Community Health Systems, Inc. Announces Fourth Quarter 2004 Results.BRENTWOOD Brentwood, city and district, England Brentwood, city (1991 pop. 51,212) and district, Essex, SE England. Brentwood is mainly residential but produces some agricultural equipment, film, and prefabricated concrete. , Tenn. -- Community Health Systems, Inc. (NYSE NYSE See: New York Stock Exchange :CYH CYH Check Your Head (youth driven organization in Canada) CYH Consider Yourself Hugged ):
With Net Operating Revenues up 10.9%,
Income from Continuing Operations Per Share (Diluted) up 25.7% and
Net Income Per Share (Diluted) up 22.9%
Completes Year 2004 with Net Operating Revenues up 19.2%,
Income from Continuing Operations Per Share (Diluted) up 21.5%, and
Net Income Per Share (Diluted) up 16.2%
E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Community Health Systems, Inc. (NYSE:CYH) today announced financial and operating results for the fourth quarter and year ended December December: see month. 31, 2004. E[acute accent]Net operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the fourth quarter ended December 31, 2004, totaled $871.7 million, a 10.9% increase compared with $785.8 million for the same period last year. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the increased 13.1% to $40.6 million, or $0.44 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), on 97.5 million weighted average shares outstanding for the quarter ended December 31, 2004, compared with $35.9 million, or $0.35 per share (diluted), on 108.7 million weighted average shares outstanding for the same period last year. Net income increased 12.9% to $40.2 million, or $0.43 per share (diluted), compared with $35.6 million, or $0.35 per share (diluted), for the same period last year. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. consists of an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. loss of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.4 million, less than $0.01 per share (diluted), related to the sale of two hospitals and the designation DESIGNATION, wills. The expression used by a testator, instead of the name of the person or the thing he is desirous to name; for example, a legacy to. the eldest son of such a person, would be a designation of the legatee. Vide 1 Rop. Leg. ch. 2. 2. of a third hospital as being held for sale. Refer to pages 4 and 5 for "Financial Highlights." E[acute accent]Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the fourth quarter of 2004 was $130.0 million, compared with $118.6 million for the same period last year, representing a 9.6% increase. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, loss from early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt and minority interest in earnings. The Company uses adjusted EBITDA as a measure of liquidity. Net cash provided by operating activities for the fourth quarter of 2004 was $62.6 million, compared with $45.3 million for the same period last year, an increase of 38.0%. E[acute accent]The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for the fourth quarter ended December 31, 2004, reflect a 1.0% increase in total admissions compared with the same period last year. This increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to hospitals that have been acquired by the Company during 2004. On a same-store basis, admissions decreased 3.4% and adjusted admissions decreased 1.3% compared with the same period last year, primarily due to the lack of a flu season
respiratory disease, respiratory disorder adult respiratory distress syndrome, ARDS, wet lung, white lung - acute lung injury characterized by coughing and rales; inflammation of the treated. On a same-store basis, net operating revenues increased 5.3%, compared with the same period last year. E[acute accent]Net operating revenues for the year ended December 31, 2004, totaled $3.3 billion, compared with $2.8 billion for the same period last year, a 19.2% increase, again demonstrating the Company's successful integration of acquisitions over the last several years. Income from continuing operations increased 19.8% to $158.2 million or $1.58 per share (diluted), on 105.9 million weighted averages shares outstanding for the year ended December 31, 2004, compared with $132.0 million, or $1.30 per share (diluted) on 108.1 million weighted average shares outstanding, for the same period last year. Income from continuing operations for the year ended December 31, 2004, was reduced by approximately $1.4 million after taxes, or $0.01 per share (diluted), as a result of approximately $1.3 million in expenses incurred in connection with the registration and offering of common stock of certain of the Company's selling stockholders, and an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $0.8 million loss from early extinguishment of debt related to the refinancing Refinancing An extension and/or increase in amount of existing debt. of the Company's credit agreement. Year end results also included an estimated after tax loss of approximately $2.1 million, or $0.02 per share (diluted), as a result of a series of hurricanes which negatively impacted the volumes and operating results of selected hospitals during the third and fourth quarters of 2004. E[acute accent]Discontinued operations consist of an after-tax loss of approximately $6.8 million, or $0.07 per share (diluted), related to the sale of two hospitals and an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. related to the designation of a third hospital as being held for sale. Net income increased 15.2% to $151.4 million, or $1.51 per share (diluted), for the year ended December 31, 2004, compared with $131.5 million, or $1.30 per share (diluted) for the same period last year. E[acute accent]Adjusted EBITDA for the year ended December 31, 2004, was $497.1 million, compared with $434.0 million for the same period last year, a 