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
SECOND QUARTER 2015 RESULTS WITH NET OPERATING REVENUES OF $4.882 BILLION
FRANKLIN, Tenn. (August 3, 2015) Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and operating results
for the three and six months ended June 30, 2015.
The operating results of Health Management Associates, Inc. ( HMA ) are
included in the Company s consolidated results and statistical data from January 27, 2014, the date the Company completed its acquisition of HMA. For hospitals acquired in the HMA merger, same-store operating results and statistical data
reflect the periods from January 1 through June 30, 2015 and 2014, as if such hospitals were owned during both comparable six-month periods. The Company had previously restated its prior period financial statements and statistical results
to reflect the reclassification in the fourth quarter of 2014 to discontinued operations for one hospital that was held for sale at December 31, 2014, and was subsequently sold during the six months ended June 30, 2015.
Net operating revenues for the three months ended June 30, 2015, totaled $4.882 billion, a 2.5 percent increase compared with $4.765
billion for the same period in 2014. Income from continuing operations attributable to Community Health Systems, Inc. common stockholders increased to $117 million, or $1.01 per share (diluted), for the three months ended June 30, 2015,
compared to $48 million, or $0.42 per share (diluted), for the same period in 2014. The results for the three months ended June 30, 2015, include $0.05 per share (diluted) related to loss from early extinguishment of debt, $0.04 per share
(diluted) related to impairment of long-lived assets and $0.08 per share (diluted) of expense from fair value adjustments related to HMA legal proceedings, accounted for at fair value, underlying the contingent value rights ( CVR )
agreement, and related legal expenses; these expenses were partially offset by $0.03 per share (diluted) of income related to favorable outcomes for government legal settlements for several qui tam matters previously accrued and settled in
principle, net of related legal expenses. Excluding these items, income from continuing operations was $1.14 per share (diluted). Net income attributable to Community Health Systems, Inc. common stockholders was $0.95 per share (diluted) for the
three months ended June 30, 2015, compared with $0.37 per share (diluted) for the same period in 2014. Discontinued operations for the three months ended June 30, 2015, consisted of a loss of approximately $(6) million, or $(0.06) per
share (diluted) from operations of entities sold or held for sale. Weighted-average shares outstanding (diluted) were 116 million for the three months ended June 30, 2015, and 113 million for the three months ended June 30, 2014.
Adjusted EBITDA for the three months ended June 30, 2015, was $769 million compared with $700 million for the same period in 2014,
representing a 9.9 percent increase.
The consolidated operating results for the three months ended June 30, 2015, reflect a 1.9
percent decrease in total admissions, compared with the same period in 2014. Total adjusted admissions were flat for the three months ended June 30, 2015, compared with the same period in 2014. On a same-store basis, admissions decreased 2.2
percent and adjusted admissions decreased 0.2 percent during the three months ended June 30, 2015, compared with the same period in 2014. On a same-store basis, net operating revenues increased 2.2 percent during the three months ended
June 30, 2015, compared with the same period in 2014.
CYH Announces Second Quarter 2015 Results
Net operating revenues for the six months ended June 30, 2015, totaled $9.793 billion, a
9.5 percent increase compared with $8.941 billion for the same period in 2014. Income from continuing operations attributable to Community Health Systems, Inc. common stockholders increased to $209 million, or $1.80 per share (diluted), for the six
months ended June 30, 2015, compared with loss from continuing operations attributable to Community Health Systems, Inc. common stockholders of $(42) million, or $(0.38) per share (diluted), for the same period in 2014. The results for the six
months ended June 30, 2015, include $0.09 per share (diluted) of expense related to loss from early extinguishment of debt, $0.05 per share (diluted) of expense from fair value adjustments related to HMA legal proceedings, accounted for at fair
value, underlying the CVR agreement, and related legal expenses, $0.04 per share (diluted) related to impairment of long-lived assets and $0.01 per share (diluted) of expenses related to government legal settlements for several qui tam matters
settled in principle and related legal expenses. Excluding these items, income from continuing operations was $1.99 per share (diluted). Net income attributable to Community Health Systems, Inc. common stockholders was $1.64 per share (diluted) for
the six months ended June 30, 2015, compared with a net loss of $(0.64) per share (diluted) for the same period in 2014. Discontinued operations for the six months ended June 30, 2015, consisted of $(0.15) per share (diluted) of losses
from operations of entities sold or held for sale, $(0.01) per share (diluted) of expenses related to the impairment of long-lived assets held for sale, and $(0.01) per share (diluted) of losses on sale, net, for a total after-tax loss of
approximately $(20) million, or $(0.17) per share (diluted). Weighted-average shares outstanding (diluted) were 116 million for the six months ended June 30, 2015, and 110 million for the six months ended June 30, 2014.
