munity Health Systems(CYH) - 2024 Q4 - Annual Results

Financial Performance - Net operating revenues for Q4 2024 totaled $3.265 billion, a 2.6% increase from $3.181 billion in Q4 2023[4] - Net loss attributable to Community Health Systems, Inc. stockholders was $(70) million, or $(0.53) per share (diluted), compared to net income of $46 million, or $0.35 per share (diluted) in Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $428 million, up from $386 million in Q4 2023, reflecting a growth of 10.9%[7] - For the year ended December 31, 2024, net operating revenues were $12.634 billion, a 1.2% increase from $12.490 billion in 2023[9] - The net loss attributable to Community Health Systems, Inc. stockholders for the year was $(516) million, or $(3.90) per share (diluted), compared to $(133) million, or $(1.02) per share (diluted) in 2023[10] - Adjusted EBITDA for the year ended December 31, 2024, was $1.540 billion, an increase of 6% from $1.453 billion in 2023[11] - Total net operating revenues for 2024 were $12,634 million, a 1.2% increase from $12,490 million in 2023[40] - Adjusted EBITDA for 2024 was $1,540 million, reflecting a 6.0% increase from $1,453 million in 2023[40] Operational Metrics - On a same-store basis, net operating revenues increased 6.5% in Q4 2024 compared to Q4 2023[4] - Same-store admissions increased by 3.4% in Q4 2024 compared to the same period in 2023[5] - Admissions decreased by 5.6% to 104,644 in Q4 2024, compared to 110,874 in Q4 2023[36] - Admissions decreased by 3.2% to 422,040 in 2024 from 435,913 in 2023[40] - The average occupancy rate for beds in service was 52.5% in 2024, slightly up from 52.4% in 2023[40] - The number of hospitals at the end of Q4 2024 was 76, down from 78 at the end of Q4 2023[36] - The number of hospitals at the end of 2024 was 76, down from 78 in 2023[40] Cash Flow and Expenses - Net cash provided by operating activities for Q4 2024 was $216 million, compared to $90 million in Q4 2023[5] - Net cash provided by operating activities increased by 140.0% to $216 million in Q4 2024, up from $90 million in Q4 2023[36] - Net cash provided by operating activities increased by 128.6% to $480 million in 2024 from $210 million in 2023[46] - Total operating expenses for Q4 2024 were $2,986 million, representing 91.5% of net operating revenues, compared to 89.7% in Q4 2023[28] Future Projections - The company projects net operating revenues for 2025 to be between $12,200 million and $12,600 million[58] - The projected Adjusted EBITDA for 2025 is estimated to be between $1,450 million and $1,600 million[58] - The net loss per share - diluted for 2025 is projected to range from $(0.55) to $0.00[58] - The weighted-average diluted shares outstanding for 2025 are projected to be approximately 134 million[61] - Interest expense for 2025 is estimated to be between $840 million and $860 million[59] - The company expects depreciation and amortization to be approximately 3.5% of net operating revenues for 2025[59] Risks and Challenges - The company faces significant economic and competitive uncertainties, including high interest rates and geopolitical instability[65] - The company is subject to risks associated with substantial indebtedness and debt service obligations, impacting its ability to refinance[66] - Changes in healthcare public policy and potential alterations to Medicare and Medicaid programs could affect the company's operations[65] - The company anticipates challenges related to health insurance enrollment and the expiration of enhanced subsidies under the Affordable Care Act[65] - The company is exposed to cybersecurity threats and potential breaches affecting its information systems[66] - The company is navigating competitive labor market conditions, impacting its ability to hire and retain qualified medical personnel[66] Strategic Initiatives - The company completed two hospital divestitures in 2024 and divested a 50% interest in another hospital in February 2025[13] - The company is focused on integrating acquired hospitals and outpatient facilities to realize expected benefits and growth in patient service revenues[68] - The company is committed to realizing anticipated cost savings from its current strategic and operational cost-saving initiatives[68] - The consolidated operating results for the three months and year ended December 31, 2024, are not necessarily indicative of future results[67] - The company is actively monitoring the impact of emerging technologies, including artificial intelligence and machine learning, on its operations[66]