CYH
Community Health Systems INC
NYSE
8-K: Community Health Systems Announces Mixed Q4 and Year-End 2024 Results, Provides 2025 Guidance
Sentiment:
Quarterly Earnings Release
18 February 2025 4:30 PM
Community Health Systems reports a net loss for Q4 2024, but highlights strong same-store volume growth and provides 2025 earnings guidance.
Worse than expected
The company reported a net loss attributable to Community Health Systems, Inc. stockholders for Q4 2024, compared to net income in the same period of 2023.
The company reported a larger net loss attributable to Community Health Systems, Inc. stockholders for the year ended December 31, 2024, compared to the same period in 2023.
Summary
- Community Health Systems, Inc. (CYH) announced its financial and operating results for the fourth quarter and year ended December 31, 2024.
- Net operating revenues for Q4 2024 totaled $3.265 billion, a 2.6% increase compared to $3.181 billion in the same period of 2023.
- However, the company reported a net loss attributable to Community Health Systems, Inc. stockholders of $(70) million, or $(0.53) per share (diluted), for Q4 2024, compared to net income of $46 million, or $0.35 per share (diluted), for the same period in 2023.
- Adjusted EBITDA for Q4 2024 was $428 million, compared to $386 million for the same period in 2023.
- For the year ended December 31, 2024, net operating revenues totaled $12.634 billion, a 1.2% increase compared to $12.490 billion for the same period in 2023.
- 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), for the same period in 2023.
- Adjusted EBITDA for the year ended December 31, 2024, was $1.540 billion compared to $1.453 billion for the same period in 2023.
- The company completed two hospital divestitures in 2024 and divested its 50% interest in a hospital on February 1, 2025.
- Community Health Systems provided its 2025 annual earnings guidance, projecting net operating revenues between $12.2 billion and $12.6 billion and Adjusted EBITDA between $1.45 billion and $1.6 billion.
- The company projects a net loss per share (diluted) between $(0.55) and $0.00 for 2025.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While revenue and Adjusted EBITDA increased, the company reported a net loss. The 2025 guidance is cautiously optimistic, but the company faces significant challenges and risks.
Positives
- Net operating revenues increased for both the quarter and the year.
- Adjusted EBITDA increased for both the quarter and the year.
- Net cash provided by operating activities increased significantly for both the quarter and the year.
- Same-store admissions and adjusted admissions increased in Q4 2024.
- The company has provided 2025 earnings guidance.
Negatives
- The company reported a net loss attributable to Community Health Systems, Inc. stockholders for Q4 2024, compared to net income in the same period of 2023.
- The company reported a larger net loss attributable to Community Health Systems, Inc. stockholders for the year ended December 31, 2024, compared to the same period in 2023.
- Admissions and adjusted admissions decreased on a consolidated basis for both the three months and year ended December 31, 2024.
Risks
- The company faces risks related to general economic and business conditions, healthcare public policy developments, and changes to federal, state, or local laws and regulations.
- The company has substantial indebtedness, leverage, and debt service obligations.
- The company faces risks related to security breaches, cyber-attacks, and loss of data.
- The company faces risks related to competitive labor market conditions and the ability to hire and retain qualified personnel.
- The company faces risks related to potential impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets.
Future Outlook
Community Health Systems projects net operating revenues between $12.2 billion and $12.6 billion and Adjusted EBITDA between $1.45 billion and $1.6 billion for 2025. The company projects a net loss per share (diluted) between $(0.55) and $0.00 for 2025.
Management Comments
- Tim L. Hingtgen, chief executive officer of Community Health Systems, Inc., said, 'We continue to make meaningful progress in key strategic areas, and we were especially pleased with demand for our services and strong same-store volume growth.'
- Tim L. Hingtgen also stated, 'As we look forward to 2025, we remain confident in our portfolio, optimistic about our future opportunities, and grateful to our clinicians and support teams who consistently deliver high-quality care for their patients.'
Industry Context
Community Health Systems operates in a competitive healthcare industry facing challenges such as changing reimbursement models, increasing costs, and evolving patient preferences. The company's focus on same-store growth and cost management reflects broader industry trends aimed at improving efficiency and profitability.
Comparison to Industry Standards
- HCA Healthcare, a leading hospital operator, reported similar trends of revenue growth and cost management initiatives.
- Tenet Healthcare, another major player, has also focused on strategic divestitures and portfolio optimization.
