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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Quorum Health Corporation | NYSE:QHC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.3044 | 0 | 01:00:00 |
Full year net loss attributable to Quorum Health Corporation was ($200.2) million, or ($6.91) per share
Full year Adjusted EBITDA was $126.4 million and Adjusted EBITDA, Adjusted for Divestitures was $150.6 million
2019 same-facility net operating revenues guidance of $1.825 to $1.875 billion and Adjusted EBITDA, Adjusted for Divestitures guidance of $160 to $180 million
Quorum Health Corporation (NYSE: QHC) (the “Company”) today announced financial and operating results for the fourth quarter and year ended December 31, 2018.
QUORUM HEALTH CORPORATION Unaudited Financial Highlights(In Millions)
Three Months EndedDecember 31,
Year EndedDecember 31,
2018 2017 2018 2017 Net operating revenues $ 458.6 $515.1
(1)
$ 1,878.6 $ 2,072.2Net loss attributable to Quorum Health Corporation
$
(20.7
)$
(26.8
)$
(200.2
)$
(114.2
) Cash flows from operating activities$
(3.4
) $ 66.2 $ 39.5 $ 67.0 Same-facility net operating revenues $ 460.7 $482.8
(1)
$ 1,857.5 $ 1,819.4 Adjusted EBITDA(2) $ 37.5 $49.0
(1)
$ 126.4 $ 141.8 Adjusted EBITDA, Adjusted for Divestitures(2) $ 40.5 $63.9
(1)
$ 150.6 $ 177.2(1) Includes $22.5 million of revenues and $16.5 million of EBITDA from the California Hospital Quality Assurance Fee (“HQAF”) program for the first three quarters of 2017.
(2) A table providing supplemental information on Adjusted EBITDA; Adjusted EBITDA, Adjusted for Divestitures and reconciling net loss to Adjusted EBITDA and Adjusted EBITDA, Adjusted for Divestitures is included in this release.
Robert Fish, Quorum Health’s President and Chief Executive Officer, commented, “Our fourth quarter results represent a strong finish to 2018, and I am proud of the progress our team has made on the strategic initiatives that we established earlier in the year. Over the course of 2018, we significantly improved our EBITDA margins through targeted efficiency initiatives, and divested three hospitals, which brought us closer to our refinancing goal. In addition, we have strengthened our management team by adding experienced leadership in many key areas of our business. In early January, we also received a final ruling in our arbitration with CHS, which is a major step toward a collaborative exit of the remaining Transition Services Agreements. I look forward to building on the success we had in 2018 and carrying that momentum forward through 2019.”
Financial results for the fourth quarter and full year ended December 31, 2018 reflect the following:
Fourth Quarter and Full Year 2018 Operating Highlights
QUORUM HEALTH CORPORATION Unaudited Operating Highlights (Percent Change compared to the prior period in 2017)Three Months EndedDecember 31, 2018
Year EndedDecember 31, 2018
Consolidated
Same-Facility
Consolidated
Same-Facility
Admissions(1) (15.6 )% (4.4 )% (16.1 )% (2.9 )% Adjusted Admissions(1) (14.1 )% (2.5 )% (15.5 )% (1.4 )% Surgeries(1) (24.8 )% (8.0 )% (25.1 )% (4.1 )% Emergency Room Visits(1) (17.4 )% (4.9 )% (16.2 )% (1.1 )% Net patient revenue per adjusted admission 4.8 % (0.8 )% 7.6 % 4.4 %(1) Definitions of Admissions, Adjusted Admissions, Surgeries and Emergency Room Visits are included in this release.
Balance Sheet and Liquidity
Divestiture Update
Financial Outlook
The Company has established the following financial guidance for 2019:
(In Millions) 2018 Actual2019 GuidanceRange
Same-facility net operating revenues $1,857.5 $1,825 - $1,875 Adjusted EBITDA, Adjusted for Divestitures $150.6 $160 - $180These projections are based on the Company’s historical operating performance, current economic, demographic and regulatory trends and other assumptions that the Company believes are reasonable at this time. See “Forward-Looking Statements” below for a list of factors that could affect the future financial and operating results of the Company or the healthcare industry generally.
