Community Health Systems Inc is a publicly owned hospital operator in the United States. The company also owns four home health agencies and provides management and consulting services to independent hospitals. The firm derives revenue through a broad range of general and specialized hospital healthcare services and outpatient services.
Performance Overview
For the second quarter of 2024, Community Health Systems Inc (CYH, Financial) reported net operating revenues of $3.140 billion, a slight increase from $3.115 billion in the same period of 2023. The net loss attributable to stockholders was $(13) million, or $(0.10) per share, compared to $(38) million, or $(0.29) per share, in Q2 2023. Adjusted EBITDA stood at $387 million, up from $373 million in the prior year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Operating Revenues | $3.140 billion | $3.115 billion |
| Net Loss Attributable to Stockholders | $(13) million | $(38) million |
| Adjusted EBITDA | $387 million | $373 million |
| Net Cash Provided by Operating Activities | $101 million | $86 million |
Operational Highlights
Community Health Systems Inc (CYH, Financial) saw a 3.0% increase in same-store admissions and a 3.2% rise in adjusted admissions compared to the same period in 2023. The company also completed a tack-on offering of $1.225 billion of Senior Secured Notes due 2032, using the proceeds to redeem outstanding notes and fund repurchases.
Commentary and Analysis
Tim L. Hingtgen, CEO of Community Health Systems Inc, commented, “Our team has delivered another solid quarter that includes same-store, year-over-year improvements in operating results, supported by strong volume growth and expense management. This progress further demonstrates our growth mindset and ability to consistently execute on strategic opportunities to enhance our services, care for our communities, and generate value for all of our stakeholders.”
Financial Achievements and Challenges
The company’s financial achievements include a reduction in net loss attributable to stockholders and an increase in Adjusted EBITDA. These improvements were driven by higher same-store volumes, increased reimbursement rates, and reduced expenses for contract labor and supplies. However, the company continues to face challenges such as managing its substantial debt and navigating the complexities of the healthcare industry.
Income Statement and Balance Sheet Insights
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. The net loss attributable to stockholders for this period was $(55) million, or $(0.42) per share, compared to $(89) million, or $(0.68) per share, in the first half of 2023. Adjusted EBITDA for the six months was $765 million, up from $707 million in the prior year.
Cash Flow and Financing Activities
Net cash provided by operating activities for Q2 2024 was $101 million, compared to $86 million in Q2 2023. The company also completed significant financing activities, including a tack-on offering of Senior Secured Notes and the amendment of its revolving asset-based loan facility.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Community Health Systems Inc for further details.