Adjusted EBITDA for the six months ended June 30, 2015, was $1.483 billion compared with $1.242 billion for the same period in 2014,
representing a 19.4 percent increase.
The consolidated operating results for the six months ended June 30, 2015, reflect a 6.4
percent increase in total admissions, and a 7.9 percent increase in total adjusted admissions, compared with the same period in 2014. On a same-store basis, admissions decreased 0.9 percent while adjusted admissions increased 1.1 percent during the
six months ended June 30, 2015, compared with the same period in 2014. On a same-store basis, net operating revenues increased 3.7 percent during the six months ended June 30, 2015, compared with the same period in 2014.
Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, loss from early extinguishment of debt, impairment of long-lived
assets, net income attributable to noncontrolling interests, acquisition and integration expenses from the acquisition of HMA, (income) expense related to government legal settlements and related costs, and expense from fair value adjustments
related to the HMA legal proceedings, accounted for at fair value, underlying the CVR agreement, and related legal expenses. For information regarding why the Company believes Adjusted EBITDA presents useful information to investors, and for a
reconciliation of Adjusted EBITDA to net cash provided by operating activities, see footnote (f) to the Financial Highlights, Financial Statements and Selected Operating Data below.
Commenting on the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, Our ability to
execute fundamental operating strategies in an evolving healthcare environment resulted in a solid financial and operating performance for the second quarter of fiscal 2015. We are pleased with the incremental improvement in operating revenues
across our hospital network and our ability to drive higher earnings compared with the second quarter of last year. These results include operating synergies from the integration of the HMA hospitals, the benefit of numerous strategic initiatives,
and the incremental opportunities created by the Affordable Care Act. We look forward to more opportunities this year as we continue to deliver quality care for our patients, recruit qualified physicians, make the right investments in facilities and
technology, and work to develop our markets and networks to their full potential.
CYH Announces Second Quarter 2015 Results
Included on pages 15, 16, 17 and 18 of this press release is the Company s updated 2015
annual earnings guidance. The 2015 guidance is based on the Company s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time.
Community Health Systems, Inc. is one of the largest publicly-traded hospital companies in the United States and a leading operator of general
acute care hospitals in communities across the country. Through its subsidiaries, the Company currently owns, leases or operates 198 affiliated hospitals in 29 states with an aggregate of approximately 30,000 licensed beds. The Company s
headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol CYH. More information about the Company can be found on its
website at www.chs.net.
Community Health Systems, Inc. will hold a conference call on Tuesday, August 4, 2015, at 10:00 a.m.
Central, 11:00 a.m. Eastern, to review financial and operating results for the second quarter ended June 30, 2015. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor
Relations link of the Company s website at www.chs.net. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen
to the live broadcast, a replay will be available shortly after the call and will continue to be available through September 5, 2015. Copies of the Company s Current Report on Form 8-K (including this press release) and
conference call slide show will be available on the Company s website at www.chs.net.
