds. Its hospitals offer a broad range of inpatient and surgical services,
outpatient treatment and skilled nursing care.
CYH Announces Second Quarter 2014 Results
Community Health Systems, Inc. will hold a conference call on Friday, August 1, 2014, at
10:00 a.m. Central, 11:00 a.m. Eastern, to review financial and operating results for the second quarter ended June 30, 2014. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the
Investor Relations link of the Company s website at www.chs.net. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot
listen to the live broadcast, a replay will be available shortly after the call and will continue to be available through September 1, 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 Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net operating revenues | $ | 4,779 | $ | 3,191 | $ | 8,964 | $ | 6,453 | ||||||||
| Adjusted EBITDA (f) | 677 | 420 | 1,163 | 914 | ||||||||||||
| Income from continuing operations (g), (h), (k) | 75 | 53 | 152 | |||||||||||||
| Net income (loss) attributable to Community Health Systems, Inc. stockholders | 42 | 30 | (70 | ) | 109 | |||||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | 0.42 | $ | 0.39 | $ | (0.39 | ) | $ | 1.28 | |||||||
| Discontinued operations | (0.04 | ) | (0.06 | ) | (0.25 | ) | (0.10 | ) | ||||||||
| Net income (loss) | $ | 0.37 | $ | 0.32 | $ | (0.64 | ) | $ | 1.19 | |||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (m): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | 0.42 | $ | 0.38 | $ | (0.39 | ) | $ | 1.27 | |||||||
| Discontinued operations | (0.04 | ) | (0.06 | ) | (0.25 | ) | (0.10 | ) | ||||||||
| Net income (loss) | $ | 0.37 | $ | 0.32 | $ | (0.64 | ) | $ | 1.17 | |||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 113 | 93 | 110 | 92 | ||||||||||||
| Diluted | 113 | 94 | 110 | 93 | ||||||||||||
| Net cash provided by operating activities | $ | 449 | $ | 252 | $ | 514 | $ | 309 |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Three Months Ended June 30, | ||||||||||||||||
| 2014 | 2013 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 5,531 | $ | 3,711 | ||||||||||||
| Provision for bad debts | 752 | 520 | ||||||||||||||
| Net operating revenues | 4,779 | 100.0 | % | 3,191 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 2,228 | 46.6 | % | 1,528 | 47.9 | % | ||||||||||
| Supplies | 738 | 15.4 | % | 493 | 15.4 | % | ||||||||||
| Other operating expenses | 1,120 | 23.5 | % | 713 | 22.4 | % | ||||||||||
| Electronic health records incentive reimbursement (g) | (84 | ) | (1.8 | )% | (24 | ) | (0.8 | )% | ||||||||
| Rent | 111 | 2.3 | % | 70 | 2.2 | % | ||||||||||
| Depreciation and amortization | 282 | 5.9 | % | 192 | 6.0 | % | ||||||||||
| Amortization of software to be abandoned (k) | 33 | 0.7 | % | |||||||||||||
| Total operating costs and expenses | 4,428 | 92.6 | % | 2,972 | 93.1 | % | ||||||||||
| Income from operations (g), (h), (k) | 351 | 7.4 | % | 219 | 6.9 | % | ||||||||||
| Interest expense, net | 255 | 5.3 | % | 154 | 4.8 | % | ||||||||||
| Equity in earnings of unconsolidated affiliates | (11 | ) | (0.2 | )% | (9 | ) | (0.3 | )% | ||||||||
| Income from continuing operations before income taxes | 107 | 2.3 | % | 74 | 2.4 | % | ||||||||||
| Provision for income taxes | 32 | 0.7 | % | 21 | 0.7 | % | ||||||||||
| Income from continuing operations (g), (h), (k) | 75 | 1.6 | % | 53 | 1.7 | % | ||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities held for sale | (6 | ) | (0.2 | )% | ||||||||||||
| Impairment of hospitals held for sale | (5 | ) | (0.1 | )% | ||||||||||||
| Loss from discontinued operations, net of taxes | (5 | ) | (0.1 | )% | (6 | ) | (0.2 | )% | ||||||||
| Net income | 70 | 1.5 | % | 47 | 1.5 | % | ||||||||||
