Full Press Release Details
COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
FIRST QUARTER 2016 RESULTS WITH NET OPERATING REVENUES OF $4.999 BILLION
FRANKLIN, Tenn. (May 2, 2016) Community Health Systems, Inc. (NYSE: CYH) (the Company ) today announced financial and operating results for
the three months ended March 31, 2016.
Net operating revenues for the three months ended March 31, 2016, totaled $4.999 billion, a 1.8
percent increase compared with $4.911 billion for the same period in 2015. Income from continuing operations attributable to Community Health Systems, Inc. common stockholders decreased to $12 million, or $0.11 per share (diluted), for the three
months ended March 31, 2016, compared with $92 million, or $0.79 per share (diluted), for the same period in 2015. The results for the three months ended March 31, 2016, include $0.13 per share (diluted) related to impairment of long-lived
assets and $0.02 per share (diluted) related to expenses from the spin-off of Quorum Health Corporation ( QHC ). Excluding these items, income from continuing operations was $0.27 per share (diluted).
Net income attributable to Community Health Systems, Inc. common stockholders was $0.10 per share (diluted) for the three months ended March
31, 2016, compared with $0.68 per share (diluted) for the same period in 2015. Discontinued operations for the three months ended March 31, 2016, consisted of $(0.01) per share (diluted) of expenses related to the impairment of long-lived assets
held for sale for an after-tax loss of approximately $(1) million. Weighted-average shares outstanding (diluted) were 110 million for the three months ended March 31, 2016, and 115 million for the three months ended March 31, 2015.
Adjusted EBITDA for the three months ended March 31, 2016, was $633 million compared with $715 million for the same period in 2015,
representing an 11.5 percent decrease.
The consolidated operating results for the three months ended March 31, 2016, reflect a 2.6
percent decrease in total admissions, and a 0.7 percent increase in total adjusted admissions, compared with the same period in 2015. On a same-store basis, admissions decreased 2.0 percent while adjusted admissions increased 1.3 percent during the
three months ended March 31, 2016, compared with the same period in 2015. On a same-store basis, net operating revenues increased 2.2 percent during the three months ended March 31, 2016, compared with the same period in 2015.
Adjusted EBITDA, a non-GAAP financial measure, 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 Health Management Associates, Inc. ( HMA ), expenses incurred related to the spin-off of
QHC, expense related to government legal settlements and related costs, and expense (income) 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 (e) to the Financial Highlights,
Financial Statements and Selected Operating Data below.
CYH Announces First Quarter 2016 Results
On April 29, 2016, the Company completed the spin-off of QHC, comprised of 38 affiliated
hospitals and related outpatient services in 16 states, together with Quorum Health Resources, LLC, a subsidiary providing management advisory and consulting services to non-affiliated hospitals. Following the spin-off, QHC became an independent
public company with its common stock listed for trading under the symbol QHC on the New York Stock Exchange.
the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, We intend to use the substantial majority of the net proceeds of $1.21 billion from the QHC spin-off to reduce our debt, and we expect
other potential divestiture transactions this year will help drive down our debt even further. As we refine our portfolio into what we anticipate will be a more sustainable, higher-margin group of hospitals, our resources and future investments can
be targeted into markets where we have the greatest opportunity to achieve performance improvement in our operations and financial results.
Included on pages 12, 13, 14 and 15 of this press release are tables setting forth the Company s updated 2016 annual earnings guidance.
The 2016 guidance is based on the Company s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time, and reflects the impact of the spin-off of QHC and other planned
divestitures that the Company expects to occur in 2016.
