Exhibit Number 99.1
Investor Contact: | W. Larry Cash |
| Executive Vice President |
| (615) 373-9600 |
COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
THIRD QUARTER 2004 RESULTS WITH NET OPERATING REVENUES UP 18.4%,
INCOME FROM CONTINUING OPERATIONS PER SHARE (DILUTED) UP 19.4% AND
NET INCOME PER SHARE (DILUTED) UP 3.2%
BRENTWOOD, Tenn. (October 26, 2004) ¾ Community Health Systems, Inc. (NYSE: CYH) today announced financial and operating results for the third quarter ended September 30, 2004.
Net operating revenues for the third quarter ended September 30, 2004, totaled $844.0 million, an 18.4% increase compared with $712.7 million for the same period last year. Income from continuing operations increased 19.1% to $37.6 million, or $0.37 per share (diluted), on 107.9 million weighted average shares outstanding for the quarter ended September 30, 2004, compared with $31.6 million, or $0.31 per share (diluted), on 108.1 million weighted average shares outstanding for the same period last year. Income from continuing operations for the third quarter ended September 30, 2004, was reduced by approximately $0.8 million after taxes, or $0.01 per share (diluted), as a result of approximately $400,000 in expenses incurred in connection with the registration and offering of common stock of certain of the Company’s selling stockholders, and an approximate $788,000 loss from early extinguishment of debt related to the refinancing of the Company’s credit agreement. Third quarter results also included an estimated after tax loss of approximately $1.5 million, or $0.01 per share (diluted), as a result of a series of hurricanes which negatively impacted the volumes and operating results of selected hospitals located in Florida and the Gulf Shores Alabama region. Net income increased 1.1% to $32.0 million, or $0.32 per share (diluted), compared with $31.7 million, or $0.31 per share (diluted), for the same period last year. Discontinued operations consists of an after-tax loss of approximately $5.6 million, or $0.05 per share (diluted), related to the sale of two hospitals and an impairment write-down related to the designation of a third hospital as being held for sale. Refer to pages 3 and 4 for “Financial Highlights.”
Adjusted EBITDA for the third quarter of 2004 was $121.0 million, compared with $107.3 million for the same period last year, representing a 12.8% increase. Adjusted EBITDA is EBITDA adjusted to exclude loss from early extinguishment of debt and minority interest in earnings but includes expenses incurred in connection with the registration and offering of common stock. The Company uses adjusted EBITDA as a measure of liquidity. Net cash provided by operating activities for the third quarter of 2004 was $57.2 million, compared with $47.1 million for the same period last year, an increase of 21.5%.
The consolidated financial results for the third quarter ended September 30, 2004, reflect a 9.3% increase in total admissions compared with the third quarter of 2003. This increase is attributable to hospitals that have been acquired by the Company. On a same-store basis, admissions decreased 1.7%, adjusted admissions increased 1.0% and net operating revenues increased 6.1% compared with the same period last year.
- MORE -
Net operating revenues for the nine months ended September 30, 2004, totaled $2.5 billion, compared with $2.0 billion for the same period last year, a 22.4% increase, again demonstrating the Company’s successful integration of acquisitions over the last several years. Income from continuing operations increased 22.3% to $117.6 million or $1.14 per share (diluted), on 108.7 million weighted averages shares outstanding for the nine months ended September 30, 2004, compared with $96.1 million, or $0.95 per share (diluted) on 108.0 million weighted average shares outstanding, for the same period last year. Net income increased 16.0% to $111.2 million, or $1.08 per share (diluted), for the nine months ended September 30, 2004, compared with $95.8 million, or $0.95 per share (diluted) for the same period last year.
Adjusted EBITDA for the nine months ended September 30, 2004, was $367.1 million, compared with $315.4 million for the same period last year, a 16.4% increase. Net cash provided by operating activities for the nine months ended September 30, 2004, was $263.2 million, compared with $198.4 million for the same period last year, an increase of 32.7%.
