Community Health Systems, Inc. (NYSE:CYH) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 02, 2018 • 11:00 am ET


Community Health Systems, Inc. (NYSE:CYH) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good morning. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Community Health Systems First Quarter 2018 Quarterly Earnings Conference Call. I will now turn the call over to Mr. Ross Comeaux, Vice President of Investor Relations. You may begin your conference.

Ross W. Comeaux

Thank you, Mike. Good morning and welcome to Community Health Systems first quarter conference call. Before we begin the call, I'd like to read the following disclosure statement. This conference call may contain certain forward-looking statements, including all statements that do not relate solely to historically or current facts. These forward-looking statements are subject to a number of known and unknown risks, which are described in headings such as Risk Factors in our annual report on Form 10-K and other reports filed with or furnished to Securities and Exchange Commission.

As a consequence, actual results may differ significantly from those expressed in any forward-looking statements in today's discussion. We do not intend to update any of these forward-looking statements. Yesterday afternoon, we issued a press release with our financial statements and definitions and calculations of adjusted EBITDA and adjusted EPS. For those of you listening to the live broadcast of this conference call, a supplemental slide presentation has been posted to our website.

We will refer to those slides during this earnings call. As a reminder, we've adopted the new revenue recognition standard in ASC 606 on January 1, 2018. One take from this new standard is that the majority of what was previously classified as provision for bad debt are now reflected as implicit price concessions, and therefore included as a reduction to net operating revenues in 2018, which we have characterized as the provision for uncollectible revenue on a go-forward basis.

As such, the numbers we will discuss include comparisons of net revenue after the provision for uncollectible revenue in 2018 and 2017. All calculations we will discuss also exclude the discontinued operations, loss from early extinguishment of debt, impairment expense, as well as gains and losses on the sale of businesses, expenses incurred related to divestitures, expenses related to the government and other legal settlements and related costs, expenses related to employee termination benefits and other restructuring charges, expense from fair value adjustments to the CVR agreement liability related to the HMA legal proceedings, and related legal expenses.

With that said, I'd like to turn the call over to Mr. Wayne Smith, Chairman and Chief Executive Officer. Mr. Smith?

Wayne T. Smith

Thank you, Ross. Good morning and welcome to our first quarter conference call. Tim Hingtgen, our President and Chief Operating Officer, is with me on the call today along with Tom Aaron, our Executive Vice President and Chief Financial Officer. On today's call, I will provide some comments on the company, as well as our performance during the quarter. Then I'll turn the call over to Tim, who will discuss some additional detail around our operations, and then Tom will provide more color