Friday, April 27, 2012FRANKLIN, Tenn. -- Community Health Systems Inc. posted net operating revenues for the first quarter of 2012 of $3.3 billion, up 11.6% from $3.0 billion reported for the first three months of 2011.
In a news release following the close of markets Thursday, CHS, which operates ValleyCare Health System in Mahoning and Trumbull counties in Ohio, also reported a 3.2% increase in total admissions and an 8.1% increase in total adjusted admissions compared with the same period in 2011.
CHS also reported income from continuing operations increased to $99.7 million, or $0.85 per share (diluted), for the three months ended March 31, 2012, compared with $91.6 million, or $0.81 per share (diluted), for the same period in 2011.
Net income attributable to common stockholders was $0.85 per share (diluted) for the first three months of 2012, compared to $0.67 per share (diluted) for the same period in 2011. The results for the quarter include a $0.48 per share (diluted) net benefit from the resolution of an industrywide governmental settlement and a payment update relating to prior periods, a $0.10 per share (diluted) charge to establish reserves for certain legal matters, and a $0.44 per share (diluted) loss from the early extinguishment of debt.
Excluding the previously mentioned items, income from continuing operations attributable to common stockholders was $0.91 per share (diluted) for the three months ended March 31, and net income attributable to common stockholders was $0.91 per share (diluted) for the three months. Weighted average shares outstanding (diluted) were 88.9 million for the three months ended March 31, and 92.1 million for the three months ended March 31, 2011.
Adjusted earnings before interest, taxes, depreciation and amortization for the three months ended March 31, 2012, was $535.5 million compared with $457.1 million for the same period in 2011, a 17.2% increase. Excluding previously mentioned items, adjusted EBITDA was $477.6 million, up 4.5 percent from the same period in 2011. Net cash provided by operating activities for the three months ended March 31, 2012, was $187.3 million compared with $187.5 million for the same period in 2011.
On a same-store basis, admissions decreased 2.3% while adjusted admissions increased 2.5% compared with the same period in 2011. On a same-store basis, net operating revenues increased 4.3% compared with the same period in 2011.
The first-quarter results “indicate a strong start to the year,” said Wayne T. Smith, CHS chairman, president and chief executive officer. “We continued to show strong top-line growth with revenues up over 11 percent on a consolidated basis and same-store revenues up 4.3 percent from a year ago,” he said. “We are especially encouraged by our volumes, which showed more favorable year-over-year trends than we experienced in 2011. These results confirm our ability to drive revenues, improve our operating efficiencies and manage our costs, with a shared goal across all of our markets to enhance the quality of local health-care services.”
CHS already has added three new hospitals to its portfolio, Smith continued, and with the current regulatory climate the company believes a number of independent community hospitals are looking for “established and operationally focused partners,” he added.
Published by The Business Journal, Youngstown, Ohio.