14.6% increase. Net cash provided by operating activities for the year ended December 31, 2004, was $325.8 million, compared with $243.7 million for the same period last year, an increase of 33.7%. E[acute accent]The consolidated financial results for the year ended December 31, 2004, reflect an 11.5% increase in total admissions compared with the same period last year. On a same-store basis, admissions decreased 0.2%, adjusted admissions increased 1.3%, and net operating revenues increased 6.6%, compared with the same period last year. E[acute accent]"We are very pleased with Community Health Systems' strong financial performance for 2004," commented Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. "Our gains in the fourth quarter are especially gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. when compared with our impressive finish in 2003 and in light of the fact that the flu season failed to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. by the end of 2004. Our successful expense management - in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with our focus on our effective, standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. operating platform, a proven acquisition strategy, successful physician recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. , and our favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reputation in the marketplace - all worked together to allow us to surpass our financial and operating objectives." E[acute accent]During 2004, Community Health Systems, Inc. completed two acquisitions of community hospitals. On July July: see month. 1, 2004, the Company acquired Galesburg Galesburg, city (1990 pop. 33,530), seat of Knox co., W Ill., in a farm, livestock, and coal area; chartered 1841. A trade, rail, and industrial center, it has railroad shops and plants that manufacture paint, rubber hoses, apparel, and plastics. Cottage Hospital The original concept of a cottage hospital was a small rural hospital having up to 25 beds. One advantage of such a hospital in villages was the familiarity the local physician might have with their patient that may affect their treatment. (170 beds) in Galesburg, Illinois Galesburg is a city in Knox County, Illinois, in the United States. As of the 2000 census, the city population was 33,706. It is the county seat of Knox County.GR6 , and completed the acquisition of Phoenixville Phoenixville (fē`nĭksvĭl), borough (1990 pop. 15,066), Chester co., SE Pa., on the Schuylkill River; settled 1720, inc. 1849. Iron deposits in the region led to the early development of an iron industry and later (1886) to the manufacture Hospital (143 beds) in Phoenixville, Pennsylvania Phoenixville is a borough in Chester County, Pennsylvania, 28 miles (45 km) northwest of Philadelphia at the junction of French Creek with the Schuylkill River. The population was 14,788 at the 2000 census. , on August 1, 2004. E[acute accent]"Our Galesburg and Phoenixville acquisitions have been assimilated into our network of non-urban hospitals, and we expect them to provide additional growth opportunities for the Company as we expand our coverage into new markets," added Smith. "Our acquisition strategy will continue to be a strong component of our success, enabling us to grow our operating base and extend services into new communities, while delivering greater value to our shareholders." E[acute accent]On January January: see month. 20, 2005, the Company announced the execution of a definitive agreement to acquire Chestnut Hill Chestnut Hill may refer to: In geography:
Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . E[acute accent]Included in the Company's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed on February February: see month. 24, 2005, is a table setting forth selected information concerning the updated projected consolidated operating results of the Company for the year ending December 31, 2005. E[acute accent]Located in the Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. of Brentwood, Community Health Systems, Inc. is a leading operator of general acute care hospitals in non-urban communities throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 71 hospitals in 22 states. Its hospitals offer a broad range of inpatient inpatient /in·pa·tient/ (in´pa-shent) a patient who comes to a hospital or other health care facility for diagnosis or treatment that requires an overnight stay. in·pa·tient n. medical and surgical services, outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. treatment and skilled nursing care. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "CYH". E[acute accent]Community Health Systems, Inc. will hold a conference call to discuss this press release on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 25, 2005, at 10:30 a.m. Central, 11:30 a.m. Eastern. Investors will have the opportunity to listen to a live Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the broadcast of the conference call by clicking on the Investor Relations Investor relations The process by which the corporation communicates with its investors. link of the Company's website at www.chs.net, or at www.fulldisclosures.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , 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 continue through March 25, 2005. A copy of the Company's Form 8-K (including this press release) and conference call slide show will also be available on the Company's website at www.chs.net. E[acute accent]Statements contained in this news release regarding expected operating results, acquisition transactions and other events are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company's registration statements, annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , quarterly reports on Form 10-Q Form 10-Q See 10-Q. and current reports on Form 8-K. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements.