The consolidated financial results for the nine months ended September 30, 2004, reflect a 15.5% increase in total admissions compared with the same period last year. On a same-store basis, admissions increased 1.1%, adjusted admissions increased 2.2%, and net operating revenues increased 7.1%, compared with the same period last year.
“We are pleased with Community Health Systems’ continued strong performance for the third quarter of 2004,” commented Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. “While our volumes were affected by disruptions from the severe hurricane activity in Florida and the Gulf Coast of Alabama in August and September, we still delivered another quarter of solid top line growth. Our ability to consistently meet our financial and operating objectives reflects the strength of our business model and solid execution by our management team.”
During the third quarter of 2004, Community Health Systems, Inc. completed two acquisitions of community hospitals. On July 1, 2004, the Company acquired Galesburg Cottage Hospital (170 beds) in Galesburg, Illinois, and completed the acquisition of Phoenixville Hospital (143 beds) in Phoenixville, Pennsylvania, on August 1, 2004.
“Our operating strategy and commitment to enhancing the quality of health care in more communities have produced very favorable results for all of our stakeholders,” added Smith. “As we expand our coverage into new markets, recruit top physicians and add new services, we improve the financial and operating performance of the local hospitals and benefit the residents of the communities they serve. We are proud of our growing reputation as the acquirer of choice and we will continue to identify community hospitals that meet our acquisition criteria. We remain confident that 2004 will be another successful year for Community Health Systems.”
As previously announced, on September 21, 2004, partnerships affiliated with Forstmann Little & Co. sold approximately 23.1 million shares of Community Health Systems, Inc. common stock in a registered offering to Citigroup Global Markets, Inc. Subsequently, 12 million of these shares were purchased and retired by the Company. As a result of this offering, these Forstmann Little & Co. partnerships no longer own any common stock of the Company.
“We are pleased to have completed an orderly transition of ownership of the stock held by the Forstmann Little & Co. partnerships. We believe that this transaction eliminates the overhang that had existed as a result of having a large percentage of the Company’s shares held by one owner,” added Smith.
Included in the Company’s Form 8-K filed on October 26, 2004, is a table setting forth selected information concerning the updated projected consolidated operating results of the Company for the years ending December 31, 2004 and 2005. The revision to the Company’s previous guidance provided on July 21, 2004, relates primarily to the reclassification of three hospitals to discontinued operations for the full year of 2004. These three hospitals account for 173 of the Company’s licensed beds and approximately 1.0% of net revenue with an estimated low-single digit EBITDA margin.
2
Located in the Nashville, Tennessee suburb of Brentwood, Community Health Systems, Inc. is a leading operator of general acute care hospitals in non-urban communities throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 71 hospitals in 22 states. Its hospitals offer a broad range of inpatient medical and surgical services, outpatient treatment and skilled nursing care. 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 Wednesday, October 27, 2004, at 11:00 a.m. Central, 12:00 p.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.fulldisclosures.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 continue through November 27, 2004. A copy of the Company’s Form 8-K (including this press release) and conference call slide show will also be available on the Company’s website at www.chs.net.
Statements contained in this news release regarding expected operating results, acquisition transactions 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 Registration Statement on Form S-3 (Registration Statement No. 333-117697), Form 10-K for the year ended December 31, 2003 and Form 10-Q for the quarters ended March 31, 2004 and June 30, 2004. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements.
COMMUNITY HEALTH SYSTEMS, INC.
