Community Health Systems, Inc. Announces Strong Fourth Quarter 2000 Results With Net Operating Revenue and Adjusted EBITDA Up Over 28%.Business Editors & Health/Medical Writers 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.--(BUSINESS WIRE)--Feb. 21, 2001 Completed 164 Bed Hospital Acquisition in December December: see month. , Its Seventh in 2000 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 ), today announced financial and operating results for the fourth quarter and year ended December 31, 2000. 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, 2000, totaled $369.3 million, a 28.1% increase compared with $288.2 million for the fourth quarter ended December 31, 1999. 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 2000 was $70.1 million compared with $54.7 million in the fourth quarter of 1999, representing a 28.1% increase. Net income was $7.2 million, or $0.09 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 84.1 million average shares outstanding for the quarter ended December 31, 2000, compared with $(12.4) million loss, or $(0.23) per share (diluted), on 54.5 million average shares outstanding for the same period last year. 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, 2000, reflect a 20.2% increase in total admissions, and a 18.4% increase in adjusted admissions, compared with the fourth quarter of 1999. On a same hospitals basis, net revenues in the fourth quarter of 2000 increased 11.7%, admissions increased 5.2%, and adjusted admissions increased 3.4% compared with the same period last year. Net operating revenues for the year ended December 31, 2000, totaled $1,337.5 million, compared with $1,080.0 million for the year ended December 31, 1999, a 23.8% increase. Adjusted EBITDA for the year ended December 31, 2000, was $252.7 million compared with $204.2 million for the same period in 1999, representing a 23.8% increase. Net income was $9.6 million, or $0.14 per share (diluted) on 69.2 million average shares outstanding for the year ended December 31, 2000, compared with $(16.8) million loss, or $(0.31) per share (diluted), on 54.5 million average shares outstanding for the year ended December 31, 1999. The consolidated financial results for the year ended December 31, 2000, reflect a 19.0% increase in total admissions, and a 20.9% increase in adjusted admissions, compared with the year ended December 31, 1999. On a same hospitals basis, net revenues for the year 2000 increased 10.3%, admissions increased 6.3%, and adjusted admissions increased 7.3% compared with the year 1999. The 54.4% and 26.8% increases in the weighted average number of shares (diluted) outstanding for the fourth quarter and year ended December 31, 2000, respectively, are due principally to the Company's initial public offering in June June: see month. 2000, a secondary public offering in November November: see month. 2000 and, to a lesser extent, stock options granted during 2000. As announced on December 1, 2000, the Company acquired and commenced operations of Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. Regional Medical Center, a 164-bed acute care facility located in Kirksville, Missouri Kirksville is a city in Adair County, Missouri, United States. The population was 16,988 at the 2000 census. It is the county seat of Adair CountyGR6. Kirksville also anchors a micropolitan area that is comprised of Adair and Schuyler counties. . The facility is the sole community provider of hospital services in Adair County Adair County is the name of four counties in the United States:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 100 miles north of Columbia, Missouri
Columbia (IPA: /kə.lʌm.bi.ə) is the fifth largest city in Missouri and the largest city in central Missouri. . "Our strong financial and operating performance which continued during the fourth quarter of 2000 reflects favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. momentum and growth for Community Health Systems," 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, president and chief executive officer. "We are particularly pleased with the positive operating trends and the strong level of execution in our hospitals as demonstrated by our same store growth in revenues and EBITDA. We are confident about our ability to meet our strategic objectives and provide quality healthcare services in the non-urban communities that we serve." Community Health Systems, Inc., a leading provider of non-urban acute healthcare services, currently owns or operates 52 hospitals across 20 states. These facilities, together with their medical staffs, provide a wide 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. and 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. acute care services and a variety of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. services. Community Health Systems, Inc. will hold a conference call to discuss this press release on Thursday Thursday: see week. , February February: see month. 22, 2001 at 10:30 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. , 11:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . Investors will have the opportunity to listen to the conference call over the 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 through the Company's web site at www.chs.net. The call will also be broadcast on www.streetevents.com. To listen to the live call, please go to the web site 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 22, 2001. Statements contained in this news release regarding expected operating results 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 Statement on Form S-1 (Registration Statement No. 333-47354) and Form 10-Q Form 10-Q See 10-Q. for the quarters ended June 30, 2000 and September September: see month. 30, 2000. 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.
