10-Q - COMMUNITY HEALTH SYSTEMS INC (0001108109) (Filer)

Thu, Apr 24, 8:35 PM (17 days ago)

**Community Health Systems, Inc. (CYH) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $3.159 billion, up from $3.140 billion in Q1 2024. - **Net Income:** $25 million, compared to a net loss of $(6) million in Q1 2024. - **Operating Expenses:** $2.875 billion, down from $2.909 billion in Q1 2024. - **Profit Margins:** Income from operations was $284 million, up from $231 million in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $120 million, up from $96 million in Q1 2024. - **Earnings Changes:** Net income attributable to CYH stockholders was $(13) million, an improvement from $(41) million in Q1 2024. **Key Metrics & Trends:** - **Admissions:** Consolidated inpatient admissions decreased by 1.0%, and adjusted admissions decreased by 2.3% year-over-year. - **Same-Store Performance:** Same-store inpatient admissions increased by 4.0%, and adjusted admissions increased by 2.6%. - **Revenue Sources:** Medicare, Medicare Managed Care, and Medicaid revenues accounted for 52.9% of total revenues. - **Divestitures:** Completed divestitures of three hospitals in Florida and Mississippi, with total net proceeds of approximately $276 million. **Uncertainties & Future Operations:** - **Regulatory Uncertainty:** Potential changes in Medicare and Medicaid reimbursement policies and political shifts may impact future revenues. - **Economic Conditions:** Inflationary pressures, high-interest rates, and geopolitical instability pose risks to financial performance. - **Legal & Regulatory Risks:** Ongoing legal proceedings and regulatory investigations could result in material adverse effects. **Outlook:** - **Capital Expenditures:** Expected to be $350 million to $400 million in 2025. - **Debt Management:** Plans to refinance and redeem outstanding notes, with a tender offer for 6⅞% Senior Unsecured Notes due 2028 and issuance of 10¾% Senior Secured Notes due 2033. - **Liquidity:** Net working capital increased to approximately $1.0 billion, with available borrowing capacity under the ABL Facility.