Financial Highlights
(Unaudited)
(In thousands, except per share amounts)
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
| 2004 |
| 2003 (a) |
| 2004 (a) |
| 2003 (a) |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net operating revenues |
| $ | 844,034 |
| $ | 712,697 |
| $ | 2,460,968 |
| $ | 2,010,922 |
|
Adjusted EBITDA (b) |
| $ | 121,017 | (c) | $ | 107,298 |
| $ | 367,148 | (c) | $ | 315,385 |
|
Income from continuing operations |
| $ | 37,649 | (d) | $ | 31,601 |
| $ | 117,579 | (d) | $ | 96,126 |
|
Net income |
| $ | 32,039 |
| $ | 31,683 |
| $ | 111,204 |
| $ | 95,838 |
|
Income from continuing operations per share-basic |
| $ | 0.39 |
| $ | 0.32 |
| $ | 1.20 |
| $ | 0.98 |
|
Income from continuing operations per share-diluted |
| $ | 0.37 | (d) | $ | 0.31 |
| $ | 1.14 | (d) | $ | 0.95 |
|
Net income per share - basic |
| $ | 0.33 |
| $ | 0.32 |
| $ | 1.13 |
| $ | 0.97 |
|
Net income per share - diluted |
| $ | 0.32 |
| $ | 0.31 |
| $ | 1.08 |
| $ | 0.95 |
|
Weighted average number of shares outstanding - basic |
| 97,795 |
| 98,410 |
| 98,430 |
| 98,438 |
| ||||
Weighted average number of shares outstanding - diluted |
| 107,870 | (e) | 108,123 | (e) | 108,666 | (e) | 107,980 | (e) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 57,189 |
| $ | 47,065 |
| $ | 263,174 |
| $ | 198,356 |
|
(a) Pursuant to FASB No. 144, the Company has restated its prior period financial statements and statistical results to reflect the reclassification as discontinued operations the sale of two hospitals and the designation of a third hospital as being held for sale.
3
(b) EBITDA consists of income before interest, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude loss from early extinguishment of debt and minority interest in earnings. We have from time to time sold minority interests in certain of our subsidiaries or acquired subsidiaries with existing minority interest ownership positions. We believe that it is useful to present adjusted EBITDA because it excludes the portion of EBITDA attributable to these third party interests and clarifies for investors our Company’s portion of EBITDA generated by our operations. We use adjusted EBITDA as a measure of liquidity. We have included this measure because we believe it provides investors with additional information about our ability to incur and service debt and make capital expenditures. Adjusted EBITDA is the key component in the determination of our compliance with some of the covenants under our senior secured credit facility, as well as to determine the interest rate and commitment fee payable under the senior secured credit facility.
Adjusted EBITDA is not a measurement of financial performance or liquidity under generally accepted accounting principles. It should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with generally accepted accounting principles. The items excluded from adjusted EBITDA are significant components in understanding and evaluating financial performance and liquidity. Our calculation of adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The following table reconciles adjusted EBITDA, as defined, to our net cash provided by operating activities as derived directly from our consolidated financial statements for the three months and nine months ended September 30, 2004 and 2003 (in thousands):
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||||
Adjusted EBITDA |
| $ | 121,017 |
| $ | 107,298 |
| $ | 367,148 |
| $ | 315,385 |
| ||
Interest expense, net |
| (19,159 | ) | (18,393 | ) | (56,269 | ) | (51,926 | ) | ||||||
Provision for income taxes |
| (24,029 | ) | (21,073 | ) | (76,344 | ) | (64,090 | ) | ||||||
(Loss) Income from operations of hospitals sold or held for sale |
| (1,965 | ) | 82 |
| (2,730 | ) | (288 | ) | ||||||
Depreciation and amortization of discontinued operations |
| 307 |
| 797 |
| 1,696 |
| 2,434 |
| ||||||
Other non-cash expenses, net |
| 1,023 |
| 16 |
| 934 |
| 142 |
| ||||||
Net changes in operating assets and liabilities, net of effects of acquisitions |
| (20,005 | ) | (21,662 | ) | 28,739 |
| (3,301 | ) | ||||||
Net cash provided by operating activities |
| $ | 57,189 |
| $ | 47,065 |
| $ | 263,174 |
| $ | 198,356 |
| ||
(c) Includes approximately $400,000 of expenses incurred in connection with the registration and offering of common stock and the repurchase of common stock by us.