Unaudited Financial Highlights
(In thousands, except per share amounts)
Three Months Ended
December 31,
-------------------------
2000 1999
----------- -----------
Net operating revenues $ 369,267 $ 288,232
Adjusted EBITDA $ 70,111 $ 54,728
Net income (loss) $ 7,212 $ (12,437)
Net income (loss) per share - basic $ 0.09 $ (0.23)
Weighted average number of shares
outstanding (basic) 81,718 54,460
Net income (loss) per share - diluted $ 0.09 $ (0.23)
Weighted average number of shares
outstanding (diluted) 84,067 54,460
Year Ended
December 31,
-------------------------
2000 1999
----------- -----------
Net operating revenues $ 1,337,501 $ 1,079,953
Adjusted EBITDA $ 252,736 $ 204,185
Net income (loss) $ 9,569 $ (16,789)
Net income (loss) per share - basic $ 0.14 $ (0.31)
Weighted average number of shares
outstanding (basic) 67,610 54,545
Net income (loss) per share - diluted $ 0.14 $ (0.31)
Weighted average number of shares
outstanding (diluted) 69,187 54,545
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Operations
Unaudited
(in thousands, except per share amounts)
Three Months Ended
December 31,
------------------------
2000 1999
----------- ----------
Net operating revenues $ 369,267 $ 288,232
----------- ----------
Operating expenses:
Salaries and benefits 140,739 110,111
Provision for bad debts 34,517 25,893
Supplies 41,795 33,950
Other operating expenses 82,105 63,550
Depreciation and amortization 19,366 15,612
Amortization of goodwill 6,773 6,427
Year 2000 remediation costs -- 15,579
----------- ----------
Total expenses 325,295 271,122
----------- ----------
Income from operations 43,972 17,110
Interest expense, net 29,656 31,062
----------- ----------
Income (loss) before income taxes 14,316 (13,952)
Provision for (benefit from) income taxes 7,104 (1,515)
----------- ----------
Net income (loss) $ 7,212 $ (12,437)
=========== ==========
Basic net income (loss) per common share $ 0.09 $ (0.23)
=========== ==========
Diluted net income (loss) per common share $ 0.09 $ (0.23)
=========== ==========
Weighted average number of shares
outstanding:
Basic 81,718 54,460
=========== ==========
Diluted 84,067 54,460
=========== ==========
Year Ended
December 31,
-----------------------
2000 1999
---------- ----------
Net operating revenues $1,337,501 $1,079,953
---------- ----------
Operating expenses:
Salaries and benefits 517,392 419,320
Provision for bad debts 122,303 95,149
Supplies 154,211 126,693
Other operating expenses 290,859 234,606
Depreciation and amortization 71,931 56,943
Amortization of goodwill 25,693 24,708
Year 2000 remediation costs -- 17,279
---------- ----------
Total expenses 1,182,389 974,698
---------- ----------
Income from operations 155,112 105,255
Interest expense, net 127,370 116,491
---------- ----------
Income (loss) before income taxes 27,742 (11,236)
Provision for (benefit from) income taxes 18,173 5,553
---------- ----------
Net income (loss) $ 9,569 $ (16,789)
========== ==========
Basic net income (loss) per common share $ 0.14 $ (0.31)
========== ==========
Diluted net income (loss) per common share $ 0.14 $ (0.31)
========== ==========
Weighted average number of shares
outstanding:
Basic 67,610 54,545
========== ==========
Diluted 69,187 54,545
========== ==========
COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
($ in thousands)
For the Three Months Ended
December 31,
---------------------------
Consolidated
---------------------------
2000 1999 % Change
------- ------- --------
Number of hospitals 52 46
Licensed beds 4,688 4,115
Beds in service 3,587 3,123
Admissions 38,420 31,961 20.2%
Adjusted admissions 68,846 58,130 18.4%
