Quorum Health Corporation (NYSE:QHC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 11:00 am ET


Quorum Health Corporation (NYSE:QHC) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, and welcome to Quorum Health Corporation's Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. As a reminder, today's call is being recorded. 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 historical 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 the company's Form 10-K filing and other reports filed with or furnished to the Securities and Exchange Commission. As a consequence, actual results may differ significantly from those expressed in any forward-looking statement in today's discussion. The company does not intend to update any of these forward-looking statements. Quorum Health issued a press release last night with their financial statements and definitions and calculations of adjusted EBITDA and same-facility adjusted EBITDA, including reconciliations to U.S. GAAP measurements. A slide presentation is available on the company's website to supplement today's call.

Results discussed today consolidate the results of Quorum's 24 owned or leased hospitals and results of Quorum Health Resources. Same-facility information excludes the results of the 14 facilities that have been divested or closed since the spin-off through September 30, 2019. In addition, the company filed their quarterly report on Form 10-Q last night. All discussions today are supplemented by the press release, the earnings presentation on the company's website and the Form 10-Q. All non-GAAP calculations discussed will exclude certain legal, professional and settlement costs, charges relating to the impairment of long-lived assets and goodwill, the net gain or loss on sale of hospitals, the net loss on the closure of hospitals, cost associated with the transition of the Transition Service Agreements or TSAs, change in actuarial estimates and severance cost of headcount reductions and executive changes.

Please refer to the earnings presentation located on the Investor Relations section of the company's website at www.quorumhealth.com. For further description and calculation of adjusted EBITDA and same-facility adjusted EBITDA and a reconciliation of these non-GAAP measures to income or loss, their most directly comparable GAAP measure.

With that, I'd like to turn the call over to Mr. Bob Fish, Quorum's President and Chief Executive Officer. Mr. Fish, you may proceed.

Bob Fish

Thanks, operator. Good morning, and thanks for joining us on today's call. With me this morning are Alfred Lumsdaine, our Chief Financial Officer; and Marty Smith, our Chief Operating Officer. On the call today, I'll discuss results from our third quarter and provide information on our revenue cycle and divestitures before turning the call over to Marty to cover third quarter operating results and Alfred for financial results and a discussion of updated guidance.

Despite the soft results, which I'll discuss further in a moment, I'm pleased with many aspects of the progress we've made operationally during the