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. After giving effect to the spin-off noted above, through its subsidiaries, the Company owns, leases or operates 160 affiliated
hospitals in 22 states with an aggregate of nearly 27,000 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, May 3, 2016, at 11:00 a.m. Central, 12:00 noon Eastern, to review
financial and operating results for the three months ended March 31, 2016. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Relations link of the Company s
website at www.chs.net. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will
be available shortly after the call and will continue to be available through June 3, 2016. 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 First Quarter 2016 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)(c)(d)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Net operating revenues | $ | 4,999 | $ | 4,911 | ||||
| Adjusted EBITDA (e) | 633 | 715 | ||||||
| Income from continuing operations (f), (i) | 37 | 112 | ||||||
| Net income attributable to Community Health Systems, Inc. stockholders | 11 | 79 | ||||||
| Basic earnings (loss) per share attributable to Community | ||||||||
| Health Systems, Inc. common stockholders: | ||||||||
| Continuing operations (f), (i) | $ | 0.11 | $ | 0.80 | ||||
| Discontinued operations | (0.01 | ) | (0.11 | ) | ||||
| Net income | $ | 0.10 | $ | 0.69 | ||||
| Diluted earnings (loss) per share attributable to Community | ||||||||
| Health Systems, Inc. common stockholders: | ||||||||
| Continuing operations (f), (h), (i) | $ | 0.11 | $ | 0.79 | ||||
| Discontinued operations | (0.01 | ) | (0.11 | ) | ||||
| Net income (h) | $ | 0.10 | $ | 0.68 | ||||
| Weighted-average number of shares outstanding (g): | ||||||||
| Basic | 110 | 114 | ||||||
| Diluted | 110 | 115 | ||||||
| Net cash provided by (used in) operating activities | $ | 294 | $ | (61 | ) |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2016 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (a)(b)(c)(d)
(In millions, except per share amounts)
| Three Months Ended March 31, | ||||||||||||||||
| 2016 | 2015 | |||||||||||||||
| Amount | % of Net Operating Revenues | Amount | % of Net Operating Revenues | |||||||||||||
| Operating revenues (net of contractual allowances and discounts) | $ | 5,754 | $ | 5,646 | ||||||||||||
| Provision for bad debts | 755 | 735 | ||||||||||||||
| Net operating revenues | 4,999 | 100.0 | % | 4,911 | 100.0 | % | ||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Salaries and benefits | 2,317 | 46.3 | % | 2,257 | 46.0 | % | ||||||||||
| Supplies | 799 | 16.0 | % | 762 | 15.5 | % | ||||||||||
| Other operating expenses | 1,173 | 23.5 | % | 1,099 | 22.4 | % | ||||||||||
| Government settlement and related costs (j) | % | 8 | 0.1 | % | ||||||||||||
| Electronic health records incentive reimbursement | (18 | ) | (0.4 | )% | (26 | ) | (0.5 | )% | ||||||||
| Rent | 119 | 2.4 | % | 116 | 2.4 | % | ||||||||||
| Depreciation and amortization | 298 | 6.0 | % | 296 | 6.0 | % | ||||||||||
| Impairment of long-lived assets (i) | 17 | 0.3 | % | % | ||||||||||||
| Total operating costs and expenses | 4,705 | 94.1 | % | 4,512 | 91.9 | % | ||||||||||
| Income from operations (f), (i) | 294 | 5.9 | % | 399 | 8.1 | % | ||||||||||
| Interest expense, net | 251 | 5.0 | % | 241 | 4.9 | % | ||||||||||
| Loss from early extinguishment of debt | % | 8 | 0.2 | % | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (20 | ) | (0.4 | )% | (18 | ) | (0.4 | )% | ||||||||
| Income from continuing operations before income taxes | 63 | 1.3 | % | 168 | 3.4 | % | ||||||||||
| Provision for income taxes | 26 | 0.6 | % | 56 | 1.1 | % | ||||||||||
| Income from continuing operations (f), (i) | 37 | 0.7 | % | 112 | 2.3 | % | ||||||||||
| Discontinued operations, net of taxes: | ||||||||||||||||
| Loss from operations of entities sold or held for sale | % | (11 | ) | (0.3 | )% | |||||||||||
| Impairment of hospitals sold or held for sale | (1 | ) | % | (1 | ) | (0.0 | )% | |||||||||