Patient days 145,396 122,765 18.4%
Average length of stay (days) 3.8 3.8
Occupancy rate (beds in service) 45.3% 43.2%
Net operating revenues $369,267 $288,232 28.1%
Net inpatient revenue as a % of
Total net operating revenue 52.9% 52.5%
Net outpatient revenue as a % of
Total net operating revenue 45.9% 45.8%
Adjusted EBITDA as a % of
net operating revenue 19.0% 19.0%
For the Three Months Ended
December 31,
---------------------------
Same Hospitals
---------------------------
2000 1999 % Change
------- ------- --------
Number of hospitals 44 44
Licensed beds 3,958 3,954
Beds in service 3,044 3,013
Admissions 32,921 31,288 5.2%
Adjusted admissions 58,850 56,898 3.4%
Patient days 125,674 120,158 4.6%
Average length of stay (days) 3.8 3.8
Occupancy rate (beds in service) 45.2% 43.8%
Net operating revenues $312,376 $279,601 11.7%
Net inpatient revenue as a % of 52.7% 52.7%
Total net operating revenue
Net outpatient revenue as a % of 46.1% 46.0%
Total net operating revenue
Adjusted EBITDA as a % of
net operating revenue 19.8% 18.9%
For the Year Ended
December 31,
-----------------------------
Consolidated
-----------------------------
2000 1999 % Change
------- ------- --------
Number of hospitals 52 46
Licensed beds 4,688 4,115
Beds in service 3,587 3,123
Admissions 143,310 120,414 19.0%
Adjusted admissions 262,419 217,006 20.9%
Patient days 548,827 478,658 14.7%
Average length of stay (days) 3.8 4.0
Occupancy rate (beds in service) 44.6% 44.1%
Net operating revenues $1,337,501 $1,079,953 23.8%
Net inpatient revenue as a % of
Total net operating revenue 51.0% 52.7%
Net outpatient revenue as a % of
Total net operating revenue 47.3% 45.5%
Adjusted EBITDA as a % of
net operating revenue 18.9% 18.9%
For the Year Ended
December 31,
---------------------------
Same Hospitals
----------------------------
2000 1999 % Change
------- ------- --------
Number of hospitals 44 44
Licensed beds 3,958 3,954
Beds in service 3,044 3,013
Admissions 125,207 117,768 6.3%
Adjusted admissions 227,780 212,246 7.3%
Patient days 481,620 467,884 2.9%
Average length of stay (days) 3.8 4.0
Occupancy rate (beds in service) 45.1% 44.8%
Net operating revenues $1,155,850 $1,047,950 10.3%
Net inpatient revenue as a % of
Total net operating revenue 51.3% 52.8%
Net outpatient revenue as a % of
Total net operating revenue 47.1% 45.6%
Adjusted EBITDA as a % of
net operating revenue 19.9% 18.8%
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(dollars in thousands)
December 31,
--------------------------
2000 1999
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 13,740 $ 4,282
Patient accounts receivable, net 309,826 226,350
Other current assets 85,011 69,864
----------- -----------
Total current assets 408,577 300,496
----------- -----------
Property and equipment 850,201 731,842
Less accumulated depreciation
and amortization (142,120) (108,499)
----------- ------------
Property and equipment, net 708,081 623,343
----------- -----------
Goodwill, net 985,568 877,890
----------- -----------
Other assets, net 111,611 93,355
----------- -----------
Total assets $ 2,213,837 $ 1,895,084
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 18,433 $ 27,029
Accounts payable and accrued
liabilities 222,440 208,248
----------- -----------
Total current liabilities 240,873 235,277
----------- -----------
Long-term debt 1,201,590 1,407,604
----------- -----------
Other long-term liabilities 15,200 22,495
----------- -----------
Stockholders' equity 756,174 229,708
----------- -----------
Total liabilities and
stockholders' equity $ 2,213,837 $ 1,895,084
=========== ===========
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