YOUNGSTOWN, Ohio – Community Health Systems Inc., the parent of ValleyCare Health System, posted gains in its quarterly and year-end results Tuesday, reporting net operating revenues of $3.4 billion for the final three months of 2011 and $13.6 billion for the year.
The quarterly and annual results, announced following close of the-markets, reflected a 3.9% increase in fourth-quarter net operating revenues from the $3.3 million the Tennessee-based company reported for the same period in 2010, and a 7.9% increase in annual net operating revenues from the $12.6 billion it posted for 2010.
“The fourth quarter marked a solid finish for Community Health Systems in 2011, as we extended our record of revenue growth in spite of the ongoing challenges in the economy,” remarked Wayne T. Smith, chairman, president and CEO. “Our consistent ability to increase revenues and drive operating synergies at the individual hospital level demonstrates solid execution of our centralized operating strategy. In addition, our focus on efficient expense management throughout our hospital network has been a critical advantage in supporting our operations in this uncertain environment.”
In 2010 CHS acquired the primary assets of the the former Forum Health Inc., which now operate as ValleyCare. Through its subsidiaries, CHS owns, leases or operates 133 hospitals in 29 states with an aggregate of approximately 20,000 licensed beds.
Income from continuing operations for the fourth quarter was $55.6 million, including an after-tax charge of $42.0 million from the early extinguishment of debt, compared with $94.5 million for the same period in 2010. Including the after-tax charge of $0.47 per share (diluted) from the early extinguishment of debt, income from continuing operations attributable to common stockholders was $0.38 per share (diluted), on 88.9 million weighted-average shares outstanding for the three months ended Dec. 31, compared with $0.78 per share (diluted), on 91.8 million weighted-average shares outstanding for the same period in 2010.
Net income attributable to common stockholders was $30.9 million, or $0.35 per share (diluted), for the three months ended Dec. 31, compared with $69.5 million, or $0.76 per share (diluted), for the same period in 2010. Income from continuing operations and net income for the quarter were reduced by the charge from the early extinguishment of debt related to the repayment of $1.0 billion aggregate principal amount of 8 7/8% senior notes due 2015 with proceeds from the sale of $1.0 billion aggregate principal amount of 8% senior notes due 2019. Excluding the charge, income from continuing operations for the three months was $97.6 million or $0.85 per share (diluted) and net income was $73.0 million or $0.82 per share (diluted).
Adjusted EBITDA for the three months was $463.8 million, compared with $451.1 million for the same period in 2010, representing a 2.8% increase. Net cash provided by operating activities for the period was $441.7 million, compared with $290.4 million for the same period in 2010.
The consolidated financial results for the three months reflect a 3.5% decrease in total admissions and a 1.8% increase in total adjusted admissions compared with the same period in 2010. On a same-store basis, admissions decreased 6.7% and adjusted admissions decreased 1.4%, compared with the same period in 2010. On a same-store basis, net operating revenues increased 1.2%, compared with the same period in 2010.
Income from continuing operations for the year was $335.9 million, including an after-tax charge of $42.0 million from the early extinguishment of debt, for the year, compared with $355.2 million for the same period in 2010. Including the after-tax charge of $0.46 per share (diluted) from the early extinguishment of debt, income from continuing operations attributable common stockholders was $2.87 per share (diluted), on 90.7 million weighted-average shares outstanding for the year ended Dec. 31, compared with $3.08 per share (diluted), on 92.9 million weighted-average shares outstanding for the same period in 2010. Excluding this charge, income from continuing operations for the year was $377.9 million or $3.33 per share (diluted).
Net income attributable to common stockholders was $201.9 million, or $2.23 per share (diluted), for the year, compared with $280.0 million, or $3.01 per share (diluted), for the same period in 2010, decreasing primarily as a result of the early extinguishment of debt charge, the loss from operations and impairment charge of three hospitals sold and the loss on sale of a physician clinic during the year ended December 31, 2011. The impairment loss is primarily related to the write-off of allocated goodwill based on the cash proceeds from the sale of the three hospitals.
Adjusted EBITDA was $1.8 billion for both the years ended Dec. 31, 2011 and 2010. Net cash provided by operating activities for 2011 was $1.3 billion, compared with $1.2 billion for the same period in 2010.
The consolidated financial results for 2011 reflect a 0.5 % decrease in total admissions and a 4.2% increase in total adjusted admissions compared with the same period in 2010. On a same-store basis, admissions decreased 5.6% and adjusted admissions decreased 0.7%, compared with the same period in 2010. On a same-store basis, net operating revenues increased 3.7%, compared with the same period in 2010.
SOURCE: Community Health Systems
Published by The Business Journal, Youngstown, Ohio.