Community Health Systems results, guidance

 Community Health Systems, Inc. (NYSE: CYH) (the "Company") today announced financial and operating results for the three months and year ended December 31, 2022.

The following highlights the financial and operating results for the three months ended December 31, 2022.

• Net operating revenues totaled $3.142 billion.

• Net income attributable to Community Health Systems, Inc. stockholders was $414 million, or $3.18 per share (diluted), compared to $178 million, or $1.34 per share (diluted), for the same period in 2021. Excluding the adjusting items as presented in the table in footnote (e) on page 16, net income attributable to Community Health Systems, Inc. stockholders was $1.50 per share (diluted), compared to $1.15 per share (diluted) for the same period in 2021.

• Adjusted EBITDA was $404 million, including $2 million of pandemic relief funds.

• Net cash provided by operating activities was $9 million for the three months ended December 31, 2022, which included payment of approximately $73 million of 2020 social security taxes deferred pursuant to the CARES Act, compared to net cash used in operating activities of $531 million, which included repayments of Medicare accelerated payments in the amount of $814 million, for the same period in 2021.

• Approximately $378 million principal amount of notes outstanding were extinguished during the three months ended December 31, 2022.

• On a same-store basis, admissions increased 4.4 percent and adjusted admissions increased 8.2 percent, compared to the same period in 2021.

Set forth below is selected information concerning the Company’s projected consolidated operating results for the year ending December 31, 2023. These projections are based on the Company’s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time. The 2023 guidance should be considered in conjunction with the assumptions included herein. See pages 19, 20 and 21 for a list of factors that could affect the future results of the Company or the healthcare industry generally.

The following is provided as guidance to analysts and investors:

	2023 Projection Range
Net operating revenues (in millions)	$	12,200			to		$	12,600
Adjusted EBITDA (in millions)	$	1,475			to		$	1,625
Net loss per share - diluted	$	(0.65	)		to		$	(0.05	)
Weighted-average diluted shares (in millions)		130.0			to			131.0

The following assumptions were used in developing the 2023 guidance provided above:

• The Company’s projections exclude the following:
  • Effect of debt refinancing activities, including gains and losses from early extinguishment of debt;
  • Impairment of goodwill and long-lived assets;
  • Previously recorded pandemic relief funds and the potential recognition of additional pandemic relief funds;
  • The impact of any potential future divestitures;
  • Gains or losses from the sales of businesses;
  • Employee termination benefits and restructuring costs;
  • Resolution of government investigations or other significant legal settlements;
  • Costs incurred in connection with divestitures; and
  • Other significant gains or losses that neither relate to the ordinary course of business nor reflect the Company’s underlying business performance.

Other assumptions used in the above guidance:

• Expressed as a percentage of net operating revenues, depreciation and amortization of approximately 4.2% for 2023. Additionally, this is a fixed cost and the percentages may vary based on changes in net operating revenues. Such amounts exclude the possible impact of any future hospital fixed asset impairments.
• Interest expense is estimated to be between $815 million and $835 million while cash paid for interest, which excludes the amortization of deferred financing costs, is expected to be $760 million to $780 million. Total fixed rate debt is expected to average approximately 100% of total debt during 2023.
• Expressed as a percentage of net operating revenues, net income attributable to noncontrolling interests of approximately 1.1% to 1.2% for 2023.
• Expressed as a percentage of net operating revenues, provision for income taxes of approximately 0.8% to 0.9% for 2023.

A reconciliation of the Company’s projected 2023 Adjusted EBITDA, a forward-looking non-GAAP financial measure, to the Company’s projected net loss attributable to Community Health Systems, Inc. stockholders, the most directly comparable GAAP financial measure, is shown below (in millions):

	Year Ending
	December 31, 2023
	Low				High
Net loss attributable to Community Health Systems, Inc. stockholders (1)	$	(84	)		$	(6	)
Adjustments:
Depreciation and amortization		510				530
Interest expense, net		815				835
Provision for income taxes		99				116
Net income attributable to noncontrolling interests		135				150
Adjusted EBITDA (1)	$	1,475			$	1,625

(1)

The Company does not include in this reconciliation the impact of certain items not included in the Company’s forecast set forth above that would be included in a reconciliation of historical net income (loss) attributable to Community Health Systems, Inc. stockholders to Adjusted EBITDA such as, but not limited to, losses (gains) from early extinguishment of debt, impairment and (gain) loss on sale of businesses and expense from government and other legal matters and related costs, in light of the fact that such items are not determinable, and/or the inherent difficulty in quantifying such projected amounts, on a forward-looking basis.

• Capital expenditures are projected as follows (in millions):

		2023
		Guidance
Total		$	450		to		$	500

• Net cash provided by operating activities are projected as follows (in millions):

		2023
		Guidance
Total		$	675		to		$	825

• Diluted weighted-average shares outstanding are projected to be approximately 130 million to 131 million for 2023.

https://www.chs.net/investor-relations/press-room-media-releases/