Community Health Systems, Inc. (CYH - Free Report) reported second-quarter 2020 adjusted net income of 85 cents per share against the Zacks Consensus Estimate of a loss of $1.22 per share. Notably, the company had reported a loss of 47 cents per share in the prior-year quarter.
The company’s results benefited from lower operating costs, partially offset by reduced patient volumes.
Quarterly Operational Update
In the second quarter, net operating revenues were $2.5 billion, which missed the Zacks Consensus Estimate by 0.3%. Further, the top line plunged 23.7% year over year due to reduction in admissions. The company also witnessed lesser number of patient visits in April owing to the COVID-19 pandemic, which somewhat bounced back in May and June.
The second quarter witnessed a decrease of 23.6% and 29.2% in admissions and adjusted admissions, respectively, compared with year-ago numbers.
As of Jun 30, 2020, number of licensed beds came in at 15,562, which indicates a decline of 8.8% from the prior-year quarter.
For second-quarter 2020, the company delivered total adjusted EBITDA of $454 million, up 12.9% year over year.
Total operating costs and expenses of $2.2 billion were down 30.3% year over year due to lower salaries and benefits, supplies, other operating expenses, government and other legal settlements and related costs, and depreciation and amortization. Also, interest expenses of $260 million declined 1.9% in the second quarter.
Total assets at second-quarter end were $16.4 billion, which increased 5.2% from the level at 2019 end.
Cash and cash equivalents of $1.6 billion soared 618.5% from 2019 end.
In the first half of 2020, net cash provided by operating activities was $1.7 billion, which skyrocketed 545.3% from the first half of 2019.
The company has long-term debt of $13.1 billion as of Jun 30, 2020, down 2.1% from the level as of Dec 31, 2019.
Community Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported second-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
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