CYH Announces Second Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net operating revenues | $ | 4,882 | $ | 4,765 | $ | 9,793 | $ | 8,941 | ||||||||
| Adjusted EBITDA (f) | 769 | 700 | 1,483 | 1,242 | ||||||||||||
| Income from continuing operations (g), (h), (k) | 140 | 76 | 252 | 1 | ||||||||||||
| Net income (loss) attributable to Community Health Systems, Inc. stockholders | 111 | 42 | 189 | (70 | ) | |||||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | 1.02 | $ | 0.43 | $ | 1.82 | $ | (0.38 | ) | |||||||
| Discontinued operations | (0.06 | ) | (0.06 | ) | (0.17 | ) | (0.26 | ) | ||||||||
| Net income (loss) | $ | 0.96 | $ | 0.37 | $ | 1.65 | $ | (0.64 | ) | |||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (n): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | 1.01 | $ | 0.42 | $ | 1.80 | $ | (0.38 | ) | |||||||
| Discontinued operations | (0.06 | ) | (0.06 | ) | (0.17 | ) | (0.26 | ) | ||||||||
| Net income (loss) (l) | $ | 0.95 | $ | 0.37 | $ | 1.64 | $ | (0.64 | ) | |||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 115 | 113 | 115 | 110 | ||||||||||||
| Diluted | 116 | 113 | 116 | 110 | ||||||||||||
| Net cash provided by operating activities | $ | 565 | $ | 449 | $ | 504 | $ | 514 |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2015 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, | ||||||||||||||||
| 2015 | 2014 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 5,614 | $ | 5,508 | ||||||||||||
| Provision for bad debts | 732 | 743 | ||||||||||||||
| Net operating revenues | 4,882 | 100.0 | % | 4,765 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 2,217 | 45.4 | % | 2,221 | 46.6 | % | ||||||||||
| Supplies | 750 | 15.4 | % | 736 | 15.4 | % | ||||||||||
| Other operating expenses | 1,125 | 23.0 | % | 1,115 | 23.5 | % | ||||||||||
| Government settlement and related costs (m) | (6 | ) | (0.1 | )% | % | |||||||||||
| Electronic health records incentive reimbursement (g) | (55 | ) | (1.1 | )% | (84 | ) | (1.8 | )% | ||||||||
| Rent | 113 | 2.3 | % | 111 | 2.3 | % | ||||||||||
| Depreciation and amortization | 291 | 6.0 | % | 281 | 5.9 | % | ||||||||||
| Amortization of software to be abandoned (k) | % | 33 | 0.7 | % | ||||||||||||
| Total operating costs and expenses | 4,435 | 90.9 | % | 4,413 | 92.6 | % | ||||||||||
| Income from operations (g), (h), (k) | 447 | 9.1 | % | 352 | 7.4 | % | ||||||||||
| Interest expense, net | 239 | 4.9 | % | 255 | 5.4 | % | ||||||||||
| Loss from early extinguishment of debt | 9 | 0.2 | % | % | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (21 | ) | (0.4 | )% | (12 | ) | (0.3 | )% | ||||||||
| Impairment of long-lived assets (k) | 6 | 0.1 | % | % | ||||||||||||
| Income from continuing operations before income taxes | 214 | 4.3 | % | 109 | 2.3 | % | ||||||||||
| Provision for income taxes | 74 | 1.5 | % | 33 | 0.7 | % | ||||||||||
| Income from continuing operations (g), (h), (k) | 140 | 2.8 | % | 76 | 1.6 | % | ||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities sold or held for sale | (6 | ) | (0.1 | )% | (1 | ) | % | |||||||||
| Impairment of hospitals sold or held for sale | % | (5 | ) | (0.1 | )% | |||||||||||
| Loss from discontinued operations, net of taxes | (6 | ) | (0.1 | )% | (6 | ) | (0.1 | )% | ||||||||
| Net income | 134 | 2.7 | % | 70 | 1.5 | % | ||||||||||
| Less: Net income attributable to noncontrolling interests | 23 | 0.4 | % | 28 | 0.6 | % | ||||||||||
| Net income attributable to Community Health Systems, Inc. stockholders | $ | 111 | 2.3 | % | $ | 42 | 0.9 | % | ||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | 1.02 | $ | 0.43 | ||||||||||||
| Discontinued operations | (0.06 | ) | (0.06 | ) | ||||||||||||
| Net income | $ | 0.96 | $ | 0.37 | ||||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (n): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | 1.01 | $ | 0.42 | ||||||||||||
| Discontinued operations | (0.06 | ) | (0.06 | ) | ||||||||||||
| Net income (l) | $ | 0.95 | $ | 0.37 | ||||||||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 115 | 113 | ||||||||||||||