- The reported Adjusted EBITDA margin of Community Health Systems is within the range of other for-profit hospital operators, but the net loss indicates potential challenges in profitability compared to some peers.
Stakeholder Impact
- Shareholders will be concerned about the net loss, but may be encouraged by the revenue growth and 2025 guidance.
- Employees may be affected by potential divestitures and cost management initiatives.
- Patients may experience changes in service offerings as the company optimizes its portfolio.
- Suppliers and creditors may be impacted by the company's financial performance and strategic decisions.
Next Steps
- Community Health Systems will hold a conference call on February 19, 2025, to review financial and operating results.
- The company will continue to execute its strategic plan, including potential divestitures and cost management initiatives.
Key Dates
- December 31, 2023: End of the comparative reporting period for 2023.
- February 21, 2024: Filing date of the Annual Report on Form 10-K for the year ended December 31, 2023.
- August 1, 2024: Completion date of one hospital divestiture.
- October 1, 2024: Completion date of another hospital divestiture.
- December 31, 2024: End of the current reporting period for 2024.
- February 1, 2025: Completion date of the divestiture of a 50% interest in a hospital.
- February 18, 2025: Date of the press release and 8-K filing announcing Q4 and year-end 2024 results.
- February 19, 2025: Date of the conference call to review financial and operating results.
- December 31, 2025: End of the period covered by the 2025 earnings guidance.
Keywords
CYH
Community Health Systems INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
1 July 2025 4:30 PM
Asset Divestiture Announcement
- The transaction generated $436 million in cash proceeds for Community Health Systems.
- An estimated pre-tax gain of $143 million ($93 million after tax) was realized from the sale.
- The final cash consideration of $436 million was higher than the amended base purchase price of $430 million, indicating positive adjustments.
Capital raise
24 April 2025 4:30 PM
Quarterly Report
- CHS entered into a privately negotiated agreement with a multi-asset investment manager to issue and sell $700 million aggregate principal amount of 10% Senior Secured Notes due 2033.
- The company expects to use the net proceeds from issuance of the 10% Senior Secured Notes due 2033, together with cash on hand, to redeem the 8% Senior Secured Notes due 2027 and to pay related fees and expenses.
Better than expected
24 April 2025 4:30 PM
Quarterly Report
- The company's net income improved significantly from a net loss in the same period last year.
Better than expected
23 April 2025 4:30 PM
Earnings Release
- The net loss attributable to Community Health Systems, Inc. stockholders improved from $(41) million to $(13) million year-over-year.
Worse than expected
3 April 2025 8:30 PM
Proxy Statement
- The net loss attributable to Community Health Systems, Inc. stockholders increased from $(133) million in 2023 to $(516) million in 2024.
Worse than expected
3 March 2025 6:06 PM
SEC Form 4 Filing
- The forfeiture of a significant portion (83.2%) of the performance-based restricted shares indicates that the company's performance during the 2022-2024 period was worse than expected, failing to meet the pre-determined performance objectives.
Worse than expected
3 March 2025 6:04 PM
SEC Form 4
- The forfeiture of a significant portion of performance-based restricted shares suggests that the company underperformed relative to its targets during the 2022-2024 performance period.
Worse than expected
3 March 2025 6:02 PM
SEC Form 4 Filing
- The forfeiture of 11,850 performance-based restricted shares suggests that the company's performance did not fully meet the established objectives for the 2022-2024 performance period.
Worse than expected
19 February 2025 4:31 PM
Annual Results
- The company reported a net loss attributable to Community Health Systems, Inc. stockholders of $516 million in 2024, compared to a net loss of $133 million in 2023.
Worse than expected
18 February 2025 4:30 PM
Quarterly Earnings Release
- The company reported a net loss attributable to Community Health Systems, Inc. stockholders for Q4 2024, compared to net income in the same period of 2023.
- The company reported a larger net loss attributable to Community Health Systems, Inc. stockholders for the year ended December 31, 2024, compared to the same period in 2023.
Worse than expected
26 November 2024 4:30 PM
Material Definitive Agreement Termination
- The termination of the sale agreement is worse than expected as it removes a planned divestiture and introduces uncertainty about the future of the assets.
Delay expected
22 November 2024 4:30 PM
Asset Sale Agreement
- The Punta Gorda hospital has indefinitely suspended inpatient operations due to hurricane damage, which may cause delays in the transaction.
