FRANKLIN, Tenn.--(BUSINESS WIRE)-- Community Health Systems, Inc. (NYSE: CYH) today announced financial and operating results for the three and six months ended June 30, 2010.
Net operating revenues for the three months ended June 30, 2010, totaled $3.2 billion, a 5.1 percent increase compared with $3.0 billion for the same period in 2009. Income from continuing operations increased to $86.3 million for the three months ended June 30, 2010, compared with $74.5 million for the same period in 2009. Income from continuing operations attributable to Community Health Systems, Inc. common stockholders increased to $0.74 per share (diluted), on 94.7 million weighted-average shares outstanding for the three months ended June 30, 2010, compared with $0.66 per share (diluted), on 91.1 million weighted-average shares outstanding for the same period in 2009. Net income attributable to Community Health Systems, Inc. common stockholders increased 17.9 percent to $70.1 million, or $0.74 per share (diluted), for the three months ended June 30, 2010, compared with $59.4 million, or $0.65 per share (diluted), for the same period in 2009.
Adjusted EBITDA for the three months ended June 30, 2010, was $443.1 million, compared with $415.6 million for the same period in 2009, representing a 6.6 percent increase. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, gain/loss from early extinguishment of debt and net income attributable to noncontrolling interests. The Company uses adjusted EBITDA as a measure of liquidity. Net cash provided by operating activities for the three months ended June 30, 2010, was $242.4 million, compared with $285.0 million for the same period in 2009.
The consolidated financial results for the three months ended June 30, 2010, reflect a 1.4 percent decrease in total admissions and a 0.6 percent increase in total adjusted admissions compared with the same period in 2009. On a same-store basis, admissions decreased 2.5 percent and adjusted admissions decreased 0.9 percent, compared with the same period in 2009. On a same-store basis, net operating revenues increased 3.2 percent, compared with the same period in 2009.
Net operating revenues for the six months ended June 30, 2010, totaled $6.3 billion, a 6.8 percent increase compared with $5.9 billion for the same period in 2009. Income from continuing operations increased to $171.3 million for the six months ended June 30, 2010, compared with $145.3 million for the same period in 2009. Income from continuing operations attributable to Community Health Systems, Inc. common stockholders increased to $1.49 per share (diluted), on 93.8 million weighted-average shares outstanding for the six months ended June 30, 2010, compared with $1.29 per share (diluted), on 90.7 million weighted-average shares outstanding for the same period in 2009. Net income attributable to Community Health Systems, Inc. common stockholders increased 18.4 percent to $140.1 million, or $1.49 per share (diluted), for the six months ended June 30, 2010, compared with $118.4 million, or $1.31 per share (diluted), for the same period in 2009.
Adjusted EBITDA for the six months ended June 30, 2010, was $876.4 million, compared with $819.1 million for the same period in 2009, representing a 7.0 percent increase. Net cash provided by operating activities for the six months ended June 30, 2010, was $541.8 million, compared with $544.4 million for the same period of 2009.
The consolidated financial results for the six months ended June 30, 2010, reflect a 0.8 percent increase in total admissions and a 2.6 percent increase in total adjusted admissions compared with the same period in 2009. This increase was due primarily to acquisitions. On a same-store basis, admissions decreased 1.8 percent and adjusted admissions decreased 0.4 percent, compared with the same period in 2009. On a same-store basis, net operating revenues increased 3.5 percent, compared with the same period in 2009.
Commenting on the results, Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc., said, “Community Health Systems delivered another solid operating performance for the second quarter of 2010, in spite of the ongoing challenges in the economy. Our ability to continue to drive revenues and achieve solid margins demonstrates consistent execution of our centralized operating strategy and our focus on efficient expense management throughout our hospital network.”
On July 7, 2010, the Company announced that one or more of its subsidiaries had acquired substantially all the assets of Marion Regional Healthcare System located in Marion, South Carolina.
“We have continued to selectively acquire new facilities that fit our operating profile,” added Smith. “In today’s economic environment, there are a growing number of hospitals who want a proven operator to provide the resources and expertise that will enable them to deliver quality healthcare close to home. We have consistently demonstrated our ability to deliver favorable operating results through our efforts to implement best practices in all of our hospitals.”
Included on pages 12, 13 and 14 of this press release are tables setting forth the Company’s updated 2010 guidance. This guidance reaffirms the Company’s previous annual earnings guidance provided on April 21, 2010, as modified to reflect certain changes as detailed in the guidance assumptions.
Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems, Inc. is the largest publicly-traded hospital company in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 123 hospitals in 29 states with an aggregate of approximately 18,400 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care. In addition, through its subsidiary, Quorum Health Resources, LLC, the Company provides management and consulting services to over 150 independent non-affiliated general acute care hospitals located throughout the United States. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.”
Community Health Systems, Inc. will hold a conference call to discuss this press release on Thursday, July 29, 2010, at 10:30 a.m. Central, 11:30 a.m. Eastern. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Relations link of the Company’s website at www.chs.net, or at www.earnings.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will continue through August 22, 2010. Copies of the Company’s Form 8-K (including this press release) and conference call slide show are available on the Company’s website at www.chs.net.
Statements contained in this news release regarding expected operating results, acquisition transactions or divestitures and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.