| Loss on sale, net | % | (1 | ) | (0.0 | )% | |||||||||||
| Loss from discontinued operations, net of taxes | (1 | ) | % | (13 | ) | (0.3 | )% | |||||||||
| Net income | 36 | 0.7 | % | 99 | 2.0 | % | ||||||||||
| Less: Net income attributable to noncontrolling interests | 25 | 0.5 | % | 20 | 0.4 | % | ||||||||||
| Net income attributable to Community Health Systems, Inc. stockholders | $ | 11 | 0.2 | % | $ | 79 | 1.6 | % | ||||||||
| Basic earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (f), (i) | $ | 0.11 | $ | 0.80 | ||||||||||||
| Discontinued operations | (0.01 | ) | (0.11 | ) | ||||||||||||
| Net income | $ | 0.10 | $ | 0.69 | ||||||||||||
| Diluted earnings (loss) per share attributable to Community Health Systems, Inc. common stockholders: | ||||||||||||||||
| Continuing operations (f), (h), (i) | $ | 0.11 | $ | 0.79 | ||||||||||||
| Discontinued operations | (0.01 | ) | (0.11 | ) | ||||||||||||
| Net income (h) | $ | 0.10 | $ | 0.68 | ||||||||||||
| Weighted-average number of shares outstanding (g): | ||||||||||||||||
| Basic | 110 | 114 | ||||||||||||||
| Diluted | 110 | 115 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2016 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive (Loss) Income
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2016 | 2015 | |||||||
| Net income | $ | 36 | $ | 99 | ||||
| Other comprehensive (loss) income, net of income taxes: | ||||||||
| Net change in fair value of interest rate swaps, net of tax | (19 | ) | (9 | ) | ||||
| Net change in fair value of available-for-sale securities, net of tax | 2 | 1 | ||||||
| Amortization and recognition of unrecognized pension cost components, net of tax | 1 | 1 | ||||||
| Other comprehensive loss | (16 | ) | (7 | ) | ||||
| Comprehensive income | 20 | 92 | ||||||
| Less: Comprehensive income attributable to noncontrolling interests | 25 | 20 | ||||||
| Comprehensive (loss) income attributable to Community Health Systems, Inc. stockholders | $ | (5 | ) | $ | 72 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2016 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (a)(c)
(Dollars in millions)
| Three Months Ended March 31, | ||||||||||||||||||||||||
| Consolidated | Same-Store | |||||||||||||||||||||||
| 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||||
| Number of hospitals (at end of period) | 194 | 197 | 192 | 192 | ||||||||||||||||||||
| Licensed beds (at end of period) | 29,936 | 30,256 | 29,611 | 29,931 | ||||||||||||||||||||
| Beds in service (at end of period) | 26,285 | 26,498 | 26,097 | 26,290 | ||||||||||||||||||||
| Admissions | 239,700 | 246,015 | -2.6 | % | 238,829 | 243,776 | -2.0 | % | ||||||||||||||||
| Adjusted admissions | 513,192 | 509,719 | 0.7 | % | 510,755 | 504,095 | 1.3 | % | ||||||||||||||||
| Patient days | 1,076,226 | 1,127,077 | 1,072,943 | 1,118,334 | ||||||||||||||||||||
| Average length of stay (days) | 4.5 | 4.6 | 4.5 | 4.6 | ||||||||||||||||||||
| Occupancy rate (average beds in service) | 45.1 | % | 47.1 | % | 45.2 | % | 47.1 | % | ||||||||||||||||
| Net operating revenues | $ | 4,999 | $ | 4,911 | 1.8 | % | $ | 4,974 | $ | 4,869 | 2.2 | % | ||||||||||||
| Net inpatient revenues as a % of net patient revenues before provision for bad debts | 43.9 | % | 44.2 | % | 44.0 | % | 44.2 | % | ||||||||||||||||
| Net outpatient revenues as a % of net patient revenues before provision for bad debts | 56.1 | % | 55.8 | % | 56.0 | % | 55.8 | % | ||||||||||||||||
| Income from operations (f), (i) | $ | 294 | $ | 399 | -26.3 | % | ||||||||||||||||||
| Income from operations as a % of net operating revenues | 5.9 | % | 8.1 | % | ||||||||||||||||||||
| Depreciation and amortization | $ | 298 | $ | 296 | ||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | $ | (20 | ) | $ | (18 | ) | ||||||||||||||||||
| Liquidity Data: | ||||||||||||||||||||||||
| Adjusted EBITDA (e) | $ | 633 | $ | 715 | -11.5 | % | ||||||||||||||||||
| Adjusted EBITDA as a % of net operating revenues | 12.7 | % | 14.6 | % | ||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 294 | $ | (61 | ) | |||||||||||||||||||
