Community Health Systems (NYSE:CYH) 2025 Conference November 11, 2025 09:30 AM ET Speaker0Hi everyone. I'm A.J. Rice, the healthcare service analyst at UBS, and we will have up next up Community Health Systems. Happy to have Kevin Hammons, our Chief Executive Officer of Community, and Jason Johnson, Chief Financial Officer. We're about 10 months into the year at this point, a little over 10. What has sort of been some of the takeaways for you so far, Kevin? Surprises, challenges?Speaker2Sure. It's been a li ...

Financial Data and Key Metrics Changes - Core Laboratories Inc. reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year over year [11] - Operating income for the third quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [14] - Net income excluding items for the quarter was $10.2 million, an increase of over 15% sequentially but down almost 14% year over year [15] - Earnings per diluted share excluding items was $0.22, up from $0.19 in the prior quarter and down from $0.25 last year [15] Business Line Data and Key Metrics Changes - In the reservoir description segment, revenue was $88.2 million, up over 2% compared to Q2, with operating income of $11.6 million and operating margins of 13% [31] - The production enhancement segment saw revenue of $46.3 million, up 6% compared to Q2, with operating income of $4.9 million and operating margins of 11% [35] Market Data and Key Metrics Changes - Demand for laboratory services related to crude oil and derived products remained steady, with trading patterns improving following sanctions [7] - International service revenue increased by 5% sequentially, while U.S. service revenue remained flat and decreased almost 4% year over year [11] Company Strategy and Development Direction - Core Laboratories Inc. continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [6] - The company aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] - Core's strategies include introducing new products and services in key geographic markets and maintaining a lean organization [9] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite potential tariff headwinds and market volatility, projecting growth in crude oil demand driven by non-OECD countries [20][21] - The company anticipates that changes in crude oil prices will have a more immediate impact on U.S. onshore drilling and completion activity [23] - Core expects reservoir description revenue to increase sequentially in Q4, while production enhancement revenue may decline slightly [24] Other Important Information - Core repurchased over 462,000 shares of its stock during Q3, representing approximately 1% of outstanding shares and a value of $5 million [8] - The company’s long-term debt was $117 million, with a leverage ratio reduced to 1.1 [17] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the potential for similar tuck-in technology acquisitions, emphasizing the benefits of structuring deals with earnouts to align interests [43][45] Question: Future activity levels in Asia Pacific - Management indicated that clients foresee higher activity levels, particularly in the Middle East and West Africa, with increasing exploration programs in Asia Pacific [47][49]

Core Points - The Sanya Yazhou Bay Science and Technology City Moon Island Comprehensive Laboratory is part of a larger customs laboratory network in Haikou and Sanya, covering a total area of 56,000 square meters with 8 laboratory buildings [1][2][3] Group 1 - The laboratory is equipped with advanced automated liquid handling workstations [1] - Staff are engaged in various testing activities, including enzyme immunoassays and plant tissue culture [2][3] - The facility features high-tech equipment such as laser confocal microscopes [3]

Core Viewpoint - The Haikou Customs Technical Center Laboratory project has been fully completed and operational, significantly enhancing the detection capabilities for import and export goods, thereby providing crucial technical support for food safety and product quality in the Hainan Free Trade Port [1][2][3] Group 1: Project Overview - The project is located in Haikou Jiangdong New District, covering an area of approximately 10,000 square meters, and includes various specialized laboratories such as industrial products, microbiology, and food safety [1] - The laboratory is equipped with 128 sets of advanced instruments and facilities to improve detection capabilities and efficiency [2] Group 2: Operational Enhancements - The project aims to optimize detection processes and establish a rapid response mechanism to prepare for increased cargo volume post-closure, ensuring efficient customs clearance [2] - A collaborative system combining business and technology has been implemented to enhance detection capabilities in line with the evolving needs of the Hainan Free Trade Port [2][3] Group 3: Regulatory and Compliance - The laboratory covers inspection and testing across 27 major categories, including food, cosmetics, and textiles, ensuring comprehensive regulatory compliance [3] - The project has achieved certifications such as CMA and CNAS, which enhance its credibility and operational standards [1][2]

Core Viewpoint - Indonesian companies Zi.Care and GreenTeams are seeking partnerships with top Chinese innovative enterprises to facilitate their entry into the Indonesian market, highlighting the potential for collaboration between Chinese technology and local industries [2][3][4]. Group 1: Company Overview - Zi.Care is a leading health technology company in Indonesia, providing the only AI-driven electronic medical record system that meets Level 7 standards, having processed over 8 million patient records [3]. - GreenTeams is the largest climate technology company in Indonesia, specializing in air quality monitoring and offering end-to-end solutions, including hardware and AI-driven software [4]. Group 2: Market Opportunities - Indonesia, as Southeast Asia's largest economy with a population of approximately 281 million, presents significant opportunities for Chinese companies, especially in sectors where local products are often more expensive due to Western monopolies [5][6]. - The acceptance of Chinese products in Indonesia is gradually increasing, particularly due to their competitive pricing compared to Western brands, which can be significantly higher [6]. Group 3: Strategic Partnerships - Both Zi.Care and GreenTeams emphasize the importance of strong government relationships in Indonesia, which can serve as a differentiating advantage in navigating local regulations and policies [3][4]. - Collaborating with local companies like Zi.Care and GreenTeams can provide Chinese hardware and software providers with a bridge to enter the Indonesian market more effectively [6]. Group 4: Economic Context - Indonesia's GDP is projected to reach $1.37 trillion in 2024, with a year-on-year growth of 5.03%, indicating a robust economic environment for potential investments [5]. - The bilateral trade between China and Indonesia is substantial, reaching $147.8 billion in 2024, primarily focused on infrastructure, minerals, and machinery [5]. Group 5: Event Context - The 2025 "Win in Suzhou" Global Innovation and Entrepreneurship Competition serves as a platform for international projects, including those from Indonesia, to seek investment and partnerships [7].