| Less: Net income attributable to noncontrolling interests | 28 | 0.6 | % | 17 | 0.6 | % | ||||||||||
| Net income attributable to Community Health Systems, Inc. stockholders | $ | 42 | 0.9 | % | $ | 30 | 0.9 | % | ||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | 0.42 | $ | 0.39 | ||||||||||||
| Discontinued operations | (0.04 | ) | (0.06 | ) | ||||||||||||
| Net income | $ | 0.37 | $ | 0.32 | ||||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (m): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | 0.42 | $ | 0.38 | ||||||||||||
| Discontinued operations | (0.04 | ) | (0.06 | ) | ||||||||||||
| Net income | $ | 0.37 | $ | 0.32 | ||||||||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 113 | 93 | ||||||||||||||
| Diluted | 113 | 94 |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of (Loss) Income (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Six Months Ended June 30, | ||||||||||||||||
| 2014 | 2013 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 10,420 | $ | 7,450 | ||||||||||||
| Provision for bad debts | 1,456 | 997 | ||||||||||||||
| Net operating revenues | 8,964 | 100.0 | % | 6,453 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 4,225 | 47.1 | % | 3,076 | 47.7 | % | ||||||||||
| Supplies | 1,371 | 15.3 | % | 986 | 15.3 | % | ||||||||||
| Other operating expenses | 2,141 | 24.0 | % | 1,405 | 21.7 | % | ||||||||||
| Electronic health records incentive reimbursement (g) | (124 | ) | (1.4 | )% | (43 | ) | (0.7 | )% | ||||||||
| Rent | 210 | 2.3 | % | 139 | 2.2 | % | ||||||||||
| Depreciation and amortization | 537 | 6.0 | % | 381 | 5.9 | % | ||||||||||
| Amortization of software to be abandoned (k) | 75 | 0.8 | % | |||||||||||||
| Total operating costs and expenses | 8,435 | 94.1 | % | 5,944 | 92.1 | % | ||||||||||
| Income from operations (g), (h), (k) | 529 | 5.9 | % | 509 | 7.9 | % | ||||||||||
| Interest expense, net | 478 | 5.3 | % | 310 | 4.8 | % | ||||||||||
| Loss from early extinguishment of debt | 73 | 0.8 | % | 1 | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (22 | ) | (0.2 | )% | (24 | ) | (0.4 | )% | ||||||||
| Impairment of long-lived assets (k) | 24 | 0.3 | % | |||||||||||||
| (Loss) income from continuing operations before income taxes | (24 | ) | (0.3 | )% | 222 | 3.5 | % | |||||||||
| (Benefit) provision for income taxes | (24 | ) | (0.3 | )% | 70 | 1.1 | % | |||||||||
| Income from continuing operations (g), (h), (k) | 152 | 2.4 | % | |||||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities held for sale | (5 | ) | (0.1 | )% | (9 | ) | (0.2 | )% | ||||||||
| Impairment of hospitals held for sale | (22 | ) | (0.2 | )% | ||||||||||||
| Loss from discontinued operations, net of taxes | (27 | ) | (0.3 | )% | (9 | ) | (0.2 | )% | ||||||||
| Net (loss) income | (27 | ) | (0.3 | )% | 143 | 2.2 | % | |||||||||
| Less: Net income attributable to noncontrolling interests | 43 | 0.5 | % | 34 | 0.5 | % | ||||||||||
| Net (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (70 | ) | (0.8 | )% | $ | 109 | 1.7 | % | |||||||
| Basic (loss) earnings per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | (0.39 | ) | $ | 1.28 | |||||||||||
| Discontinued operations | (0.25 | ) | (0.10 | ) | ||||||||||||
| Net (loss) income | $ | (0.64 | ) | $ | 1.19 | |||||||||||
| Diluted (loss) earnings per share attributable to Community Health Systems, Inc. common stockholders (m): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | (0.39 | ) | $ | 1.27 | |||||||||||
| Discontinued operations | (0.25 | ) | (0.10 | ) | ||||||||||||
| Net (loss) income | $ | (0.64 | ) | $ | 1.17 | |||||||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 110 | 92 | ||||||||||||||
| Diluted | 110 | 93 |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss) (c)(e)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net income (loss) | $ | 70 | $ | 47 | $ | (27 | ) | $ | 143 | |||||||