(d) Income from continuing operations for the quarter ended September 30, 2004, was reduced by approximately $0.8 million or $0.01 per share (diluted) after taxes as a result of approximately $400,000 in expenses incurred in connection with the registration and offering of common stock and the repurchase of common stock by us, and an approximate $788,000 loss from early extinguishment of debt related to the refinancing of our credit agreement. Third quarter income from continuing operations also included an after tax loss of approximately $1.5 million or $0.01 per share (diluted) as a result of the series of hurricanes.
(e) Adjusted to include assumed exercise of employee stock options and assumed conversion of convertible notes. Since the income per share impact of the conversion of the convertible notes is less than the basic income per share for both periods presented, the convertible notes are dilutive and accordingly must be included in the fully diluted calculation (after tax interest savings of $2.2 million per quarter and 8.6 million shares added to the calculation of fully diluted earnings per share).
4
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
|
| Three Months Ended |
| Nine Months Ended |
| ||||||||
|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net operating revenues |
| $ | 844,034 |
| $ | 712,697 |
| $ | 2,460,968 |
| $ | 2,010,922 |
|
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
Salaries and benefits |
| 338,442 |
| 284,061 |
| 987,552 |
| 807,687 |
| ||||
Provision for bad debts |
| 88,401 |
| 69,563 |
| 253,817 |
| 192,096 |
| ||||
Supplies |
| 103,839 |
| 83,174 |
| 297,771 |
| 234,270 |
| ||||
Other operating expenses |
| 192,335 |
| 168,601 |
| 554,680 |
| 461,484 |
| ||||
Depreciation and amortization |
| 39,312 |
| 35,580 |
| 115,080 |
| 101,540 |
| ||||
Minority interests in earnings |
| 80 |
| 651 |
| 1,088 |
| 1,703 |
| ||||
Total expenses |
| 762,409 |
| 641,630 |
| 2,209,988 |
| 1,798,780 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from operations |
| 81,625 |
| 71,067 |
| 250,980 |
| 212,142 |
| ||||
Interest expense, net |
| 19,159 |
| 18,393 |
| 56,269 |
| 51,926 |
| ||||
Loss from early extinguishment of debt |
| 788 |
| — |
| 788 |
| — |
| ||||
Income from continuing operations before income taxes |
| 61,678 |
| 52,674 |
| 193,923 |
| 160,216 |
| ||||
Provision for income taxes |
| 24,029 |
| 21,073 |
| 76,344 |
| 64,090 |
| ||||
Income from continuing operations |
| 37,649 |
| 31,601 |
| 117,579 |
| 96,126 |
| ||||
Discontinued operations, net of taxes: |
| (1,965 | ) | 82 |
| (2,730 | ) | (288 | ) | ||||
Net loss on sale of hospitals |
| (2,020 | ) | — |
| (2,020 | ) | — |
| ||||
Impairment of long-lived assets of hospital held for sale |
| (1,625 | ) | — |
| (1,625 | ) | — |
| ||||
(Loss) Income on discontinued operations |
| (5,610 | ) | 82 |
| (6,375 | ) | (288 | ) | ||||
Net income |
| $ | 32,039 |
| $ | 31,683 |
| $ | 111,204 |
| $ | 95,838 |
|
Income from continuing operations per share-basic |
| $ | 0.39 |
| $ | 0.32 |
| $ | 1.20 |
| $ | 0.98 |
|
Income from continuing operations per share-diluted |
| $ | 0.37 |
| $ | 0.31 |
| $ | 1.14 |
| $ | 0.95 |
|
Net income per share - basic |
| $ | 0.33 |
| $ | 0.32 |
| $ | 1.13 |
| $ | 0.97 |
|
