Quorum Health Corp

CIK:0001650445|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net operating revenues	$ 343,787	$ 442,805
Operating costs and expenses:
Salaries and benefits	176,244	225,075
Supplies	42,016	51,385
Other operating expenses	124,894	136,789
Depreciation and amortization	12,218	14,639
Lease costs and rent	9,806	11,531
Electronic health records incentives		26
Legal, professional and settlement costs	11,341	685
Impairment of long-lived assets and goodwill	12,000	8,860
Loss (gain) on sale of hospitals, net	2,421	0
Loss on closure of hospitals, net	202	0
Total operating costs and expenses	391,142	448,990
Income (loss) from operations	(47,355)	(6,185)
Interest expense, net	32,034	32,266
Income (loss) before income taxes	(79,389)	(38,451)
Provision for (benefit from) income taxes	112	155
Net income (loss)	(79,501)	(38,606)
Less: Net income (loss) attributable to noncontrolling interests	271	400
Net income (loss) attributable to Quorum Health Corporation	$ (79,772)	$ (39,006)
Earnings (loss) per share attributable to Quorum Health Corporation stockholders:
Basic and diluted	$ (2.61)	$ (1.33)
Weighted-average shares outstanding:
Basic and diluted	30,512,747	29,438,015

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (79,501)	$ (38,606)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	12,218	14,639
Non-cash interest expense, net	2,381	1,939
Provision for (benefit from) deferred income taxes	37	90
Stock-based compensation expense	1,063	1,770
Impairment of long-lived assets and goodwill	12,000	8,860
Loss (gain) on sale of hospitals, net	2,421	0
Non-cash portion of loss (gain) on hospital closures	(1,608)	(567)
Changes in reserves for self-insurance claims, net of payments	(595)	4,160
Other non-cash expense (income), net	187	(1,372)
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Patient accounts receivable	16,059	(3,986)
Due from and due to third-party payors, net	(2,216)	(4,421)
Inventories, prepaid expenses and other current assets	512	4,911
Accounts payable and accrued liabilities	29,772	20,146
Long-term assets and liabilities, net	(1,467)	515
Net cash provided by (used in) operating activities	(8,737)	8,078
Cash flows from investing activities:
Capital expenditures for property and equipment	(10,306)	(8,292)
Capital expenditures for software	(1,683)	(1,191)
Acquisitions, net of cash acquired	0	(455)
Proceeds from the sale of hospitals	990	0
Other investing activities, net	334	1,729
Net cash provided by (used in) investing activities	(10,665)	(8,209)
Cash flows from financing activities:
Borrowings under revolving credit facilities	129,000	152,000
Repayments under revolving credit facilities	(80,000)	(150,000)
Borrowings of long-term debt	11	161
Repayments of long-term debt	(515)	(1,833)
Payments on purchase contracts	(701)	0
Cancellation of restricted stock awards for payroll tax withholdings on vested shares	(157)	(461)
Cash distributions to noncontrolling investors	0	(1,223)
Net cash provided by (used in) financing activities	47,638	(1,356)
Net change in cash, cash equivalents and restricted cash	28,236	(1,487)
Cash and cash equivalents at beginning of period	3,145	3,203
Cash and cash equivalents at end of period	31,381	1,716
Supplemental cash flow information:
Interest payments, net	18,243	18,215
Income tax payments, net	0	0
Non-cash purchases of property and equipment under finance lease obligations	$ 128	$ 79

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 31,381	$ 3,145
Patient accounts receivable	270,826	286,901
Inventories	38,872	38,747
Prepaid expenses	20,206	19,606
Due from third-party payors	37,736	33,385
Other current assets	24,668	27,259
Total current assets	423,689	409,043
Property and equipment, net	479,084	492,016
Goodwill	391,414	391,724
Intangible assets, net	49,316	49,155
Operating lease right-of-use assets	71,091	74,335
Other long-term assets	72,767	75,612
Total assets	1,487,361	1,491,885
Current liabilities:
Current maturities of long-term debt	1,262,744	1,211,485
Current portion of operating lease liabilities	20,994	22,506
Accounts payable	163,273	156,669
Accrued liabilities:
Accrued salaries and benefits	59,174	51,731
Accrued interest	32,410	21,066
Due to third-party payors	46,143	44,008
Other current liabilities	42,376	43,329
Total current liabilities	1,627,114	1,550,794
Long-term debt	20,569	20,988
Long-term operating lease liabilities	50,714	52,601
Deferred income tax liabilities, net	7,841	7,683
Other long-term liabilities	93,375	93,535
Total liabilities	1,799,613	1,725,601
Redeemable noncontrolling interests	2,286	2,278	$ 2,278	$ 2,278
Quorum Health Corporation stockholders' equity (deficit):
Preferred stock, $0.0001 par value per share, 100,000,000 shares authorized, none issued	0	0
Common stock, $0.0001 par value per share, 300,000,000 shares authorized; 32,664,536 shares issued and outstanding at March 31, 2020 and 32,871,019 shares issued and outstanding at December 31, 2019	3	3
Additional paid-in capital	562,429	561,541
Accumulated other comprehensive income (loss)	418	359
Accumulated deficit	(892,891)	(813,119)
Total Quorum Health Corporation stockholders' equity (deficit)	(330,041)	(251,216)
Nonredeemable noncontrolling interests	15,503	15,222
Total equity (deficit)	(314,538)	(235,994)	$ (114,129)	$ (74,930)
Total liabilities and equity	$ 1,487,361	$ 1,491,885