A reconciliation of the Company’s projected 2019 Adjusted EBITDA, a forward-looking non-GAAP financial measure, to net income (loss), the most directly comparable U.S. GAAP financial measure, is omitted from this press release because the Company is unable to provide such reconciliation without unreasonable effort. This inability results from the inherent difficulty in forecasting generally and in quantifying certain projected amounts that are necessary for such reconciliation. In particular, sufficient information is not available to calculate certain items required for such reconciliation without unreasonable effort, including interest expense, provision for (benefit from) income taxes and other adjustments that would be necessary to prepare a forward-looking statement of net income (loss) in accordance with U.S. GAAP. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
About Quorum Health Corporation
The principal business of Quorum Health Corporation is to provide hospital and outpatient healthcare services in its markets across the United States. As of December 31, 2018, the Company owned or leased 27 hospitals in rural and mid-sized markets located across 14 states and licensed for 2,604 beds. Through Quorum Health Resources LLC, a wholly-owned subsidiary, the Company provides hospital management advisory and healthcare consulting services to non-affiliated hospitals across the country. Over 95% of the Company’s net operating revenues are attributable to its hospital operations business.
The Company’s headquarters are located in Brentwood, Tennessee, a suburb south of Nashville. Shares in Quorum Health Corporation are traded on the NYSE under the symbol “QHC.” More information about the Company can be found on its website at www.quorumhealth.com.
Quorum Health Corporation will hold a conference call on Wednesday, March 13, 2019, at 11:00 a.m. Eastern, to review its financial and operating results for the fourth quarter and year ended December 31, 2018. To participate, please dial 1-844-761-3024 approximately 10 minutes prior to the scheduled start of the call. If calling from outside of the United States, please dial 1-661-378-9914. Please reference Conference ID number 5227969 when prompted by the conference call operator. The conference call will also be webcast live from the Investor Relations portion of the Company’s website. A presentation will be made available during the call and will be found in the Investor Relations portion of the Company’s website at www.quorumhealth.com. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will continue to be available for approximately 30 days. Copies of this press release and the Company’s Current Report on Form 8-K (including this press release) will be available on the Company’s website at www.quorumhealth.com.
QUORUM HEALTH CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In Thousands, Except Earnings per Share and Shares) Three Months Ended December 31, 2018 2017 % of % of Amount Revenues Amount Revenues Operating revenues (a) $ 596,648 Provision for bad debts (b) 81,566 Net operating revenues $ 458,630 100.0 % 515,082 100.0 % Operating costs and expenses: Salaries and benefits 224,069 48.9 % 253,106 49.1 % Supplies 53,014 11.6 % 63,932 12.4 % Other operating expenses (a) 134,123 29.1 % 156,669 30.5 % Depreciation and amortization 15,979 3.5 % 18,714 3.6 % Rent 11,478 2.5 % 13,599 2.6 % Electronic health records incentives earned (372 ) (0.1 )% (229 ) — % Legal, professional and settlement costs 1,625 0.4 % (518 ) (0.1 )% Impairment of long-lived assets and goodwill 4,940 1.1 % 25,820 5.0 % Loss (gain) on sale of hospitals, net 78 — % (131 ) — % Loss on closure of hospitals, net 478 0.1 % — — % Transaction costs related to the Spin-off — — % 49 — % Total operating costs and expenses 445,412 97.1 % 531,011 103.1 % Income (loss) from operations 13,218 