Net income per share - diluted |
| $ | 0.32 |
| $ | 0.31 |
| $ | 1.08 |
| $ | 0.95 |
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 97,795 |
| 98,410 |
| 98,430 |
| 98,438 |
| ||||
Diluted |
| 107,870 |
| 108,123 |
| 108,666 |
| 107,980 |
| ||||
Net income per share calculation: |
|
|
|
|
|
|
|
|
| ||||
Net income |
| $ | 32,039 |
| $ | 31,683 |
| $ | 111,204 |
| $ | 95,838 |
|
Add - Convertible notes interest, net of taxes |
| 2,189 |
| 2,189 |
| 6,567 |
| 6,567 |
| ||||
Adjusted net income |
| $ | 34,228 |
| $ | 33,872 |
| $ | 117,771 |
| $ | 102,405 |
|
Weighted average number of shares outstanding - basic |
| 97,795 |
| 98,410 |
| 98,430 |
| 98,438 |
| ||||
Add effect of dilutive securities: |
|
|
|
|
|
|
|
|
| ||||
Unvested common shares |
| 23 |
| 93 |
| 23 |
| 98 |
| ||||
Employee stock options |
| 1,470 |
| 1,038 |
| 1,631 |
| 862 |
| ||||
Convertible notes |
| 8,582 |
| 8,582 |
| 8,582 |
| 8,582 |
| ||||
Weighted average number of shares outstanding - diluted |
| 107,870 |
| 108,123 |
| 108,666 |
| 107,980 |
| ||||
5
COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
(Unaudited)
($ in thousands)
|
| For the Three Months Ended September 30, |
| ||||||||||||||
|
| Consolidated |
| Same-Store |
| ||||||||||||
|
| 2004 |
| 2003 |
| %Change |
| 2004 |
| 2003 |
| %Change |
| ||||
Number of hospitals |
| 71 |
| 69 |
|
|
| 68 |
| 68 |
|
|
| ||||
Licensed beds |
| 7,971 |
| 7,408 |
|
|
| 7,332 |
| 7,345 |
|
|
| ||||
Beds in service |
| 6,440 |
| 5,748 |
|
|
| 5,822 |
| 5,709 |
|
|
| ||||
Admissions |
| 69,208 |
| 63,297 |
| 9.3 | % | 61,643 |
| 62,732 |
| -1.7 | % | ||||
Adjusted admissions |
| 131,301 |
| 117,895 |
| 11.4 | % | 118,051 |
| 116,873 |
| 1.0 | % | ||||
Patient days |
| 277,216 |
| 245,937 |
| 12.7 | % | 242,306 |
| 244,388 |
| -0.9 | % | ||||
Average length of stay (days) |
| 4.0 |
| 3.9 |
|
|
| 3.9 |
| 3.9 |
|
|
| ||||
Occupancy rate (average beds in service) |
| 47.2 | % | 47.4 | % |
|
| 46.0 | % | 47.4 | % |
|
| ||||
Net operating revenues |
| $ | 844,034 |
| $ | 712,697 |
| 18.4 | % | $ | 752,096 |
| $ | 709,053 |
| 6.1 | % |
Net inpatient revenue as a % of total net operating revenues |
| 49.6 | % | 50.2 | % |
|
| 49.0 | % | 50.1 | % |
|
| ||||
Net outpatient revenue as a % of total net operating revenues |
| 49.1 | % | 48.6 | % |
|
| 49.9 | % | 48.6 | % |
|
| ||||
Income from operations |
| $ | 81,625 |
| $ | 71,067 |
| 14.9 | % | $ | 77,412 |
| $ | 71,132 |
| 8.8 | % |
Income from operations as a % of net operating revenues |
| 9.7 | % | 10.0 | % |
|
| 10.3 | % | 10.0 | % |
|
| ||||
Depreciation and amortization |
| $ | 39,312 |
| $ | 35,580 |
|
|
| $ | 36,165 |
| $ | 35,373 |
|
|
|
Minority interest in earnings |
| $ | 80 |
| $ | 651 |
|
|
| $ | 80 |
| $ | 651 |
|
|
|
Liquidity Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA |
| $ | 121,017 |
| $ | 107,298 |
| 12.8 | % |
|
|
|
|
|
| ||
Adjusted EBITDA as a % of net operating revenues |
| 14.3 | % | 15.1 | % |
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 57,189 |
| $ | 47,065 |
|
|
|
|
|
|
|
|
| ||
Net cash provided by operating activities as a % of net operating revenue |
| 6.8 | % | 6.6 | % |
|
|
|
|
|
|
|
| ||||
Continuing operating results and statistical data exclude discontinued operations for all periods presented.