COMMUNITY HEALTH SYSTEMS, INC.
Financial Highlights
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
--------------------- -------------------------
2004 2003 (a) 2004 2003 (a)
--------- --------- ----------- -----------
Net operating
revenues $871,673 $785,844 $3,332,641 $2,796,766
Adjusted EBITDA
(b) $129,981 $118,590 $497,129 (c) $433,975
Income from
continuing
operations $40,642 $35,923 $158,221 (d) $132,049
Net income $40,229 $35,634 $151,433 $131,472
Income from
continuing
operations
per share-
basic $0.47 $0.36 $1.65 $1.34
Income from
continuing
operations
per share-
diluted $0.44 $0.35 $1.58 (d) $1.30
Net income per
share - basic $0.46 $0.36 $1.58 $1.34
Net income per
share - diluted $0.43 $0.35 $1.51 $1.30
Weighted average
number of
shares
outstanding -
basic 87,369 98,469 95,644 98,392
Weighted average
number of
shares
outstanding -
diluted 97,516 (e) 108,673 (e) 105,864 (e) 108,095 (e)
Net cash
provided by
operating
activities $62,577 $45,348 $325,751 $243,704
(a) Pursuant to FASB No. 144, the Company has restated its prior
period financial statements and statistical results to reflect the
reclassification as discontinued operations the sale of two
hospitals and the designation of a third hospital as being held
for sale.
(b) EBITDA consists of income before interest, income taxes, and
depreciation and amortization. Adjusted EBITDA is EBITDA adjusted
to exclude discontinued operations, loss from early extinguishment
of debt and minority interest in earnings. We have from time to
time sold minority interests in certain of our subsidiaries or
acquired subsidiaries with existing minority interest ownership
positions. We believe that it is useful to present adjusted EBITDA
because it excludes the portion of EBITDA attributable to these
third party interests and clarifies for investors our Company's
portion of EBITDA generated by our continuing operations. We use
adjusted EBITDA as a measure of liquidity. We have included this
measure because we believe it provides investors with additional
information about our ability to incur and service debt and make
capital expenditures. Adjusted EBITDA is the basis for a key
component in the determination of our compliance with some of the
covenants under our senior secured credit facility, as well as to
determine the interest rate and commitment fee payable under the
senior secured credit facility.
Adjusted EBITDA is not a measurement of financial performance or
liquidity under generally accepted accounting principles. 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 generally accepted accounting principles. The
items excluded from adjusted EBITDA are significant components in
understanding and evaluating financial performance and liquidity.
Our calculation of adjusted EBITDA may not be comparable to
similarly titled measures reported by other companies.