Worse than expected
24 October 2024 4:34 PM
Quarterly Report
- The company's net loss of $391 million in Q3 2024 is significantly worse than the $91 million loss in Q3 2023.
- The company's impairment charges and professional liability accrual adjustments are significantly higher than expected.
- The company's consolidated inpatient admissions decreased by 4.1%, indicating a decline in overall patient volume.
Worse than expected
23 October 2024 4:30 PM
Quarterly Report
- The company's net loss attributable to stockholders was significantly worse than the same period last year, increasing from $(91) million to $(391) million.
- The adjusted EBITDA decreased from $360 million to $347 million in the third quarter of 2024 compared to the same period in 2023.
- The net loss per share increased from $(0.69) to $(2.95) in the third quarter of 2024 compared to the same period in 2023.
Capital raise
25 July 2024 4:30 PM
Quarterly Report
- The company completed an offering of an additional $1.225 billion aggregate principal amount of its outstanding 10.875% Senior Secured Notes due 2032.
- Proceeds from the offering of the Tack-On Notes were used to redeem all $1.116 billion of the outstanding 8.000% Senior Secured Notes due 2026, to fund senior note repurchases, pay related fees and expenses and for general corporate purposes.
Better than expected
25 July 2024 4:30 PM
Quarterly Report
- The company's net income improved compared to the same periods in the prior year, moving from a loss to a profit.
- The company's same-store revenue growth indicates better performance in its core operations.
- The company's debt restructuring efforts, including the gain from early extinguishment of debt, positively impacted the financial results.
Delay expected
25 July 2024 4:30 PM
Quarterly Report
- The company's construction of a replacement facility in Knox, Indiana, is required to be completed by September 30, 2026, if a new lease with Starke County is not entered into.
Better than expected
24 July 2024 4:30 PM
Quarterly Report
- The company's net loss improved significantly compared to the same period last year.
- Adjusted EBITDA increased, indicating improved operational performance.
- Same-store revenues and admissions showed positive growth.
Worse than expected
21 June 2024 6:01 PM
Material Definitive Agreement Termination
- The termination of the sale is worse than expected as it disrupts CHS's strategic plans and may require a reassessment of their financial and operational strategies for the two hospitals.
Delay expected
21 June 2024 6:01 PM
Material Definitive Agreement Termination
- The sale of the two hospitals was delayed due to the FTC's legal challenge and subsequent injunction.
Capital raise
21 May 2024 9:19 PM
Debt Offering Announcement
- The company is raising $1.225 billion through a tack-on offering of senior secured notes.
- The proceeds will be used to redeem existing debt and for general corporate purposes.
Capital raise
21 May 2024 8:28 AM
Debt Offering Announcement
- The company is raising $1.125 billion through a tack-on offering of senior secured notes.
- The proceeds will be used to redeem existing debt and for general corporate purposes.
Better than expected
25 April 2024 4:32 PM
Quarterly Report
- The company's net loss improved from $20 million to $6 million year-over-year, indicating better than expected financial performance.
Delay expected
25 April 2024 4:32 PM
Quarterly Report
- The sale of Lake Norman Regional Medical Center and Davis Regional Medical Center to Novant Health, Inc. is delayed due to a complaint filed by the Federal Trade Commission.
Better than expected
24 April 2024 4:30 PM
Quarterly Report
- The company's net loss per share improved from $(0.40) to $(0.32) year-over-year.
- Adjusted EBITDA increased from $335 million to $378 million year-over-year.
- Net cash provided by operating activities increased from $5 million to $96 million year-over-year.
Delay expected
18 April 2024 4:30 PM
Asset Sale Agreement
- The agreement can be terminated if the transaction is not completed by August 31, 2024, indicating a potential for delay.
Worse than expected
28 March 2024 4:31 PM
Proxy Statement
- The company experienced a net loss attributable to stockholders of $(133) million in 2023, compared to a net income of $46 million in the prior year.
- Adjusted EBITDA decreased by 0.9% to $1.454 billion in 2023.
- Cash Flows from Operations decreased by 30.0% to $210 million.
- The stock price decreased by 27.5% as of December 31, 2023.
Worse than expected
20 February 2024 4:30 PM
Quarterly Report
- The company's net income and adjusted EBITDA decreased compared to the same periods in the previous year.
- The company reported a net loss for the full year 2023, compared to a net income in 2022.
- The company is projecting a net loss per share for 2024.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.