Certain 2003 operating data has been adjusted for minor reclassification/corrections.
6
|
| For the Nine Months Ended September 30, |
| ||||||||||||||
|
| Consolidated |
| Same-Store |
| ||||||||||||
|
| 2004 |
| 2003 |
| % Change |
| 2004 |
| 2003 |
| % Change |
| ||||
Number of hospitals |
| 71 |
| 69 |
|
|
| 68 |
| 68 |
|
|
| ||||
Licensed beds |
| 7,971 |
| 7,408 |
|
|
| 7,332 |
| 7,345 |
|
|
| ||||
Beds in service |
| 6,440 |
| 5,748 |
|
|
| 5,822 |
| 5,709 |
|
|
| ||||
Admissions |
| 208,972 |
| 180,866 |
| 15.5 | % | 181,865 |
| 179,847 |
| 1.1 | % | ||||
Adjusted admissions |
| 387,042 |
| 332,149 |
| 16.5 | % | 337,717 |
| 330,331 |
| 2.2 | % | ||||
Patient days |
| 849,732 |
| 704,927 |
| 20.5 | % | 721,868 |
| 701,683 |
| 2.9 | % | ||||
Average length of stay (days) |
| 4.1 |
| 3.9 |
|
|
| 4.0 |
| 3.9 |
|
|
| ||||
Occupancy rate (average beds in service) |
| 50.3 | % | 48.0 | % |
|
| 48.6 | % | 48.1 | % |
|
| ||||
Net operating revenues |
| $ | 2,460,968 |
| $ | 2,010,922 |
| 22.4 | % | $ | 2,141,891 |
| $ | 2,000,080 |
| 7.1 | % |
Net inpatient revenue as a % of total net operating revenues |
| 50.4 | % | 51.1 | % |
|
| 50.2 | % | 51.1 | % |
|
| ||||
Net outpatient revenue as a % of total net operating revenues |
| 48.2 | % | 47.6 | % |
|
| 48.7 | % | 47.7 | % |
|
| ||||
Income from operations |
| $ | 250,980 |
| $ | 212,142 |
| 18.3 | % | $ | 233,722 |
| $ | 212,095 |
| 10.2 | % |
Income from operations as a % of net operating revenues |
| 10.2 | % | 10.5 | % |
|
| 10.9 | % | 10.6 | % |
|
| ||||
Depreciation and amortization |
| $ | 115,080 |
| $ | 101,540 |
|
|
| $ | 102,570 |
| $ | 100,927 |
|
|
|
Minority interest in earnings |
| $ | 1,088 |
| $ | 1,703 |
|
|
| $ | 1,088 |
| $ | 1,703 |
|
|
|
Liquidity Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA |
| $ | 367,148 |
| $ | 315,385 |
| 16.4 | % |
|
|
|
|
|
| ||
Adjusted EBITDA as a % of net operating revenues |
| 14.9 | % | 15.7 | % |
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
| $ | 263,174 |
| $ | 198,356 |
|
|
|
|
|
|
|
|
| ||
Net cash provided by operating activities as a % of net operating revenue |
| 10.7 | % | 9.9 | % |
|
|
|
|
|
|
|
| ||||
Continuing operating results and statistical data exclude discontinued operations for all periods presented.
Certain 2003 operating data has been adjusted for minor reclassification/corrections.
