Community Health Systems (NYSE:CYH) reported preliminary operating and financial report for the quarter closed September 30, 2016. This data is based on update available to management as of the press release date and are subject to review upon finalization of the firm’s quarterly financial and accounting reporting process.
The expectations
Community Health projects net operating revenues for the quarter closed September 2016, to come at around $4.38 billion, down from $4.846 billion in the same quarter, a year ago. Income from continuing businesses before taxes is expected to come around $(83) million, compared to $121 million in the same quarter, a year earlier.
Net cash from operating activities in 3Q2016 is projected to be nearly $178 million, with net cash from operating activities for the three quarters ended September 2016, to be almost $810 million. It compares with $111 million in 3Q2015, and $615 million for the three quarters ended September 2015.
Adjusted EBITDA in 3Q2016 is predicted to be nearly $465 million against $661 million for the comparable quarter last year. Income from continuing operations is projected to be a loss of $(0.69) per share compared with $0.51 per share for the three months closed September 2015.
The financial results for the quarter closed September 2016, comprised of a loss of $(0.28) per share for the impairment of long-lived assets and goodwill. It was primarily linked to the assignment of reporting unit goodwill to 4 hospitals stated as held for sale in this September upon the implementation of a definitive sale deal. Also, it is as per the updated measurement of the projected impairment charge seen during the quarter closed June 2016, and a loss of $(0.06) a share pertaining to the settlement of specific outstanding legal matters.
Discounting these items, Community Health projects income from continuing operations to be a loss of $(0.35) a share for the quarter closed September 2016. The consolidated operating performance in the reported quarter highlights a 12.4% decline in total admissions and a 13% drop in adjusted admissions, against the same period in FY2015. On a same-store platform, admissions declined 2.1% and adjusted admissions dropped 1.5% during the quarter closed September 2016, over the same period in FY2015.