| Diluted | 116 | 113 |
For footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Loss) (a)(b)(c)(d)(e)
(In millions, except per share amounts)
| Six Months Ended June 30, | ||||||||||||||||
| 2015 | 2014 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 11,260 | $ | 10,383 | ||||||||||||
| Provision for bad debts | 1,467 | 1,442 | ||||||||||||||
| Net operating revenues | 9,793 | 100.0 | % | 8,941 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 4,474 | 45.7 | % | 4,213 | 47.1 | % | ||||||||||
| Supplies | 1,512 | 15.4 | % | 1,368 | 15.3 | % | ||||||||||
| Other operating expenses | 2,225 | 22.8 | % | 2,133 | 24.0 | % | ||||||||||
| Government settlement and related costs (m) | 1 | % | % | |||||||||||||
| Electronic health records incentive reimbursement (g) | (81 | ) | (0.8 | )% | (124 | ) | (1.4 | )% | ||||||||
| Rent | 229 | 2.3 | % | 209 | 2.3 | % | ||||||||||
| Depreciation and amortization | 587 | 6.0 | % | 536 | 6.0 | % | ||||||||||
| Amortization of software to be abandoned (k) | % | 75 | 0.8 | % | ||||||||||||
| Total operating costs and expenses | 8,947 | 91.4 | % | 8,410 | 94.1 | % | ||||||||||
| Income from operations (g), (h), (k) | 846 | 8.6 | % | 531 | 5.9 | % | ||||||||||
| Interest expense, net | 481 | 4.8 | % | 478 | 5.3 | % | ||||||||||
| Loss from early extinguishment of debt | 16 | 0.2 | % | 73 | 0.8 | % | ||||||||||
| Equity in earnings of unconsolidated affiliates | (39 | ) | (0.4 | )% | (22 | ) | (0.2 | )% | ||||||||
| Impairment of long-lived assets (k) | 6 | 0.1 | % | 24 | 0.3 | % | ||||||||||
| Income (loss) from continuing operations before income taxes | 382 | 3.9 | % | (22 | ) | (0.3 | )% | |||||||||
| Provision (benefit) for income taxes | 130 | 1.3 | % | (23 | ) | (0.3 | )% | |||||||||
| Income from continuing operations (g), (h), (k) | 252 | 2.6 | % | 1 | % | |||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities sold or held for sale | (17 | ) | (0.2 | )% | (6 | ) | (0.1 | )% | ||||||||
| Impairment of hospitals sold or held for sale | (2 | ) | % | (22 | ) | (0.2 | )% | |||||||||
| Loss on sale, net | (1 | ) | % | % | ||||||||||||
| Loss from discontinued operations, net of taxes | (20 | ) | (0.2 | )% | (28 | ) | (0.3 | )% | ||||||||
| Net income (loss) | 232 | 2.4 | % | (27 | ) | (0.3 | )% | |||||||||
| Less: Net income attributable to noncontrolling interests | 43 | 0.5 | % | 43 | 0.5 | % | ||||||||||
| Net income (loss) attributable to Community Health Systems, Inc. stockholders | $ | 189 | 1.9 | % | $ | (70 | ) | (0.8 | )% | |||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (g), (h), (k) | $ | 1.82 | $ | (0.38 | ) | |||||||||||
| Discontinued operations | (0.17 | ) | (0.26 | ) | ||||||||||||
| Net income (loss) | $ | 1.65 | $ | (0.64 | ) | |||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders (n): | ||||||||||||||||
| Continuing operations (g), (h), (k), (l) | $ | 1.80 | $ | (0.38 | ) | |||||||||||
| Discontinued operations | (0.17 | ) | (0.26 | ) | ||||||||||||
| Net income (loss) (l) | $ | 1.64 | $ | (0.64 | ) | |||||||||||
| Weighted-average number of shares outstanding (i): | ||||||||||||||||
| Basic | 115 | 110 | ||||||||||||||
| Diluted | 116 | 110 |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss) (c)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net income (loss) | $ | 134 | $ | 70 | $ | 232 | $ | (27 | ) | |||||||
| Other comprehensive income (loss), net of income taxes: | ||||||||||||||||
| Net change in fair value of interest rate swaps, net of tax | 8 | (1 | ) | 9 | ||||||||||||
| Net change in fair value of available-for-sale securities, net of tax | (2 | ) | 3 | (1 | ) | 3 | ||||||||||
| Amortization and recognition of unrecognized pension cost components, net of tax | 1 | |||||||||||||||
| Other comprehensive income (loss) | 6 | 3 | (1 | ) | 12 | |||||||||||
| Comprehensive income (loss) | 140 | 73 | 231 | (15 | ) | |||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | 23 | 28 | 43 | 43 | ||||||||||||
| Comprehensive income (loss) attributable to Community Health Systems, Inc. stockholders | $ | 117 | $ | 45 | $ | 188 | $ | (58 | ) |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(d)