The following table reconciles adjusted EBITDA, as defined, to our
net cash provided by operating activities as derived directly from
our consolidated financial statements for the three months and
years ended December 31, 2004 and 2003 (in thousands):
Three Months Ended Year Ended
December 31, December 31,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Adjusted EBITDA $129,981 $118,590 $497,129 $433,975
Interest expense, net (21,587) (18,866) (77,856) (70,792)
Provision for income taxes (25,658) (24,427) (102,002) (88,517)
Loss from operations of
hospitals sold or held for
sale (413) (289) (3,143) (577)
Depreciation and amortization
of discontinued operations - 702 1,696 3,136
Other non-cash expenses, net 41,639 63,103 42,573 63,245
Net changes in operating
assets and liabilities, net
of effects of acquisitions (61,385) (93,465) (32,646) (96,766)
--------- --------- --------- ---------
Net cash provided by operating
activities $62,577 $45,348 $325,751 $243,704
========= ========= ========= =========
(c) Includes approximately $1.3 million of expenses incurred in
connection with the registration and offering of common stock and
the repurchase of common stock by us.
(d) Income from continuing operations for the year ended December 31,
2004, was reduced by approximately $1.4 million or $0.01 per share
(diluted) after taxes as a result of approximately $1.3 million in
expenses incurred in connection with the registration and offering
of common stock and the repurchase of common stock by us, and an
approximate $0.8 million loss from early extinguishment of debt
related to the refinancing of our credit agreement. Income from
continuing operations for the year also included an after tax loss
of approximately $2.1 million or $0.02 per share (diluted) as a
result of the series of hurricanes.
(e) Adjusted to include assumed exercise of employee stock options and
assumed conversion of convertible notes. Since the income per
share impact of the conversion of the convertible notes is less
than the basic income per share for both periods presented, the
convertible notes are dilutive and accordingly must be included in
the fully diluted calculation (after tax interest savings of $2.2
million per quarter and 8.6 million shares added to the
calculation of fully diluted earnings per share).
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Net operating revenues $871,673 $785,844 $3,332,641 $2,796,766
--------- --------- ----------- -----------
Operating expenses:
Salaries and benefits 347,905 313,963 1,335,457 1,121,650
Provision for bad debts 89,976 80,328 343,793 272,424
Supplies 106,292 94,226 404,063 328,496
Other operating
expenses 197,519 178,737 752,199 640,221
Depreciation and
amortization 41,604 39,090 156,684 140,630
Minority interests in
earnings 490 284 1,578 1,987
--------- --------- ----------- -----------
Total expenses 783,786 706,628 2,993,774 2,505,408
--------- --------- ----------- -----------
Income from operations 87,887 79,216 338,867 291,358
Interest expense, net 21,587 18,866 77,856 70,792
Loss from early
extinguishment of debt - - 788 -
--------- --------- ----------- -----------
Income from continuing
operations before income
taxes 66,300 60,350 260,223 220,566
Provision for income taxes 25,658 24,427 102,002 88,517
--------- --------- ----------- -----------
Income from continuing
operations 40,642 35,923 158,221 132,049
--------- --------- ----------- -----------
Discontinued operations, net of taxes;
Loss from operations of
hospitals sold
or held for sale (413) (289) (3,143) (577)
Net loss on sale of
hospitals - - (2,020) -
Impairment of long-lived
assets of hospital
held for sale - - (1,625) -
--------- --------- ----------- -----------