2.9 % (15,929 ) (3.1 )% Interest expense, net 32,823 7.2 % 31,873 6.2 % Income (loss) before income taxes (19,605 ) (4.3 )% (47,802 ) (9.3 )% Provision for (benefit from) income taxes 315 — % (21,779 ) (4.2 )% Net income (loss) (c) (19,920 ) (4.3 )% (26,023 ) (5.1 )% Less: Net income (loss) attributable to noncontrolling interests 814 0.2 % 785 0.1 % Net income (loss) attributable to Quorum Health Corporation $ (20,734 ) (4.5 )% $ (26,808 ) (5.2 )% Earnings (loss) per share attributable to Quorum Health Corporation stockholders: Basic and diluted (d) $ (0.71 ) $ (0.95 ) Weighted-average shares outstanding: Basic and diluted 29,227,634 28,248,527 QUORUM HEALTH CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In Thousands, Except Earnings per Share and Shares) Year Ended December 31, 2018 2017 % of % of Amount Revenues Amount Revenues Operating revenues (a) $ 2,327,655 Provision for bad debts (b) 255,485 Net operating revenues $ 1,878,589 100.0 % 2,072,170 100.0 % Operating costs and expenses: Salaries and benefits 929,937 49.5 % 1,034,797 49.9 % Supplies 213,746 11.4 % 250,523 12.1 % Other operating expenses (a) 575,033 30.7 % 623,063 30.1 % Depreciation and amortization 67,994 3.6 % 82,155 4.0 % Rent 47,029 2.5 % 50,230 2.4 % Electronic health records incentives earned (989 ) (0.1 )% (4,745 ) (0.2 )% Legal, professional and settlement costs 11,974 0.6 % 6,001 0.3 % Impairment of long-lived assets and goodwill 77,138 4.1 % 47,281 2.3 % Loss (gain) on sale of hospitals, net 9,005 0.5 % (5,243 ) (0.3 )% Loss on closure of hospitals, net 18,673 1.0 % — — % Transaction costs related to the Spin-off — — % 253 — % Total operating costs and expenses 1,949,540 103.8 % 2,084,315 100.6 % Income (loss) from operations (70,951 ) (3.8 )% (12,145 ) (0.6 )% Interest expense, net 128,130 6.8 % 122,077 5.9 % Income (loss) before income taxes (199,081 ) (10.6 )% (134,222 ) (6.5 )% Provision for (benefit from) income taxes (847 ) — % (21,865 ) (1.1 )% Net income (loss) (c) (198,234 ) (10.6 )% (112,357 ) (5.4 )%Less: Net income (loss) attributable to noncontrolling interests
2,014 0.1 % 1,833 0.1 % Net income (loss) attributable to Quorum Health Corporation $ (200,248 ) (10.7 )% $ (114,190 ) (5.5 )% Earnings (loss) per share attributable to Quorum Health Corporation stockholders: Basic and diluted (d) $ (6.91 ) $ (4.06 ) Weighted-average shares outstanding: Basic and diluted 28,976,122 28,113,566 QUORUM HEALTH CORPORATION UNAUDITED CONSOLIDATED SELECTED OPERATING DATA Three Months Ended December 31, 2018 2017 $ Variance % Variance Consolidated and combined: Number of licensed beds at end of period (e) 2,604 2,979 (375 ) (12.6 )% Admissions (f) 17,676 20,932 (3,256 ) (15.6 )% Adjusted admissions (g) 43,640 50,788 (7,148 ) (14.1 )% Surgeries (h) 17,881 23,793 (5,912 ) (24.8 )% Emergency room visits (i) 128,628 155,746 (27,118 ) (17.4 )% Medicare case mix (j) 1.47 1.45 0.02 1.4 % Same-facility: (k) Number of licensed beds at end of period (e) 2,604 2,630 (26 ) (1.0 )% Admissions (f) 17,676 18,483 (807 ) (4.4 )% Adjusted admissions (g) 43,640 44,742 (1,102 ) (2.5 )% Surgeries (h) 17,881 19,445 (1,564 ) (8.0 )% Emergency room visits (i) 128,628 135,267 (6,639 ) (4.9 )% Medicare case mix (j) 1.47 1.42 0.05 3.5 % Year Ended December 31, 2018 2017 $ Variance % Variance Consolidated and combined: Number of licensed beds at end of period (e) 2,604 2,979 (375 ) (12.6 )% Admissions (f) 74,222 88,504 (14,282 ) (16.1 )% Adjusted admissions (g) 183,919 217,583 (33,664 ) (15.5 )% Surgeries (h) 75,509 100,863 (25,354 ) (25.1 )% Emergency room visits (i) 553,045 660,246 (107,201 ) (16.2 )% Medicare case mix (j) 1.44 1.43 0.01 0.7 % Same-facility: (k) Number of licensed beds at end of period (e) 2,604 2,630 (26 ) (1.0 )% Admissions (f) 72,457 74,625 (2,168 ) (2.9 )% Adjusted admissions (g) 178,859 181,328 (2,469 ) (1.4 )% Surgeries (h) 72,631 