7
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
|
| September 30, |
| December 31, |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 19,952 |
| $ | 16,331 |
|
Patient accounts receivable, net |
| 577,910 |
| 559,097 |
| ||
Other current assets |
| 140,324 |
| 120,652 |
| ||
Total current assets |
| 738,186 |
| 696,080 |
| ||
|
|
|
|
|
| ||
Property and equipment |
| 1,890,735 |
| 1,772,461 |
| ||
Less accumulated depreciation and amortization |
| (411,988 | ) | (377,116 | ) | ||
Property and equipment, net |
| 1,478,747 |
| 1,395,345 |
| ||
Goodwill, net |
| 1,213,479 |
| 1,155,797 |
| ||
Other assets, net |
| 104,283 |
| 102,989 |
| ||
|
|
|
|
|
| ||
Total assets |
| $ | 3,534,695 |
| $ | 3,350,211 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Current maturities of long-term debt |
| $ | 20,687 |
| $ | 29,677 |
|
Accounts payable and accrued liabilities |
| 398,919 |
| 368,387 |
| ||
Total current liabilities |
| 419,606 |
| 398,064 |
| ||
|
|
|
|
|
| ||
Long-term debt |
| 1,760,518 |
| 1,444,981 |
| ||
Other long-term liabilities |
| 168,809 |
| 156,577 |
| ||
Stockholders’ equity |
| 1,185,762 |
| 1,350,589 |
| ||
|
|
|
|
|
| ||
Total liabilities and stockholders’ equity |
| $ | 3,534,695 |
| $ | 3,350,211 |
|
8
COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
|
| Nine Months Ended |
| ||||
|
| 2004 |
| 2003 |
| ||
Cash flows from operating activities |
|
|
|
|
| ||
Net Income |
| $ | 111,204 |
| $ | 95,838 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 116,776 |
| 103,974 |
| ||
Minority interest in earnings |
| 1,088 |
| 1,703 |
| ||
Other non-cash expenses, net |
| 5,367 |
| 142 |
| ||
Net changes in operating assets and liabilities, net of effects of acquisitions |
| 28,739 |
| (3,301 | ) | ||
Net cash provided by operating activities |
| 263,174 |
| 198,356 |
| ||
|
|
|
|
|
| ||
Cash flows from investing activities |
|
|
|
|
| ||
Acquisitions of facilities and other related equipment |
| (131,815 | ) | (320,233 | ) | ||
Proceeds from sale of facilities |
| 7,850 |
| — |
| ||
Purchases of property and equipment, net |
| (124,138 | ) | (100,909 | ) | ||
Increase in other assets |
| (23,576 | ) | (20,174 | ) | ||
Net cash used in investing activities |
| (271,679 | ) | (441,316 | ) | ||
|
|
|
|
|
| ||
Cash flows from financing activities |
|
|
|
|
| ||
Proceeds from exercise of stock options |
| 3,951 |
| 1,479 |
| ||
Stock repurchase |
| (290,361 | ) | (14,060 | ) | ||
Deferred financing costs |
| (4,669 | ) | — |
| ||
Redemption of minority investments in joint ventures |
| (2,218 | ) | (336 | ) | ||
Distribution to minority investors in joint ventures |
| (998 | ) | (1,836 | ) | ||
Borrowing under credit agreement |
| 1,632,911 |
| 280,000 |
| ||
Repayments of long-term indebtedness |
| (1,326,490 | ) | (92,489 | ) | ||
Net cash provided by financing activities |
| 12,126 |
| 172,758 |
| ||
|
|
|
|
|
| ||
Net change in cash and cash equivalents |
| 3,621 |
| (70,202 | ) | ||
Cash and cash equivalents at beginning of period |
| 16,331 |
| 132,844 |
| ||
Cash and cash equivalents at end of period |
| $ | 19,952 |
| $ | 62,642 |
|
- END -
9