| Other comprehensive income, net of income taxes: | ||||||||||||||||
| Net change in fair value of interest rate swaps, net of tax | 21 | 9 | 37 | |||||||||||||
| Net change in fair value of available-for-sale securities, net of tax | 3 | 3 | 2 | |||||||||||||
| Amortization and recognition of unrecognized pension cost components, net of tax | 1 | |||||||||||||||
| Other comprehensive income | 3 | 21 | 12 | 40 | ||||||||||||
| Comprehensive income (loss) | 73 | 68 | (15 | ) | 183 | |||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | 28 | 17 | 43 | 34 | ||||||||||||
| Comprehensive income (loss) attributable to Community Health Systems, Inc. stockholders | $ | 45 | $ | 51 | $ | (58 | ) | $ | 149 |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(d)(j)
(Dollars in millions)
| For the Three Months Ended June 30, | ||||||||||||||||||||||||
| Consolidated | Same-Store (1) | |||||||||||||||||||||||
| 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 198 | 129 | 196 | 196 | ||||||||||||||||||||
| Licensed beds (at end of period) | 30,117 | 19,628 | 29,438 | 29,716 | ||||||||||||||||||||
| Beds in service (at end of period) | 26,780 | 16,829 | 26,147 | 26,917 | ||||||||||||||||||||
| Admissions | 238,906 | 161,613 | 47.8 | % | 230,928 | 242,516 | -4.8 | % | ||||||||||||||||
| Adjusted admissions | 512,962 | 338,276 | 51.6 | % | 497,340 | 503,510 | -1.2 | % | ||||||||||||||||
| Patient days | 1,056,261 | 710,257 | 1,017,399 | 1,064,801 | ||||||||||||||||||||
| Average length of stay (days) | 4.4 | 4.4 | 4.4 | 4.4 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 43.2 | % | 46.4 | % | 42.6 | % | 43.5 | % | ||||||||||||||||
| Net operating revenues | $ | 4,779 | $ | 3,191 | 49.8 | % | $ | 4,662 | $ | 4,641 | 0.4 | % | ||||||||||||
| Net inpatient revenues as a % of operating revenues before provision for bad debts | 42.9 | % | 44.4 | % | 42.8 | % | 46.4 | % | ||||||||||||||||
| Net outpatient revenues as a % of operating revenues before provision for bad debts | 57.1 | % | 55.6 | % | 57.2 | % | 53.6 | % | ||||||||||||||||
| Income from operations (g), (h), (k) | $ | 351 | $ | 219 | 60.3 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 7.4 | % | 6.9 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 315 | $ | 192 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (11 | ) | $ | (9 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (f) | $ | 677 | $ | 420 | 61.2 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 14.2 | % | 13.2 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 449 | $ | 252 | ||||||||||||||||||||
| Net cash provided by operating activities a % of net operating revenues | 9.4 | % | 7.9 | % |
For footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(d)(j)
(Dollars in millions)
| For the Six Months Ended June 30, | ||||||||||||||||||||||||
| Consolidated | Same-Store (1) | |||||||||||||||||||||||
| 2014 | 2013 | % Change | 2014 | 2013 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 198 | 129 | 196 | 196 | ||||||||||||||||||||
| Licensed beds (at end of period) | 30,117 | 19,628 | 29,438 | 29,716 | ||||||||||||||||||||
| Beds in service (at end of period) | 26,780 | 16,829 | 26,147 | 26,917 | ||||||||||||||||||||
| Admissions | 452,149 | 332,340 | 36.1 | % | 436,679 | 466,140 | -6.3 | % | ||||||||||||||||
| Adjusted admissions | 949,523 | 677,966 | 40.1 | % | 920,522 | 950,543 | -3.2 | % | ||||||||||||||||
| Patient days | 2,027,651 | 1,485,436 | 1,955,584 | 2,077,230 | ||||||||||||||||||||
| Average length of stay (days) | 4.5 | 4.5 | 4.5 | 4.5 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 45.4 | % | 49.0 | % | 44.6 | % | 45.9 | % | ||||||||||||||||
| Net operating revenues | $ | 8,964 | $ | 6,453 | 38.9 | % | $ | 8,706 | $ | 8,861 | -1.7 | % | ||||||||||||