75,763 (3,132 ) (4.1 )% Emergency room visits (i) 535,718 541,455 (5,737 ) (1.1 )% Medicare case mix (j) 1.44 1.41 0.03 2.1 % QUORUM HEALTH CORPORATION UNAUDITED CONSOLIDATED SELECTED OPERATING DATA Three Months Ended December 31, 2018 2017 $ Variance % Variance Consolidated and combined: Net patient revenues $ 441,627 $ 490,471 $ (48,844 ) (10.0 )% Non-patient revenues 17,003 24,611 (7,608 ) (30.9 )% Total net operating revenues $ 458,630 $ 515,082 $ (56,452 ) (11.0 )% Net patient revenues per adjusted admission $ 10,120 $ 9,657 $ 463 4.8 % Net operating revenues per adjusted admission $ 10,509 $ 10,142 $ 367 3.6 % Same-facility: Net patient revenues $ 443,710 $ 458,503 $ (14,793 ) (3.2 )% Non-patient revenues 16,999 24,281 (7,282 ) (30.0 )% Total net operating revenues $ 460,709 $ 482,784 $ (22,075 ) (4.6 )% Net patient revenues per adjusted admission $ 10,168 $ 10,248 $ (80 ) (0.8 )% Net operating revenues per adjusted admission $ 10,557 $ 10,790 $ (233 ) (2.2 )% Year Ended December 31, 2018 2017 $ Variance % Variance Consolidated and combined: Net patient revenues $ 1,796,215 $ 1,974,847 $ (178,632 ) (9.0 )% Non-patient revenues 82,374 97,323 (14,949 ) (15.4 )% Total net operating revenues $ 1,878,589 $ 2,072,170 $ (193,581 ) (9.3 )% Net patient revenues per adjusted admission $ 9,766 $ 9,076 $ 690 7.6 % Net operating revenues per adjusted admission $ 10,214 $ 9,524 $ 690 7.2 % Same-facility: Net patient revenues $ 1,775,617 $ 1,723,967 $ 51,650 3.0 % Non-patient revenues 81,883 95,397 (13,514 ) (14.2 )% Total net operating revenues $ 1,857,500 $ 1,819,364 $ 38,136 2.1 % Net patient revenues per adjusted admission $ 9,927 $ 9,507 $ 420 4.4 % Net operating revenues per adjusted admission $ 10,385 $ 10,034 $ 351 3.5 % QUORUM HEALTH CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, Except Par Value per Share and Shares) December 31, 2018 2017 ASSETS Current assets: Cash and cash equivalents $ 3,203 $ 5,617 Patient accounts receivable, net of allowance for doubtful accounts of $352,509 at December 31, 2017 322,608 343,145 Inventories 45,646 53,459 Prepaid expenses 19,683 21,167 Due from third-party payors 63,443 97,202 Current assets of hospitals held for sale—
8,112 Other current assets 36,405 47,440 Total current assets 490,988 576,142 Property and equipment, at cost 1,287,329 1,405,184 Less: Accumulated depreciation and amortization (727,891 ) (729,905 ) Total property and equipment, net 559,438 675,279 Goodwill 401,073 409,229 Intangible assets, net 48,289 64,850 Long-term assets of hospitals held for sale—
7,734 Other long-term assets 74,306 95,607 Total assets $ 1,574,094 $ 1,828,841 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 1,697 $ 1,855 Accounts payable 143,917 171,250 Accrued liabilities: Accrued salaries and benefits 76,908 77,803 Accrued interest 10,024 10,466 Due to third-party payors 45,852 47,705 Current liabilities of hospitals held for sale—
2,577 Other current liabilities 43,336 43,687 Total current liabilities 321,734 355,343 Long-term debt 1,191,777 1,212,035 Deferred income tax liabilities, net 6,736 7,774 Other long-term liabilities 126,499 137,954 Total liabilities 1,646,746 1,713,106 Redeemable noncontrolling interests 2,278 2,325 Equity: Quorum Health Corporation stockholders' equity (deficit): Preferred stock, $0.0001 par value per share; 100,000,000 shares authorized; none issued—