| Net cash provided by (used in) operating activities as a % of net operating revenues | 5.9 | % | -1.2 | % |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2016 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (b)
(In millions, except share data)
| March 31, 2016 | December 31, 2015 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 181 | $ | 184 | ||||
| Patient accounts receivable, net of allowance for doubtful accounts of $4,051 and $4,110 at March 31, 2016 and December 31, 2015, respectively | 3,723 | 3,611 | ||||||
| Supplies | 587 | 580 | ||||||
| Prepaid income taxes | 2 | 27 | ||||||
| Prepaid expenses and taxes | 218 | 197 | ||||||
| Other current assets (including assets of hospitals held for sale of $5 and $17 at March 31, 2016 and December 31, 2015, respectively) | 545 | 567 | ||||||
| Total current assets | 5,256 | 5,166 | ||||||
| Property and equipment, gross | 15,084 | 14,906 | ||||||
| Less accumulated depreciation and amortization | (4,980 | ) | (4,794 | ) | ||||
| Property and equipment, net | 10,104 | 10,112 | ||||||
| Goodwill | 9,022 | 8,965 | ||||||
| Other assets, net (including assets of hospitals held for sale of $25 and $41 at March 31, 2016 and December 31, 2015, respectively) | 2,342 | 2,352 | ||||||
| Total assets | $ | 26,724 | $ | 26,595 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | 249 | $ | 229 | ||||
| Accounts payable | 1,179 | 1,258 | ||||||
| Accrued interest | 158 | 227 | ||||||
| Accrued liabilities (including liabilities of hospitals held for sale of $2 and $6 at March 31, 2016 and December 31, 2015, respectively) | 1,468 | 1,358 | ||||||
| Total current liabilities | 3,054 | 3,072 | ||||||
| Long-term debt | 16,665 | 16,556 | ||||||
| Deferred income taxes | 599 | 593 | ||||||
| Other long-term liabilities | 1,723 | 1,698 | ||||||
| Total liabilities | 22,041 | 21,919 | ||||||
| Redeemable noncontrolling interests in equity of consolidated subsidiaries | 565 | 571 | ||||||
| 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; 114,731,736 shares issued and 113,756,187 shares outstanding at March 31, 2016, and 113,732,933 shares issued and 112,757,384 shares outstanding at December 31, 2015 | 1 | 1 | ||||||
| Additional paid-in capital | 1,952 | 1,963 | ||||||
| Treasury stock, at cost, 975,549 shares at March 31, 2016 and December 31, 2015 | (7 | ) | (7 | ) | ||||
| Accumulated other comprehensive loss | (89 | ) | (73 | ) | ||||
| Retained earnings | 2,146 | 2,135 | ||||||
| Total Community Health Systems, Inc. stockholders equity | 4,003 | 4,019 | ||||||
| Noncontrolling interests in equity of consolidated subsidiaries | 115 | 86 | ||||||
| Total equity | 4,118 | 4,105 | ||||||
| Total liabilities and equity | $ | 26,724 | $ | 26,595 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2016 Results
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (b)
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 36 | $ | 99 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 298 | 296 | ||||||
| Government settlement and related costs (j) | 8 | |||||||
| Stock-based compensation expense | 14 | 14 | ||||||
| Loss on sale, net | 1 | |||||||
| Impairment of hospitals sold or held for sale | 1 | 2 | ||||||
| Impairment of long-lived assets | 17 | |||||||
| Loss from early extinguishment of debt | 8 | |||||||
| Other non-cash expenses, net | 14 | (7 | ) | |||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||||||||
| Patient accounts receivable | (109 | ) | (202 | ) | ||||
| Supplies, prepaid expenses and other current assets | (14 | ) | 14 | |||||
| Accounts payable, accrued liabilities and income taxes | 64 | (284 | ) | |||||
| Other | (27 | ) | (10 | ) | ||||
| Net cash provided by (used in) operating activities | 294 | (61 | ) | |||||
| Cash flows from investing activities | ||||||||
| Acquisitions of facilities and other related equipment | (99 | ) | (13 | ) | ||||
| Purchases of property and equipment | (224 | ) | (241 | ) | ||||