| Net inpatient revenues as a % of operating revenues before provision for bad debts | 43.8 | % | 44.9 | % | 43.7 | % | 46.5 | % | ||||||||||||||||
| Net outpatient revenues as a % of operating revenues before provision for bad debts | 56.2 | % | 55.1 | % | 56.3 | % | 53.5 | % | ||||||||||||||||
| Income from operations (g), (h), (k) | $ | 529 | $ | 509 | 3.9 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 5.9 | % | 7.9 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 612 | $ | 381 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (22 | ) | $ | (24 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (f) | $ | 1,163 | $ | 914 | 27.2 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 13.0 | % | 14.2 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 514 | $ | 309 | ||||||||||||||||||||
| Net cash provided by operating activities a % of net operating revenues | 5.7 | % | 4.8 | % |
For footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2014 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (b)
(In millions, except share data)
| June 30, 2014 | December 31, 2013 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 389 | $ | 373 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $3,495 and $2,438 at June 30, 2014 and December 31, 2013, respectively | 3,121 | 2,323 | ||||||
| Supplies | 550 | 371 | ||||||
| Prepaid income taxes | 193 | 107 | ||||||
| Deferred income taxes | 317 | 101 | ||||||
| Prepaid expenses and taxes | 203 | 127 | ||||||
| Other current assets (including assets of hospitals held for sale of $83 and $40 at June 30, 2014 and December 31, 2013, respectively) | 624 | 345 | ||||||
| Total current assets | 5,397 | 3,747 | ||||||
| Property and equipment | 14,590 | 10,462 | ||||||
| Less accumulated depreciation and amortization | (3,773 | ) | (3,411 | ) | ||||
| Property and equipment, net | 10,817 | 7,051 | ||||||
| Goodwill | 8,519 | 4,424 | ||||||
| Other assets, net (including assets of hospitals held for sale of $170 and $94 at June 30, 2014 and December 31, 2013, respectively) | 2,537 | 1,895 | ||||||
| Total assets | $ | 27,270 | $ | 17,117 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | 209 | $ | 167 | ||||
| Accounts payable | 1,000 | 949 | ||||||
| Deferred income taxes | 3 | |||||||
| Accrued interest | 233 | 112 | ||||||
| Accrued liabilities (including liabilities of hospitals held for sale of $37 and $24 at June 30, 2014 and December 31, 2013, respectively) | 1,727 | 1,227 | ||||||
| Total current liabilities | 3,169 | 2,458 | ||||||
| Long-term debt | 16,722 | 9,286 | ||||||
| Deferred income taxes | 1,043 | 906 | ||||||
| Other long-term liabilities | 1,782 | 977 | ||||||
| Total liabilities | 22,716 | 13,627 | ||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 689 | 358 | ||||||
| EQUITY | ||||||||
| Community Health Systems, Inc. stockholders equity | ||||||||
| Preferred stock, $.01 par value per share, 100,000,000 shares authorized; none issued | ||||||||
| Common stock, $.01 par value per share, 300,000,000 shares authorized; 116,491,729 shares issued and 115,516,180 shares outstanding at June 30, 2014, and 95,987,032 shares issued and 95,011,483 shares outstanding at December 31, 2013 | 1 | 1 | ||||||
| Additional paid-in capital | 2,021 | 1,256 | ||||||
| Treasury stock, at cost, 975,549 shares at June 30, 2014 and December 31, 2013 | (7 | ) | (7 | ) | ||||
| Accumulated other comprehensive loss | (55 | ) | (67 | ) | ||||
| Retained earnings | 1,815 | 1,885 | ||||||
| Total Community Health Systems, Inc. stockholders equity | 3,775 | 3,068 | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 90 | 64 | ||||||
| Total equity | 3,865 | 3,132 | ||||||
| Total liabilities and equity | $ | 27,270 | $ | 17,117 |
footnotes, see pages 12, 13 and 14.