Community Health Systems, Inc. (NYSE:CYH) Q1 2025 Earnings Conference Call April 24, 2025 11:00 AM ET Company Participants Anton Hie - VP, IR Tim Hingtgen - CEO Kevin Hammons - President and CFO Conference Call Participants Brian Tanquilut - Jefferies A.J. Rice - UBS Josh Raskin - Nephron Research Andrew Mok - Barclays Steve Baxter - Wells Fargo Operator Good day and welcome to the Community Health Systems, Inc. First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Shoul ...

Financial Performance - Net operating revenues increased from $3.140 billion for the three months ended March 31, 2024, to $3.159 billion for the same period in 2025, representing a growth of approximately 0.6%[110] - The company reported a net income of $25 million for the three months ended March 31, 2025, compared to a net loss of $(6) million for the same period in 2024[111] - Same-store net operating revenues increased by $94 million, or 3.1%, during the three months ended March 31, 2025, compared to the same period in 2024[134] - Net income was 0.8% of net operating revenues for the three months ended March 31, 2025, compared to a net loss of (0.2)% for the same period in 2024[142] - Operating expenses as a percentage of net operating revenues decreased from 92.6% in Q1 2024 to 91.0% in Q1 2025[135] Admissions and Services - Consolidated inpatient admissions decreased by 1.0% for the three months ended March 31, 2025, while same-store inpatient admissions increased by 4.0% during the same period[111] - Inpatient admissions decreased by 1.0% and adjusted admissions decreased by 2.3% during the three months ended March 31, 2025, compared to the same period in 2024[134] - Charity care services accounted for approximately 9.7% of net operating revenues for the three months ended March 31, 2025, compared to 10.1% for the same period in 2024[112] Cash Flow and Investments - Net cash provided by operating activities increased by $24 million to approximately $120 million for the three months ended March 31, 2025[144] - Net cash provided by investing activities was approximately $444 million for the three months ended March 31, 2025, compared to net cash used in investing activities of approximately $99 million for the same period in 2024[145] - Net cash used in financing activities was approximately $170 million for the three months ended March 31, 2025, a change of $183 million compared to net cash provided by financing activities of approximately $13 million for the same period in 2024[146] Debt and Financing - Approximately $29 million of the company's outstanding debt of approximately $11.3 billion is due within the next 12 months[153] - As of March 31, 2025, outstanding borrowings under the ABL Facility were $200 million, with approximately $651 million of additional borrowing capacity available[149] - The provision for income taxes increased to $42 million for the three months ended March 31, 2025, compared to $28 million for the same period in 2024[141] Divestitures and Acquisitions - The company divested two hospitals in Florida and sold a 50% ownership interest in a hospital in Mississippi, which represented annual net operating revenues of approximately $359 million in 2024, receiving total net proceeds of approximately $276 million[105] - The company completed the sale of Lake Norman Regional Medical Center for approximately $284 million on March 31, 2025[107] - The company has entered into definitive agreements to sell its 50% interest in Merit Health Madison and an 80% interest in Cedar Park Regional Medical Center for a total purchase price of $460 million, subject to adjustments[108] - The company is considering divesting additional hospitals and non-hospital businesses that are less complementary to its business strategy[109] Risks and Challenges - The company faces significant risks and uncertainties that may cause actual results to differ materially from forward-looking statements, including economic conditions, regulatory changes, and geopolitical instability[190] - The company is impacted by high interest rates and inflationary pressures, which could affect its financial performance and operational costs[190] - Changes in healthcare public policy and funding for Medicare and Medicaid programs could significantly affect the company's operations and revenue[190] - The company is experiencing challenges in hiring and retaining qualified medical personnel, leading to increased labor expenses due to competitive market conditions[192] - Ongoing economic conditions, including inflationary pressures and elevated interest rates, may negatively affect the company's liquidity in the future[154] Accounts Receivable and Collections - Patient accounts receivable from hospitals represent approximately 98% of total consolidated accounts receivable, with days revenue outstanding at 56 days as of March 31, 2025[170] - The company expects to collect less than 4% of the amounts being pursued by outside collection agencies, which totaled approximately $1.5 billion at March 31, 2025[168] - Total gross accounts receivable was approximately $17.5 billion as of March 31, 2025, compared to $17.3 billion as of December 31, 2024[171] - Insured receivables accounted for 73.3% of total gross accounts receivable as of March 31, 2025, up from 72.4% as of December 31, 2024[172] - The estimated implicit price concessions for self-pay accounts receivable were approximately 90% at both March 31, 2025, and December 31, 2024[172] Technology and Integration - The company is focused on integrating acquired hospitals and outpatient facilities to realize expected benefits, including growth in patient service revenues[192] - The company is exploring the development and adoption of emerging technologies, including artificial intelligence and machine learning, to enhance its services[192] Regulatory and Compliance - The company is subject to risks associated with cybersecurity threats and data privacy compliance, which could impact its operations[192] - The company is evaluating the impact of ASU 2023-09 on its consolidated financial statements, effective for annual periods beginning after December 15, 2024[187] Goodwill and Tax Positions - Goodwill recorded was approximately $3.8 billion as of March 31, 2025, with no impairment identified during the last evaluation[173] - The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, was $43 million at March 31, 2025[185] - A total of $6 million of interest and penalties is included in the liability for uncertain tax positions at March 31, 2025[185]