(Dollars in millions)
| Three Months Ended June 30, | ||||||||||||||||||||||||
| Consolidated | Same-Store | |||||||||||||||||||||||
| 2015 | 2014 | % Change | 2015 | 2014 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 196 | 195 | 194 | 194 | ||||||||||||||||||||
| Licensed beds (at end of period) | 29,964 | 29,915 | 29,660 | 29,758 | ||||||||||||||||||||
| Beds in service (at end of period) | 26,206 | 26,578 | 26,081 | 26,469 | ||||||||||||||||||||
| Admissions | 233,517 | 238,112 | -1.9 | % | 232,584 | 237,905 | -2.2 | % | ||||||||||||||||
| Adjusted admissions | 511,456 | 511,219 | 0.0 | % | 509,227 | 510,405 | -0.2 | % | ||||||||||||||||
| Patient days | 1,033,244 | 1,052,886 | 1,028,442 | 1,051,796 | ||||||||||||||||||||
| Average length of stay (days) | 4.4 | 4.4 | 4.4 | 4.4 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 43.0 | % | 43.4 | % | 43.0 | % | 43.6 | % | ||||||||||||||||
| Net operating revenues | $ | 4,882 | $ | 4,765 | 2.5 | % | $ | 4,863 | $ | 4,758 | 2.2 | % | ||||||||||||
| Net inpatient revenues as a % of net patient revenues before provision for bad debts | 42.4 | % | 43.4 | % | 42.4 | % | 43.5 | % | ||||||||||||||||
| Net outpatient revenues as a % of net patient revenues before provision for bad debts | 57.6 | % | 56.6 | % | 57.6 | % | 56.5 | % | ||||||||||||||||
| Income from operations (g), (h), (k) | $ | 447 | $ | 352 | 27.0 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 9.2 | % | 7.4 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 291 | $ | 314 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (21 | ) | $ | (12 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (f) | $ | 769 | $ | 700 | 9.9 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 15.8 | % | 14.7 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 565 | $ | 449 | ||||||||||||||||||||
| Net cash provided by operating activities as a % of net operating revenues | 11.6 | % | 9.4 | % |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(d)(j)
(Dollars in millions)
| Six Months Ended June 30, | ||||||||||||||||||||||||
| Consolidated | Same-Store (1) | |||||||||||||||||||||||
| 2015 | 2014 | % Change | 2015 | 2014 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 196 | 195 | 194 | 194 | ||||||||||||||||||||
| Licensed beds (at end of period) | 29,964 | 29,915 | 29,660 | 29,758 | ||||||||||||||||||||
| Beds in service (at end of period) | 26,206 | 26,578 | 26,081 | 26,469 | ||||||||||||||||||||
| Admissions | 479,532 | 450,808 | 6.4 | % | 469,467 | 473,827 | -0.9 | % | ||||||||||||||||
| Adjusted admissions | 1,021,309 | 946,615 | 7.9 | % | 1,001,396 | 990,308 | 1.1 | % | ||||||||||||||||
| Patient days | 2,160,321 | 2,021,738 | 2,109,597 | 2,128,734 | ||||||||||||||||||||
| Average length of stay (days) | 4.5 | 4.5 | 4.5 | 4.5 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 45.0 | % | 45.5 | % | 44.7 | % | 45.0 | % | ||||||||||||||||
| Net operating revenues | $ | 9,793 | $ | 8,941 | 9.5 | % | $ | 9,645 | $ | 9,303 | 3.7 | % | ||||||||||||
| Net inpatient revenues as a % of net patient revenues before provision for bad debts | 43.3 | % | 44.3 | % | 43.2 | % | 44.7 | % | ||||||||||||||||
| Net outpatient revenues as a % of net patient revenues before provision for bad debts | 56.7 | % | 55.7 | % | 56.8 | % | 55.3 | % | ||||||||||||||||
| Income from operations (g), (h), (k) | $ | 846 | $ | 531 | 59.3 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 8.6 | % | 5.9 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 587 | $ | 611 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (39 | ) | $ | (22 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (f) | $ | 1,483 | $ | 1,242 | 19.4 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 15.1 | % | 13.9 | % | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 504 | $ | 514 | ||||||||||||||||||||
| Net cash provided by operating activities as a % of net operating revenues | 5.1 | % | 5.7 | % |
footnotes, see pages 12, 13 and 14.