| Proceeds from disposition of hospitals and other ancillary operations | 12 | 62 | ||||||
| Proceeds from sale of property and equipment | 4 | 3 | ||||||
| Purchases of available-for-sale securities | (37 | ) | (59 | ) | ||||
| Proceeds from sales of available-for-sale securities | 40 | 56 | ||||||
| Increase in other investments | (67 | ) | (39 | ) | ||||
| Net cash used in investing activities | (371 | ) | (231 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from exercise of stock options | 17 | |||||||
| Repurchase of restricted stock shares for payroll tax withholding requirements | (7 | ) | (20 | ) | ||||
| Deferred financing costs and other debt-related costs | (20 | ) | ||||||
| Redemption of noncontrolling investments in joint ventures | (16 | ) | (7 | ) | ||||
| Distributions to noncontrolling investors in joint ventures | (18 | ) | (23 | ) | ||||
| Borrowings under credit agreements | 1,564 | 1,251 | ||||||
| Proceeds from receivables facility | 31 | 75 | ||||||
| Repayments of long-term indebtedness | (1,480 | ) | (1,268 | ) | ||||
| Net cash provided by financing activities | 74 | 5 | ||||||
| Net change in cash and cash equivalents | (3 | ) | (287 | ) | ||||
| Cash and cash equivalents at beginning of period | 184 | 509 | ||||||
| Cash and cash equivalents at end of period | $ | 181 | $ | 222 |
footnotes, see pages 9, 10 and 11.
CYH Announces First Quarter 2016 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
table presents the impact of the recorded amounts as described above as applied to the CVR and the $18 million deductible and 10% co-insurance amounts (in millions):
| As of | ||||
| March 31, | ||||
| 2016 | ||||
| Legal and other related costs incurred to date | $ | 30 | ||
| Settlements | 29 | |||
| Estimated liability for probable contingencies | ||||
| Estimated liability for unresolved contingencies at fair value | 261 | |||
| Costs incurred plus certain estimated liabilities for CVR-related matters | 320 | |||
| Allocated to: | ||||
| CHS deductible of $18 million | (18 | ) | ||
| CHS co-insurance at 10% | (29 | ) | ||
| Recorded amounts that reduce CVR value after giving effect to deductible and co-insurance | $ | 273 | ||
| CVRs outstanding | 265 |
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2016 | 2015 | |||||||
| Income from continuing operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Income from continuing operations, net of taxes | $ | 37 | $ | 112 | ||||
| Less: Income from continuing operations attributable to noncontrolling interests | 25 | 20 | ||||||
| Income from continuing operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | 12 | $ | 92 | ||||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders: | ||||||||
| Loss from discontinued operations, net of taxes | $ | (1 | ) | $ | (13 | ) | ||
| Less: Loss from discontinued operations attributable to noncontrolling interests | ||||||||
| Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders basic and diluted | $ | (1 | ) | $ | (13 | ) |
CYH Announces First Quarter 2016 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
Adjusted EBITDA is not a measurement of financial performance or liquidity under U.S. GAAP. It should not be considered in isolation or as
a substitute for net income, operating income, cash flows from operating, investing or financing activities or any other measure calculated in accordance with U.S. GAAP. The items excluded from Adjusted EBITDA are significant components in
understanding and evaluating financial performance and liquidity. This calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The following table reflects the calculation of Adjusted EBITDA, as defined, from income from continuing operations before income taxes and
reconciles Adjusted EBITDA to net cash provided by (used in) operating activities as derived directly from the condensed consolidated financial statements (in millions):
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Income from continuing operations before income taxes | $ | 63 | $ | 168 | ||||