— Common stock, $0.0001 par value per share; 300,000,000 shares authorized; 31,521,398 shares issued and outstanding at December 31, 2018 and 30,294,895 shares issued and outstanding at December 31, 2017 3 3 Additional paid-in capital 557,309 549,610 Accumulated other comprehensive income (loss) 759 (1,956 ) Accumulated deficit (648,464 ) (448,216 ) Total Quorum Health Corporation stockholders' equity (deficit) (90,393 ) 99,441 Nonredeemable noncontrolling interests 15,463 13,969 Total equity (deficit) (74,930 ) 113,410 Total liabilities and equity $ 1,574,094 $ 1,828,841 QUORUM HEALTH CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) Year Ended December 31, 2018 2017 2016 Cash flows from operating activities: Net income (loss) $ (198,234 ) $ (112,357 ) $ (345,197 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 67,994 82,155 117,288 Non-cash interest expense 8,733 5,770 2,496 Provision for (benefit from) deferred income taxes (1,280 ) (22,137 ) (56,339 ) Stock-based compensation expense 10,663 9,952 7,441 Impairment of long-lived assets and goodwill 77,138 47,281 291,870 Loss (gain) on sale of hospitals, net 9,005 (5,243 ) 2,150 Non-cash portion of loss on hospital closures 6,394 — — Changes in reserves for self-insurance claims, net of payments 19,678 22,519 27,994 Changes in reserves for legal, professional and settlement costs, net of payments — (3,651 ) 3,651 Other non-cash expense (income), net 959 190 (575 ) Changes in operating assets and liabilities, net of acquisitions and divestitures: Patient accounts receivable, net 25,977 29,091 10,205 Due from and due to third-party payors, net 31,906 24,201 7,005 Inventories, prepaid expenses and other current assets 15,156 673 1,457 Accounts payable and accrued liabilities (33,860 ) (14,743 ) 20,760 Long-term assets and liabilities, net (725 ) 3,269 (9,120 ) Net cash provided by (used in) operating activities 39,504 66,970 81,086 Cash flows from investing activities: Capital expenditures for property and equipment (45,882 ) (61,530 ) (79,920 ) Capital expenditures for software (2,662 ) (6,898 ) (7,269 ) Acquisitions, net of cash acquired (121 ) (1,920 ) (785 ) Proceeds from the sale of hospitals 40,848 32,081 13,746 Other investing activities (489 ) — 1,082 Net cash provided by (used in) investing activities (8,306 ) (38,267 ) (73,146 ) Cash flows from financing activities: Borrowings under revolving credit facilities 490,000 508,000 50,000 Repayments under revolving credit facilities (476,000 ) (508,000 ) (50,000 ) Borrowings of long-term debt 105 376 1,256,281 Repayments of long-term debt (41,918 ) (39,195 ) (15,222 ) Increase in Due to Parent, net — — 24,796 Payments of debt issuance costs (2,268 ) (3,119 ) (29,146 ) Cash paid to Parent related to the Spin-off — — (1,217,336 ) Cancellation of restricted stock awards for payroll tax withholdings on vested shares (1,996 ) (1,508 ) (13 ) Cash distributions to noncontrolling investors (1,535 ) (3,851 ) (2,850 ) Purchases of shares from noncontrolling investors — (1,244 ) (101 ) Net cash provided by (used in) financing activities (33,612 ) (48,541 ) 16,409 Net change in cash and cash equivalents (2,414 ) (19,838 ) 24,349 Cash and cash equivalents at beginning of period 5,617 25,455 1,106 Cash and cash equivalents at end of period $ 3,203 $ 5,617 $ 25,455FOOTNOTES TO UNAUDITED FINANCIAL STATEMENTS AND SELECTED OPERATING DATA
(a) The California Department of Health Care Services administers the HQAF program, imposing a fee on certain general and acute care California hospitals. Revenues generated from these fees provide funding for the non-federal supplemental payments to California hospitals that serve California’s Medicaid (“Medi-Cal”) and uninsured patients. Under the HQAF program, the Company recognized $7.9 million of net operating revenues less $2.1 million of provider taxes for the three months ended December 31, 2018. The Company recognized the full year 2017 HQAF of $29.9 million of net operating revenues and $7.9 million of provider taxes for the three months ended December 31, 2017, when CMS approved Phase V of the program. For the year ended December 31, 2018, the Company recognized $32.4 million of net operating revenues less $6.5 million of provider taxes compared to $29.9 million of net operating revenues and $7.9 million of provider taxes for the year ended December 31, 2017.