CYH Announces Second Quarter 2015 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (b)
(In millions, except share data)
| June 30, 2015 | December 31, 2014 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 365 | $ | 509 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $3,773 and $3,504 at June 30, 2015 and December 31, 2014, respectively | 3,491 | 3,409 | ||||||
| Supplies | 568 | 557 | ||||||
| Prepaid income taxes | 30 | |||||||
| Deferred income taxes | 345 | 341 | ||||||
| Prepaid expenses and taxes | 216 | 192 | ||||||
| Other current assets (including assets of hospitals held for sale of $5 and $38 at June 30, 2015 and December 31, 2014, respectively) | 515 | 528 | ||||||
| Total current assets | 5,500 | 5,566 | ||||||
| Property and equipment, gross | 14,577 | 14,264 | ||||||
| Less accumulated depreciation and amortization | (4,487 | ) | (4,095 | ) | ||||
| Property and equipment, net | 10,090 | 10,169 | ||||||
| Goodwill | 8,956 | 8,951 | ||||||
| Other assets, net (including assets of hospitals held for sale of $34 and $90 at June 30, 2015 and December 31, 2014, respectively) | 2,640 | 2,735 | ||||||
| Total assets | $ | 27,186 | $ | 27,421 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | 246 | $ | 235 | ||||
| Accounts payable | 1,144 | 1,293 | ||||||
| Income tax payable | 83 | |||||||
| Deferred income taxes | 23 | 23 | ||||||
| Accrued interest | 226 | 227 | ||||||
| Accrued liabilities (including liabilities of hospitals held for sale of $1 and $10 at June 30, 2015 and December 31, 2014, respectively) | 1,508 | 1,811 | ||||||
| Total current liabilities | 3,230 | 3,589 | ||||||
| Long-term debt | 16,621 | 16,681 | ||||||
| Deferred income taxes | 844 | 845 | ||||||
| Other long-term liabilities | 1,683 | 1,692 | ||||||
| Total liabilities | 22,378 | 22,807 | ||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 524 | 531 | ||||||
| EQUITY | ||||||||
| Community Health Systems, Inc. stockholders equity: | ||||||||
| Preferred stock, $.01 par value per share, 100,000,000 shares authorized; none issued | ||||||||
| Common stock, $.01 par value per share, 300,000,000 shares authorized; 119,095,425 shares issued and 118,119,876 shares outstanding at June 30, 2015, and 117,701,087 shares issued and 116,725,538 shares outstanding at December 31, 2014 | 1 | 1 | ||||||
| Additional paid-in capital | 2,105 | 2,095 | ||||||
| Treasury stock, at cost, 975,549 shares at June 30, 2015 and December 31, 2014 | (7 | ) | (7 | ) | ||||
| Accumulated other comprehensive loss | (64 | ) | (63 | ) | ||||
| Retained earnings | 2,166 | 1,977 | ||||||
| Total Community Health Systems, Inc. stockholders equity | 4,201 | 4,003 | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 83 | 80 | ||||||
| Total equity | 4,284 | 4,083 | ||||||
| Total liabilities and equity | $ | 27,186 | $ | 27,421 |
footnotes, see pages 12, 13 and 14.