Core Insights - Community Health Systems (CYH) reported revenue of $3.16 billion for the quarter ended March 2025, reflecting a year-over-year increase of 0.6% and surpassing the Zacks Consensus Estimate of $3.11 billion by 1.44% [1] - The company posted an EPS of -$0.03, an improvement from -$0.14 a year ago, resulting in a surprise of 70% compared to the consensus estimate of -$0.10 [1] Financial Performance - Revenue increased by 0.6% year-over-year to $3.16 billion [1] - EPS improved from -$0.14 to -$0.03 year-over-year [1] - The company achieved a revenue surprise of 1.44% over the Zacks Consensus Estimate [1] - EPS surprise was 70% compared to the consensus estimate [1] Key Metrics - Number of Hospitals: 73, slightly below the estimated 74 [4] - Licensed Beds: 10,788, below the estimated 11,026 [4] - Patient Days: 468,365, slightly above the estimated 467,459.3 [4] - Admissions: 105,937, exceeding the average estimate of 101,635 [4] - Adjusted Admissions: 230,780, slightly below the estimated 231,737 [4] - Beds in Service: 9,285, above the estimated 9,228 [4] Stock Performance - Community Health Systems shares have returned -14.2% over the past month, compared to the Zacks S&P 500 composite's -6.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Exhibit Number 99.1 Investor Contact: Kevin Hammons President and Chief Financial Officer (615) 465-7000 COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES FIRST QUARTER ENDED MARCH 31, 2025 RESULTS FRANKLIN, Tenn. (April 23, 2025) – Community Health Systems, Inc. (NYSE: CYH) (the "Company") today announced financial and operating results for the three months ended March 31, 2025. CYH Announces First Quarter 2025 Results Page 2 April 23, 2025 Net loss attributable to Community Health Systems, Inc. stockholders was $( ...

Community Health Systems, Inc. (CYH) recently agreed to sell its 80% stake in Cedar Park Regional Medical Center and its associated businesses in Texas. Ascension Health, which currently holds a minority interest in Cedar Park Regional, is set to buy the remaining stake for $460 million in cash. The deal is expected to close by the late second quarter or early third quarter of this year. This announcement represents another milestone in Community Health’s mission to streamline operations to focus on profita ...

Wall Street expects a year-over-year increase in earnings on lower revenues when Community Health Systems (CYH) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 23, 2025, might help the stock move higher if these key numbers are better ...

On a same-store basis, adjusted admissions improved 3.1% year over year in the last reported quarter. This played a major role in increasing adjusted EBITDA by 10.9% year over year to $428 million. For the last two years, the company's occupancy rate increased. With a growing senior population and increasing cases of diseases, the occupancy rate will likely keep climbing. The company's revenue per adjusted admission is witnessing significant growth, which will support its top line. CYH doesn't shy away from ...

Community Health Systems, Inc. (CYH) completed the sale of ShorePoint Health – Port Charlotte, certain assets of ShorePoint Health – Punta Gorda and some related businesses to AdventHealth in Florida for $260 million. This marks another step in CYH’s ongoing strategy to optimize its hospital portfolio and focus on core markets.CYH initially announced the deal last November for $265 million, and its completion remains in line with the planned timeline. During the announcement of the deal, it said that the Pu ...

The hospital and its related facilities have joined AdventHealth's robust network of care ALTAMONTE SPRINGS, Fla., March 3, 2025 /PRNewswire/ -- ShorePoint Health Port Charlotte in Port Charlotte, Florida, has joined AdventHealth, one of the largest faith-based health systems in the United States. The national health system has purchased the 254-bed full-service hospital and its related businesses, physician clinic operations and outpatient services. AdventHealth is renaming the hospital AdventHealth Port ...

Community Health Systems, Inc. (NYSE:CYH) Q4 2024 Earnings Conference Call February 19, 2025 1:00 PM ET Company Participants Anton Hie - Vice President of Investor Relations Tim Hingtgen - Chief Executive Officer Kevin Hammons - President and Chief Financial Officer Dr. Miguel Benet - President of Clinical Operations and Chief Medical Officer Conference Call Participants Brian Tanquilut - Jefferies Ben Hendrix - RBC Capital Markets A.J. Rice - UBS Andrew Mok - Barclays Operator Good day, and welcome to the ...