Community Health Q4 Earnings Miss on Lower Adjusted Admissions

Core Viewpoint - Community Health Systems, Inc. (CYH) reported a fourth-quarter adjusted loss of 42 cents per share, missing the consensus estimate of a profit of 5 cents, and showing a deterioration from the prior year's loss of 41 cents per share [1][2] Financial Performance - Net operating revenues increased by 2.6% year over year to $3.27 billion in the fourth quarter, surpassing the consensus mark by 3.3% [1] - For the full year 2024, revenues reached $12.63 billion, up from $12.49 billion in 2023, with an adjusted loss of $1.03 per share improving from $1.39 the previous year [3] - Adjusted EBITDA for the full year was $1.54 billion, an increase from $1.45 billion in the prior year [3] Operational Metrics - The hospital count decreased to 76 from 78 year over year, while patient days fell by 11% [4] - Adjusted admissions declined by 5.7% year over year, although same-store adjusted admissions improved by 3.1% [5] - The average length of stay decreased by 4.4% to 4.3 days, and the occupancy rate dropped to 50.5% from 53.5% in the prior year [4] Expenses and Losses - Total operating expenses rose by 4.6% year over year to $3 billion in the fourth quarter, exceeding estimates [6] - Net interest expenses increased by 4.3% year over year to $218 million, also higher than estimates [6] - The company reported a net loss of $28 million in the fourth quarter, compared to a profit of $85 million in the same period last year [7] Cash Flow and Debt - As of December 31, 2024, cash and cash equivalents were $37 million, down from $38 million at the end of 2023 [8] - Total assets decreased to $14.1 billion from $14.5 billion, while long-term debt slightly decreased to $11.43 billion [8] - Operating cash flows for 2024 were $480 million, up from $210 million in the previous year [8] 2025 Outlook - The company expects net operating revenue for 2025 to be between $12.2 billion and $12.6 billion, with adjusted EBITDA estimated between $1.45 billion and $1.60 billion [10] - Net loss per share is projected to be between 55 cents and breakeven for 2025 [10] - Estimated net cash from operating activities for 2025 is between $600 million and $700 million, with capital expenditures anticipated to be between $350 million and $400 million [11]