| Adjustments: | ||||||||
| Depreciation and amortization | 298 | 296 | ||||||
| Interest expense, net | 251 | 241 | ||||||
| Loss from early extinguishment of debt | 8 | |||||||
| Impairment of long-lived assets | 17 | |||||||
| Expenses related to the acquisition and integration of HMA | 1 | |||||||
| Expense from government settlement and related costs | 7 | |||||||
| Expense (income) from fair value adjustments and legal expenses related to cases covered by the CVR | (6 | ) | ||||||
| Expenses related to the spin-off of QHC | 4 | |||||||
| Adjusted EBITDA | $ | 633 | $ | 715 | ||||
| Adjusted EBITDA | $ | 633 | $ | 715 | ||||
| Interest expense, net | (251 | ) | (241 | ) | ||||
| Provision for income taxes | (26 | ) | (56 | ) | ||||
| Loss from operations of entities sold or held for sale, net of taxes | (11 | ) | ||||||
| Other non-cash expenses, net | 29 | 18 | ||||||
| Changes in operating assets and liabilities, net of effects of acquisitions and divestitures | (91 | ) | (486 | ) | ||||
| Net cash provided by (used in) operating activities | $ | 294 | $ | (61 | ) |
CYH Announces First Quarter 2016 Results
Footnotes to Financial Highlights, Financial Statements and Selected Operating Data
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Weighted-average number of shares outstanding - basic | 110 | 114 | ||||||
| Add effect of dilutive securities: | ||||||||
| Stock awards and options | 1 | |||||||
| Weighted-average number of shares outstanding - diluted | 110 | 115 |
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| (per share - diluted) | ||||||||
| Income from continuing operations, as reported | $ | 0.11 | $ | 0.79 | ||||
| Adjustments: | ||||||||
| Loss from early extinguishment of debt | 0.04 | |||||||
| Impairment of long-lived assets | 0.13 | |||||||
| Expense from government settlement and related costs | 0.04 | |||||||
| Expense (income) from fair value adjustments and legal expenses related to cases covered by the CVR | (0.03 | ) | ||||||
| Expenses related to the spin-off of QHC | 0.02 | |||||||
| Income from continuing operations, excluding adjustments | $ | 0.27 | $ | 0.85 | ||||
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| (per share - diluted) | ||||||||
| Net income, as reported | $ | 0.10 | $ | 0.68 | ||||
| Adjustments: | ||||||||
| Loss from early extinguishment of debt | 0.04 | |||||||
| Impairment of long-lived assets | 0.13 | |||||||
| Expense from government settlement and related costs | 0.04 | |||||||
| Expense (income) from fair value adjustments and legal expenses related to cases covered by the CVR | (0.03 | ) | ||||||
| Expenses related to the spin-off of QHC | 0.02 | |||||||
| Net income, excluding adjustments | $ | 0.25 | $ | 0.74 |
CYH Announces First Quarter 2016 Results
Regulation FD Disclosure
Set forth below is selected information concerning the Company s projected consolidated operating results for the year ending
December 31, 2016. These projections update selected guidance issued on February 15, 2016, and are based on the Company s historical operating performance, current trends and other assumptions that the Company believes are reasonable at
this time. The 2016 guidance should be considered in conjunction with the assumptions included herein. See pages 14 and 15 for a list of factors that could affect the future results of the Company or the healthcare industry generally.
The following is provided as guidance to analysts and investors:
| 2016 Projection Range | ||||||||||||
| Net operating revenues less provision for bad debts (in millions) | $ | 17,800 | to | $ | 18,300 | |||||||
| Adjusted EBITDA (in millions) | $ | 2,600 | to | $ | 2,700 | |||||||
| Income from continuing operations per share - diluted | $ | 2.50 | to | $ | 2.80 | |||||||
| Same-store hospital annual adjusted admissions growth | 0.5 | % | to | 2.5 | % | |||||||
| Weighted-average diluted shares, in millions | 111 | to | 113 |
The following assumptions were used in developing the 2016 guidance provided above: