Community Health (CYH) Q2 Earnings Miss on Lower Patient Days

Core Viewpoint - Community Health Systems, Inc. (CYH) reported a wider adjusted loss in Q2 2024 compared to estimates, but showed improvement from the previous year’s loss [1][10] Financial Performance - Adjusted loss per share was 17 cents, worse than the Zacks Consensus Estimate of 11 cents, but improved from a loss of 22 cents in the prior year [1] - Net operating revenues increased by 0.6% year over year to $3.14 billion, exceeding the consensus mark by 2% [1] - Total operating costs rose by 1.2% year over year to $2.9 billion, higher than the estimate of $2.8 billion [4] - Net interest expenses increased by 4.3% year over year to $216 million, surpassing the estimate of $204.8 million [4] Operational Metrics - Patient days decreased by 5.7% year over year, missing estimates by 5.1% [3] - Average length of stay declined to 4.3 days, while occupancy rate improved by 70 basis points to 50% [3] - Admissions fell by 2.8% year over year, but same-store admissions improved by 3% [9] Debt and Cash Flow - Long-term debt stood at $11.5 billion, slightly up from $11.47 billion at the end of 2023 [5] - Operating cash flows increased to $101 million from $86 million in the prior year [5] - Cash and cash equivalents rose to $39 million from $38 million at the end of 2023 [11] 2024 Guidance - The company raised its net operating revenue guidance to between $12.5 billion and $12.7 billion for 2024, indicating a 0.8% increase from 2023 [6] - Adjusted EBITDA is now estimated to be between $1.52 billion and $1.60 billion, implying a 7.4% rise from the previous year [6] - Net loss per share is expected to be between 30 cents and 45 cents in 2024, compared to a net loss of $1.39 per share in 2023 [6] Other Updates - Depreciation and amortization for 2024 is predicted to be between $465 million and $480 million [7] - Net cash from operating activities is reaffirmed to be between $500 million and $650 million [8] - Capital expenditures are anticipated to be in the range of $350 million to $400 million [8]