Community Health Systems, Inc. · NYSE:CYH
Community Health Systems — Q3 2023 Earnings Presentation
17 slides from Community Health Systems's earnings presentation, Oct 26, 2023
Slide 1: Earnings Presentation – 3rd Quarter, 2023
Earnings Presentation – 3rd Quarter, 2023 October 25, 2023
Slide 2: Disclaimer Statement
Disclaimer Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that involve risk and uncer
Slide 3: Community Health Systems
Community Health Systems Earnings Presentation – 3rd Quarter, 2023 3
Slide 4: Near-Term Priorities
Near-Term Priorities By The Numbers Near-term priorities designed to positively position CHS for long-term success 4
Slide 5: Income Summary
Income Summary (Amounts in millions, except margin and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, By The Numbers 2023 2022 Change 2023 2022 Change Net Operating Revenues $ 3,086 $ 3,025 2.0% $ 9,308 $ 9,069 2.6% Adjusted EBITDA(1) $ 360 $ 400 -10.0% $ 1,068 $
Slide 6: Diluted EPS – Excluding Adjustments
Diluted EPS – Excluding Adjustments Three Months Ended Nine Months Ended By The Numbers September 30, September 30, 2023 2022 2023 2022 Net loss, as reported $ (0.69) $ (0.32) $ (1.38) $ (2.86) Adjustments: Loss (gain) from early extinguishment of debt - (0.53) - (0.42) Impairment and (gain) loss on
Slide 7: 3Q 2023 Summary
3Q 2023 Summary By The Numbers Sequential 3Q 2023 3Q 2023 YTD 2023 compared to compared to compared to 2Q 2023 3Q 2022 YTD 2022 Same Store Consolidated Same Store Consolidated Same Store Net Operating Revenue 0.0% 2.0% 5.1% 2.6% 5.3% Net Revenue per AA -1.6% 0.9% -0.8% Admissions 1.6% 0.5% 3.7% 0.9%
Slide 8: Other Operating Expenses
Other Operating Expenses ($ in millions) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 By The Numbers Supplies $491 $500 $529 $521 $499 $487 $492 $498 $507 $504 $489 Opex Excluding $749 $740 $730 $743 $740 $757 $799 $805 $818 $829 $848 Contract Labor Total $1,240 $1,240 $1,259 $1,264 $1,239
Slide 9: Payor Mix (Consolidated)
Payor Mix (Consolidated) Key 14.8% 14.9% Managed Care & Other 16.1% 15.8% Medicaid 3Q 3Q Medicare Managed Care 47.9% 2023 19.7% 47.8% 2022 21.3% Medicare Self-Pay 1.5% 0.2% • Payor mix as % of net revenue. • Total consolidated 14.3% 15.0% uncompensated care as % of 16.8% 16.2% adjusted net revenue (
Slide 10: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures Cash Flows from Operations Capital Expenditures Excluding Received and Repaid Medicare Accelerated Payments By The Numbers ($ in millions) ($ in millions) $1,200 $1,097 $ 500 $469 $950 $440 $415 $900 $ 400 $357 $ 300 $284 $600 $ 200 $300 $291 $300 $ 100 $120 $- $0 20
Slide 11: Balance Sheet Data
Balance Sheet Data By The Numbers ($ in millions) September 30, 2023 December 31, 2022 Working Capital $ 1,099 $ 896 Total Assets $ 14,674 $ 14,669 Total Debt $ 11,842 $ 11,635 Stockholders’ Deficit $ (1,463) $ (1,367) • At September 30, 2023, substantially all of our debt was fixed rate debt. • Day
Slide 12: Debt Maturity Profile
Debt Maturity Profile September 30, 2023 ($ in millions) By The$ 3,000 Numbers $1,232 $ 2,000 $1,386 $2,600 $ 1,000 $2,101 $1,535 $1,058 $900 $756 $0 2023 2024 2025 2026 2027 2028 2029 2030 2031 First Lien Notes Second Lien Notes Unsecured Notes Note: Debt maturity profile does not include $1 billio
Slide 13: 2023 Guidance Issued October 25, 2023
2023 Guidance Issued October 25, 2023 2023 By The Numbers Projection Range • Net operating revenues (in millions) $12,400 to $12,500 • Adjusted EBITDA (in millions) $1,450 to $1,500 • Depreciation and amortization as a percentage of net operating revenues 4.2% • Net loss per share – diluted $(1.00)
Slide 14: Medium-Term Financial Goals
Medium-Term Financial Goals Medium-Term By The Numbers Within 3-5 Years Net Revenue Growth Mid-Single Digit Adjusted EBITDA Margin Mid-Teens Annual Free Cash Flow Positive Financial Leverage (Net Debt / EBITDA) Below 5.5x Financial and operational goals focused on improving EBITDA margin and free ca
Slide 15: APPENDIX: Other Financial Information
APPENDIX: Other Financial Information
Slide 16: Unaudited Supplemental Information
Unaudited Supplemental Information By The Numbers EBITDA is a non-GAAP financial measure which consists of net loss attributable to Community Health Systems, Inc. before interest, income taxes, and depreciation and amortization. Adjusted EBITDA, also a non-GAAP financial measure, is EBITDA adjusted
Slide 17: Unaudited Supplemental Information
Unaudited Supplemental Information The following table reflects the reconciliation of Adjusted EBITDA, as defined, to net loss attributable to Community By The Numbers Health Systems, Inc. stockholders as derived directly from the condensed consolidated financial statements (in millions): Three Mont
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