Loss on discontinued
operations (413) (289) (6,788) (577)
--------- --------- ----------- -----------
Net income $40,229 $35,634 $151,433 $131,472
========= ========= =========== ===========
Income from continuing
operations per share-
basic $0.47 $0.36 $1.65 $1.34
========= ========= =========== ===========
Income from continuing
operations per share-
diluted $0.44 $0.35 $1.58 $1.30
========= ========= =========== ===========
Net income per share -
basic $0.46 $0.36 $1.58 $1.34
========= ========= =========== ===========
Net income per share -
diluted $0.43 $0.35 $1.51 $1.30
========= ========= =========== ===========
Weighted average number of
shares outstanding:
Basic 87,369 98,469 95,644 98,392
--------- --------- ----------- -----------
Diluted 97,516 108,673 105,864 108,095
--------- --------- ----------- -----------
Net income per share
calculation:
Net income $40,229 $35,634 $151,433 $131,472
Add - Convertible notes
interest, net of taxes 2,190 2,190 8,757 8,757
--------- --------- ----------- -----------
Adjusted net income $42,419 $37,824 $160,190 $140,229
========= ========= =========== ===========
Weighted average number of
shares outstanding -
basic 87,369 98,469 95,644 98,392
Add effect of dilutive
securities:
Unvested common shares - 81 23 89
Employee stock options 1,565 1,541 1,615 1,032
Convertible notes 8,582 8,582 8,582 8,582
--------- --------- ----------- -----------
Weighted average number of
shares outstanding -
diluted 97,516 108,673 105,864 108,095
========= ========= =========== ===========
COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
(Unaudited)
($ in thousands)
For the Three Months Ended
December 31,
-----------------------------
Consolidated
-----------------------------
2004 2003 % Change
--------- --------- ---------
Number of hospitals 71 69
Licensed beds 7,888 7,637
Beds in service 6,346 6,041
Admissions 70,706 70,035 1.0%
Adjusted admissions 131,531 126,625 3.9%
Patient days 286,112 284,964 0.4%
Average length of stay (days) 4.0 4.1
Occupancy rate (average beds in service) 49.0% 51.3%
Net operating revenues $871,673 $785,844 10.9%
Net inpatient revenue as a % of total
net operating revenues 50.8% 51.6%
Net outpatient revenue as a % of total
net operating revenues 47.8% 46.9%
Income from operations $87,887 $79,216 10.9%
Income from operations as a % of net
operating revenues 10.1% 10.1%
Depreciation and amortization $41,604 $39,090
Minority interest in earnings $490 $284
Liquidity Data:
Adjusted EBITDA $129,981 $118,590 9.6%
Adjusted EBITDA as a % of net operating
revenues 14.9% 15.1%
Net cash provided by operating
activities $62,577 $45,348
Net cash provided by operating
activities as a % of net operating
revenue 7.2% 5.8%
For the Three Months Ended
December 31,
------------------------------
Same-Store
-----------------------------
2004 2003 % Change
--------- --------- ---------
Number of hospitals 69 69
Licensed beds 7,575 7,637
Beds in service 6,040 6,041
Admissions 67,550 69,960 -3.4%
Adjusted admissions 124,828 126,490 -1.3%
Patient days 272,446 284,533 -4.2%
Average length of stay (days) 4.0 4.1
Occupancy rate (average beds in service) 49.0% 51.3%
Net operating revenues $824,517 $782,812 5.3%
Net inpatient revenue as a % of total
net operating revenues 51.4% 51.7%
Net outpatient revenue as a % of total
net operating revenues 47.3% 47.1%
Income from operations $83,574 $77,765 7.5%
Income from operations as a % of net
operating revenues 10.1% 9.9%
Depreciation and amortization $39,943 $39,024
Minority interest in earnings $490 $284
Continuing operating results and statistical data exclude discontinued
operations for all periods presented.
Certain 2003 operating data has been adjusted for minor
reclassification/corrections.
COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
(Unaudited)
($ in thousands)
For the Year Ended December 31,
--------------------------------
Consolidated
--------------------------------
2004 2003 % Change
----------- ----------- --------
Number of hospitals 71 69
Licensed beds 7,888 7,637
Beds in service 6,346 6,041
Admissions 279,678 250,901 11.5%
Adjusted admissions 518,603 458,709 13.1%
Patient days 1,135,844 989,891 14.7%
Average length of stay (days) 4.1 3.9
Occupancy rate (average beds in
service) 49.9% 48.9%
Net operating revenues $3,332,641 $2,796,766 19.2%
Net inpatient revenue as a % of total
net operating revenues 50.5% 51.3%
Net outpatient revenue as a % of
total net operating revenues 48.1% 47.5%
Income from operations $338,867 $291,358 16.3%
Income from operations as a % of net
operating revenues 10.2% 10.4%
Depreciation and amortization $156,684 $140,630
Minority interest in earnings $1,578 $1,987
Liquidity Data:
Adjusted EBITDA $497,129 $433,975 14.6%
Adjusted EBITDA as a % of net
operating revenues 14.9% 15.5%
Net cash provided by operating
activities $325,751 $243,704
Net cash provided by operating
activities as a % of net operating
revenue 9.8% 8.7%
For the Year Ended December 31,
---------------------------------
Same-Store
---------------------------------
2004 2003 % Change
------------ ----------- --------
Number of hospitals 69 69
Licensed beds 7,575 7,637
Beds in service 6,040 6,041
Admissions 249,415 249,807 -0.2%
Adjusted admissions 462,521 456,758 1.3%
Patient days 994,314 986,216 0.8%
Average length of stay (days) 4.0 3.9
Occupancy rate (average beds in
service) 48.7% 49.0%
Net operating revenues $2,966,410 $2,782,892 6.6%
Net inpatient revenue as a % of total
net operating revenues 50.5% 51.3%
Net outpatient revenue as a % of
total net operating revenues 48.3% 47.5%
Income from operations $317,296 $289,860 9.5%
Income from operations as a % of net
operating revenues 10.7% 10.4%
Depreciation and amortization $142,513 $139,951
Minority interest in earnings $1,578 $1,987
Continuing operating results and statistical data exclude discontinued
operations for all periods presented.
Certain 2003 operating data has been adjusted for minor
reclassification/corrections.
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
December 31, December 31,
2004 2003
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $82,498 $16,331
Patient accounts receivable, net 597,261 559,097
Other current assets 135,690 120,652
------------ ------------
Total current assets 815,449 696,080
------------ ------------
Property and equipment 1,924,843 1,772,461
Less accumulated depreciation and
amortization (440,295) (377,116)
------------ ------------
Property and equipment, net 1,484,548 1,395,345
------------ ------------
Goodwill, net 1,213,783 1,155,797
------------ ------------
Other assets, net 118,828 102,989
------------ ------------
Total assets $3,632,608 $3,350,211
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $26,867 $29,677
Accounts payable and accrued
liabilities 335,492 368,387
------------ ------------
Total current liabilities 362,359 398,064
------------ ------------
Long-term debt 1,804,868 1,444,981
------------ ------------
Other long-term liabilities 225,390 156,577
------------ ------------
Stockholders' equity 1,239,991 1,350,589
------------ ------------
Total liabilities and
stockholders' equity $3,632,608 $3,350,211
============ ============
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Year Ended
December 31,
---------------------
2004 2003
----------- ---------
Cash flows from operating activities
Net Income $151,433 $131,472
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 158,380 143,766
Minority interest in earnings 1,578 1,987
Other non-cash expenses, net 47,006 63,245
Net changes in operating assets and
liabilities, net of effects of
acquisitions (32,646) (96,766)
----------- ---------
Net cash provided by operating
activities 325,751 243,704
----------- ---------
Cash flows from investing activities
Acquisitions of facilities and other
related equipment (133,033) (450,572)
Purchases of property and equipment (164,287) (146,379)
Proceeds from sale of assets and facilities 8,640 5,160
Increase in other assets (29,800) (28,979)
----------- ---------
Net cash used in investing activities (318,480) (620,770)
----------- ---------
Cash flows from financing activities
Proceeds from exercise of stock options 9,900 4,264
Stock repurchase (290,520) (14,708)
Deferred financing costs (12,783) (1,261)
Redemption of minority investments
in joint ventures (3,522) (430)
Distribution to minority investors
in joint ventures (1,238) (2,471)
Borrowing under credit agreement 2,025,768 390,700
Repayments of long-term indebtedness (1,668,709) (115,541)
----------- ---------
Net cash provided by financing
activities 58,896 260,553
----------- ---------
Net change in cash and cash equivalents 66,167 (116,513)
Cash and cash equivalents at beginning of period 16,331 132,844
----------- ---------
Cash and cash equivalents at end of period $82,498 $16,331
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