(b) On January 1, 2018, the Company adopted ASC Topic 606 “Revenue from Contracts with Customers” using the modified retrospective method to all contracts existing on January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Prior to the adoption of ASC Topic 606, a significant portion of the Company’s allowance for doubtful accounts related to amounts due from self-pay patients, as well as co-pays and deductibles owed to the Company by patients with insurance. Under ASC 606, the estimated allowance for these patients are generally considered a direct reduction to net operating revenues rather than as a provision for bad debts.
(c) EBITDA is a non-GAAP financial measure that consists of net income (loss) before interest, income taxes, depreciation and amortization. Adjusted EBITDA, also a non-GAAP financial measure, is EBITDA adjusted to add back the effect of certain legal, professional and settlement costs, impairment of long-lived assets and goodwill, net loss (gain) on sale of hospitals, net loss on closure of hospitals, transition of transition services agreements (“TSAs”), transaction costs related to the Spin-off, post-spin headcount reductions and executive severance, and changes in estimate related to collectability of patient accounts receivable. The Company uses Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by the Company’s management to assess the operating performance of its hospital operations business and to make decisions on the allocation of resources. Additionally, management utilizes Adjusted EBITDA in assessing the Company’s results of operations and in comparing the Company’s results of operations between periods. Adjusted EBITDA, Adjusted for Divestitures, also a non-GAAP financial measure, is further adjusted to exclude the effect of EBITDA of hospitals either sold or closed as of December 31, 2018. The Company has presented Adjusted EBITDA and Adjusted EBITDA, Adjusted for Divestitures in this press release because it believes these measures provide investors and other users of the Company’s financial statements with additional information about how the Company’s management assesses its results of operations.
Adjusted EBITDA and Adjusted EBITDA, Adjusted for Divestitures are not measurements of financial performance under U.S. GAAP. These calculations should not be considered in isolation or as a substitute for net income, operating income or any other measure calculated in accordance with U.S. GAAP. The items excluded from Adjusted EBITDA and Adjusted EBITDA, Adjusted for Divestitures are significant components in understanding and evaluating the Company’s financial performance. The Company believes such adjustments are appropriate, as the magnitude and frequency of such items can vary significantly and are not related to the assessment of the Company’s normal operating performance. Additionally, the Company’s calculation of Adjusted EBITDA and Adjusted EBITDA, Adjusted for Divestitures may not be comparable to similarly titled measures reported by other companies.
The following table reconciles Adjusted EBITDA and Adjusted EBITDA, Adjusted for Divestitures, each as defined above, to net income (loss), the most directly comparable U.S. GAAP financial measure, as derived directly from the Company’s consolidated statements of income for the respective periods (in thousands):
Three Months Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Net income (loss) $ (19,920 ) $ (26,023 ) $ (198,234 ) $ (112,357 ) Interest expense, net 32,823 31,873 128,130 122,077 Provision for (benefit from) income taxes 315 (21,779 ) (847 ) (21,865 ) Depreciation and amortization 15,979 18,714 67,994 82,155 EBITDA 29,197 2,785 (2,957 ) 70,010 Legal, professional and settlement costs 1,625 (518 ) 11,974 6,001 Impairment of long-lived assets and goodwill 4,940 25,820 77,138 47,281 Loss (gain) on sale of hospitals, net 78 (131 ) 9,005 (5,243 )Loss on closure of hospitals, net
478 — 18,673 — Transition of transition services agreements (475 ) — 3,207 — Transaction costs related to the Spin-off — 49 — 253 Post-spin headcount reductions and executive severance 1,667 — 9,355 2,543 Change in estimate related to collectability of patient accounts receivable (l) — 21,000 — 21,000 Adjusted EBITDA 37,510 49,005 126,395 141,845 Negative EBITDA of divested hospitals 2,941 14,858 24,232 35,368 Adjusted EBITDA, Adjusted for Divestitures $ 40,451 $ 63,863 $ 150,627 $ 177,213(d) The following table reconciles net income (loss) attributable to Quorum Health Corporation, as reported and on a per share basis, with the adjustments described herein:
