munity Health Systems(CYH) - 2024 Q2 - Quarterly Results

Financial Performance - Net operating revenues for Q2 2024 totaled $3.140 billion, a 0.8% increase from $3.115 billion in Q2 2023[4] - On a same-store basis, net operating revenues increased by 4.7% year-over-year for Q2 2024[4] - Net loss attributable to Community Health Systems, Inc. stockholders was $(13) million, or $(0.10) per share (diluted), compared to $(38) million, or $(0.29) per share (diluted) in Q2 2023[5] - Adjusted EBITDA for Q2 2024 was $387 million, up from $373 million in Q2 2023[6] - For the six months ended June 30, 2024, net operating revenues totaled $6.279 billion, a 0.9% increase from $6.223 billion in the same period of 2023[8] - Net loss attributable to Community Health Systems, Inc. stockholders for the six months ended June 30, 2024, was $(55) million, or $(0.42) per share (diluted), compared to $(89) million, or $(0.68) per share (diluted) for the same period in 2023[9] - Adjusted EBITDA for the six months ended June 30, 2024, was $765 million, compared to $707 million for the same period in 2023[10] - Consolidated net operating revenues for the six months ended June 30, 2024, were $6,279 million, representing a 0.9% increase from $6,223 million in 2023[41] - Adjusted EBITDA for the same period was $765 million, an 8.2% increase compared to $707 million in 2023[41] - The Company reported a net income of $20 million for the six months ended June 30, 2024, compared to a net loss of $18 million in 2023[47] Cash Flow and Operating Activities - Net cash provided by operating activities was $101 million for Q2 2024, compared to $86 million in Q2 2023[4] - Net cash provided by operating activities significantly increased by 116.5% to $197 million from $91 million in 2023[41] - Cash and cash equivalents at the end of the period were $39 million, up from $38 million at the beginning of the period[47] Admissions and Occupancy - Same-store admissions increased by 3.0% and adjusted admissions increased by 3.2% for Q2 2024 compared to the same period in 2023[4] - Admissions in Q2 2024 were 105,748, a decrease of 2.8% from 108,799 in Q2 2023[38] - The number of admissions decreased by 2.6% to 212,803 from 218,423 in the previous year[41] - The average length of stay in Q2 2024 was 4.3 days, consistent with Q2 2023[38] - The occupancy rate for average beds in service was 50.0% in Q2 2024, compared to 49.3% in Q2 2023[38] - The average occupancy rate for beds in service improved to 52.0% from 50.6% in 2023[41] Debt and Financial Projections - The company completed a tack-on offering of $1.225 billion of Senior Secured Notes due 2032, using proceeds to redeem outstanding notes and fund repurchases[13] - Long-term debt increased to $11,504 million from $11,466 million at the end of 2023[44] - The Company projects net operating revenues for 2024 to be between $12,500 million and $12,700 million[59] - Adjusted EBITDA for 2024 is projected to range from $1,520 million to $1,600 million[59] - The projected net loss per share (diluted) for 2024 is expected to be between $(0.45) and $(0.30)[59] - Interest expense for 2024 is estimated to be between $850 million and $865 million, with cash paid for interest expected to be $730 million to $740 million[60] - The Company had outstanding borrowings of $273 million under its ABL Facility as of June 30, 2024, with approximately $599 million of additional borrowing capacity[57] - The Company anticipates capital expenditures for 2024 to be between $350 million and $400 million[62] - The weighted-average diluted shares outstanding are projected to be approximately 132 million to 133 million for 2024[62] Operational Challenges and Risks - The company faces risks associated with substantial indebtedness, leverage, and debt service obligations, impacting its ability to refinance or incur additional debt[66] - The company is experiencing increases in the amount and risk of collectability of patient accounts receivable, influenced by self-pay growth and difficulties in recovering payments[66] - The company is focused on maintaining provider arrangements with payors, which may be affected by the consolidation of health insurers and managed care companies[66] - The company is undergoing a redesign and consolidation of key business functions, including the implementation of a new core enterprise resource planning system[66] - The company is subject to potential impairments in the carrying value of goodwill and other intangible assets[66] - The company is impacted by competitive labor market conditions, affecting its ability to hire and retain qualified medical personnel[66] - The company is evaluating the effects of severe weather conditions and climate change on its operations and insurance recoveries[68] - The company is concentrating its revenue in a small number of states, which poses a risk to its financial stability[68] - The company is committed to realizing anticipated cost savings from its current strategic and operational cost savings initiatives[68]