Three Months Ended December 31, Year Ended December 31, 2018 2017 2018 2017 (per share - basic and diluted) (per share - basic and diluted) Earnings (loss) per share attributable to Quorum Health Corporation stockholders, as reported $ (0.71 ) $ (0.95 ) $ (6.91 ) $ (4.06 ) Adjustments: Legal, professional and settlement costs 0.06 (0.01 ) 0.41 0.18 Impairment of long-lived assets and goodwill 0.17 0.50 2.65 1.41 Loss (gain) on sale of hospitals, net — (0.10 ) 0.31 (0.16 ) Loss on closure of hospitals, net 0.02 — 0.64 — Transition of transition services agreements (0.02 ) — 0.11 — Transaction costs related to the Spin-off — — — 0.01 Post-spin headcount reductions and executive severance 0.06 — 0.32 0.08 Change in estimate related to collectability of patient accounts receivable — 0.40 — 0.63 Net operating losses of divested hospitals 0.10 0.29 0.83 1.05 Earnings (loss) per share attributable to Quorum Health Corporation stockholders, excluding adjustments $ (0.32 ) $ 0.13 $ (1.64 ) $ (0.86 )(e) Licensed beds are the number of beds for which the appropriate state agency licenses a hospital, regardless of whether the beds are actually available for patient use.
(f) Admissions represent the number of patients admitted for inpatient services.
(g) Adjusted admissions are computed by multiplying admissions by gross patient revenues and then dividing that number by gross inpatient revenues.
(h) Surgeries represent the number of inpatient and outpatient surgeries.
(i) Emergency room visits represent the number of patients registered and treated in the Company’s emergency rooms.
(j) Medicare case mix index is a relative value assigned to a diagnosis-related group of patients that is used in determining the allocation of resources necessary to treat the patients in that group. Medicare case mix index is calculated as the average case mix index for all Medicare admissions during the period.
(k) Same-facility financial and operating data excludes hospitals that were sold or closed prior to and as of the end of the current reporting period. Same-facility operating results have been adjusted to exclude the operating results of Sandhills Regional Medical Center, Barrow Regional Medical Center, Cherokee Medical Center, Trinity Hospital of Augusta, Lock Haven Hospital, Sunbury Community Hospital, L.V. Stabler Memorial Hospital, Affinity Medical Center, Vista Medical Center West, Clearview Regional Medical Center and McKenzie Regional Hospital which were sold or closed on December 1, 2016, December 31, 2016, March 31, 2017, June 30, 2017, September 30, 2017, September 30, 2017, October 31, 2017, February 11, 2018, March 1, 2018, March 31, 2018 and September 30, 2018, respectively.
Forward-Looking Statements
The terms “QHC,” “Quorum Health,” “the Company,” “we,” “us” or “our” refer to Quorum Health Corporation or one or more of its subsidiaries or affiliates as applicable.
This press release 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 uncertainties. All statements in this press release other than statements of historical fact, including statements regarding projections, expected operating results, and other events that depend upon or refer to future events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “thinks,” “outlook,” and similar expressions, are forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and may be beyond the control of the Company. Accordingly, the Company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. A number of factors could affect the future results of the Company or the healthcare industry generally and could cause the Company’s expected results to differ materially from those expressed in this press release.
These factors include, but are not limited to, the following:
Although we believe that these forward-looking statements are based upon reasonable assumptions, these assumptions are inherently subject to significant regulatory, economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and may be beyond our control. Accordingly, we cannot give any assurance that our expectations will in fact occur and caution that actual results may differ materially from those in the forward-looking statements. Given these uncertainties, prospective investors are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this filing. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190312005882/en/
Investor Contact:Asher DewhurstWestwicke PartnersQuorumHealth@Westwicke.com(443) 213-0500
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